PART
I
Forward-Looking
Statements
This
Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995 and such statements are intended to enjoy the benefit of that act. These forward-looking statements are not historical
facts, but rather are based on current expectations, estimates and projections about our industry, our beliefs and our assumptions.
Words such as “anticipate,” “expects,” “will continue”, “will result” , “would
“intends,” “plans,” “believes,” “seeks” and “estimates”, predicts,”
“potential,” and variations of these words and similar expressions are intended to identify forward-looking statements.
These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which
are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted
in the forward-looking statements. You should not place undue reliance on these forward-looking statements, which apply only as
of the date of this Form 10-K. Investors should carefully consider all of such risks before making an investment decision with
respect to the Company’s stock. The following discussion and analysis should be read in conjunction with our financial statements.
This discussion represents the best present assessment from our Management. All forward-looking statements speak only as of the
date of this Transition Report or, in the case of any documents incorporated by reference in this Transition Report, the date
of such document, in each case based on information available to us as of such date, and we assume no obligation to update any
forward-looking statements, except as required by law.
Item
1. Business
Overview
of Our Business
Strong
Solutions Inc. (referred to in this Report as “Strong Solutions,” the “Company,” “we”, “our”,
or “us”) is a real estate property management company, also make construction equipment rental business in Eastern
Europe, and specifically in Ukraine.
At
the date of this report, we have one client (Protel Management) for whom we provide property management service for real estate
located in Ukraine and we have one client (firm Marcus) for whom we provide construction equipment rental service. From both clients,
we received income of the past four years. It has been the source of all the revenue we have received since inception.
For
Protel Management, we provide real estate management in Ukraine. The services we provide include identifying suitable opportunities
for future real estate development and construction, oversight of development and construction of real estate managed by Protel
Management, and the management of residential and commercial real estate, represented by Protel Management to consumers residing
in and outside of Ukraine.
For
firm Marcus we agreed to provide the construction equipment for rent. This equipment includes: Scaffoldings and Rafters for outside
and inside work.
When
the height of rooms or buildings does not allow to use of stairs or ladders and the use of a crane is not cost-effective in this
case our equipment is in demand. When building not high walls the scaffoldings also demand.
Also,
we will offer rehabilitation of properties with equipment rental services useful in appropriate maintenance and repair. We
consider perspective business development direction in rehabilitation property services because the infrastructure across Ukraine
is being adversely impacted by the conflict with neighboring Russia, thus requiring high quality, cost efficient solutions to
make such properties usable again. Our potential customers can be the owners of such real estate objects.
Revenues
We
bill our services per contract on an individual-property basis.
Marketing
Program
The
primary objective of our marketing program is providing property management and maintenance, rehabilitation as well as construction
equipment rental. We plan to accomplish our business objectives through a multi-faceted marketing program consisting of the following
elements:
|
•
|
Face to face meetings and calls;
|
We
are building our public relations program to gain more customers, increase visibility, and heighten awareness of us and our services
and capabilities. The goals of our public relations program are:
|
•
|
Clearly establish us as a provider of property
management and rental equipment services;
|
|
•
|
Differentiate us and our services from competitors;
|
|
•
|
Create a greater awareness with potential clients
and partners;
|
|
•
|
Identify us as strong, trusted, and progressive
through our partnerships and services.
|
Industry
Background
As
the population grows, the property management service in a world develops and grows as well. We believe the market for our property
management and our construction equipment rental initially consists of small individual building owners who lack the time or proficiency
to manage their own properties in a profitable manner or adequately repair damaged properties. Kharkov, along with Kiev, Dnepropetrovsk,
Odessa and multiple other cities offer pockets of dense population and areas where we believe building owners will benefit from
our services.
Advertising
Our
advertising campaigns will generally focus on the presentations, meetings, calls and leads. We have identified these forms of
advertising as being the most effective means for reaching potential clients in our target markets. We will also consider other
means of advertising.
We
are implementing procedures to control advertising and promotions. These procedures are necessary to assure our proper representation
and include review of all advertising material and restrictions on how our clients and others can advertise using our brand.
