UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 FORM 10-K 

 

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended December 31, 2021

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

CARNEGIE DEVELOPMENT, INC.

(Exact Name of Registrant as Specified in its Charter)

 

Nevada

 

90-0712976

(State or other jurisdiction of

Incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

3495 Lakeside Drive, #1087

Reno, Nevada

 

89509

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: 800-345-8561

 

Securities registered pursuant to Section 12(b) of the Act: None

 

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.00001 par value

 

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☐ Yes     ☒ No

 

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ☐ Yes     ☒ No

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. ☐ Yes     ☒ No

 

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). ☐ Yes     ☒ No

 

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the Registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

 

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes     ☒ No

 

State the aggregate market value of the voting and nonvoting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold or the average bid and asked price of such common equity, as of the last business day of the Registrant’s most recently completed second fiscal quarter.

 

Held by Non-affiliates at Market Price as on June 30, 2021

    

Voting

Common Stock

6,203,716 Shares

$1.00 per Share

$6,203,716

 

DOCUMENTS INCORPORATED BY REFERENCE

 

None

 

 

 

 

 

TABLE OF CONTENTS 

      

 

 

Page

 

PART I

 

 

 

 

 

FORWARD LOOKING STATEMENTS

 

3

 

Item 1.

BUSINESS

 

4

 

Item 1A.

RISK FACTORS

 

5

 

Item 1B.

UNRESOLVED STAFF COMMENTS

 

5

 

Item 2.

DESCRIPTION OF PROPERTY

 

5

 

Item 3.

LEGAL PROCEEDINGS

 

5

 

Item 4.

MINE SAFETY DISCLOSURES

 

5

 

 

 

 

PART II 

 

 

 

 

 

Item 5.

MARKET FOR REGISTRANTS COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITY

 

6

 

Item 6.

SELECTED FINANCIAL DATA

 

6

 

Item 7.

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

 

7

 

Item 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

8

 

Item 8.

FINANCIAL STATEMENTS

 

9

 

Item 9A.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 

22

 

Item 9B.

CONTROLS AND PROCEDURES

 

22

 

Item 9C.

OTHER INFORMATION

 

22

 

 

 

PART III

 

 

 

 

 

 

 

 

Item 10.

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

23

 

Item 11.

EXECUTIVE COMPENSATION

 

23

 

Item 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 

24

 

Item 13.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

 

24

 

Item 14.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

 

 

24

 

Item 15.

EXHIBITS.

 

25

Item 16.

Form 10-K Summary (Being Optional, not provided)

 

 

 

 

 

2

Table of Contents

 

PART I

 

As used in this Annual Report on Form 10-K, the terms “we”, “us”, “our”, the “Company”, “Carnegie Development, Inc.” and “Carnegie Development” mean “Carnegie Development, Inc”, and its consolidated subsidiaries, unless otherwise indicated.

 

FORWARD-LOOKING STATEMENTS

 

This Annual Report on Form 10-K and other written and oral statements made from time to time by us may contain so-called “forward-looking statements,” all of which are subject to risks and uncertainties.

 

Forward-looking statement are intended to help in understanding our historical results of operations during the periods presented and our financial condition. They should be read in conjunction with our consolidated financial statements and the accompanying notes to consolidated financial statements and contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements. All forward-looking statements speak only as of the date on which they are made. We undertake no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they are made.

 

Forward-looking statements can be identified by the use of words such as “expects,” “anticipates,” “plans,” “will,” “should,” “could,” “forecasts,” “projects,” “intends,” “estimates,” and other words of similar meaning. One can identify them by the fact that they do not relate strictly to historical or current facts. These statements are likely to address our growth strategy, financial results and product and development programs. One must carefully consider any such statement and should understand that many factors could cause actual results to differ from our forward-looking statements. These factors may include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed, and actual future results may vary materially.

 

These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including the risks in the section entitled “Risk Factors” and the risks set out below, any of which may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These risks include, by way of example and not in limitation:

 

 

The uncertainty of profitability;

 

 

High volatility in the value attributable to our business model and assets;

 

 

Rapid change in the regulatory and legal environment in which we operate with many unknown future challenges to operating our business in a lawful manner or which will require our business or the businesses in which we invest to be subjected to added costs and/or uncertainty regarding the ability to operate;

 

 

Risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; and

 

 

Other risks and uncertainties related to our business plan and business strategy.

 

This list is not an exhaustive list of the factors that may affect any of our forward-looking statements. These and other factors should be considered carefully, and readers should not place undue reliance on our forward-looking statements. Forward looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made, and we undertake no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as may be required under applicable law. We cannot guarantee future results, levels of activity, performance, or achievements.

 

3

Table of Contents

 

ITEM 1. BUSINESS

 

OVERVIEW

 

This Company was originally incorporated in the State of Delaware in February 1988 under the name Technicraft Financial, Ltd. In October 1991, the Company changed its name to LBM-US, Inc. (“LBM”). Pursuant to an agreement effective August 1994, LBM acquired all the assets and liabilities of GK Intelligent Systems, Inc., a Texas corporation, in exchange for 6,758,920 shares of LBM common stock which were issued to Gary F. Kimmons and his family partnership. The remaining 963,275 shares of LBM common stock then outstanding were retained by the former shareholders of LBM in transaction treated for accounting purposes as a reverse merger. On April 3, 2002, the Company effectuated a 1-for-10 reverse split of its common stock. On May 18, 2005, the Company changed its name to M Power Entertainment, Inc. and effectuated a 1-for-200 reverse split of its common stock and changed the names as GK Intelligent Systems, Inc. On September 4, 2007, the Company changed its name to eDoorways Corporation and effectuated a 1-for-2,000 reverse split of its common stock. In May 2010, the Company changed its name to eDoorways International Corporation. On October 27, 2011, the Company effectuated a 1-for-1,000 reverse split of its common stock. On May 6, 2013, the Company converted from a Delaware corporation to a Nevada corporation. In April 2015, Sohail Quraeshi, the then CEO, was issued 1,000 shares of the Company’s Series A Preferred Stock which had previously been issued to our former Acting CEO, Arne Ray, who served from August 13, 2013 until April 1, 2015. Those shares were returned as Treasury stock by Mr. Ray, without consideration, and then issued to Sohail Quraeshi as compensation valued at fair market value, or $4.00 per share so as comply with FASB ASC Topic 718 column (e). This transaction constituted a change of control of the Company as the Series A Preferred Shares, collectively, votes an equivalent of 75% of all eligible voting shares. The owner of such shares prior to being held by Mr. Ray was our former CEO, Gary Kimmons, who held such shares from issuance until August 15, 2013. The issuances of the shares of Series A Preferred Stock were also treated as compensation to Messrs. Kimmons and Ray, respectively, and valued a fair market value of $0.01 per share pursuant to FASB ASC Topic 718 (e). On June 23, 2015, a Certificate of Amendment to Articles of Incorporation of the Company, which was filed with the Nevada Secretary of State on June 1, 2015, was declared effective by FINRA – Corporate Actions, whereby the Company effectuated (i) A reduction in the number of authorized shares of common stock from 2,500,370,900 to 250,000,000; (ii) a Change of name from eDoorways International Corporation to Escue Energy, Inc.; and (iii) a 1-for-2,000 reverse split of the Company’s common stock, $0.00001 par value per share. Effective July 1st, 2019 the Articles of Incorporation has been amended and the new name is Carnegie Development, Inc. On Tuesday 3rd September 2019, this company completed the online application (Filing ID: 4128722) for name change and symbol change. On Friday 3rd April 2020 FINRA required the company to resubmit the application (OTC Corporate Actions CAS – 68178).

