ASTIKA HOLDINGS INC. - Quarter Report: 2019 March (Form 10-Q)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the quarterly period ended March 31, 2019
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from ___________ to ___________
Commission file number 000-54855
ASTIKA
HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Florida
(State or other jurisdiction of incorporation or organization)
|
27-4601693
(I.R.S. Employer Identification Number)
|
Level 1, 725 Rosebank Road
Avondale,
Auckland, 1348, New Zealand
(Address of principal executive offices)
(64) 9
929 0502
(Issuer’s telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the
Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate
website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [ ] No [X]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, a smaller reporting company or, an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company”, in Rule 12b-2 of the Exchange
Act.
Large accelerated filer [ ]
|
|
Accelerated filer [ ]
|
Non-accelerated filer [ ]
|
|
Smaller reporting company [X]
|
(Do not check if smaller reporting company)
|
|
Emerging growth company [ ]
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the
extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). Yes [X] No [ ]
ASTIKA HOLDINGS, INC.
TABLE OF CONTENTS
PAGE
|
|
|
|
PART I. FINANCIAL INFORMATION
|
3
|
|
|
Item 1. Financial Statements (unaudited)
|
3
|
|
|
Balance Sheets
|
3
|
|
|
Statements of Operations
|
4
|
|
|
Statements of Cash Flows
|
7
|
|
|
Notes to Unaudited Interim Financial Statements
|
8 |
|
|
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
12
|
|
|
Item 3. Quantitative and Qualitative Disclosures About Market Risk
|
14
|
|
|
Item 4. Controls and Procedures
|
14
|
|
|
PART II. OTHER INFORMATION
|
15
|
|
|
Item 1. Legal Proceedings
|
15
|
|
|
Item 1A. Risk Factors
|
15
|
|
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
15
|
|
|
Item 3. Defaults Upon Senior Securities
|
15
|
|
|
Item 4. Mine Safety Disclosures
|
15
|
|
|
Item 5. Other Information
|
15
|
|
|
Item 6. Exhibits
|
16
|
|
|
SIGNATURES
|
17
|
ASTIKA HOLDINGS, INC.
|
||||||||
BALANCE SHEETS
|
||||||||
|
March 31,
2019
|
December 31,
2018
|
||||||
(Unaudited)
|
(Audited)
|
|||||||
ASSETS | ||||||||
Cash
|
$
|
-
|
$
|
-
|
||||
TOTAL ASSETS
|
$
|
-
|
$
|
-
|
||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
||||||||
Current Liabilities
|
||||||||
Accounts payable and accrued liabilities
|
$
|
90,383
|
$
|
115,325
|
||||
Loan payable and accrued interest
|
3,608
|
3,589
|
||||||
Due to related party
|
36,107
|
5,807
|
||||||
Total Current Liabilities
|
130,098
|
124,721
|
||||||
|
||||||||
Stockholders' Deficit
|
||||||||
Preferred Stock: 10,000,000 shares authorized; par value $0.001; 2,090,000 shares
issued and outstanding as of March 31, 2019 and December 31, 2018
|
2,090
|
2,090
|
||||||
Common Stock: 140,000,000 shares authorized; par value $0.001; 29,890,066 shares issued
and outstanding as of March 31, 2019 and December 31, 2018
|
29,890
|
29,890
|
||||||
Additional paid-in capital less Pref B issuing costs
|
471,595
|
471,595
|
||||||
Accumulated deficit
|
(633,673
|
)
|
(628,296
|
)
|
||||
Total Stockholders’ Deficit
|
(130,098
|
)
|
(124,721
|
)
|
||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
$
|
-
|
$
|
-
|
The accompanying notes are an integral part of these financial statements.