Business
Strategy
We
intend to provide property management, maintenance, rehabilitation to meet our clients’ needs. Our strategy is to leverage
broad geographic reach, long-term client relationships, and full-range and service offerings to become a large, robust property
management firm. We have adopted a multi-step growth plan:
|
•
|
Offering property management services for both
commercial and residential spaces. The infrastructure across Ukraine is being adversely impacted by the conflict with neighboring
Russia, thus requiring high quality, cost efficient solutions to make such properties usable again.
|
|
•
|
Offering construction equipment rental for those
properties that already have their own maintenance teams but don’t own their own equipment outright. The inventory of
equipment that we will hold for rental will also be available for use with our property rehabilitation and property management
services.
|
|
•
|
We are first offering our services in Kharkov,
and plan to expand our reach on a city-by-city basis, expanding geographically to meet the demand for property management
and as well as property rehabilitation and construction equipment rental.
|
|
•
|
We seek to be a ‘one-stop shop’
for the building owners. Additionally, for those building owners who either cannot afford a full-time property manager, or
have so few properties that they prefer to manage themselves, we offer property management and rehabilitation services to
help those building owners make the most of their time and extract the most value from their property.
|
Pricing
Costs
associated with the customer acquisition, retention, overhead and management and continued servicing are budgeted individually
for each project. Contingencies are allowed for as deemed necessary. Then our pricing will be reviewed based on competitors’
prices, along with a market survey of the satisfaction with these prices and the associated services. We are of the opinion that
the pricing of our services will represent a savings to the customer and yet provide us a better-than-market sales price.
Sales
Objectives
We
are introducing our services to the marketplace, which we believe will benefit us because of the opportunities that are presented
due to the current political and military situation in Ukraine. Our sales strategy looks to convert sales in the following ways,
depending on the perceived needs of individual building owners:
Sales
Process 1: Construction equipment rental
Sales
Process 2: Upsell to property rehabilitation
Sales
Process 3: Property rehabilitation
Sales
Process 4: Post rehabilitation property management
Sales
Process 5: Post rehabilitation property management consulting
Sales
Process 6: Property management
Sales
Process 7: Property management consulting
Sales
Process 8: Upsell to property rehabilitation or construction equipment rental.
Also,
we intend to introduce our products and services for new clients to capture revenue streams from new clients as well as utilizing
existing relationships, and obtain new revenues as the market matures. We believe our path to revenue and growth will be through
acquiring clients:
|
•
|
from organizations with which our management
has existing relationships;
|
|
•
|
from competitors by demonstrating superior,
quality, and reliability at a lower cost;
|
|
•
|
by implementation of our marketing plan.
|
The
foregoing does not include all of the ways we expect to convert leads for sales.
Strategic
Partners and Alliances
We
expect to leverage sales and delivery alliances with companies whose capabilities complement our own, either by enhancing our
services, or by helping extend offerings to new geographies. By combining alliance partners’ products and services with
our capabilities and expertise, we intend to create innovative, high-value business solutions for our clients. Some alliances
will be specifically aligned with our offerings, thereby adding skills, technology and insights that are applicable across the
real estate and construction industries. Currently, we do not have any strategic partners or alliances.
Governmental
Regulation
Laws
and regulations impose environmental zoning restrictions, use controls, disclosure obligations, and other restrictions that affect
the management, development, use, and/or sale of real estate. Such laws and regulations tend to discourage sales and leasing activities.
Transactions in which we are involved may be delayed or abandoned as a result of these restrictions.
In
Ukraine, legislation is not good developed that governs a foreign entity conducting business within the country. Even though we
are headquartered and operate in Ukraine, the laws applicable to us as a Nevada USA corporation include requirements that (a)
we take out liability insurance on behalf of any full-time employees and (b) we maintain adequate books and records and periodic
financial statements. We are also subject to various consumer protection laws that prohibit the use of fraudulent or deceptive
practices.
Competition
The
property management, property rehabilitation and construction equipment rental businesses are competitive and have relatively
low barriers to entry. We compete locally, and expect to eventually compete on a countrywide basis, with a variety of primarily
local companies that offer similar services. Based on our review of advertisements, we believe the majority of these companies
engage in real estate sales and offer property management services, but not property rehabilitation construction equipment rental
and some are affiliated with the owners or operators of properties where they provide their services. Many of our competitors
have had many more years of business experience, may have proprietary processes and have greater financial and personnel resources
including marketing and sales organizations, and may provide their services at lower rates. We do not believe any one company
holds a dominant share of the local or countrywide market on which we are focused.
Employees
Mr.
Guzii is our only employee at the date of this registration statement. We do not have an employment agreement with Mr. Guzii.
He devoted his time and efforts as needed when operations and funding are available. We anticipate hiring additional employees
in a future on a commission basis only. We will hire necessary personnel based as needed only on a per contract basis to be compensated
directly from revenues. Mr. Guzii will work on a fulltime basis once we have enough revenue to sustain his full-time employment.
At the present time, he is spending whatever time is necessary, to further develop our business.
Item
1A. Risk Factors
In
addition to the other information provided in this annual report, you should carefully consider the following risk factors in
evaluating our business before investing in any of our common stock.
Dependence
Upon Current Clients
We
have only two current clients from which we generate income and in case one of them leaves we are at risk of declining incomes.
If both leave and we do not find new clients our business will stop.
