Namliong SkyCosmos, Inc. - Quarter Report: 2019 June (Form 10-Q)

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Kreido Biofuels, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
			For the Three Months Ended						For the Six Months Ended
			June 30,						June 30,
			2019			2018			2019			2018
REVENUES			$	-		$	-		$	-		$	-
EXPENSES
	Professional fees			10,109			3,825			14,609			12,850
	General and administrative			803			-			2,386			2,000
		Total Expenses		10,912			3,825			16,995			14,850
LOSS FROM OPERATIONS				(10,912)			(3,825)			(16,995)			(14,850)
NET LOSS			$	(10,912)		$	(3,825)		$	(16,995)		$	(14,850)
BASIC AND DILUTED LOSS PER SHARE			$	(0.00)		$	(0.00)		$	(0.00)		$	(0.00)
BASIC AND DILUTED WEIGHTED AVERAGE
NUMBER OF COMMON SHARES
OUTSTANDING				195,645,159			195,645,159			195,645,159			195,645,159
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

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Kreido Biofuels, INC.
Condensed Consolidated Statements of Stockholders' Equity (Deficit)
(Unaudited)
	Six-Months Ended June 30, 2018
						Additional
	Common Stock					Paid-In			Accumulated
	Shares		Amount			Capital			Deficit			Total
Balance, December 31, 2017	195,645,159		$	195,645		$	48,769,838		$	(48,972,333)		$	(6,850)
Forgiveness of related party debt	-			-			21,350			-			21,350
Net loss	-			-			-			(14,850)			(14,850)
Balance, June 30, 2018	195,645,159		$	195,645		$	48,791,188		$	(48,987,183)		$	(350)
	Six-Months Ended June 30, 2019
						Additional
	Common Stock					Paid-In			Accumulated
	Shares		Amount			Capital			Deficit			Total
Balance, December 31, 2018	195,645,159		$	195,645		$	48,791,188		$	(49,011,291)		$	(24,458)
Net loss	-			-			-			(16,995)			(16,995)
Balance, June 30, 2019	195,645,159		$	195,645		$	48,791,188		$	(49,028,286)			(41,453)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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Kreido Biofuels, INC.
Condensed Consolidated Statements of Stockholders' Equity (Deficit)
(Unaudited)
	Three Months Ended June 30, 2018
						Additional
	Common Stock					Paid-In			Accumulated
	Shares		Amount			Capital			Deficit			Total
Balance, March 31, 2018	195,645,159		$	195,645		$	48,769,838		$	(48,983,358)		$	(17,875)
Forgiveness of related party debt	-			-			21,350			-			21,350
Net loss	-			-			-			(3,825)			(3,825)
Balance, June 30, 2018	195,645,159		$	195,645		$	48,791,188		$	(48,987,183)		$	(350)
	Three Months Ended June 30, 2019
						Additional
	Common Stock					Paid-In			Accumulated
	Shares		Amount			Capital			Deficit			Total
Balance, March 31, 2019	195,645,159		$	195,645		$	48,791,188		$	(49,017,374)		$	(30,541)
Net loss	-			-			-			(10,912)			(10,912)
Balance, June 30, 2019	195,645,159		$	195,645		$	48,791,188		$	(49,028,286)			(41,453)
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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Kreido Biofuels, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
					For the Six Months Ended
					June 30,
					2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES
	Net loss				$	(16,995)		$	(14,850)
	Adjustments to reconcile net loss to net cash
	used in operating activities:
	Changes in operating assets and liabilities:
		Decrease in prepaid expenses				-			2,000
		Increase (decrease) in accounts payable				13,960			(550)
		Increase in account payable - related party				3,035			3,973
		Net Cash Used in Operating Activities				-			(9,427)
CASH FLOWS FROM INVESTING ACTIVITIES						-			-
CASH FLOWS FROM FINANCING ACTIVITIES
		Repayment of note payable				-			(11,923)
		Proceeds from related party				-			21,350
		Net Cash Provided by Financing Activities				-			9,427
		NET INCREASE IN CASH				-			-
		CASH AT BEGINNING OF PERIOD				-			-
		CASH AT END OF PERIOD			$	-		$	-
SUPPLEMENTAL DISCLOSURES OF
	CASH FLOW INFORMATION
	CASH PAID FOR:
		Interest			$	-		$	-
		Income Taxes			$	-		$	-
NON-CASH INVESTING AND FINANCING ACTIVITIES
		Forgiveness of related party debt			$	-		$	21,350
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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KREIDO BIOFUELS, INC.

Notes to Condensed Consolidated Financial Statements

June 30, 2019 and December 31, 2018

(Unaudited)

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NOTE 1 - ORGANIZATION AND BUSINESS

 

Nature of Business

 

Kreido Biofuels, Inc. was incorporated as Gemwood Productions, Inc. under the laws of the State of Nevada on February 7, 2005. Gemwood Productions, Inc. changed its name to Kreido Biofuels, Inc. on November 2, 2006. The Company took its current form on January 12, 2007 when Kreido Laboratories (“Kreido Labs”), completed a reverse triangular merger with Kreido Biofuels, Inc.

