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EX-32 - SOLIDO VENTURES EX 32.1 - Portus Holdings Inc.solido_ex32110k.htm
EX-31 - SOLIDO VENTURES EX 31.1 - Portus Holdings Inc.solido_ex31110k.htm

U. S. SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-K

[X]

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2011


 


OR


 

[ ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____________ TO _____________


Solido Ventures Inc.

(Name of Registrant in its Charter)


Nevada

000-54403

45-1283820

(State or Jurisdiction of

Incorporation or Organization)

(Commission File Number)

(I.R.S. Employer

Identification No.)


729 North Scott

Belton, MO 64012

 (Address of Principal Executive Offices)


Registrants telephone number, including area code: 913.396.1911


Securities registered pursuant to Section 12(b) of the Act: None


Securities registered pursuant to Section 12(g) of the Exchange Act:


Common Stock

 

Outstanding Shares at December 31, 2011

Common Stock, par value $.0001 per share

 

37,500,000





Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act

[ ] Yes  [ X ] No


Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.


[ ] Yes  [ X ] No


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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.


[ X ] Yes  [  ] 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 (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).


[ X ] Yes  [  ] No


Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.


[ X ] Yes  [  ] No


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer", "accelerated filer", "non-accelerated filer", and "smaller reporting 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)


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).


[ X ] Yes  [ ] No




State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the

registrant's most recently completed second fiscal quarter.

$ 0


Indicate the number of shares outstanding of each of the registrant's classes of common stock as of the latest practicable date.


Class

Outstanding as of December 31, 2011

Common Stock, par value $0.0001         

37,500,000


Documents incorporated by reference

None


PART I


Item 1. Business


Solido Ventures Inc. (Solido or the Company) was incorporated on March 31, 2011, under the laws of the State of Nevada to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. Solido has been in the developmental stage since inception and its operations to date have been limited to issuing shares and filing a registration statement. The Company has been formed to provide a method for a foreign or domestic private company to become a reporting company with a class of securities registered under the Securities Exchange Act of 1934.


The Company registered its common stock on a Form 10 registration statement filed pursuant to the Securities Exchange Act of 1934 (the Exchange Act) and Rule 12(g) thereof. The Company files with the Securities and Exchange Commission periodic and current reports under Rule 13(a) of the Exchange Act, including quarterly reports on Form 10-Q and annual reports Form 10-K.


The Company has no employees and one officer, director and shareholder.


A combination will normally take the form of a merger, stock-for-stock exchange or stock-for-assets exchange. In most instances the target company will wish to structure the business combination to be within the definition of a tax-free reorganization under Section 351 or Section 368 of the Internal Revenue Code of 1986, as amended.


As of December 31, 2011, the Company had not generated revenues and had no income or cash flows from operations since inception. At December 31, 2011, Solido had sustained net loss of ($3,835) and had accumulated a deficit of ($3,835).


The Company's independent auditors have issued a report raising substantial doubt about the Company's ability to continue as a going concern. At present, the Company has no operations and the continuation of Solido as a going concern is dependent upon financial support from its



stockholder, its ability to obtain necessary equity financing to continue operations and/or to successfully locate and negotiate with a business entity for the combination of that target company with Solido.


The Companys sole shareholder, Michael Burns, will pay all expenses incurred by the Company until a business combination is effected, without repayment. There is no written agreement between the Company and Michael Burns to reflect this arrangement. Because there are no ongoing operations, these expenses should be relatively low.


There is no assurance that the Company will ever be profitable.


Item 2.  Properties


The Company has no properties and at this time has no agreements to acquire any properties.


Item 3.  Legal Proceedings


There is no litigation pending or threatened by or against the Company.


Item 4.  Mine Safety Disclosures.


Not applicable.


PART II


Item 5.  Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities


There is currently no public market for the Company's securities.


Following a business combination, a target company will normally wish to cause the Company's common stock to trade in one or more United States securities markets. The target company may elect to take the steps required for such admission to quotation following the business combination or at some later time.


At such time as it qualifies, the Company may choose to apply for quotation of its securities on the OTC Bulletin Board. The OTC Bulletin Board is a dealer-driven quotation service. Unlike the Nasdaq Stock Market, companies cannot directly apply to be quoted on the OTC Bulletin Board, only market makers can initiate quotes, and quoted companies do not have to meet any quantitative financial requirements. Any equity security of a reporting company not listed on the Nasdaq Stock Market or on a national securities exchange is eligible.


As such time as it qualifies, the Company may choose to apply for quotation of its securities on the Nasdaq Capital Market.