 

Since 2021, the company is engaged in land acquisitions for Real Estate Development and its new subsidiary engaged in – managing of construction projects for a fee.  On 22nd November 2021, the Company entered into a subscription agreement and issued 4,761,905 shares of common stock at an aggregate consideration value of $1,000,000 ($0.21 per share) to Lynn Investments LLC in consideration for acquiring 100% membership interest in Lajolla Construction Management LLC.  This acquisition was reported in Form 8-K on 7th December 2021

 

INDUSTRY AND MARKET DATA

 

Information regarding market and industry statistics contained in this Annual Report on Form 10-K has been obtained from industry and other publications that we believe to be reliable, but that are not produced for purposes of securities filings. We have not independently verified any market, industry or similar data presented in this Annual Report and cannot assure you of its accuracy or completeness. Further, we have not reviewed or included data from all sources. Forecasts and other forward-looking information obtained from third-party sources are subject to the same qualifications and the additional uncertainties accompanying any estimates of future market size, revenue and market acceptance of products and services. As a result, investors should not place undue reliance on any such forecasts and other forward-looking information.

 

PRODUCTS AND SERVICES

 

Real Estate Development: Since 2021, the company is engaged in land acquisitions for Real Estate Development.

 

COMPETITION

 

There exist five basic competitive forces, which are the threat of new market entrants, the threat of substitute products, the bargaining power of buyers, the bargaining power of suppliers, the competition within existing rivals

 

National Multi-family Housing Council1 ranked Alliance Residential in Phoenix, AZ as the top-ranking developer2 in 2020.

  

The company’s name is an acronym of “Innovation, and Excellence”.

 

DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS

 

We presently do not have any customers for our services as we are collaborating with various the Single Purpose Entities.

 

_________

1 NMHC | 2020 Top Developers List

 

2 A Developer is the firm responsible for the entire process related to the development of a new multifamily (defined as five or more units) rental community (including independent living and age-restricted housing). The developer controls everything from preliminary planning to obtaining financing to preparing the community for delivery to the market, and typically is responsible for selection of the builder. Units are started for the developer’s own account, and upon completion of units, the developer will be the owner of the units. This includes developers who may sell their property after the units have been leased. 

 

4

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PATENTS, TRADEMARKS, LICENSES, FRANCHISES, CONCESSIONS, ROYALTY AGREEMENTS OR LABOR CONTRACTS, INCLUDING DURATION:

 

The company had no PATENTS, TRADEMARKS, LICENSES, FRANCHISES, CONCESSIONS, ROYALTY AGREEMENTS OR LABOR CONTRACTS.

  

NEED FOR ANY GOVERNMENT APPROVAL OF PRINCIPAL PRODUCTS OR SERVICES

 

Not applicable.

 

RESEARCH AND DEVELOPMENT ACTIVITIES AND COSTS

 

All our research and development activities are presently borne by the Company. As on the reporting date, we have spent $0 on research and development activities.

 

COSTS AND EFFECTS OF COMPLIANCE WITH ENVIRONMENTAL LAWS

 

We do not expect any environmental laws to give rise to additional costs to our business.

 

EMPLOYEES

 

As on the reporting date and thereafter, we had no employee, except the three corporate officers. During 2019, to lower operating costs, we relied on the independent consultants rather than through employment contracts.

 

ITEM 1A. RISK FACTORS

 

Smaller reporting companies are not required to provide the information required by this item.

 

ITEM 1B. UNRESOLVED STAFF COMMENTS

 

None.

 

ITEM 2. DESCRIPTION OF PROPERTY

 

The Company does not own any real estate or other properties.

 

ITEM 3. LEGAL PROCEEDINGS

 

There are no legal proceedings to which the Company is a party or in which any director, officer or affiliate of the Company, or any owner of record or beneficially of more than 5% of any class of voting securities of the Company, is a party.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

5

Table of Contents

 

PART II

 

ITEM 5. MARKET FOR REGISTRANTS’ COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 

Our common stock is presently traded in the over-the-counter market and quoted on the National Association of Securities Dealers’ OTC Bulletin Board System under the ticker symbol “CDJM.PK.”

 

Because we are quoted on the OTC Pink market, our securities may be less liquid, receive less coverage by security analysts and news media, and generate lower prices than might otherwise be obtained if they were listed on a national securities exchange.

 

The following table describes, for the respective periods indicated, the price of our common stock in the over-the-counter market, based on inter-dealer bid prices, without retail mark-up, mark-down or commissions. The figures below may not necessarily represent actual transactions. The share price is extracted from https://www.otcmarkets.com/stock/CDJM/overview

 

Fiscal 2021

 

High

 

 

Low

 

First Quarter

 

$ 3.04

 

 

$ 1.62

 

Second Quarter

 

$ 2.79

 

 

$ 0.41

 

Third Quarter

 

$ 1.99

 

 

$ 0.51

 

Fourth Quarter

 

$ 1.01

 

 

$ 0.05

 

 

 

 

 

 

 

 

 

 

Fiscal 2020

 

High

 

 

Low

 

First Quarter

 

$ 2.05

 

 

$ 1.00

 

Second Quarter

 

$ 3.04

 

 

$ 0.55

 

Third Quarter

 

$ 3.81

 

 

$ 1.12

 

Fourth Quarter

 

$ 2.30

 

 

$ 1.37

 

 

Number of shareholders

 

On record, there are 227 shareholders of our Common Stock as of 25st March 2022.