Small
revenue
We
still can’t generate significant revenues. The revenues we have generated from operations makes it difficult for you to
evaluate our future business and make decisions based on those estimates of our future performance. In 2019, we have generated
revenues of $11,480. For now, it is difficult to forecast our future results based upon our historical data. Because of
the related uncertainties, we may be hindered in our ability to anticipate and timely adapt to increases or decreases revenues
or expenses. If we make poor budgetary decisions as a result of unreliable data, we may never become profitable and incur
losses, which may result in a decline in our stock price.
Substantial
doubt about our ability to continue as a going concern
Our
auditor has indicated in our report that our lack of revenues raises substantial doubt about our ability to continue as a going
concern. If we are unable to generate significant revenue or secure financing - we may be required to cease or curtail our operations.
The
competition
We
face intense competition in our industry, and as we attempt to increase operations, we will face increasing competition from domestic
companies. The property management and maintenance market are highly competitive, with participants ranging from national and
multi-regional equipment rental companies to small, independent businesses with a limited number of locations. As such, our services
will face strong competition. We will compete primarily on the basis of service offering availability, customer service and price.
In addition, the current political landscape and military activity in Ukraine present a situation in which the infrastructure
across a large part of the country will face the threat of partial damage or total destruction. While Strong Solutions is headquartered
in Ukraine, companies from neighboring countries operating in the same industry as ours may try to expand their businesses to
include Ukraine, further increasing competition. Moreover, other companies with similar business models may be started in Ukraine
with the aim to offer their services to building owners who have been affected by the current situation in the country. Our competitors
may provide services comparable or superior to those we provide or adapt more quickly than we do to evolving industry trends or
changing market requirements. Increased competition could result in lower profit margins, substantial pricing pressure, reduced
market share and lower operating cash flows. Price competition, together with other forms of competition, could have a material
adverse effect on our business, financial position, results of operations and operating cash flows.
Loss
of litigation
Our
future sales and reputation may be affected by litigation or other liability claims.
We
have not procured a general liability insurance policy for our business. To the extent that we suffer a loss of a type which would
normally be covered by general liability, we would incur significant expenses in defending any action against us and in paying
any claims that result from a settlement or judgment against us.
The
fluctuations in market prices and demand for our services
As
we increase operations, our earnings may be sensitive to fluctuations in market prices and demand for our services. In addition,
the demand for property management services, construction equipment rental, and property rehabilitation services could decline,
whether because of supply or for any other reason, including other similar services considered to be superior by end users. A
decrease in the selling price received for real estate, or a decline in demand for real estate after we commence operations could
have a material adverse effect on our business, results of operations and financial condition.
Seasonality
Our
revenues from rental construction equipment is subject to seasonality. We expect our revenues and operating income in the second
and third calendar quarters to be generally higher than in the first and fourth calendar quarters due to seasonal fluctuations,
which are generally consistent with the industry.
Potential
Lack of Space to Lease
A
significant portion of our property management business may involve facilitating the lease of commercial property including retail,
industrial, and office space. The development of new retail, industrial, and office space in Ukraine has been limited. As a consequence,
in certain areas of the country, there is beginning to be inadequate office, industrial and retail space to meet demand which
may have an adverse impact on our operating results.
Dependence
from our founder
Our
founder and Chief Executive Officer Mr. Guzii is responsible for our operations and reporting.
The
requirements of operating as a small public company are new to our management. This may require us to obtain outside assistance
from legal, accounting, investor relations, or other professionals that could be costlier than planned. We may also be required
to hire additional staff to comply with additional SEC reporting requirements.
Our
business and results of operations depend from Mr.Guzii. If we lose his services or if he fails to perform in his current position,
or if we are not able to attract and retain skilled employees as needed, our business could suffer.
Dependence
from company who use our construction equipment
If
company who use our construction equipment will discontinue work with us, our business would be adversely affected.
Risks
Related to our Potential Future Operations in Ukraine
We
could be adversely affected by the current political landscape in Ukraine. Due to the ongoing inside conflict with some other
Ukraine regions which supports by Russia, and the sanctions imposed on them, some resources may not be available in Ukraine for
extend periods of time. Russia supplies natural gas and petrol for Ukraine, and without access to these resources for extended
periods of time, our ability to operate may be severely hindered.
We
expect that a significant amount of our business for the foreseeable future will focus on properties located in Ukraine. The following
risks could affect our business after we commence planned harmed and thus harm potential future revenues.
|
•
|
Level of government involvement in the economy;
|
|
•
|
Control of foreign exchange rate;
|
|
•
|
Balance of payments position;
|
|
•
|
International trade restrictions; and
|
|
•
|
International conflict.
|
We
do not yet have substantial assets or revenues
We
may not be able to attain profitability without additional funding, which may be unavailable.
