Full Press Release Details
SYNERGY STRIPS CORP.
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2013 AND 2012
| Page | |
| Report of Independent Registered Public Accounting Firm | F-1 |
| Balance Sheets | F-2 |
| Statements of Operations | F-3 |
| Statement of Stockholders' Deficit | F-4 |
| Statements of Cash Flows | F-5 |
| Notes to Financial Statements | F-6 |
Report of Independent Registered Public
To the Board of Director and Shareholders
We have audited the accompanying balance
sheets of Synergy Strip Corp. as of December 31, 2013 and 2012 and the related statements of operations, stockholders' equity,
and cash flows for the year ended December 31, 2013 and the period from January 24, 2012 (Inception) to December 31, 2013. These
financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements
referred to above present fairly, in all material respects, the financial position of Synergy Strip Corp. as of December 31, 2013
and 2012 and the results of its operations, stockholders' deficit, and cash flows for the year then ended and the period
from January 24, 2012 (Inception) to December 31, 2013 in conformity accounting principles generally accepted in the United States
The accompanying financial statements
have been prepared assuming the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the
Company has suffered losses from operations, which raise substantial doubt about its ability to continue as a going concern. Management's
plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
/s/ L.L. Bradford &Company,
| Synergy Strips Corp. | ||||||||
| (a Development Stage Company) | ||||||||
| Balance Sheets | ||||||||
| December 31, | ||||||||
| 2013 | 2012 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Prepaid | $ | 5,000 | $ | - | ||||
| Total current assets | 5,000 | - | ||||||
| Total assets | $ | 5,000 | $ | - | ||||
| Liabilities and Stockholders' deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 6,000 | $ | 3,000 | ||||
| Advances from related party | 52,813 | 520 | ||||||
| Total liabilities | 58,813 | 3,520 | ||||||
| Stockholders' deficit | ||||||||
| Common stock , $0.001 par value; 3,000 shares authorized, | ||||||||
| 3,000 shares issued and outstanding as of | 3 | 3 | ||||||
| December 31, 2013 and 2012, respectively | ||||||||
| Subscription receivable - related party | (3 | ) | (3 | ) | ||||
| Additional paid in capital | - | - | ||||||
| Deficit accumulated during the development stage | (53,813 | ) | (3,520 | ) | ||||
| Total Stockholders' deficit | (53,813 | ) | (3,520 | ) | ||||
| Total liabilities and stockholders' deficit | $ | 5,000 | $ | - |
See the accompanying notes to the financial
Synergy Strips Corp.
(A Development Stage Company)
Statements of Operations
| For the | January 24, 2012 | |||||||
| Year Ended | (Inception) to | |||||||
| December 31, | December 31, | |||||||
| 2013 | 2013 | |||||||
| Revenues: | ||||||||
| Sales | $ | 10,783 | $ | 10,783 | ||||
| Cost of goods sold | 6,323 | 6,323 | ||||||
| Gross profit | 4,460 | 4,460 | ||||||
| Operating expenses: | ||||||||
| Promotional and marketing | 235 | 235 | ||||||
| General and administrative | 21,490 | 22,010 | ||||||
| Travel | 18,828 | 18,828 | ||||||
| Professional fees | 3,000 | 6,000 | ||||||
| Consulting fees | 11,200 | 11,200 | ||||||
| Total operating expense | 54,753 | 58,273 | ||||||
| Net operating (loss) | (50,293 | ) | (53,813 | ) | ||||
| Net loss before provision for income taxes | (50,293 | ) | (53,813 | ) | ||||
| Provision for income taxes | - | - | ||||||
| Net (loss) | $ | (50,293 | ) | $ | (53,813 | ) | ||
| Net income (loss) per share - basic and diluted | $ | (16.76 | ) | |||||
| Weighted average number of shares outstanding | ||||||||
| during the period - basic and diluted | 3,000 |
| Synergy Strips Corp. | ||||||||||||||||||||||||
| (A Development Stage Company) | ||||||||||||||||||||||||
| Statements of Stockholders' Deficit | ||||||||||||||||||||||||
| Deficit | ||||||||||||||||||||||||
| accumulated | ||||||||||||||||||||||||
| Additional | during the | Total | ||||||||||||||||||||||
| Common stock | paid-in | Subscription | development | stockholders' | ||||||||||||||||||||
| Shares | Amount | capital | receivable | stage | (deficit) | |||||||||||||||||||
| Balance, January 24, 2012 (Inception) | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
| Shares issued to for subscription receivable | 3,000 | 3 | - | (3 | ) | - | - | |||||||||||||||||
| Net loss | - | - | - | - | (3,520 | ) | (3,520 | ) | ||||||||||||||||
| Balance, December 31, 2012 | 3,000 | 3 | - | (3 | ) | (3,520 | ) | (3,520 | ) | |||||||||||||||
| Net loss | - | - | - | - | (50,293 | ) | (50,293 | ) | ||||||||||||||||
