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STRATEGIC ASSET LEASING, INC.
Financial Statements and Notes
For the Years Ended December 31, 2023 and 2022
Strategic Asset Leasing, Inc.
December 31, 2023 and 2022
Index to the Financial Statements
| Contents | Page(s) | |
| Report of Independent Registered Public Accounting Firm (PCAOB: 3313) | 1 | |
| Balance Sheets at December 31, 2023 and 2022 | 2 | |
| Statements of Operations for the years ended December 31, 2023 and 2022 | 3 | |
| Statement of Changes in Stockholders' Deficiency for the years ended December 31, 2023 and 2022 | 4 | |
| Statements of Cash Flow for the years ended December 31, 2023 and 2022 | 5 | |
| Notes to the financial statements | 6 |
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of Strategic Asset Leasing,
Opinion on the Financial Statements
We have audited the accompanying consolidated
balance sheets of Strategic Asset Leasing, Inc. (the "Company") as of December 31, 2023, and 2022, 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, 2023, and 2022, 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.
Going Concern Considerations
The accompanying financial statements have been
prepared assuming that the Company will continue as a going concern. The Company has suffered recurring losses since inception and has
not achieved profitable operations, which raises substantial doubt about its ability to continue as a going concern. Management's
plans in regard to these matters are described in Note 2. The financial statements do not include any adjustments that might result from
the outcome of this uncertainty.
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
audits. 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 audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audits 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 audit, 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 audits 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 audits 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 audits provide a reasonable basis for our opinion.
Critical Audit Matters
There were no critical audit matters to be communicated
from the current period audit of the financial statements.
We have served as the Company's auditor
Short Hills, New Jersey
PCAOB registration # 3313
STRATEGIC ASSET LEASING, INC.
CONSOLIDATED BALANCE SHEETS
| December 31, 2023 | December 31, 2022 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 2,808 | $ | 75,872 | ||||
| Prepaid expenses | 3,840 | 3,667 | ||||||
| Due from related party | - | 250,000 | ||||||
| Total current assets | 6,648 | 329,539 | ||||||
| Other assets | ||||||||
| Licenses | 2,137,638 | 2,123,750 | ||||||
| Patents | 48,420 | 86,160 | ||||||
| Total other assets | 2,186,058 | 2,209,910 | ||||||
| Total Assets | $ | 2,192,706 | $ | 2,539,449 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 151,259 | $ | 8,014 | ||||
| Accrued expenses | 2,460 | 4,742 | ||||||
| Related party payable | 135,000 | - | ||||||
| Note payable | 1,332,270 | 1,347,518 | ||||||
| Total current liabilities | 1,620,989 | 1,360,274 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders' equity (deficiency): | ||||||||
| Preferred stock Series B, $0.001 par value; 500,000 shares authorized;405,250 issued and outstanding as of December 31, 2023 and December 31, 2022 | 405 | 405 | ||||||
| Preferred stock Series C, $0.0001 par value; 5,000,000 shares authorized; 1,000,000 issued and outstanding as of December 31, 2023 and December 31, 2022 | 100 | 100 | ||||||
| Common stock, $0.0001 par value; 1,500,000,000 shares authorized; 1,044,861,360 issued and outstanding as of December 31, 2023 and December 31, 2022 | 104,486 | 104,486 | ||||||
| Additional paid in capital | 3,539,003 | 3,539,003 | ||||||
| Common stock to be issued | 851,400 | 751,400 | ||||||
| Accumulated deficit | (3,923,677 | ) | (3,216,219 | ) | ||||
| Total stockholders' equity (deficiency) | 571,717 | 1,179,175 | ||||||
| Total Liabilities and Stockholders' equity | $ | 2,192,706 | $ | 2,539,449 |
The accompanying notes are an integral part of these financial statements.