We
have limited capital resources. To date, we have funded our operations from revenue received from our two clients, but it’s
not enough to be profitable. Unless we begin to generate sufficient revenues to finance operations as a going concern, we may
experience liquidity and solvency problems. Such liquidity and solvency problems may for us to cease operations if additional
financing is not available. No known alternative sources of funds are available to us.
Risk
to serve process and enforce judgments against our director and executive officer in Ukraine
Our
Chief Executive Officer, Andrii Guzii is not a resident of the United States, and substantially all of our assets and the assets
of these persons may be located outside the United States. Therefore, it may be difficult to effect service of process within
the United States on us or any of our executive officers or directors who are non-residents of the United States and/or bring
an original action in an Ukrainian court against us or against any of our executive officers or directors to enforce liabilities
based upon the United States federal securities laws. It may further be difficult to enforce court judgments obtained in the United
States, including those predicated upon the civil liability provisions of the United States federal securities laws, against us
or against any of our executive officers or directors that are non-residents of the United States. Ukrainian courts may refuse
to hear a claim based on a violation of U.S. securities laws because Ukraine is not the most appropriate country in which to bring
such a claim.
Item
1B. Unresolved Staff Comments
None.
We
have effective our Registration Statement Form 10-12G on September 30, 2017. (Registration No. 000-55819)
Also, October 27, 2017 we received letter from SEC about completed review of our Registration Statement.
Item
2. Properties
Our
400-square foot corporate office is located at 2/13 Korolenko Str. Kharkov, Ukraine. These offices are provided by Mr. Guzii,
our sole director and chief executive officer. We pay Mr. Guzii rent at $450 per quarter for this office.
Item
3. Legal Proceedings
We
are not currently a party to any legal proceedings, and to our knowledge none is threatened.
Item
4. Mine Safety Disclosures
Not
applicable.
PART
II
Item
5. Markets for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Market
Information
As
of December 31,2019, we had 31 non-affiliated shareholders in our record held 1,293,000 common shares. Action Stock Transfer Corporation
is our transfer agent.
Located
at: 2469 Fort Union Blvd #214, Cottonwood Heights, UT 84121. Phone # (801)
274-1088
Holders
As
of December 31, 2019, there were 36,293,000 shares of the Company’s common stock.
35,000,000
were held by our founder Mr.Guzii and 1,293,000 were held by 31 non-affiliated shareholders.
Dividends
We
have never paid or declared any cash dividends on our common stock, and we do not anticipate paying any cash dividends on our
common stock in the foreseeable future. We intend to retain all available funds and any future earnings to fund the development
and expansion of our business. Any future determination to pay dividends will be at the discretion of our board of directors and
will depend upon a number of factors, including our results of operations, financial condition, future prospects, contractual
restrictions, restrictions imposed by applicable law and other factors our board of directors deems relevant.
Equity
Compensation Plans
We
do not have any equity compensation plans.
Recent
Sales of Unregistered Securities
None
Item
6. Selected Financial Data
"Emerging
growth company” is not required to provide the information required by this Item 6.
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 (“MD&A”) section of
this Annual Report discusses our results of operations, liquidity and financial condition, and certain factors that may affect
our future results. You should read this MD&A in conjunction with our financial statements and accompanying notes included
in this Report. This MD&A contains forward-looking statements that involve risks, uncertainties, and assumptions. The actual
results may differ materially from those anticipated in these forward-looking statements as a result of a variety of uncertainties
and risk factors.
Our
Management’s Discussion and Analysis contains not only statements that are historical facts, but also statements that are
forward-looking. Forward-looking statements are, by their very nature, uncertain and risky.
Overview:
Since
our inception we have engaged in the following significant operating activities:
Company
set up:
a.
|
|
Incorporate
company in state of Nevada
|
b.
|
|
Set
up main executive office in Ukraine
|
c.
|
|
Open
up bank account for the company
|
Secured
initial capital by a contribution from our founder, Chief Executive Officer and Director Commenced significant other operational
activities, such as:
a.
|
|
Have
researched and identified potential clients
|
b.
|
|
Have
arranged for and met with various potential clients
|
c.
|
|
Have
drafted and began production of various marketing materials
|
As
of the date of this form, we have obtained a written agreement for our services with:
Protel
Management, LLC and Firm Markus.
The
services what we contribute to Protel Management include: Manage the property, find the tenants for lease, assist work directly with
tenants about make the payments in time, handling maintenance, watch that
all equipment’s as: elevators, fire and gas alarms, sewerage, phone lines, refrigerators, etc., work properly. If repair
is required, then contact with services to fix it. Below we provide comparisons for 2019 and 2018.