3
ASTIKA HOLDINGS, INC.
|
||||||||
STATEMENTS OF OPERATIONS
|
||||||||
(UNAUDITED)
|
||||||||
For The
Three Months Ended |
||||||||
March 31,
2019
|
March 31,
2018
|
|||||||
REVENUE
|
||||||||
Revenue |
$
|
-
|
$
|
-
|
||||
TOTAL REVENUE
|
-
|
-
|
||||||
OPERATING EXPENSES
|
||||||||
General and administrative |
5,359
|
11,617
|
||||||
Total Operating Expenses
|
5,359
|
11,617
|
||||||
OPERATING LOSS
|
(5,359
|
)
|
(11,617
|
)
|
||||
OTHER EXPENSE
|
||||||||
Interest expense, net |
(18
|
)
|
(17
|
)
|
||||
Total Other Expense
|
(18
|
)
|
(17
|
)
|
||||
NET LOSS
|
$
|
(5,377
|
)
|
$
|
(11,634
|
)
|
||
BASIC AND DILUTED NET LOSS PER COMMON SHARE |
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
||
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
|
29,890,066
|
29,890,066
|
The accompanying notes are an integral part of these financial statements.
4
ASTIKA HOLDINGS, INC.
|
||||||||||||||||||||||||||||
STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT
|
||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2019
|
||||||||||||||||||||||||||||
(UNAUDITED)
|
||||||||||||||||||||||||||||
Preferred Stock
|
Common Stock
|
Additional
Paid In
Capital
|
Accumulated
(Deficit)
|
Total
Stockholders’
Deficit
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||||||||||||||||||
Balance at December 31, 2018
|
2,090,000
|
$
|
2,090
|
29,890,066
|
$
|
29,890
|
$
|
471,595
|
$
|
(628,296
|
)
|
$
|
(124,721
|
)
|
||||||||||||||
Net loss
|
(5,377
|
)
|
(5,377
|
)
|
||||||||||||||||||||||||
Balance at March 31, 2019
|
2,090,000
|
$
|
2,090
|
29,890,066
|
$
|
29,890
|
$
|
471,595
|
$
|
(633,673
|
)
|
$
|
(130,098
|
)
|
The accompanying notes are an integral part of these financial statements.
5
ASTIKA HOLDINGS, INC.
|
||||||||||||||||||||||||||||
STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT
|
||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2018
|
||||||||||||||||||||||||||||
(UNAUDITED)
|
||||||||||||||||||||||||||||
Preferred Stock
|
Common Stock
|
Additional
Paid In
Capital
|
Accumulated
(Deficit)
|
Total
Stockholders’
Deficit
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||||||||||||||||||
Balance at December 31, 2017
|
2,090,000
|
$
|
2,090
|
29,890,066
|
$
|
29,890
|
$
|
471,595
|
$
|
(572,775
|
)
|
$
|
(69,200
|
)
|
||||||||||||||
Net loss
|
(11,634
|
)
|
(11,634
|
)
|
||||||||||||||||||||||||
Balance at March 31, 2018
|
2,090,000
|
$
|
2,090
|
29,890,066
|
$
|
29,890
|
$
|
471,595
|
$
|
(584,409
|
)
|
$
|
(80,834
|
)
|
The accompanying notes are an integral part of these financial statements.
6
ASTIKA HOLDINGS, INC.
|
||||||||
STATEMENTS OF CASH FLOWS
|
||||||||
(UNAUDITED)
|
||||||||
For The Three Months
Ended
|
||||||||
March 31,
2019
|
March 31,
2018
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net loss
|
$
|
(5,377
|
)
|
$
|
(11,634
|
)
|
||
Adjustments to reconcile net loss to net cash used in
|
||||||||
Changes in Operating assets & liabilities
|
||||||||
(Increase) decrease in prepaid expenses
|
-
|
42,101
|
||||||
Increase (decrease) in accounts payable and accrued liabilities
|
(24,923
|
)
|
1,226
|
|||||
Net Cash Provided by (Used in) Operating Activities
|
(30,300
|
)
|
31,693
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Payback to related party
|
-
|
(42,101
|
)
|
|||||
Due to releted party
|
30,300
|
10,408
|
||||||
Common shares issued for cash
|
-
|
|||||||
Net cash provided by (Used in) Financing Activities
|
30,300
|
(31,693
|
)
|
|||||
NET INCREASE IN CASH
|
-
|
-
|
||||||
CASH AT BEGINNING OF PERIOD
|
-
|
-
|
||||||
CASH AT END OF PERIOD
|
$
|
-
|
$
|
-
|
||||
|
||||||||
CASH PAID FOR:
|
||||||||
Interest
|
$
|
-
|
$
|
-
|
||||
Income taxes
|
$
|
-
|
$
|
-
|
The accompanying notes are an integral part of these financial statements.