 

Transfer Agent

 

Our registrar and transfer agent for the common stock, is Pacific Stock Transfer, 6725 Via Austi Parkway, Suite 300 Las Vegas, NV 89119

 

Dividends

 

We have not declared any cash dividends with respect to our common stock, and we do not intend to declare dividends in the foreseeable future. We anticipate that any earnings generated from our operations will be used to finance our ongoing operations and growth.

 

ITEM 6. SELECTED FINANCIAL DATA

 

Smaller reporting companies are not required to provide the information required by this item

 

6

Table of Contents

 

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

 

This Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity, and certain other factors that may affect our future results. The following discussion and analysis should be read in conjunction with our audited consolidated financial statements and the accompanying notes thereto included in “Item 8. Financial Statements and Supplementary Data.” In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. See “Forward-Looking Statements.” Our results and the timing of selected events may differ materially from those anticipated in these forward-looking statements because of many factors.

 

Much of the discussion in this Item is “forward-looking” as that term is used in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Actual operations and results may materially differ from present plans and projections due to changes in economic conditions, new business opportunities, changed business conditions, and other developments. Other factors that could cause results to differ materially are described in our filings with the Securities and Exchange Commission. There are several factors that could cause actual results or events to differ materially from those anticipated, and include, but are not limited to general economic, financial and business conditions, changes in and compliance with governmental laws and regulations, including various state and federal environmental regulations, our ability to obtain additional financing from outside investors and/or bank and mezzanine lenders and our ability to generate sufficient revenues to cover operating losses and position us to achieve positive cash flow. Readers are cautioned not to place undue reliance on the forward-looking statements contained herein, which speak only as of a certain date. We undertake no obligation to update any forward-looking statements.

 

Going Concern

 

By the acquisition on 22nd November 2021, this Company entered into a regular business and for the first time, this Company reported revenue from its wholly owned subsidiary. This Company asserts its ability as a Going Concern.

 

Results of Operations for the current reporting period, as compared to previous reporting period

 

Revenue during the current reporting period is $22,400, as compared to $0 for the previous year

 

Expenses during the current reporting period are $36,112 which is lower than $73,609 for the previous year.

 

The net loss for the current year is $13,712 lower than $73,609 for the previous year.

 

Liquidity and Capital Resources

 

During the two months of November and December 2021, the wholly owned subsidiary reported $22,400 revenue, which is a positive sign for liquidity. However, this Company may need at least a year or two to achieve stronger liquidity

 

With the deposit of $1 million by the wholly owned subsidiary, the Company’s resources can yield higher return on investments. However, the Company’s activities are in the real estate development and hence, the industry trends may impact the capital resources

 

Cash Flow from Operating Activities

 

The Company used $109,279 in cash for the current reporting period as against $65,687 in the previous year.

 

Cash Flow from Investing Activities

 

The Company neither used nor received any from the investing activities for the current reporting period and it is the same in the previous year.

 

Cash Flow from Financing Activities

 

The Company received $80,159 as a repayable loan from as a related party transaction, in the current reporting period whereas it was $66,510 in the previous year

 

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Off-Balance Sheet Arrangements

 

The company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect or change on the company’s financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

 

The term “off-balance sheet arrangement” generally means any transaction, agreement, or other contractual arrangement to which an entity unconsolidated with the company is a party, under which the company has (i) any obligation arising under a guarantee contract, derivative instrument, or variable interest; or (ii) a retained or contingent interest in assets transferred to such entity or similar arrangement that serves as credit, liquidity, or market risk support for such assets.

 

Critical Accounting Policies

 

A critical accounting policy is defined as one that is both material to the presentation of our financial statements and requires management to make difficult, subjective, or complex judgments that could have a material effect on our financial condition and results of operations. Specifically, critical accounting estimates have the following attributes: 1) we are required to make assumptions about matters that are highly uncertain at the time of the estimate; and 2) different estimates we could reasonably have used, or changes in the estimate that are reasonably likely to occur, would have a material effect on our financial condition or results of operations.

 

Estimates and assumptions about future events and their effects cannot be determined with certainty. We base our estimates on historical experience and on various other assumptions believed to be applicable and reasonable under the circumstances. These estimates may change as new events occur, as additional information is obtained and as our operating environment changes. These changes have historically been minor and have been included in the financial statements as soon as they became known. Based on a critical assessment of our accounting policies and the underlying judgments and uncertainties affecting the application of those policies, management believes that our financial statements are fairly stated in accordance with accounting principles generally accepted in the United States and present a meaningful presentation of our financial condition and results of operations. We believe the following critical accounting policies reflect our more significant estimates and assumptions used in the preparation of our financial statements:

 

Use of Estimates—These financial statements have been prepared in accordance with accounting principles generally accepted in the United States and, accordingly, require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Specifically, our management has estimated variables used to calculate the Black Scholes and binomial lattice model calculations used to value derivative instruments discussed below under “Valuation of Derivative Instruments”. In addition, management has estimated the expected economic life and value of our licensed technology, our net operating loss for tax purposes, share-based payments for compensation to employees, directors, consultants and investment banks, and the useful lives of our fixed assets. Actual results could differ from those estimates.

 

Deferred Financing Costs—Payments, either in cash or share-based payments, made in connection with the sale of debentures are recorded as deferred debt issuance costs and amortized using the effective interest method over the lives of the related debentures.

 

Fair Value of Financial Instruments—For certain of our financial instruments, including accounts receivable, accounts payable, accrued expenses, interest payable, bank overdraft, advances payable and notes payable, the carrying amounts approximate fair value due to their relatively short maturities.

 

Valuation of Derivative Instruments—FAS 133, “Accounting for Derivative Instruments and Hedging Activities” requires bifurcation of embedded derivative instruments and measurement of fair value for accounting purposes. In addition, FAS 155, “Accounting for Certain Hybrid Financial Instruments” requires measurement of fair values of hybrid financial instruments for accounting purposes. In determining the appropriate fair value, the Company uses a variety of valuation techniques including Black Scholes models, Binomial Option Pricing models, Standard Put Option Binomial models and the net present value of certain penalty amounts. Derivative liabilities are adjusted to reflect fair value at each period end, with any increase or decrease in the fair value being recorded in results of operations as Adjustments to Fair Value of Derivatives. The effects of interactions between embedded derivatives are calculated and accounted for in arriving at the overall fair value of the financial instruments. In addition, the fair values of freestanding derivative instruments such as warrant derivatives are valued using the Black Scholes model.