| Balance, December 31, 2013 | 3,000 | $ | 3 | $ | - | $ | (3 | ) | $ | (53,813 | ) | $ | (53,813 | ) |
See the accompanying notes to the financial
| Synergy Strips Corp. | ||||||||
| (a Development Stage Company) | ||||||||
| Statements of Cash Flows | ||||||||
| For the Year Ended December 31, 2013 | January 24, 2012 (Inception) to December 31, 2013 | |||||||
| Operating activities: | ||||||||
| Net (loss) | $ | (50,293 | ) | $ | (53,813 | ) | ||
| Change in operating assets and liabilities- | ||||||||
| Prepaids | 5,000 | 5,000 | ||||||
| Accounts payable and accrued expenses | 3,000 | 6,000 | ||||||
| Cash (used) in operating activities | (42,293 | ) | (42,813 | ) | ||||
| Financing activities: | ||||||||
| Proceeds from related party advances | 42,293 | 42,813 | ||||||
| Cash provided by financing activities | 42,293 | 42,813 | ||||||
| Increase (decrease) in cash | - | - | ||||||
| Cash, beginning | - | - | ||||||
| Cash, ending | $ | - | $ | - | ||||
| Supplemental cash flow information: | ||||||||
| Interest paid | $ | - | $ | - | ||||
| Income taxes paid | $ | - | $ | - |
NOTE 1 - NATURE OF OPERATIONS
The Company was incorporated on January
24, 2012 in the State of Delaware as Synergy Strips Corp (the " Company") for the purpose of marketing and distributing
orally dissolving film strips under the Synergy brand. Currently, the Company has marketed and distributed an energy strip which
is a caffeine infused, orally dissolving film, which enables users to obtain their "energy" without any calories, fat,
carbohydrates or sugars.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING
Basis of presentation
The accompanying financial statements
have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United
States of America (GAAP).
The preparation of the financial statements
in conformity with GAAP requires 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. Actual results could differ from those
Significant estimates include, but
are not limited to, the collectability of accounts receivable and the estimates used when evaluating long-lived assets for impairment.
Estimates are used for, but are not limited to, determining the following: allowance for doubtful accounts and inventory valuation
reserves, recoverability of long-lived assets, and useful lives used in depreciation and amortization.
Cash and cash equivalents
The Company considers all highly liquid
temporary cash investments with an original maturity of three months or less to be cash equivalents. At December 31, 2013 and 2012,
the Company had no cash equivalents.
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
The Company accounts for income taxes
under FASB Codification Topic 740-10-25 ("ASC 740-10-25") Income Taxes. Under ASC 740-10-25, deferred tax
assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled. Under ASC 740-10-25, 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.
Fair Value of Financial Instruments
We hold certain financial assets, which
are required to be measured at fair value on a recurring basis in accordance with the Statement of Financial Accounting Standard
No. 157, "Fair Value Measurements" ("ASC Topic 820-10"). ASC Topic 820-10 establishes
a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the
highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements). ASC Topic 820-10 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 on the
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING
Fair Value of Financial Instruments,
date. Level 1 instruments include cash,
account receivable, prepaid expenses, inventory and account payable and accrued liabilities. The carrying values are assumed to
approximate the fair value due to the short term nature of the instrument.
The three levels of the fair value
hierarchy under ASC Topic 820-10 are described below:
The Company expenses advertising costs
as incurred. The Company's advertising expenses totaled $235, and $0 for the year ended December 31, 2013 and for the period
from January 24, 2012 (inception) to December 31, 2013, respectively.
Earnings (Loss) Per Share
Net earnings (loss) per share is computed
by dividing net income (loss) less preferred dividends for the period by the weighted average number of common stock outstanding
during each period. Diluted earnings (loss) per share is computed by dividing net income (loss) less preferred dividends for the
period by the weighted average number of common stock, common stock equivalents and potentially dilutive securities outstanding
Recent accounting pronouncements
There are no recent accounting pronouncements
that have had a material impact on our financial statements.
The Company has adopted December 31,
as its fiscal year end.
NOTE 3 - GOING CONCERN
The accompanying financial statements have