Full Press Release Details
SYNERGY STRIPS CORP.
FINANCIAL STATEMENTS
| Condensed Balance Sheets as of March 31, 2014 (Unaudited) and December 31, 2013 | F-2 |
| Condensed Statement of Operations for the three months ended March 31, 2014 and 2013 (Unaudited) | F-3 |
| Condensed Statement of Cash Flows for the three months ended March 31, 2014 and 2013 (Unaudited) | F-4 |
| Notes to the Condensed Unaudited Financial Statements | F-5 |
SYNERGY STRIPS CORP.
CONDENSED BALANCE SHEETS
| March 31, | December 31, | |||||||
| 2014 | 2013 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | - | $ | - | ||||
| Total Current Assets | - | - | ||||||
| Prepaid expenses | - | 5,000 | ||||||
| Total Assets | $ | - | $ | 5,000 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 6,354 | $ | 6,000 | ||||
| Loans from related parties | 92,547 | 52,813 | ||||||
| Total Liabilities | 98,900 | 58,813 | ||||||
| Stockholders' Deficit | ||||||||
| Common stock, no par value; 3,000 shares authorized; 3,000 shares issued and outstanding | - | - | ||||||
| Accumulated deficit | (98,900 | ) | (53,813 | ) | ||||
| Total stockholders' deficit | (98,900 | ) | (53,813 | ) | ||||
| Total Liabilities and Stockholders' Deficit | $ | - | $ | 5,000 |
See accompanying notes to unaudited condensed
financial statements
SYNERGY STRIPS CORP.
CONDENSED STATEMENTS OF OPERATIONS
| For the three months ended | ||||||||
| March 31, 2014 | March 31, 2013 | |||||||
| Revenue | $ | 4,579 | $ | - | ||||
| Cost of Sales | ||||||||
| Cost of sales | 2,808 | - | ||||||
| Total costs of sales | 2,808 | - | ||||||
| Gross Profit | 1,771 | - | ||||||
| Operating expenses | ||||||||
| General and administrative | 46,888 | 756 | ||||||
| Total operating expenses | 46,888 | 756 | ||||||
| Net Loss | $ | (45,117 | ) | $ | (756 | ) | ||
| Net loss per share - basic and diluted | $ | 15.04 | $ | 0.25 | ||||
| Weighted average common shares - basic and diluted | 3,000 | 3,000 |
See accompanying notes to unaudited condensed
financial statements
SYNERGY STRIPS CORP.
CONDENSED STATEMENTS OF CASH FLOWS
| For the three months ended | ||||||||
| March 31, 2014 | March 31, 2013 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net loss | $ | (45,117 | ) | $ | (756 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Prepaid expense | 5,000 | (5,000 | ) | |||||
| Accounts payable and accrued liabilities | 384 | 5,970 | ||||||
| Net cash (used in) provided by operating activities | (39,734 | ) | 214 | |||||
| Cash flow from Investing Activities: | ||||||||
| Net cash used in investing activities | - | - | ||||||
| Cash Flows from Financing Activities | ||||||||
| Proceeds from related parties notes | 39,734 | 52,813 | ||||||
| Net cash provided by financing activities | 39,734 | 52,813 | ||||||
| Net increase in cash and cash equivalents | - | - | ||||||
| Cash and Cash Equivalents, beginning of period | - | - | ||||||
| Cash and Cash Equivalents, end of period | $ | - | $ | - | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Interest paid | $ | - | $ | - | ||||
| Income taxes paid | $ | - | $ | - | ||||
| Supplemental disclosures for non-cash investing and financing activities: | $ | - | $ | - |
See accompanying notes to unaudited condensed
financial statements
SYNERGY STRIPS CORP.
NOTES TO UNAUDITED CONDENSED
FINANCIAL STATEMENTS
the three months ended March 31, 2014
Note 1 - Nature of the Business
Synergy Strips Corp. ("Synergy"
or the "Company") was incorporated on January 24, 2012 as a Delaware corporation under the name of "PB Management
Corp". On February 28, 2013, the Company changed its name to "Synergy Strips Corp."
Synergy aims to be a global leader in marketing
and distributing orally dissolving film strip products through various distribution channels and become the most recognized brand
in the health and wellness industry. Synergy's focus is to take popular consumer products and take the active ingredient
consumers desire and formulate an orally dissolving film strip for an alternative for consumers.