In
2019 $6,480
In
2018 $6,576
We
provide long term rental of construction equipment to firm Marcus. This equipment includes:
Scaffoldings
and Rafters for outside and inside work. Technically this equipment uses all year around, but more in demand in warm weather.
We received $500 a month form firm Marcus as a payment for this construction equipment. We don’t have insurance to cover
accidental damage but our agreement with firm Marcus obligate their pay the collateral value $25,000 in case of total loss. Below
we provide comparisons for 2018 and 2019.
In
2019 $5,000
In
2018 $5,000
In
December 2018 we putted on our balance construction equipment what we received from our director Mr.Guzii .
Liquidity
We
don’t know about trends or any demands, commitments, events or uncertainties that will result to our liquidity increasing
or decreasing in any material way.
Capital
resources
We
have fixed assets on our balance total 25,000. Scaffolding cost $20,000 and Rafters $5,000.
Results
of Operations for the Year ended December 31, 2019 and December 31, 2018
As
indicated in the Financial Statements included in this Report as of December 31, 2019
we generated $11,480 in revenues and $11,576 during the year ended December 31, 2018. In
2019, we generated $6,480 from Protel management and $5,000 from firm Marcus. In 2018, we generated $6,576 from Protel management
and $5,000 from firm Marcus.
Operating
expenses during the year ended December 31, 2019, were $46,415 which were general
and administrative expense and office rent and salary expense.
Operating
expenses during the year ended December 31, 2018, were $42,047 which were general
and administrative expense and equipment rental, office rent and salary expense.
Our
revenue in 2019 from Protel management was decreased on $96 in compare with 2018 and we
had same revenue from firm Marcus in 2019 as in 2018.
We
didn’t have stock compensation expense in 2019. Our general
and administration expenses in 2019 were higher than in 2018 on $10,818. Our Related Party Equipment rental, office rent
and salary expense for 2019 were $19,800 and $26,250 in 2018.
Our
cash balances were not sufficient to fund our limited levels of operations for any period of time without further revenue or proceeds.
We may have utilized funds from Andrii Guzii our Chief Executive Officer, who has informally agreed to advance funds to allow
us to pay for offering costs, filing fees, and professional fees. Mr. Guzii however, has no binding contractual arrangement or
legal obligation to advance or loan funds to the company on the basis of this verbal agreement. Being an emerging growth company,
we have a limited operating history but have meaningfully commenced business operations based upon the amount of revenue we have
been able to generate.
At
the present time, we have not made any arrangements to raise additional cash. If we unable to raise additional cash, we will either
have to suspend operations until we do raise the cash, or cease operations entirely.
During
start up period, our operations will be limited due to the limited amount of funds on hand. Our specific goal for profitably rent
the construction equipment and sell related property management and property rehabilitation services.
The
following table presents and compares our results of our operations for the 12 months 2019 and 12 months 2018.
|
|
Year
Ended December 31, 2019
|
|
Year
Ended December 31,
2018
|
Revenue
|
|
$
|
11,480
|
|
|
$
|
11,576
|
|
Total
operating expenses
|
|
$
|
46,415
|
|
|
$
|
42,047
|
|
(Loss)
|
|
$
|
(34,935
|
)
|
|
$
|
(30,471
|
)
|
Weighted average of shares outstanding
|
|
|
36,293,000
|
|
|
|
36,293,000
|
|
Assuming
we obtain sufficient funding to complete our management programs. We intend to employ and train our staff with the latest available
real estate management/operations criteria in order to provide an integrated streamlined service to our clients.
If
we are unable to raise sufficient equity funds or obtain alternate financing, we may never complete development and become profitable.
In order to become profitable, we may still need to secure additional debt or equity funding. We hope to be able to raise additional
funds from an offering of our stock in the future. We do not have any plans or specific agreements for new sources of funding
or any planned material acquisitions.
Going
Concern Consideration
While
management of the Company believes that the Company will be successful in its planned operating activities, there can be no assurance
that the Company will be successful in the development this business or services that will generate sufficient revenues to earn
a profit and sustain the operations of the Company. The accompanying financial statements have been prepared in conformity with
accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going
concern. The Company has incurred an operating expense since inception, had small working capital as of December 31, 2019 and
the cash resources of the Company were insufficient to meet its planned business objectives. These factors raise substantial doubt
about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments
to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of
liabilities that may result from the possible inability of the Company to continue as a going concern.
Off-Balance
Sheet Arrangements; Commitments and Contractual Obligations
None.
Item
7A. Quantitative and Qualitative Disclosures about Market Risk.
An
"emerging growth company “is not required to provide the information required by this item.