STRATEGIC ASSET LEASING, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Twelve Months Ended | ||||||||
| December 31, 2023 | December 31, 2022 | |||||||
| Operating expenses: | ||||||||
| Professional fees | $ | 600,776 | $ | 526,007 | ||||
| General and administrative | 30,546 | 48,367 | ||||||
| Total operating expenses | 631,322 | 574,374 | ||||||
| Net operating income (loss) | (631,322 | ) | (574,374 | ) | ||||
| Other (income) expense: | ||||||||
| Interest expense | 76,214 | 24,366 | ||||||
| Other (income) expense | (78 | ) | (147 | ) | ||||
| Total Other (income) expense | 76,136 | 24,219 | ||||||
| Net income (loss) | $ | (707,458 | ) | $ | (598,593 | ) | ||
| Basic and diluted income (loss) per share | $ | (0.00 | ) | $ | (0.00 | ) | ||
| Weighted average number of common shares outstanding - basic | 1,044,861,360 | 1,044,861,360 |
The accompanying notes are an integral part of these financial statements.
STRATEGIC ASSET LEASING, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
| Accumulated | ||||||||||||||||||||||||||||||||||||||||||||
| Pref. Stock - | Pref. Stock - | Additional | Deficit During | Total Stockholders' | ||||||||||||||||||||||||||||||||||||||||
| Series B | Series C | Common Stock | Paid-In | Stock to be | Accumulated | Development | Equity | |||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Capital | Issued | Deficit | Stage | (Deficit) | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2021 | 405,250 | $ | 405 | 1,000,000 | $ | 100 | 1,044,861,360 | $ | 104,486 | $ | 3,539,003 | $ | - | $ | (2,617,626 | ) | $ | - | $ | 1,026,368 | ||||||||||||||||||||||||
| Stock subscription/compensation - common stock | - | - | - | - | - | - | - | 751,400 | - | 751,400 | ||||||||||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | - | - | - | (598,593 | ) | - | (598,593 | ) | |||||||||||||||||||||||||||||||
| Balance at December 31, 2022 | 405,250 | $ | 405 | 1,000,000 | $ | 100 | 1,044,861,360 | $ | 104,486 | $ | 3,539,003 | $ | 751,400 | $ | (3,216,219 | ) | $ | - | $ | 1,179,175 | ||||||||||||||||||||||||
| Stock subscription & license purchase | - | - | - | - | - | - | - | 100,000 | - | 100,000 | ||||||||||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | - | - | - | (707,458 | ) | - | (707,458 | ) | |||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | 405,250 | $ | 405 | 1,000,000 | $ | 100 | 1,044,861,360 | $ | 104,486 | $ | 3,539,003 | $ | 851,400 | $ | (3,923,677 | ) | $ | - | $ | 571,717 |
The accompanying notes are an integral part of these financial statements.
STRATEGIC ASSET LEASING, INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
| For the Twelve Months Ended | ||||||||
| December 31, 2023 | December 31, 2022 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | (707,458 | ) | $ | (598,593 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Stock based compensation | - | 1,400 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Prepaid expenses | (173 | ) | (7,122 | ) | ||||
| Accounts payable | 103,997 | 4,742 | ||||||
| Accrued expenses | (2,282 | ) | - | |||||
| Related party payable | 135,000 | - | ||||||
| Net cash used in operating activities | (470,916 | ) | (599,573 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Patent acquisition costs (See Note 4) | 37,740 | (86,160 | ) | |||||
| Acquisition of licenses (See Note 4) | (13,888 | ) | (39,248 | ) | ||||
| Net cash used in investing activities | 23,852 | (125,408 | ) | |||||
| Cash flows from financing activities | ||||||||
| Proceeds from stock subscriptions | 100,000 | 750,000 | ||||||
| Advance/Repayment of advance to shareholder | 250,000 | (250,000 | ) | |||||
| Proceeds from notes payable - current portion | 24,000 | - | ||||||
| Net cash provided by financing activities | 374,000 | 500,000 | ||||||
| Net increase (decrease) in cash | (73,064 | ) | (224,981 | ) | ||||
| Cash - beginning of the year | 75,872 | 300,853 | ||||||
| Cash - end of the year | $ | 2,808 | $ | 75,872 | ||||
| Supplemental disclosures: | ||||||||
| Interest paid | $ | 78,496 | $ | 19,624 | ||||
| Income taxes | $ | - | $ | - | ||||
| Supplemental disclosure for non-cash financing activities: | ||||||||
| Acquisition of drugs licenses with a promissory note (See Note 5) | $ | - | $ | 1,347,518 |
The accompanying notes are an integral part of these financial statements.