 

Stock Based Compensation—The Company follows the fair value recognition provisions of FAS 123®. Stock-based compensation expense is recognized in the financial statements for granted, modified, or settled stock options based on estimated fair values.

 

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

Not applicable to a “smaller reporting company” as defined in Rule 12b-2 of the Exchange Act.

 

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ITEM 8. FINANCIAL STATEMENTS

 

The Company chose to publish the unaudited financial statements for the current reporting period while the audit can be completed in due course when the Company has sufficient inflow of cash

 

CARNEGIE DEVELOPMENT INC

FINANCIAL STATEMENTS

 

Carnegie Development, INC

Consolidated Balance Sheet (Unaudited)

 

 

 

As of 31st December

 

 

 

2021

 

 

2020

 

Assets

 

 

 

 

Current Assets:

 

 

 

 

 

 

Bank Account

 

 

1,036

 

 

 

907

 

Deposit

 

 

1,200,000

 

 

 

 

 

Account Receivable

 

 

20,000

 

 

 

 

 

Prepaid Exp

 

 

4,125

 

 

 

 

 

Total current assets

 

 

1,225,161

 

 

 

907

 

Total assets

 

 

1,225,161

 

 

 

907

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

 

269,580

 

 

 

239,352

 

Credit Card payable

 

 

3,024

 

 

 

669

 

Loan from related party

 

 

206,679

 

 

 

156,921

 

Total Current Liabilities

 

 

479,283

 

 

 

396,942

 

Long Term Liabilities:

 

 

 

 

 

 

 

 

EDIL Loan from SBA

 

 

150,000

 

 

 

 

 

Interest accrued on loan

 

5625

 

 

 

 

 

Total Long Term Liabilities

 

 

155,625

 

 

 

0

 

Total liabilities

 

 

634,908

 

 

 

396,942

 

Stockholders' Equity

 

 

 

 

 

 

 

 

Series A preferred stock: 1,000 shares authorized, par value $0.001 per share; 1,000 shares issued and outstanding on December 31, 2021 and 1,000 shares issued and outstanding on December 31, 2020

 

 

4,000

 

 

 

4,000

 

Common stock: 250,000,000 shares authorized, par value $0.0001 per share, 50,965,621 shares issued and outstanding on December 31, 2021 and 46,203,716 shares issued and outstanding on December 31, 2020

 

 

4,532,757

 

 

 

3,532,757

 

Retained Earnings

 

 

-3,946,504

 

 

 

-3,932,792

 

Total Stockholders' Equity

 

 

590,253

 

 

 

-396,035

 

Total Liabilities & Equity

 

 

1,225,161

 

 

 

907

 

 

 
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Carnegie Development, INC 

Consolidated Income Statement (Unaudited) 

   

 

 

For the Year Ended

 

 

 

31st December

 

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

 

22,400

 

 

 

0

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Bank Charges

 

 

532

 

 

 

172

 

Dues & Subscription

 

 

1,375

 

 

 

3,872

 

Interest Exp

 

 

938

 

 

 

 

 

Legal & Professional

 

 

28,698

 

 

 

63,554

 

Office Exp

 

 

2,552

 

 

 

303

 

Taxes & Licenses

 

 

952

 

 

 

1,275

 

Website Exp

 

 

1,065

 

 

 

4,433

 

Total operating expenses

 

 

36,112

 

 

 

73,609

 

 

 

 

 

 

 

 

 

 

Net Gain (loss)

 

 

(13,712 )

 

 

(73,609 )

 

 

 

 

 

 

 

 

 

Net gain (loss) attributable to common stock

 

 

(13,712 )

 

 

(73,609 )

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

 

(0.00027 )

 

 

(0.00159 )

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average common shares outstanding

 

 

50,965,621

 

 

 

46,203,716

 

 

 
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Table of Contents

 

Carnegie Development, INC

Consolidated Cash Flow Statement (Unaudited)

 

 

 

For the Year Ended

 

 

 

31st December

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

Net Gain (loss)

 

 

(13,712 )

 

 

(73,609 )

Adjustments to reconcile Net Income to Net Cash provided by operations:

 

 

 

 

 

 

 

 

Accounts Payable

 

 

(73,797 )

 

 

8,977

 

Accounts Receivable

 

 

(20,000 )

 

 

 

 

Credit Card Payable

 

 

2,355

 

 

 

(1,055 )

Prepaid Exp

 

 

(4,125 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjustments to reconcile Net Income to Net Cash provided by operations

 

 

(95,567 )

 

 

7,922

 

Net cash provided by operating activities

 

 

(109,279 )

 

 

(65,687 )

 

 

 

 

 

 

 

 

 

CASH FLOW from Investing Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CASH used by Investing Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS from Financing Activities

 

 

80,159

 

 

 

66,510

 

 

 

 

 

 

 

 

 

 

NET CASH used by Financing Activities

 

 

80,159

 

 

 

66,510

 

 

 

 

 

 

 

 

 

 

NET CASH INCREASE (DECREASE) For PERIOD

 

 

(29,120 )

 

 

823

 

Cash, Beginning

 

 

30,156

 

 

 

84

 

Cash, Ending

 

 

1,036

 

 

 

907

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION AND NONCASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

Interest

 

 

0

 

 

 

0

 

Income taxes

 

 

0

 

 

 

0

 

 

 
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Table of Contents

  

Carnegie Development, INC

Consolidated Statement of shareholders' equity

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Surplus

 

 

 

 

 

 

Shares

 

 

Value

 

 

Addl.

 

 

Shares

 

 

Value

 

 

Addl.