7
ASTIKA HOLDINGS, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2019
(UNAUDITED)
NOTE 1 - DESCRIPTION OF
BUSINESS
Astika Holdings, Inc. (the “Company”, “we”, “us”, “our”), Astika Holdings, Inc., a Florida corporation, is refocusing and preparing to
relaunch the Company through a variety of strategic acquisitions in the textile, service, and industrial sectors to complement and capture the next wave of growth companies from Asia and New Zealand.
NOTE 2- GOING CONCERN
ANALYSIS AND MANAGEMENT PLANS
The Company’s unaudited interim 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 has an accumulated deficit and no
cash flows from operating activities at March 31, 2019. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and 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 becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. These
factors raise substantial doubt about the Company’s ability to continue as a going concern.
In order to continue as a going concern, the Company will need, among other things, additional
capital resources. Management’s plans focus is on a variety of strategic acquisitions in service, agriculture and industrial companies to compliment and grow Astika Holdings, Inc.’s business. The Company is positioning to capture the
next wave of growth companies from Asia. As the centerpieces for Astika Holdings in Asia, the focus is on rapid economic growth and increased foreign investment sector companies which management believes is poised for accelerated
economic growth with national modernization. Astika’s planned focus is also on adding value through successful project development, efficient operations, and opportunistic acquisitions while maintaining a low risk profile through
project diversification, astute financial management and operating in secure jurisdictions. Management’s plan to obtain such resources for the Company include (i) obtaining capital from management and significant stockholders sufficient
to meet its minimal operating expenses; (ii) obtaining funding from outside sources through the sale of its debt and/or equity securities; and (iii) completing a merger with or acquisition of an existing operating company. However,
management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.
NOTE 3 -
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying unaudited interim financial statements have been prepared in accordance
with the rules and regulations of the Securities and Exchange Commission for the presentation of interim financial information, but do not include all the information and footnotes required by generally accepted accounting
principles for complete financial statements. The accompanying financial statements should be read in conjunction with the December 31, 2019 financial statements that were filed in our annual report on Form 10-K. In the opinion
of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2019 are not necessarily
indicative of the results that may be expected for the year ended December 31, 2019.
8
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Stock-Based Compensation
We recognize compensation cost for stock-based awards to employees in accordance
with ASC Topic 718, over the requisite service period for each separately vesting tranche, as if multiple awards were granted. Compensation cost is based on grant-date fair value using quoted market prices for our common
stock. We recognize compensation cost for stock-based awards to nonemployees in accordance with ASC Topic 505.
The Company accounts for income taxes as outlined in Financial Accounting Standards Board (“FASB”)
Accounting Standards Codification (“ASC”) 740, “Income Taxes”. Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the estimated 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 in effect for the year in which those temporary differences are
expected to be recovered or settled.
Basic and Diluted Loss Per Share
The Company computes earnings per share in accordance with ASC 260, “Earnings Per Share” (ASC 260).
Under the provisions of ASC 260, basic earnings per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is
computed by dividing the net income (loss) for the period by the weighted average number of common and potentially dilutive shares of common stock outstanding during the period. The Company had net losses for the three months ended March 31,
2019 and 2018, as such, the diluted earnings per share excludes all dilutive potential shares because their effect is anti-dilutive.
Parties are considered to be related to the Company if the parties, directly or indirectly, through one or
more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company
and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented
from fully pursuing its own separate interests.