Strategic Asset Leasing, Inc.
Notes to Consolidated Financial Statements
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION
The accompanying consolidated financial statements
include Strategic Asset Leasing, Inc., formerly known as Mammoth Energy Group, Inc. ( LEAS' or the Company'), its wholly owned subsidiary
and any majority controlling interests.
The Company was incorporated on February 27, 2006,
under the laws of the State of Nevada with the aim of pursuing lithium mining. Prior to being domiciled in Nevada, the Company was a Canadian
corporation known as Technigen Corporation. In March of 2013, management decided to change the domicile of the Company to Wyoming by filing
articles of continuance on March 5, 2013, subsequently dissolving the Nevada corporation.
On December 14, 2020, the Company entered a Stock
Purchase Agreement with Dr. Joseph Sinkule for 1,000,000 shares of the Company's Series C preferred stock. The purchase price
was $110,000. Jason Tucker, the Company's CEO, resigned from the Company and Mr. Simkule became the Company's CEO and sole
On November 1, 2021, the Company executed an Agreement
and Plan of Merger with Anew Acquisition Corp ("ANEW"), including the wholly own subsidiary ANEW Oncology, Inc., whereby each
issued and outstanding share of ANEW common stock was converted into the right to receive one-one hundredth (1/100) of a share of the
Company's Series B preferred stock, par value $.001 per share.
After November 1, 2021, the Company will pursue
the development of its licensed rights in major world markets to biologic medicines and gene therapies that will be developed and commercialized
by the Company and affiliates and/or corporate partners.
On November 1, 2021, the shareholders of the Company
approved a name change to ANEW Medical, Inc. and approved a 1-for-2500 reverse split.
On January 4, 2022, the Company filed an Articles
of Amendment with the State of Wyoming, changing its name to "ANEW Medical, Inc." and the contemplated 1-for-2,500 reverse
split. During January 2022 and in accordance with SEC Rule 10b-17 and FINRA Rule 6490, the Company submitted documents and other information
to FINRA in furtherance of pursuing and obtaining approval of the subject reverse stock split and name change. The Company must submit
the additional documents requested by, and necessary to obtain approval of, FINRA in connection with the subject reverse stock split and
name change. As of December 31, 2023, the reverse split and name change have not been declared effective by FINRA to broker deals in the
On May 30, 2023, the Company entered into a Business
Combination Agreement with Redwoods Acquisition Corp., a Delaware corporation ("Redwoods"), and Redwoods wholly owned subsidiary
ANEW Medical Sub, Inc., a Wyoming corporation ("Merger Sub"), The Business Combination Agreement and the transactions contemplated
thereby were approved by the board of directors of each of Redwoods and the Company.
The Business Combination Agreement provides, among
other things, on the Closing Date, upon the terms and conditions set forth herein and in accordance with the applicable provisions of
the Wyoming Business Corporations Act (the "WBCA"), Merger Sub will merge with and into the Company, with the Company
as the surviving company in the Merger and, after giving effect to such merger, a wholly owned Subsidiary of Redwoods, and each Company
Share will be converted into the right to receive the Merger Consideration, on the terms and subject to the conditions set forth in the
Business Combination Agreement.
The Business Combination is expected to close,
and the related S4 is expected to be effective, in April 2024, following the receipt of the required approval by the stockholders of Redwoods