Item
8. Financial Statements
TABLE
OF CONTENTS
|
Page
|
Report of Independent
Registered Public Accountant
|
F-1
|
Audited Financial
Statements
|
|
Balance
Sheets as of December 31, 2019 and December 31, 2018
|
F-2
|
Statements
of Operations for the year ended December 31, 2019 and December 31, 2018
|
F-3
|
Statements
of Stockholders’ Equity for the year ended December 31, 2019 and December 31, 2018
|
F-4
|
Statements
of Cash Flows for year ended December 31, 2019 and December 31, 2018
|
F-5
|
Notes Financial
Statements
|
F-6
- F-8
|
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, 2019 and 2018,
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, 2019 and 2018, 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
23, 2020
STRONG
SOLUTIONS, INC.
BALANCE
SHEETS (AUDITED)
DECEMBER
31, 2019, DECEMBER 31, 2018
|
|
December
31, 2019
|
|
December
31, 2018
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
|
1,770
|
|
|
$
|
13,705
|
|
|
|
|
|
|
|
|
|
|
Accounts
Receivable
|
|
$
|
0
|
|
|
$
|
0
|
|
Total
Current Assets
|
|
|
1,770
|
|
|
|
13,705
|
|
Construction
equipment from related party, net of depreciation
|
|
$
|
20,000
|
|
|
|
25,000
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
21,770
|
|
|
$
|
38,705
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
Liability
|
|
|
|
|
|
|
|
|
Related
Party Accrued Shareholder Salary
|
|
$
|
131,500
|
|
|
$
|
113,500
|
|
Total Liabilities
|
|
$
|
131,500
|
|
|
$
|
113,500
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
|
Common
stock, $0.0001 par value; 75,000,000 shares authorized; 36,293,000 shares and 36,293,000 shares issued and outstanding in
2019 and 2018 respectively
|
|
$
|
3,629
|
|
|
$
|
3,629
|
|
Additional
paid in capital
|
|
$
|
344,301
|
|
|
$
|
344,301
|
|
Accumulated
deficit
|
|
$
|
(457,660
|
)
|
|
$
|
(422,725
|
)
|
Total
stockholders' equity
|
|
$
|
(109,730
|
)
|
|
$
|
(74,795
|
)
|
Total
Liabilities and Stockholders' Equity
|
|
$
|
21,770
|
|
|
$
|
38,705
|
|
See
accompanying notes to financial statements.
STRONG
SOLUTIONS, INC.
STATEMENTS
OF OPERATIONS (AUDITED)
YEAR
ENDED DECEMBER 31, 2019
YEAR
ENDED DECEMBER 31, 2018
|
|
For
the year ended December 31, 2019
|
|
For
the year ended December 31, 2018
|
Commissions
revenue
|
|
$
|
11,480
|
|
|
$
|
11,576
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
General
and administration expense
|
|
$
|
26,615
|
|
|
$
|
15,797
|
|
Related
Party Equipment rental, office rent and salary expense
|
|
$
|
19,800
|
|
|
$
|
26,250
|
|
Stock
Compensation Expense
|
|
|
|
|
|
|
|
|
Total
operating expenses
|
|
$
|
46,415
|
|
|
$
|
42,047
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
from operations before income taxes
|
|
$
|
(34,935
|
)
|
|
$
|
(30,471
|
)
|
|
|
|
|
|
|
|
|
|
Income
tax
|
|
$
|
—
|
|
|
$
|
—
|
|
Net
income (loss)
|
|
$
|
(34,935
|
)
|
|
$
|
(30,471
|
)
|
|
|
|
|
|
|
|
|
|
Profit
(Loss) per common share
|
|
$
|
(0.00
|
|
|
$
|
(0.00
|
|
|
|
|
|
|
|
|
|
|
Weights
average of shares outstanding
|
|
|
36,293,000
|
|
|
|
36,293,000
|
|
See
accompanying notes to financial statements.
STRONG
SOLUTIONS, INC.