Fair Value of Financial Instruments
ASC 820, “Fair Value Measurements” (ASC 820) and ASC 825, “Financial Instruments” (ASC 825), requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It
establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest
level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:
9
Level 1 – quoted prices in active markets for identical assets or
liabilities.
Level 2 – quoted prices for similar assets and liabilities in active markets
or inputs that are observable.
Level 3 – inputs that are unobservable (for example cash flow modeling
inputs based on assumptions).
The carrying values of cash, accounts payable, and accrued liabilities approximate fair value. Pursuant to ASC 820 and 825,
the fair value of cash is determined based on "Level 1" inputs, which consist of quoted prices in active markets for identical assets. The recorded values of all other financial instruments approximate their current fair values because of their
nature and respective maturity dates or durations.
Recent accounting pronouncements
Management does not believe that any recently issued, but not yet effective accounting pronouncements will
have a material effect on the accompanying financial statements.
NOTE 4 - LOAN TRANSACTION
The Company purchased a recorded music compilation from EuGene Gant for a purchase price of $5,000
pursuant to a Bill of Sale and Assignment dated June 15, 2012, an Exclusive Songwriter Agreement dated June 15, 2012, and a Promissory Note that the Company concurrently executed and delivered to him on the same date. The Company made a
payment to Mr. Gant in the amount of $1,000 on June 15, 2012 and $2,000 on October 1, 2012, and $1,000 on June 15, 2013, and the remaining $1,000 principal amount under Promissory Note bears interest at five percent (5%) per annum, and there is
one remaining principal installment payment in the amount of $1,162 due. Accrued and unpaid interest on the Promissory Note is also due in the amount of $18 for the three-month period ended March 31, 2019, and $17 for the three-month period
ended March 31, 2018. As of March 31, 2019 and December 31, 2018, total outstanding short-term debt was $1,508 and $1,490, respectively. The note matured on June 15, 2013 and the loan is currently in default.
On October 22, 2015, Artfield Investment paid $2,100 in expenses on behalf of the Company. This loan
is unsecured, due on demand, and carries no interest. At March 31, 2019 and December 31, 2018, the total amount owed was $2,100 and $2,100, respectively.
NOTE 5 - RELATED
PARTY TRANSACTIONS
The Company has entered into transactions with the related party, IQ Acquisition (NY), Ltd,
owned by Mr. Richards, the CEO of the Company. IQ Acquisition (NY), Ltd, the major shareholder of the Company, has paid expenses on behalf of the Company in the amount of $30,300 and $10,408 during the three-months ended March 31, 2019
and 2018, respectively. The Company reimbursed IQ acquisition (NY) in the amount of $0 and $42,101 during the three months ended March 31, 2019 and 2018, respectively. The balance due to related party as of March 31, 2019 and December
31, 2018 was $36,107 and $5,807, respectively. The advances are unsecured, payable on demand, and carry no interest.
NOTE 6 - EQUITY TRANSACTIONS
The Company has authorized 10,000,000 shares of Preferred Stock and 140,000,000 shares of
Common Stock at par value of $0.001. As of March 31, 2019 and December 31, 2018, the Company had 29,890,066 and 29,890,066 shares of common stock, and 2,090,000 and 2,090,000 preferred shares, issued and outstanding, respectively.
10
During the three months ended March 31, 2019 and 2018, the Company did not issue any additional shares of common stock. As of
March 31, 2019, no preferred shares have been converted to shares of common stock.
NOTE 7 -
SUBSEQUENT EVENTS
The Company has evaluated subsequent events that have occurred after the date of the balance
sheet through the date of issuance of these financial statements and determined that no subsequent event requires recognition or disclosure to the financial statements.
11
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis should be read in conjunction with our financial statements,
including the notes thereto, appearing in this Form 10-K and are hereby referenced. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those
discussed in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this report. You should not place undue certainty on these
forward-looking statements, which apply only as of the date of this report. We believe it is important to communicate our expectations. However, our management disclaims any obligation to update any forward-looking statements whether as a result
of new information, future events or otherwise.