Synergy's strategy is to create a new
delivery system for consumers. Most products are ingested by consumers in pill and liquid form. Our
plan is to take active ingredients in products currently found on retail shelves and to formulate such ingredients on orally dissolving
film strips which dissolve in a consumer's mouth. The Company believes this approach is advantageous to the consumer because
the active ingredients are more fully dissolved into a consumer's blood stream and more highly absorbed as compared to liquids
or pills. This results in consumers having more immediate effects as opposed to the alternatives. Further advantages are the portability
of such products since they are small and not affected by higher heat, and such products are easy to carry around versus liquids.
The disadvantages of this product are that it is a new delivery system for consumers and most are unfamiliar with the benefits
and efficacy of such products.
Note 2 - Summary of Significant Accounting Policies
Basis of Presentation
The unaudited condensed financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").
The preparation of the condensed financial
statements in conformity with accounting principles generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date
of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from
Cash and Cash Equivalents
The Company considers all cash on hand and
in banks, including accounts in book overdraft positions, certificates of deposit and other highly-liquid investments with maturities
of three months or less, when purchased, to be cash and cash equivalents. As of March 31, 2014 the Company had no cash equivalents.
Capitalization of Fixed Assets
The Company capitalizes expenditures related
to property and equipment, subject to a minimum rule, that have a useful life greater than one year for: (1) assets purchased;
(2) existing assets that are replaced, improved or the useful lives have been extended; or (3) all land, regardless of cost. Acquisitions
of new assets, additions, replacements and improvements (other than land) costing less than the minimum rule in addition to maintenance
and repair costs, including any planned major maintenance activities, are expensed as incurred.
Revenue is recognized in accordance with Staff
Accounting Bulletin ("SAB") No. 101, Revenue Recognition in Financial Statements, as revised by SAB No. 104. We recognize
revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and
collectability is reasonably assured. Ownership and title of our products pass to customers upon delivery of the products to customers.
Certain of our distributors may also perform a separate function as a co-packer on our behalf. In such cases, ownership of and
title to our products that are co-packed on our behalf by those co-packers who are also distributors, passes to such distributors
when we are notified by them that they have taken transfer or possession of the relevant portion of our finished goods.
The Company utilizes FASB ASC 740, "Income
Taxes," which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of
events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities
are determined based on the difference between the tax basis of assets and liabilities and their financial reporting amounts based
on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income.
A valuation allowance is recorded when it is "more likely-than-not" that a deferred tax asset will not be realized.
The Company generated a deferred tax asset
through net operating loss carry-forward. However, a valuation allowance of 100% has been established due to the uncertainty of
the Company's realization of the net operating loss carry forward prior to its expiration.
Net Earnings (Loss) Per Common Share
The Company computes earnings per share under
Accounting Standards Codification subtopic 260-10, Earnings Per Share ("ASC 260-10"). Basic earnings (loss) per share
is computed by dividing the net income (loss) attributable to the common stockholders (the numerator) by the weighted average number
of shares of common stock outstanding (the denominator) during the reporting periods. Diluted loss per share is computed by
increasing the denominator by the weighted average number of additional shares that could have been outstanding from securities
convertible into common stock (using the "treasury stock" method), unless their effect on net loss per share is anti-dilutive The
Company has as of date not issued any warrants, options and convertible debt.
The Company's financial statements are
prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates
the realization of assets and liquidation of liabilities in the normal course of business. The Company had a cumulative net loss
from inception (January 24, 2012) to March 31, 2014 of $98,900. The Company has negative working capital (net current liabilities
exceeds net current assets) by $98,900 as of March 31, 2014. The Company has not yet established an ongoing source of revenues
sufficient to cover its operating costs and to allow it to continue as a going concern. The ability of the Company to continue
as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it establishes a revenue
stream and becomes profitable. If the Company is unable to obtain adequate capital it could be forced to cease development of operations.
In order to continue as a going concern and
to develop a reliable source of revenues, and achieve a profitable level of operations the Company will need, among other things,
additional capital resources. Management's plans to continue as a going concern include raising additional capital through
borrowing and sales of common stock. However, management cannot provide any assurances that the Company will be successful in accomplishing
The ability of the Company to continue as a
going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually
secure other sources of financing and attain profitable operations. The accompanying condensed financial statements do not include
any adjustments that might be necessary if the Company is unable to continue as a going concern.
Fair Value Measurements
The Company measures and discloses the fair
value of assets and liabilities required to be carried at fair value in accordance with ASC 820, Fair Value Measurements and Disclosures.