STATEMENTS
OF STOCKHOLDERS' EQUITY (AUDITED)
ON
DECEMBER 31, 2019 AND DECEMBER 31, 2018
|
|
|
Common
Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
Par
|
|
|
|
APIC
|
|
|
|
Accumulated
Deficit
|
|
|
|
Total
Stockholders’ Equity
|
|
Balance
December 31, 2015
|
|
|
5,000,000
|
|
|
|
500
|
|
|
$
|
9,500
|
|
|
$
|
(44,618
|
)
|
|
$
|
(34,618
|
)
|
Net
profit (Loss) for Year 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(32,703
|
)
|
|
$
|
(32,703
|
)
|
Balance January
1, 2016
|
|
|
5,000,000
|
|
|
|
500
|
|
|
$
|
9,500
|
|
|
$
|
(77,321
|
)
|
|
$
|
(67,321
|
)
|
Stocks
for Cash
|
|
|
1,293,000
|
|
|
|
129
|
|
|
$
|
12,801
|
|
|
|
|
|
|
$
|
12,930
|
|
Stocks
For repayment of accrued Related Party salary and compensation
|
|
|
30,000,000
|
|
|
|
3,000
|
|
|
$
|
297,000
|
|
|
|
|
|
|
$
|
300,000
|
|
Net
Loss for 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(314,933
|
)
|
|
$
|
(314,933
|
)
|
Balance, December
31, 2017
|
|
|
36,293,000
|
|
|
|
3,629
|
|
|
$
|
319,301
|
|
|
$
|
(392,254
|
)
|
|
$
|
(69,324
|
)
|
Net
Loss for 2018
|
|
|
|
|
|
|
|
|
|
$
|
25,000
|
|
|
$
|
(30,471
|
)
|
|
$
|
(5,471
|
)
|
Balance, December
31, 2018
|
|
|
36,293,000
|
|
|
|
3,629
|
|
|
$
|
344,301
|
|
|
$
|
(422,725
|
)
|
|
$
|
(74,795
|
)
|
Net
Loss for 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(34,935
|
)
|
|
$
|
(34,935
|
)
|
Balance, December
31, 2019
|
|
|
36,293,000
|
|
|
|
3,629
|
|
|
$
|
344,401
|
|
|
$
|
(457,660
|
)
|
|
$
|
(109,730
|
)
|
See
accompanying notes to financial statements.
STRONG
SOLUTIONS, INC.
STATEMENTS
OF CASH FLOWS (AUDITED)
YEAR
ENDED DECEMBER 31, 2019
YEAR
ENDED DECEMBER 31, 2018
|
|
For
the year ended December 31, 2019
|
|
For
the year ended December 31, 2018
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(34,935
|
)
|
|
$
|
(30,471
|
)
|
|
|
|
|
|
|
|
|
|
Changes in Operating Assets and Liabilities:
|
|
|
|
|
|
|
|
|
(Increase)/Decrease in Accounts Payable
|
|
$
|
18,000
|
|
|
$
|
23,500
|
|
Depreciation
|
|
$
|
5,000
|
|
|
|
|
|
Net cash used in operating activities
|
|
$
|
(11,935
|
)
|
|
$
|
(6,971
|
)
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
Purchase of fixed assets
|
|
$
|
0
|
|
|
$
|
(25,000
|
)
|
Net cash used in investing activities
|
|
$
|
0
|
|
|
$
|
(25,000
|
)
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
Proceeds from sale of common stock
|
|
$
|
0
|
|
|
$
|
25,000
|
|
Net cash provided by financing activities
|
|
$
|
0
|
|
|
$
|
25,000
|
|
|
|
|
|
|
|
|
|
|
Net change in cash:
|
|
$
|
(11,935
|
)
|
|
$
|
(6,971
|
)
|
Cash, beginning of the period
|
|
$
|
13,705
|
|
|
$
|
20,676
|
|
Cash, end of the period
|
|
$
|
1,770
|
|
|
$
|
13,705
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures regarding cash flows
information:
|
|
|
|
|
|
|
|
|
Interest paid
|
|
$
|
0
|
|
|
$
|
0
|
|
Income taxes paid
|
|
$
|
0
|
|
|
$
|
0
|
|
See
accompanying notes to financial statements.
STRONG
SOLUTIONS INC.
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 31,2019. 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 $1,770 as of December 31, 2019 and net loss from operation of $34,935. 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 2019 was a fixed amount.
3.
We recognize revenue when the firm Markus obtains control of that equipment and we received the payment.
4.
We pay Mr. Guzii rent at $450 per quarter for this office.
5.
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. 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 2019 ($34,935) and Net Operating Loss
for 2018 ($30,471).
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 $0.01 per share to 31 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.
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, 2019
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 is our controlling shareholder. He represents the company and provides the services on our behalf to our clients firm Marcus
and Protel Management. We pay Mr. Guzii at $450 per quarter for the office rent. Our annual rental payment for 2019 was $1,800
and for 2018 was $2,250 respectively. Also, in 2019 he received $18,000 accrued salary. He devotes significant time servicing
to Protel Management. 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 2019 was
$6,480
and for 2018 was $6,576 respectively.
NOTE
9 – STOCKHOLDERS’ EQUITY
From
our inception on June 18, 2014 through December 31, 2019, the Company issued 36,293,000 shares of common stock. 35,000,000 for
our founder and 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.
Item
9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item
9A Controls and Procedures
Disclosure
controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed
in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within
the time period specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation,
controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the
Securities Exchange Act of 1934 is accumulated and communicated to management including our principal executive officer as appropriate,
to allow timely decisions regarding required disclosure.