 

 

(Deficit)

 

 

Net-worth

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2019

 

1000

 

 

$ 1

 

 

$ 3,999

 

 

 

41,153,156

 

 

$ 2,270,117

 

 

$ 1,142,640

 

 

$ (3,536,757 )

 

$ (120,000 )

Share Issuance

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5,050,560

 

 

$ 1,262,640

 

 

 

-

 

 

 

-

 

 

$ 1,262,640

 

Converted into Shares

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$ (1,142,640 )

 

 

-

 

 

$ (1,142,640 )

Net Income (Loss)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$ (322,426 )

 

$ (322,426 )

Balance, December 31, 2019

 

 

1,000

 

 

$ 1

 

 

$ 3,999

 

 

 

46,203,716

 

 

 

3,532,757

 

 

 

-

 

 

$ (3,859,183 )

 

$ (322,426 )

Net Income (Loss)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$ (73,609 )

 

$ (73,609 )

Balance, December 31, 2020

 

 

1,000

 

 

$ 1

 

 

$ 3,999

 

 

 

46,203,716

 

 

$ 3,532,757

 

 

 

-

 

 

$ (3,932,792 )

 

$ (396,035 )

Share Issuance

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,761,905

 

 

$ 1,000,000

 

 

 

-

 

 

 

-

 

 

$ 1,000,000

 

Net Income (Loss)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$ (13,712 )

 

$ (13,712 )

Balance, December 31, 2021

 

 

1,000

 

 

$ 1

 

 

$ 3,999

 

 

 

50,965,621

 

 

$ 4,532,757

 

 

 

-

 

 

$ (3,946,504 )

 

$ 590,253

 

  

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Table of Contents

  

CARNEGIE DEVELOPMENT INC

NOTES TO FINANCIAL STATEMENTS

December 31, 2021

  

1. NATURE OF OPERATIONS AND BASIS OFPRESENTATION

 

Carnegie Development Inc., is a publicly trading company under the symbol, “CDJM”

 

The Company Website is

 

http://carnegiedevelopment.net/ This Company was previously known as:

 

 

·

Escue Energy Inc until July 1, 2019

 

 

o

State of incorporation changed from Delaware to Nevada in 2015

 

 

·

eDoorways Corporation, Inc. until 2015

 

·

M Power Entertainment, Inc. until 2007

 

·

GK Intelligent Systems, Inc. until 2005

 

·

Technicraft Financial, Ltd. until 1994

 

·

Incorporated in Delaware in February 1988

 

Effective July 1st, 2019 the Articles of Incorporation has been amended and the new name is Carnegie Development, Inc.

 

On Friday 5th June 2020, FINRA approved the name change as well as the symbol change. The new CUSSIP is 14350V108

 

Going concern

 

The Company has an accumulated deficit of $3,946,504 as on the reporting date and there was no revenue since inception. Since this company is not a fully reporting company and is filing the reports voluntarily, the Company is currently filing the unaudited financial statements and wait for the audited financial statements

 

The Company is also seeking debt or equity financing to fund its development plan although no financing arrangements are currently in place and the Company can provide no assurance that financing will be available on acceptable terms. However, the management believes that the actions for (a) obtaining the additional funds and (b) implementing its strategic plans, provide the opportunity for the Company to continue as a going concern.

 

Basis of Presentation

 

This Company uses the enterprise reporting under the provisions of Statement of Financial Accounting Standards ("SFAS”) no. 7. The accompanying financial statements are prepared in accordance with Generally accepted accounting principles (“US GAAP”) in the United States of America.

 

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2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Use of Estimates and Assumptions

 

The preparation of financial statements requires the 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 reporting amounts of revenues and expenses for the reported period. Actual results will differ from those estimates.

 

Included in these estimates are legal risks and exposures, valuation of stock-based compensation, the potential outcome of future tax consequences of events that have been recognized in the financial statement or tax returns.

 

Cash and Cash Equivalents

 

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

 

Concentration of Credit Risks

 

The Company is engaged in land acquisitions for real estate development.

 

The Company's cash and cash equivalents accounts are held at financial institutions and are insured by the Federal Deposit Insurance Corporation, or the FDIC, up to $250,000. As on the reporting date, there were no cash balances in excess of federally insured limits.

 

Product Concentration 

 

As part of real estate development, this company can sell the well laid-out paper lots (a parcel with ann approved tract map which is essentially a level of entitlements) as approved by the city and/or use the paper lots for building (a) single family homes; (b) multi-family homes; and/or (c) Rent-To-Build Homes.

 

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Fair Value of Financial Instruments

 

The Company accounts, for the assets and liabilities measured at fair value on a recurring basis, in accordance with ASC Topic 820, Fair Value Measurements and Disclosures, ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements

 

ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below:

 

Level 1 : Observable inputs such as quoted market prices in active markets for identical assets or liabilities.

Level 2 : Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3 : Unobservable inputs for which there is little or no market data, which require the use of the reporting

entities own assumptions.

 

The Company did not have any Level 2 or Level 3 assets or liabilities on the reporting date.

 

The Company did not identify any non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value in accordance with ASC 815

 

ASC 825-10 "Financial Instruments." permits entities to choose to measure many financial assets and financial liabilities at fair value. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. The Company chose not to elect the option to measure the fair value of eligible financial assets and liabilities.

 

Additional Disclosures Regarding Fair Value Measurements

 

The carrying value of cash and cash equivalents, credit card payable, accounts payable and loan from related party approximate their fair value due to the short maturity of these items.

 

Revenue Recognition

 

The Company recognizes revenue on arrangements in accordance with ASC 606 — Revenue from Contracts with Customers. Revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collectability of the resulting receivable is reasonably assured. Since inception and until now, this company has not earned any revenue.

 

Advertising

 

The Company expenses advertising costs as incurred. The Company did not spend any money for the advertising, during the reporting period.

 

Share-Based Payment

 

The Company accounts for stock-based compensation in accordance with ASC Topic 718, Compensation- Stock Compensation, Under the fair value recognition provisions of this topic, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite service period, which is the vesting period.

 

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Table of Contents

 

Basic and Diluted Earnings per Share

 

Basic earnings per share are calculated by dividing the income available to stockholders by the weighted- average number of shares of Common Stock outstanding during each period. Diluted earnings per share are computed using the weighted average number of shares of Common Stock and dilutive Common Stock share equivalents outstanding during the period. Dilutive Common Stock share equivalents consist of shares issuable upon the exercise of stock options and warrants (calculated using the modified-treasury stock method). Earnings per share calculations are provided as part of the income statement.

 

Provisions

 

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made.

 

Net Income per Share

 

The Company computes net income (loss) per share in accordance with ASC 260-10, "Earnings per Share." The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per share gives effect to all dilutive potential common shares outstanding during the period using the "as if converted” basis.