These forward-looking statements are based on our management’s current expectations and beliefs and
involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. You should not rely upon these forward-looking statements as predictions of future events because we cannot assure you that the
events or circumstances reflected in these statements will be achieved or will occur. You can identify a forward-looking statement by the use of the forward-terminology, including words such as “may”, “will”, “believes”, “anticipates”,
“estimates”, “expects”, “continues”, “should”, “seeks”, “intends”, “plans”, and/or words of similar import, or the negative of these words and phrases or other variations of these words and phrases or comparable terminology. These
forward-looking statements relate to, among other things: our sales, results of operations and anticipated cash flows; capital expenditures; depreciation and amortization expenses; sales, general and administrative expenses; our ability to
maintain and develop relationship with our existing and potential future customers; and, our ability to maintain a level of investment that is required to remain competitive. Many factors could cause our actual results to differ materially
from those projected in these forward-looking statements, including, but not limited to: variability of our revenues and financial performance; risks associated with technological changes; the acceptance of our products in the marketplace by
existing and potential customers; disruption of operations or increases in expenses due to our involvement with litigation or caused by civil or political unrest or other catastrophic events; general economic conditions, government mandates;
and, the continued employment of our key personnel and other risks associated with competition.
Overview
Astika Holdings, Inc. was incorporated under the laws of the State of Florida on January 13, 2011.
We are refocusing and preparing to relaunch the Company through a variety of strategic acquisitions in the textile, service, agricultural, and industrial sectors to complement and capture the next wave of growth companies from Asia and New
Zealand.
Results of Operations for the Three Months Ended March 31, 2019 Compared to the
Three Months Ended March 31, 2018
Revenues
The Company’s revenues were $0 for the three-month period ended March 31, 2019 and March 31,
2018.
General and Administrative Expenses
General and administrative expenses for the three months ended March 31, 2019 were $5,359 as compared to $11,617 for the three months ended March 31, 2018 general and administrative expenses. The decrease in general and administrative expenses was primarily due to the lower legal and
consulting fees.
The Company has had only nominal operations and does not have any cash
generated from business operations. We funded our operating expenses by issuing notes to related and unrelated parties, borrowing loans from our related parties, and issuing convertible preferred stock to unrelated parties. Our
plan is to obtain financing from various investors and complete our acquisition project.
12
As of March 31, 2019 and December 31, 2018, we had working capital deficits of
$130,098 and $124,721, respectively.
The Company has not yet established an ongoing source of revenue sufficient to
cover its operating costs and 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
becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern.
In order to continue as a going concern, the Company will need, among other
things, additional capital resources. Management’s plans focus is on a variety of strategic acquisitions in service, agriculture and industrial companies to compliment and grow Astika Holdings, Inc.’s business. The Company
is positioning to capture the next wave of growth companies from Asia. As the centerpieces for Astika Holdings in Asia, the focus is on rapid economic growth and increased foreign investment sector companies which
management believes is poised for accelerated economic growth with national modernization. Astika’s planned focus is also on adding value through successful project development, efficient operations, and opportunistic
acquisitions while maintaining a low risk profile through project diversification, astute financial management and operating in secure. to obtain such resources for the Company include (i) obtaining capital from management
and significant stockholders sufficient to meet its minimal operating expenses; (ii) obtaining funding from outside sources through the sale of its debt and/or equity securities; and (iii) completing a merger with or
acquisition of an existing operating company. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The accompanying financial statements do not include
any adjustments that might result from the outcome of this uncertainty.
Net Cash Used in Operating Activities
Net cash used in operating activities was $30,300 for the three months ended
March 31, 2019. Net cash provided by operating activities was $31,693 for the three months ended March 31, 2018 due to the decrease in prepaid expense of $42,101.
Net Cash Used in Investing Activities
The net cash used in investing activities during the three months ended
March 31, 2019 and 2018 was $0.