Our
CEO Andrii Guzii is responsible for managing us, including compliance with SEC reporting obligations, and maintaining disclosure
controls and procedures and internal control over financial reporting. He following to these public reporting requirements and
controls from 2014 and have enough experience to manage the company. Also, he received 5-year knowledge, experience and training
in the application of U.S. GAAP commensurate with financial reporting requirement. If necessary Mr. Guzii obtain outside assistance
from legal, transfer agent or other professionals.
Changes
in Internal Control Over Financial Reporting
There
have been no changes in the Company’s internal control over financial reporting identified in connection with the evaluation
that occurred during the Company’s last fiscal quarter that has materially affected, or is reasonable likely to materially
affect, the Company internal control over financial reporting.
Item
9B Other Information
There
are no further disclosures.
PART
III
Item
10. Directors, Executive Officers and Corporate Governance
Our
stockholders elect our board of directors annually. A majority vote of the directors who are in office is required
to fill vacancies. Each director shall be elected for the term of one year, and until his successor is elected and
qualified, or until his earlier resignation or removal. Our board of directors elect our executive officers annually. Our directors
and executive officers are as follows:
Name
|
|
Age
|
|
Position
|
Beginning
Date
|
Andrii
Guzii
|
|
39
|
|
Chief
Executive Officer,
Chief
Financial Officer and Director
|
Inception
|
Mr.
Guzii served as Director of Contact Center, a call center started by Mr. Guzii, in Ukraine from January 2014 to April 2014. Mr.
Guzii started the company, developed a business plan, and optimized operations. From June 2008 to January 2011, he was a branch
manager of Ukrgastech LLC, where he oversaw management of twelve employees and communicated with government authorities regarding
approval of construction contracts. Prior to becoming branch manager, Mr. Guzii was head of the production department at Ukrgastech,
working in contract procurement and preparation of financial plans. We believe his experience in establishing and guiding development
stage companies, along with his experience in the construction make Mr. Guzii a suitable director and executive officer. In 2003,
Mr. Guzii received his Master of Law degree from Kharkov Law National University.
Conflicts
of Interest
The
Company does not currently foresee any conflict of interest.
Involvement
in Certain Legal Proceedings
There
are no legal proceedings that have occurred in 2019 concerning the company, our director, or control persons which involved a
criminal conviction, a criminal proceeding, an administrative or civil proceeding limiting one's participation in the securities
or banking industries, or a finding of securities or commodities law violations.
Item
11. Executive Compensation
Since
inception, we have not paid salary to Mr. Guzii in his capacity of sole director and our only executive officer. We expect to
pay him an annual salary of $40,000 when we have funding or revenues available for that purpose. We do not have an employment
agreement with Mr. Guzii. His accrued annual salary for 2019 was $18,000. Accrued annual salary for 2018 $23,500.
Summary
Compensation
As
of December 31, 2019, we had no health, hospitalization, or medical reimbursement or relocation plans in effect. Further, we had
no pension plans or plans or agreements which provide compensation on the event of termination of employment or corporate change
in control. We have no long-term equity incentive plans.
Item
12. Security Ownership of Certain Beneficial Owners and Management
The
following tables set forth, as of the date of this annual report, the ownership of our common stock by each person known by us
to be the beneficial owner of more than 5% of our outstanding common stock, our directors, and our executive officers and directors
and executive officers as a group. To the best of our knowledge, the persons named have sole voting and investment
power with respect to such shares, except as otherwise noted. There are not any pending or anticipated arrangements
that may cause a change in control.
Name
|
|
Number
of Shares of Common stock
|
|
Percentage
|
Andrii
Guzii
|
|
|
35,000,000
|
|
|
|
96.5
|
%
|
Mr.
Guzii’s address is our address.
|
|
|
|
|
|
|
|
|
All
executive officers and directors as a group [1 persons]
|
|
|
35,000,000
|
|
|
|
96.5
|
%
|
Item
13. Certain Relationships and Related Transactions, and Director Independence.
Mr.
Guzii is our controlling shareholder. He represents the company and provides services on our behalf to our clients firm Marcus
and Protel Management. We do not have an employment agreement with Mr. Guzii. From inception by now he didn’t receive accrued
salary that indicated in our books.
We
rent office from Mr. Guzii and pay for this $1,800 in 2019. In 2018 we paid him $2,250 to cover our obligation.
We
do not believe that our directors currently meet the definition of “independent” as promulgated by the rules and regulations
of the American Stock Exchange.
Item
14. Principal Accounting Fees and Services.
We
paid to our auditor BF Borgers CPA PC, for professional services rendered for the audit of our financial statements in 2019 $8,900.
No other fees were billed or incurred for services by our auditor other than the fees noted above.