 

LOAN FROM RELATED PARTY

 

A short-term loan was extended by a related party to finance working capital requirements of the Company. The loan is unsecured, and non- interest bearing, with no set terms of repayment.

 

3. COMMON STOCK AND PREFERRED

 

STOCK Common Stock

 

There is currently only one class of common stock. Each share common stock is entitled to one vote.

 

The authorized number of shares of common stock of the Company on the reporting date was 250,000,000 shares with a par value per share of $0.00001. Authorized shares that have been issued and outstanding are 50,965,621 as on the reporting date. Past dues were settled by share issuance as reflected in Statement of Shareholders equity.

 

Preferred Stock

 

Series A - [1] Designation: A series of preferred stock is hereby designated as Series A Preferred Stock. [2] Liquidation Preference: The holders of the Series A Preferred Stock has no liquidation preference. [3] Dividends: The holders of the Series A Preferred Stock shall not receive dividend. [4] Number: The number of shares is fixed at 1,000. As on the reporting date, 1,000 shares are authorized, issued and outstanding. [5] Conversion: The Series A Preferred Stock is not convertible into shares of common stock. [7] Voting Rights: The Series A Preferred Stock, collectively, are entitled to that number of votes which shall equal Seventy-five percent (75%) of all eligible votes. There is currently 1 shareholder of record of the company's common stock.

 

Additional paid in capital

 

Additional paid in capital is attributable to Series A preferred stock.

 

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Table of Contents

 

4. RELATED PARTY TRANSACTIONS

 

Related parties comprise the shareholders, directors, key management personnel of the Company, and entities controlled, jointly controlled, or significantly influenced by such parties.

 

The company enters transaction with related parties which arise in the normal course of business from the commercial transactions and same are approved the board.

 

Since 2019, this company is receiving short loan from a private business entity to pay the bills. The Chairman & the CEO of this company is also managing the private business entity which is providing the short-term loan to this company.

 

No remuneration was paid to any directors or members of key management during the current reporting year

 

 

 

Q4 2021

 

 

Q3 2021

 

 

Q2 2021

 

 

Q1 2021

 

Compensation.

 

$ 0

 

 

$ 0

 

 

$ 0

 

 

$ 0

 

 

5. INCOME TAXES

 

Deferred income taxes are provided using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards, 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 the changes in tax laws and rates of the date of enactment.

 

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

 

Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations.

 

A reconciliation of the Company's effective tax rate to the statutory federal rate is as follow

 

 

 

2021

 

 

2020

 

Deferred tax assets

 

USD

 

 

USD

 

Net operating loss carryovers

 

 

3,946,504

 

 

 

3,932,792

 

Stock-based compensation

 

 

-

 

 

 

-

 

Other temporary differences

 

 

-

 

 

 

-

 

Total deferred tax assets

 

 

3,946,504

 

 

 

3,932,792

 

Valuation allowance

 

 

(3,946,504 )

 

 

(3,932,792 )

Net deferred tax asset

 

 

-

 

 

 

-

 

 

As on the reporting date, the Company had net operating loss carryovers of $3,946,504 that may be applied against future taxable income and expires at various dates between 2026 and 2031, subject to certain limitations. The Company has a deferred tax asset arising substantially from the benefits of such net operating loss deduction and has recorded a valuation allowance for the full amount of this deferred tax asset since it is more likely than not that some or all the deferred tax asset may not be realized.

 

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Table of Contents

 

6. Acquisition

 

On November 22, 2021, the Company entered into a Subscription Agreement and issued 4,761,905 shares of Common Stock at an aggregate consideration value of $1,000,000 ($0.21 per share) to Lynn Investments, LLC, a Texas limited liability company, in consideration for acquiring 100% of the membership interest in Lajolla Construction Management, LLC (“Lajolla”), a Texas limited liability company.  Lajolla is engaged in the business of management of construction projects for a fee.  This acquisition was reported in Form 8-K on December 07, 2021.

 

The Operating Income of the wholly owned subsidiary is consolidated from the date of acquisition to the balance sheet date, as below

 

Income Statement

 

From 1st January 2021 to 23rd November 2021

 

 

From 23rd November 2021 to 31st December 2021

 

 

From 1st January 2021 to 31st December 2021

 

 

 

CDJM

 

 

LCM

 

 

Combined

 

 

CDJM

 

 

LCM

 

 

Combined

 

 

CDJM

 

 

LCM

 

 

Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

22,400

 

 

 

22,400

 

 

 

 

 

 

22,400

 

 

 

22,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank Charges

 

 

421

 

 

 

 

 

 

421

 

 

 

111

 

 

 

 

 

 

 

111

 

 

 

532

 

 

 

 

 

 

 

532

 

Dues & Subscription

 

 

1,375

 

 

 

 

 

 

1,375

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

1,375

 

 

 

 

 

 

 

1,375

 

Interest Exp

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

937

 

 

 

938

 

 

 

 

 

 

 

938

 

 

 

938

 

Legal & Professional

 

 

25,516

 

 

 

 

 

 

25,516

 

 

 

3,183

 

 

 

 

 

 

 

3,183

 

 

 

28,699

 

 

 

 

 

 

 

28,699

 

Office Exp

 

 

1,157

 

 

 

 

 

 

1,157

 

 

 

275

 

 

 

1,119

 

 

 

1,394

 

 

 

1,433

 

 

 

1,119

 

 

 

2,552

 

Taxes & Licenses

 

 

952

 

 

 

 

 

 

952

 

 

 

-

 

 

 

 

 

 

 

-

 

 

 

952

 

 

 

 

 

 

 

952

 

     Website Exp

 

 

888

 

 

 

 

 

 

888

 

 

 

177

 

 

 

 

 

 

 

177

 

 

 

1,065

 

 

 

 

 

 

 

1,065

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

30,309

 

 

 

-

 

 

 

30,309

 

 

 

3,747

 

 

 

2,056

 

 

 

5,803

 

 

 

34,056

 

 

 

2,056

 

 

 

36,112

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income/Loss

 

 

(30,309 )

 

 

-

 

 

 

(30,309 )

 

 

(3,747 )

 

 

20,344

 

 

 

16,597

 

 

 

(34,056 )

 

 

20,344

 

 

 

(13,712 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Gain (loss)

 

 

(30,309 )

 

 

-

 

 

 

(30,309 )

 

 

(3,747 )

 

 

20,344

 

 

 

16,597

 

 

 