 

Kreido Labs, formerly known as Holl Technologies Company, was incorporated on January 13, 1995 under the laws of the State of California. Since incorporation, Kreido Labs has been engaged in activities required to develop, patent and commercialize its products. Kreido Labs was the creator of reactor technology that was designed to enhance the manufacturing of a broad range of chemical products.

 

The cornerstone of Kreido Labs’ technology was its patented STT^® (Spinning Tube in Tube) diffusional chemical reacting system, which were both a licensable process and a licensable system. In 2005, the Company demonstrated how the STT^® could make biodiesel from vegetable oil rapidly with almost complete conversion and less undesirable by-products. The Company had continued to pursue this activity, built and tested a pilot biodiesel production unit and, prior to June 20, 2008, was in the process of developing the first of its commercial biodiesel production plants in the United States that, if constructed and put into operation, was expected to produce approximately 33 million to 50 million gallons per year. On June 20, 2008, the Company announced that due to the weakening of the economy, the continued financial market turmoil and the inability to raise needed capital to finance site construction and plant start-up costs, the Company was suspending work regarding its flagship biodiesel production plant at the Port of Wilmington, North Carolina. In November of 2017, the Company discontinued operations of its subsidiary, Kreido Labs, Inc.

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America.

 

The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the six months ended June 30, 2019 and 2018 have been made.

 

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2018 audited financial statements. The results of operations for the periods ended June 30, 2019 are not necessarily indicative of the operating results for the full year.

 

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Kreido Laboratories, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.

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KREIDO BIOFUELS, INC.

Notes to Condensed Consolidated Financial Statements

June 30, 2019 and December 31, 2018

(Unaudited)

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Accounting Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles in the United States of America 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 and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Fair Value of Financial Instruments

Financial instruments, including cash and accrued expenses and other liabilities are carried at amounts, which reasonably approximate their fair value due to the short-term nature of these amounts or due to variable rates of interest, which are consistent with market rates.

Loss per Common Share

Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted 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. For the six months ended June 30, 2019 and 2018 there were no potentially dilutive debt or equity instruments issued or outstanding.

Cash and Cash Equivalents

The Company considers all highly liquid investment with an original maturity of three months or less to be cash equivalents.  The Company had no cash balances as of June 30, 2019 and December 31, 2018.

 

Stock-based compensation

The Company recognizes compensation expense for all stock-based compensation awards based on the grant-date fair value estimated in accordance with the provisions of ASC 718.

 

Income Taxes

Under ASC 740, “Income Taxes,” deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary 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. Valuation allowances are established when it is more likely than not that some or all of the deferred tax assets will not be realized. As of June 30, 2019 and December 31, 2018 there were no deferred taxes due to the uncertainty of the realization of net operating loss or carry forward prior to expiration.

 

Fair Value of Financial Instruments 

The Company follows guidance for accounting for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance 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 measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

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KREIDO BIOFUELS, INC.

Notes to Condensed Consolidated Financial Statements

June 30, 2019 and December 31, 2018

(Unaudited)

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

 

Level 2 inputs are inputs other than quoted prices included within Level 1that are observable for the asset or liability, either directly or indirectly.

 

Level 3 inputs are unobservable inputs for the asset or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the short maturity of these instruments.

 

Recent Accounting Pronouncements

The FASB established the Accounting Standards Codification (“Codification” or “ASC”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”).

 

Rules and interpretative releases of the Securities and Exchange Commission (“SEC”) issued under authority of federal securities laws are also sources of GAAP for SEC registrants.

 

Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

 

 NOTE 3 - GOING CONCERN

 

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plan is to obtain such resources for the Company by obtaining capital from management sufficient to meet its minimal operating expenses and seeking equity and/or debt financing. However, Management cannot provide any assurances that the Company will be successful in accomplishing any of its plans, which raises substantial doubt about the ability of the Company to continue as a going concern.

 

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 financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

NOTE 4 – STOCKHOLDERS’ EQUITY

 

Common Stock

The Company’s Articles of Incorporation authorize the issuance of up to 300,000,000 common shares, par value $0.001 per share, and 10,000,000 preferred shares, also $.001 par value. There were 195,645,159 shares of common stock outstanding at June 30, 2019 and December 31, 2018. There were no preferred shares outstanding during any periods presented.   

 

2018

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KREIDO BIOFUELS, INC.

Notes to Condensed Consolidated Financial Statements

June 30, 2019 and December 31, 2018

(Unaudited)

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During 2018, a related party forgave an outstanding balance of $21,350 and the forgiveness of related party debt was recorded in additional paid-in capital.

 

NOTE 5 – RELATED PARTY TRANSACTIONS

 

As of June 30, 2019 and December 31, 2018, the Company had a related party payable in the amount of $15,268 and $12,233. The related party payable is a shareholder in the Company, who advanced a total of $3,035 during the six months ended June 30, 2019 to provide working capital for the Company. The advances are unsecured, non-interest and due on demand.

 

NOTE 6 – SUBSEQUENT EVENTS

 

The Company evaluated subsequent events from June 30, 2019 through the date the financial statements were issued. There have been no subsequent events after June 30, 2019 for which disclosure is required.

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