Rapid Line Inc. 10-Q

Item 1. Financial Statements (Unaudited) RAPID LINE INC. BALANCE SHEETS July 31, 2023 (Unaudited) January 31, 2023 (Audited) ASSETS Current Assets Bank Account $ 668 $ 23,069 Prepaid Expenses 524 1,687 Total Current Assets 1,192 24,756 Non- Current Intangible Assets Mobile Application and Website Development 41,000 41,000 Accumulated Depreciation ( 12,646 ) ( 8,548 ) Total Non-Current Intangible Assets 28,354 32,452 Total Assets $ 29,546 $ 57,208 LIABILITIES Current Liabilities Interest Payable $ 6,330 $ 4,280 Total Current Liabilities 6,330 4,280 Long term Liabilities Director Loan 17,244 13,244 Promissory Note 41,000 41,000 Total Long term Liabilities 58,244 54,244 Total Liabilities 64,574 58,524 Stockholders’ Equity Common stock, $ 0.0001 par value, 75,000,000 shares authorized; 3,632,750 and 3,567,750 shares issued and outstanding July 31, 2023 and January 31, 2023 respectively; 364 357 Additional paid-in-capital 22,542 21,248 Accumulated deficit ( 57,933 ) ( 22,921 ) Total Stockholders’ Equity ( 35,028 ) ( 1,316 ) Total Liabilities and Stockholders’ Equity $ 29,546 $ 57,208 The accompanying notes are an integral part of these financial statements. 3 RAPID LINE INC. STATEMENT OF OPERATIONS (Unaudited) Three Months Ended July 31, 2023 Three Months Ended July 31, 2022 Six Months Ended July 31, 2023 Six Months Ended July 31, 2022 REVENUES $ – $ – $ – $ – OPERATING EXPENSES General and Administrative Expenses 25,847 6,407 35,012 17,354 TOTAL OPERATING EXPENSES 25,847 6,407 35,012 17,354 NET INCOME (LOSS) FROM OPERATIONS ( 25,847 ) ( 6,407 ) ( 35,012 ) ( 17,354 ) PROVISION FOR INCOME TAXES – – – – NET INCOME (LOSS) $ ( 25,847 ) $ ( 6,407 ) $ ( 35,012 ) $ ( 17,354 ) NET LOSS PER SHARE: BASIC AND DILUTED $ ( 0.00 ) $ ( 0.00 ) $ ( 0.00 ) $ ( 0.00 ) WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED 3,632,750 2,500,000 3,600,137 2,500,000 The accompanying notes are an integral part of these financial statements. 4 RAPID LINE INC. STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited) Common Stock Additional Paid-in Deficit Accumulated during the Development Total Stockholders’ Shares Amount Capital Stage Equity Inception, January 10, 2022 – $ – $ – $ – $ – Shares issued for cash at $0.0001 per share on January 10, 2022 2,500,000 250 – – 250 Net loss for the year ended January 31, 2022 – – – ( 732 ) ( 732 ) Balance, January 31, 2022 2,500,000 $ 250 $ – $ ( 732 ) $ ( 481 ) Net loss for the period ending April 30, 2022 – $ – $ – $ ( 10,947 ) $ ( 10,947 ) Balance, April 30, 2022 2,500,000 $ 250 $ – $ ( 11,678 ) $ ( 11,428 ) Shares issued for cash at $0.02 per share in July, 2022 167,500 167 3,333 – 3,350 Net loss for the period ending July 31, 2022 – $ – $ – $ ( 6,407 ) $ ( 6,407 ) Balance, July 31, 2022 2,667,500 $ 267 $ 3,333 $ ( 18,085 ) $ ( 14,485 ) Shares issued for cash at $0.02 per share in October, 2022 625,250 625 15,776 – 12,505 Net loss for the period ending October 31, 2022 – $ – $ – $ ( 5,575 ) $ ( 5,575 ) Balance, October 31, 2022 3,292,750 $ 329 15,776 ( 23,659 ) ( 7,554 ) Shares issued for cash at $0.02 per share in January, 2023 275,000 28 21,248 – 21,276 Net loss for the period ending January 31, 2023 – $ – $ – $ ( 22,190 ) $ ( 22,190 ) Balance, January 31, 2023 3,567,750 $ 357 21,248 ( 22,921 ) ( 1,316 ) Shares issued for cash at $0.02 per share in April 30, 2023 65,000 7 22,542 – 22,549 Net loss for the period ending April 30, 2023 – $ – $ – $ ( 9,165 ) $ ( 9,165 ) Balance, April 30, 2023 3,632,750 $ 364 $ 22,542 $ ( 32,087 ) $ ( 9,182 ) Net loss for the period ending July 31, 2023 – $ – $ – $ ( 25,847 ) $ ( 25,847 ) Balance, July 31, 2023 3,632,750 $ 364 $ 22,542 $ ( 57,933 ) $ ( 35,028 ) The accompanying notes are an integral part of these financial statements. 5 RAPID LINE INC. STATEMENT OF CASH FLOWS (Unaudited) Six Months Ended July 31, 2023 Six Months Ended July 31, 2022 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ ( 35,012 ) $ ( 17,354 ) Adjustment to reconcile net income (loss) to cash provided by operating activities Accumulated amortization 4,098 4,098 Increase/Decrease related to Prepaid Expenses 1,163 ( 2,158 ) CASH FLOWS USED IN OPERATING ACTIVITIES ( 29,751 ) ( 15,414 ) CASH FLOWS FROM FINANCING ACTIVITIES Related Party Loans 4,000 13,244 Interest payable 2,050 2,050 Capital Stock 1,300 3,350 CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 7,350 18,644 Net increase in cash and equivalents ( 22,401 ) 3,230 Cash and equivalents at beginning of the period 23,069 51 Cash and equivalents at end of the period $ 668 $ 3,281 Supplemental cash flow information: Cash paid for: Interest $ – $ – Taxes $ – $ – The accompanying notes are an integral part of these financial statements. 