(34,056 )

 

 

20,344

 

 

 

(13,712 )

 

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Table of Contents

 

The Details of Balance sheet consolidation as on date of acquisition, but before the share issuance, are as below:

 

Balance Sheet

 

CDJM

 

 

LCM

 

 

Combined

 

Assets

 

22-Nov-21

 

 

22-Nov-21

 

 

22-Nov-21

 

  Current Assets:

 

 

 

 

 

 

 

 

 

Bank Account

 

 

804

 

 

 

1,351

 

 

 

2,155

 

Deposit

 

 

-

 

 

 

1,200,000

 

 

 

1,200,000

 

Prepaid Exp

 

 

4,125

 

 

 

-

 

 

 

4,125

 

Total current assets

 

 

4,929

 

 

 

1,201,351

 

 

 

1,206,280

 

Total assets

 

 

4,929

 

 

 

1,201,351

 

 

 

1,206,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

222,458

 

 

 

46,664

 

 

 

269,122

 

Credit Card payable

 

 

2,731

 

 

 

 

 

 

2731

 

Loan from related party

 

 

206,083

 

 

 

 

 

 

 

206,083

 

Total Current Liabilities

 

 

431,272

 

 

 

46,664

 

 

 

477,936

 

Long Term Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

EDIL Loan from SBA

 

 

 

 

 

 

150,000

 

 

 

150,000

 

Interest accured on SBA Loan

 

 

 

 

 

4687

 

 

4687

 

Total Long Term Liabilities

 

 

0

 

 

 

150000

 

 

 

150000

 

Total liabilities

 

 

431,272

 

 

 

201,351

 

 

 

632,624

 

Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

Series A preferred stock

 

 

4,000

 

 

 

 

 

 

 

4,000

 

Common stock

 

 

3,532,757

 

 

 

1,000,000

 

 

 

4,532,757

 

Retained Earnings

 

 

-3,963,101

 

 

 

 

 

 

 

-3,963,101

 

Total Stockholders' Equity

 

 

-426,344

 

 

 

1,000,000

 

 

 

573,656

 

Total Liabilities & Equity

 

 

4,929

 

 

 

1,201,351

 

 

 

1,206,280

 

 

19

Table of Contents

 

The Details of Balance sheet consolidation as on the balance sheet date are as below

 

Balance Sheet

 

CDJM

 

 

LCM

 

 

Combined

 

Assets

 

31-Dec-21

 

 

31-Dec-21

 

 

31-Dec-21

 

  Current Assets:

 

 

 

 

 

 

 

 

 

Bank Account

 

 

804

 

 

 

233

 

 

 

1,036

 

Deposit

 

 

-

 

 

 

1,200,000

 

 

 

1,200,000

 

Prepaid Exp

 

 

4,125

 

 

 

-

 

 

 

4,125

 

Accounts Receivable

 

 

 

 

 

 

20,000

 

 

 

20,000

 

Total current assets

 

 

4,929

 

 

 

1,220,233

 

 

 

1,225,161

 

   Investment In Subsidiary

 

 

1,000,000

 

 

 

 

 

 

 

1,000,000

 

Total assets

 

 

1,004,929

 

 

 

1,220,233

 

 

 

2,225,161

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

225,316

 

 

 

44,264

 

 

 

274,268

 

Credit Card payable

 

 

3,024

 

 

 

 

 

 

3024

 

Loan from related party

 

 

206,679

 

 

 

 

 

 

 

206,679

 

Total Current Liabilities

 

 

435,019

 

 

 

44,264

 

 

 

479,283

 

Long Term Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

EDIL Loan from SBA

 

 

 

 

 

 

150,000

 

 

 

150,000

 

Interest accured on SBA Loan

 

 

 

 

 

5625

 

 

5625

 

Total Long Term Liabilities

 

 

0

 

 

 

155625

 

 

 

155625

 

Total liabilities

 

 

435,019

 

 

 

199,889

 

 

 

634,908

 

Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

Series A preferred stock

 

 

4,000

 

 

 

 

 

 

 

4,000

 

Common stock

 

 

4,532,757

 

 

 

1,000,000

 

 

 

5,532,757

 

Retained Earnings

 

 

-3,966,848

 

 

 

20,344

 

 

 

-3,946,504

 

Total Stockholders' Equity

 

 

569,909

 

 

 

1,020,344

 

 

 

1,590,253

 

Total Liabilities & Equity

 

 

1,004,928

 

 

 

1,220,233

 

 

 

2,225,161

 

 

20

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7. CONTINGENCIES AND COMMITMENTS

 

Capital commitments

 

For the current reporting year, the Company had no capital commitments which is the same for the previous reporting year.

 

The management reviewed with the legal team and concluded that there are no disputes remaining unresolved and hence there are no contingent liabilities as on the reporting date. The company is trying to settle the claims by share issuance as and when received and processed.

 

8. SUBSEQUENT EVENTS

 

None

 

9. RESTATEMENT OF PRIOR YEAR COMPARATIVES

 

Certain figures for the previous year were regrouped/reclassified, wherever necessary, to conform to current year's presentation. However, such reclassifications do not have any impact on the Company's previously reported financial results.

 

10. MANAGEMENT ASSERTIONS ON CRITICAL AUDIT MATTERS

 

Manuals and handbooks: Absence of written manuals and handbooks is the concern for the audit. Since the Company is involving experienced professionals for the day-to-day operations, the need for specialized training was not felt. So also, the need for the written manuals and handbooks. However, the Management is aware of the need for standard operating procedures to educate and train its growing general staff. Preparation of manuals and handbooks has begun.

 

21

Table of Contents

 

ITEM 9A. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 

NONE.

 

ITEM 9B. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures.

 

For the current year, the Company has few transactions. The book-keeping and the financial statement preparations were handled by qualified professionals and hence this management believes that there are adequate controls and procedures for the current period covered by this report which are effective to ensure that the information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, as appropriate to allow timely decisions regarding disclosure. It has been determined by our management that the Company has adequate segregation of duties consistent with control objectives and has also adapted various accounting policies in accounting and financial reporting with respect to the requirements and application of GAAP and SEC requirements. The Company has effective controls over the financial disclosure and reporting processes.

