Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2025

Basis of Presentation and Summary of Significant Accounting Policies

Note 2 - Basis of Presentation and Summary of Significant Accounting Policies

Basis of presentation

The accompanying unaudited financial statements have been prepared in accordance with the generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”).

Cash and cash equivalents

Cash and cash equivalents consist of amounts of cash on hand and bank deposits.

Use of estimates and assumptions

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities reported and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates.

Income taxes

The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their perspective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized.

Commitments and Contingencies

In the ordinary course of business, the Company is subject to certain contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and specific facts and circumstances of each matter.

Loss per share

Basic loss per share is computed by dividing net loss by the weighted average number of common stock outstanding during the period.

Recently issued accounting pronouncements

The Company does not believe that the implementation of recently issued accounting standards would have a material effect on its financial position, statements of operations, and cash flows.

Subsequent events

The Company evaluated subsequent events and transactions after June 30, 2025, through the date that these unaudited financial statements are available to be issued. There are no material subsequent events that required recognition or additional disclosure in the financial statements.

Going concern

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. Additional capital infusion is necessary in order to fund current expenditures, acquire business opportunities and achieve profitable operations. This factor raises substantial doubt about the Company’s ability to continue as a going concern.

Quasi-reorganization

On March 31, 2025, the Company implemented a quasi-reorganization to eliminate its accumulated deficits and reflect fresh-start accounting, in accordance with ASC 852-20.

The Board of directors and a majority of the shareholders approved the readjustment.

The conditions that gave rise to nearly all of the Company’s accumulated deficits have not existed for more than fifteen years.

As indicated in the accompanying statement of shareholders’ equity, the quasi-reorganization was implemented with the following steps:

a)	the issuance of common shares to the Company’s former legal consultant and its sole officer, in satisfaction of amounts owed to them;

b)	the revaluation of balance sheet liabilities;

c)	the issuance of common shares to the Company’s officer for cash at the same share value evidenced by the issuances at a) above;

d)	the above steps resulted in a positive shareholders’ equity after the elimination of the entire balance of historical deficits.

CONECTISYS CORP 10-Q