Net Cash Provided by Financing Activities
Net cash provided by financing activities during the three months ended March 31, 2019 was $30,300.
Net cash used in financing activities during the three months ended March 31, 2018 was $31,693 due to payback of a related party’s loan in the amount of $42,101.
Based on our working capital deficit as of March 31, 2019 and zero revenues, we expect to need
additional equity and/or debt financing to continue our operations during the next 12 months. We expect that our current cash on hand will not fund our operations through December 2019.
13
Our unaudited interim financial statements and accompanying notes have been prepared in accordance
with United States generally accepted accounting principles applied on a consistent basis. The preparation of unaudited interim financial statements in conformity with United States generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited interim financial statements and the reported amounts
of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Our significant estimates and assumptions include amortization, the fair value of our stock, and the valuation allowance relating to
the Company’s deferred tax assets.
Material Commitments
There was no material commitment during the three months ended March 31, 2019.
Recent Accounting Pronouncements
Management does not believe that any recently issued, but not yet effective accounting
pronouncements will have a material effect on the accompanying financial statements.
Off Balance Sheet Arrangements
As of March 31, 2019, we had no off-balance sheet arrangements.
Disclosure under this section is not required for a smaller reporting company.
We maintain disclosure controls and procedures that are designed to ensure
that the information required to be disclosed in the reports that we file under the Securities Exchange Act of 1934 (the "Exchange Act") is recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our President and Treasurer, as appropriate, to allow timely decisions
regarding required disclosures. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can only provide
reasonable assurance of achieving the desired control objectives, and in reaching a reasonable level of assurance, management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of
possible controls and procedures.
As required by SEC Rule 13a-15(b), we carried out an evaluation, under the
supervision and with the participation of our management, including our President and Treasurer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of our third
fiscal quarter covered by this report. Based on the foregoing, our President and Treasurer concluded that our disclosure controls and procedures were not effective at the reasonable assurance level at March 31, 2019.
It should be noted that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its
stated goals under all potential future conditions, regardless of how remote.
14
Management's Remediation
Initiatives
In an effort to remediate the identified material weaknesses and other
deficiencies and enhance our internal controls, we plan to initiate the following series of measures once we have the financial resources to do so:
▪
|
We will create a position to segregate duties consistent with control objectives and will increase
our personnel resources and technical accounting expertise within the accounting function when funds are available to us. And, we plan to appoint one or more outside directors to an audit committee resulting in a fully functioning audit
committee, which will undertake the oversight in the establishment and monitoring of required internal controls and procedures, such as reviewing and approving estimates and assumptions made by management when funds are available to us.
|
|
|
▪
|
Management believes that the appointment of outside directors to a fully functioning audit
committee, would remedy the lack of a functioning audit committee.
|
Changes in Internal Control Over Financial Reporting
There were no changes in our internal controls over financial reporting that occurred during the
period covered by this report, which were identified in connection with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting.
PART II OTHER INFORMATION
None.
15
Item 6. Exhibits
Exhibit No.
|
Description
|
|
|
31.1
|
|
|
|
32.1
|
|
|
|
101 INS
|
XBRL Instance Document*
|
|
|
101 SCH
|
XBRL Schema Document*
|
|
|
101 CAL
|
XBRL Calculation Linkbase Document*
|
|
|
101 LAB
|
XBRL Labels Linkbase Document*
|
|
|
101 PRE
|
XBRL Presentation Linkbase Document*
|
|
|
101 DEF
|
XBRL Definition Linkbase Document*
|
* The XBRL related information in Exhibit 101 shall not be deemed “filed” for purposes of Section 18 of
the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be
expressly set forth by specific reference in such filing or document.
16
SIGNATURES
ASTIKA HOLDINGS, INC.
DATE: May 20, 2019
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.
By:
|
/s/ Mark W. Richards
|
|
Mark W. Richards
|
President, Chief Executive Officer,
|
|
|
(Principal Executive Officer), Treasurer
|
|
(Principal Financial and Accounting Officer), Chairman
|
17