 

Management’s Annual Report on Internal Control over Financial Reporting

 

The management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. The internal control system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes, in accordance with generally accepted accounting principles. The system of internal control over financial reporting prevents or detect misstatements. All projections such as evaluation of effectiveness to future periods, are provided by well experienced professionals, while the same can be subject to inherent risks such as changing conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

The management conducts quarterly evaluation of the effectiveness of internal control over financial reporting using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework. Based on its evaluation, the Company is constantly requiring the experts to improve the system to remove any material weakness in our internal control over financial reporting. A material weakness is a deficiency, or a combination of control deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.

 

The material weakness is eliminated by segregation of duties in financial reporting, as our financial reporting and all accounting functions are performed by experts with adequate oversight by a professional with accounting expertise.

 

In general, there have been no changes in our system of internal controls over financial reporting during the current period of reporting, while the management has been constantly reviewing and eliminating any area of material weakness. The management assertion is adequate internal control over financial reporting.

 

However, this company being not a fully reporting company is not required to adhere to detailed and exhaustive procedures.

 

ITEM 9C. OTHER INFORMATION

 

None.

 

22

Table of Contents

 

PART III

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

The following table sets forth the names of our current directors and executive officers. Also, the principal officers and positions with us held by each person and the date such person became our director, executive officer. Our executive officers are appointed by our Board of Directors. Our directors serve until the earlier occurrence of the election of his or her successor at the next meeting of stockholders, death, resignation, or removal by the Board of Directors.

 

Timothy Barton

CEO

1st October, 2019

Robert W Bueker

CFO

1st October, 2019

Murugan Venkat

Secretary

22nd January 2019

Murugan Venkat

Treasurer

 22nd November 2021

 

Section 16(a) Beneficial Ownership Compliance.

 

Section 16(a) of the Securities Exchange Act of 1934 requires our executive officers, directors and persons who own more than ten percent of our shares of common stock, to file initial reports of beneficial ownership on Form 3, changes in beneficial ownership on Form 4 and an annual statement of beneficial ownership on Form 5, with the SEC. Such executive officers, directors and greater than ten percent shareholders are required by SEC rules to furnish us with copies of all such forms that they have filed. 

 

Based solely on our review of the copies of such forms filed with the SEC electronically, received by us and representations from certain reporting persons, for the fiscal year ended 31st December 2021, none of the officers, directors and more than 10% beneficial owners have filed Form 5 with the SEC.

 

Broadview Holdings LLC is the majority shareholder but does not involve in the day-to-day activities of the Company and hence is a passive ownership.

 

Code of Ethics

 

We have adopted a code of ethics for our principal executive officers.

 

Director Independence

 

Our determination of independence of directors is made using the definition of “independent director” contained in Rule 4200(a)(15) of the Marketplace Rules of the NASDAQ Stock Market (“NASDAQ”), even though such definitions do not currently apply to us because we are not listed on NASDAQ. We have determined that none of the members of our Board of Directors as of 31st December 2021 were “independent” within the meaning of such rules.

  

ITEM 11. EXECUTIVE COMPENSATION

 

There was no executive compensation for the current year.

 

23

Table of Contents

 

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED MATTERS

 

As of the reporting date, the Company had 46,203,716 common shares outstanding. The following table sets forth certain information regarding our shares of common stock beneficially owned as of the reporting date, for (i) each stockholder known to be the beneficial owner of five percent (5%) or more of our outstanding shares of common stock, (ii) each named executive officer and director, and (iii) all executive officers and directors as a group. A person is considered to beneficially own any shares: (i) over which such person, directly or indirectly, exercises sole or shared voting or investment power, or (ii) of which such person has the right to acquire beneficial ownership at any time within sixty (60) days through an exercise of stock options or warrants or otherwise. Unless otherwise indicated, voting and investment power relating to the shares shown in the table for our directors and executive officers is exercised solely by the beneficial owner or shared by the owner and the owner’s spouse or children.

 

For purposes of this table, a person or group of persons is deemed to have “beneficial ownership” of any shares of common stock that such person has the right to acquire within sixty (60) days from the reporting date. For purposes of computing the percentage of outstanding shares of our common stock held by each person or group of persons named above, any shares that such person or persons has the right to acquire within sixty (60) days of the Closing Date is deemed to be outstanding but is not deemed to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion herein of any shares listed as beneficially owned does not constitute an admission of beneficial ownership.

 

Name of Officer/Director or Control Person

 

Affiliation with

Company

(e.g., Officer

Title /Director/

Owner of

more than 5%)

 

Residential

Address

(City /

State Only)

 

Number

of shares

owned

 

 

 Share  type/class

 

Ownership

Percentage

of Class

Outstanding

 

 

Note

 

Timothy Barton

 

Director

 

Dallas, TX

 

 

0

 

 

Common

 

 

0

 

 

 

 

Robert W Bueker

 

Officer

 

Dallas, TX

 

 

0

 

 

Common

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Murugan Venkat

 

Director

 

Hollywood, FL

 

 

0

 

 

Common

 

 

0

 

 

 

 

Broadview Holdings

 

Owner of more than 5%

 

Dallas, TX

 

 

40000000

 

 

Common

 

 

78.48 %

 

 

 

Broadview Holdings

 

Owner of more than 5%

 

Dallas, TX

 

1000

 

 

Series A Preferred Stock

 

 

100 %

 

 

 

Cynergy Development Advisers LLC

 

Owner of more than 5%

 

Dallas, TX

 

 

4948854

 

 

Common

 

 

 

 

 

 

 

 Lynn Investments LLC

 

Owner of more than 5%

 

Dallas, TX

 

 

4761905

 

 

Common

 

 

9.34 %

 

 

 

 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

 

During the current reporting period, $206,679 is owed for the related party transactions.

 

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

 

Independent Public Accountants

 

2019 Financial Statements were audited by Yusufali & Associates LLC and this Company paid $10,000 as the audit fees for the 2019 audit, in 2020. Both 2020 and 2021 Financial Statements are un-audited.

 

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Table of Contents

 

ITEM 15. EXHIBITS.

 

Exhibit No.

Description

31.1*

RULE 13A-14(A)/15D-14(A) CERTIFICATIONS

31.2*

Certification of Principal Financial Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.1*

Certification of Principal Executive Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

_____________

*Filed Herewith

 

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Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

Carnegie Development, Inc.

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ Timothy Barton

 

By:

 

Date: 27th March 2022

 

Timothy Barton

 

 

Robert W Bueker

 

 

President & Director

(Principal Executive Officer)

 

 

CFO

(Principal Financial Officer)

 

 

 

 

26

 

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