6 RAPID LINE INC. NOTES TO THE UNAUDITED FINANCIAL STATEMENTS SINCE INCEPTION ON JANUARY 10, 2022 TO JULY 31, 2023 NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION RAPID LINE INC. (referred as the “Company”, “we”, “our”) is a development stage company formed to commence operations concerned with online education. We were incorporated under the laws of the state of Wyoming on January 10, 2022. From our formation we were engaged in the business of namely the development, marketing and business process analysis, problem solving and general business services by our CEO, sole Officer and Director Mr. Moroz. Our executive and business office is located at Gieldowa 4A, Warsaw 01-211, Poland, and our telephone number is +48222196622. NOTE 2 – GOING CONCERN The Company’s financial statements have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the financial statements, the Company had an accumulated deficit from Inception of $ 57,933 at July 31, 2023. The Company had net loss of $ 25,847 for the three months ended July 31, 2023. The Company has Promissory Notes on a balance sheet of $ 41,000 at July 31, 2023. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company is attempting to commence operations and generate sufficient revenue; however, the Company’s cash position may not be sufficient to support the Company’s daily operations. Management intends to raise additional funds by way of a private or public offering. While the Company believes in the viability of its strategy to commence operations and generate sufficient revenue and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The extent of the impact of the coronavirus (“COVID-19”) outbreak on the financial performance of the Company will depend on future developments, including the duration and spread of the outbreak and related advisories and restrictions and the impact of COVID-19 on the overall economy, all of which are highly uncertain and cannot be predicted. If the overall economy is impacted for an extended period, the Company’s future operating results may be materially adversely affected. NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America. The Company’s year-end is January 31. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and notes required by US GAAP for complete financial statements of the Company. In the opinion of management, these financial statements reflect all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented in conformity with US GAAP. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended January 31, 2023. Interim results are not necessarily indicative of the results that may be expected for a full year or any other interim period. 7 Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles 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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The Company issued 2,500,000 common shares for $ 250 at par value $0.0001 for the purpose of taking care of financial operations for the Company by the director Wiktor Moroz. Mobile Application and Website development - amortization The Company is using straight - line amortization for our mobile application and website since they are fully operational as of January 15, 2022. Mobile Application and Website – $ 41,000 Term of amortization – 60 months ( 5 years) Since Inception to July 31, 2023 the company’s accumulated amortization was $ 12,646 . Interest Payable Note The Company holds Promissory note payable of $ 41,000 , as per contract the company has to pay interest of 10% annually. As of July 31, 2023 the Company’s Interest payable is $ 6,330 . Fair Value of Financial Instruments AS topic 820 “Fair Value Measurements and Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. These tiers include: Level 1: defined as observable inputs such as quoted prices in active markets; Level 2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3: defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying value of cash and the Company’s loan from shareholder approximates its fair value due to their short-term maturity. Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. 8 Basic Income (Loss) Per Share The Company computes income (loss) per share in accordance with FASB ASC 260 “Earnings per Share”. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. As of July 31, 2023, there were no potentially dilutive debt or equity instruments issued or outstanding. Stock-Based Compensation Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements. NOTE 4 – LOAN FROM DIRECTOR As of July 31, 2023, the Company owed $ 17,244 to the Company’s sole director, Wiktor Moroz for the Company’s working capital purposes. The amount is outstanding and payable upon request. The company compensated the director by issuing common shares 2,500,000 at par value $ 250 towards incurred company’s expenses as of January 10, 2022. NOTE 5 – COMMON STOCK The Company has 75,000,000 , $ 0.0001 par value shares of common stock authorized. On January 10, 2022 the Company issued 2,500,000 shares of common stock to a director for services rendered estimated to be $ 250 at $0.0001 per share. In July of 2022, the Company issued 167,500 common shares to few individuals at $0.02 per share in consideration of $ 3,350 . There were 2,667,500 shares of common stock issued and outstanding as of July 31, 2022. In October of 2022, the Company issued 625,250 common shares to few individuals at $0.02 per share in consideration of $ 12,505 . There were 3,292,750 shares of common stock issued and outstanding as of October 31, 2022. In January, the Company issued 275,000 common shares to few individuals at $0.02 per share in consideration of $ 5,500 . There were 3,567,750 shares of common stock issued and outstanding as of January 31, 2023. In April, the Company issued 65,000 common shares to few individuals at $0.02 per share in consideration of $ 1,300 . There were 3,632,750 shares of common stock issued and outstanding as of July 31, 2023. 9 NOTE 6 – COMMITMENTS AND CONTINGENCIES Our sole officer and director, Wiktor Moroz, has agreed to provide his own premise under office needs. He will not take any fee for these premises, it is for free use. NOTE 7 – INCOME TAXES On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (“Tax Reform Act”). The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a transition tax on deemed repatriated earnings of foreign subsidiaries. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. The reconciliation of income tax benefit (expenses) at the U.S. statutory rate at 21% for the period ended as follows: Schedule of income tax benefit (expense) July 31, 2023 Tax benefit (expenses) at U.S. statutory rate $ ( 5,428 ) Change in valuation allowance 5,428 Tax benefit (expenses), net $ – The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets are as follows: Schedule of deferred taxes July 31, 2023 Net operating loss $ 12,166 Valuation allowance ( 12,166 ) Deferred tax assets, net $ – The Company has accumulated approximately $ 57,933 of net operating losses (“NOL”) carried forward to offset future taxable income up to 20 years, if any, in future years which begin to expire in year 2038. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against all of the deferred tax asset relating to NOLs for every period because it is more likely than not that all of the deferred tax asset will not be realized. NOTE 8 – SUBSEQUENT EVENTS In accordance with ASC 855-10 the Company has analyzed its operations subsequent to July 31, 2023 to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements. The extent of the impact of the coronavirus ("COVID-19") outbreak on the financial performance of the Company will depend on future developments, including the duration and spread of the outbreak and related advisories and restrictions and the impact of COVID-19 on the overall economy, all of which are highly uncertain and cannot be predicted. If the overall economy is impacted for an extended period, the Company’s future operating results may be materially adversely affected. 10