In general there is greatest liquidity for traded securities on the Nasdaq Capital Market and less on the OTC Bulletin Board. It is not possible to predict where, if at all, the securities of the Company will be traded following a business combination.


Since inception, the Company has sold securities which were not registered as follows:


Date of Sale

Outstanding as of December 31, 2011

Consideration

May 10, 2011

37,500,000

$3,750


Item 6. Selected Financial Data.


There is no selected financial data required to be filed for a smaller reporting company.


Item 7.  Management's Discussion and Analysis of Financial Condition  and Results of Operations


The Company has no operations nor does it currently engage in any business activities generating revenues. The Company's principal business objective is to achieve a business combination with a target company.


As of December 31, 2011, the Company had not generated revenues and had no income or cash flows from operations since inception. At December 31, 2011, the Company had sustained net loss of ($3,835) and had accumulated a deficit of ($3,835).


The Company's independent auditors have issued a report raising substantial doubt about the Company's ability to continue as a going concern. At present, the Company has no operations and the continuation of the Company as a going concern is dependent upon financial support from its stockholder, its ability to obtain necessary equity financing to continue operations and/or to successfully locate and negotiate with a business entity for the combination of that target company with the Company.


Michael Burns, the Companys sole shareholder, will pay all expenses incurred by the Company until a business combination is effected, without repayment. There is no written agreement between the Company and Mr. Burns to reflect this arrangement. Because of the absence of any ongoing operations, these expenses are anticipated to be extremely low.


A company may choose to effect a business combination with the Company before filing a registration statement as such method may be an effective way to obtain exposure to the brokerage community. A combination will normally take the form of a merger, stock-for-stock exchange or stock-for-assets exchange. In most instances the target company will wish to structure the business combination to be within the definition of a tax-free reorganization under Section 351 or Section 368 of the Internal Revenue Code of 1986, as amended.


No assurances can be given that the Company will be successful in locating or negotiating with any target company.




The most likely target companies are those seeking the perceived benefits of a reporting company. Such perceived benefits may include facilitating or improving the terms on which additional equity financing may be sought, providing liquidity for incentive stock options or similar benefits to key employees, increasing the opportunity to use securities for acquisitions, providing liquidity for stockholder and other factors. Business opportunities may be available in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities difficult and complex.


Mr. Burns will supervise the search for potential candidates for a business combination.  Mr. Burns will pay all expenses of the Company until such time as a business combination is effected, without repayment.  Mr. Burns is the sole shareholder, officer and director of the Company.


In analyzing prospective business opportunities, Michael Burns may consider such matters as the available technical, financial and managerial resources; working capital and other financial requirements; history of operations, if any; prospects for the future; nature of present and expected competition; the quality and experience of management services which may be available and the depth of that management; the potential for further research, development, or exploration; specific risk factors not now foreseeable but which may be anticipated; the potential for growth or expansion; the potential for profit; the perceived public recognition or acceptance of products, services, or trades; name identification; and other relevant factors. This discussion of the proposed criteria is not meant to be restrictive of the virtually unlimited discretion of the Company to search for and enter into potential business opportunities.


The search for a target company will not be restricted to any specific kind of business entities, but may acquire a venture which is in its preliminary or development stage, which is already in operation, or in essentially any stage of its business life. It is impossible to predict at this time the status of any business in which the Company may become engaged, whether such business may need to seek additional capital, may desire to have its shares publicly traded, or may seek other perceived advantages which the Company may offer.


In implementing a structure for a particular business acquisition, the Company may become a party to a merger, consolidation, reorganization, joint venture, licensing agreement or other arrangement with another corporation or entity. On the consummation of a transaction, it is likely that the present management and stockholder of the Company will no longer be in control of the Company. In addition, it is likely that the officer and director of the Company will, as part of the terms of the business combination, resign and be replaced by one or more new officers and directors.


It is anticipated that any securities issued in any such business combination would be issued in reliance upon exemption from registration under applicable federal and state securities laws. In some circumstances, however, as a negotiated element of its transaction, the Company may agree to register all or a part of such securities immediately after the transaction is consummated or at specified times thereafter. If such registration occurs, it will be undertaken by the surviving entity after the Company has entered into an agreement for a business combination or has consummated a business combination. The issuance of additional securities and their potential



sale into any trading market which may develop in the Company's securities may depress the market value of the Company's securities in the future if such a market develops, of which there is no assurance.


While the terms of a business transaction to which the Company may be a party cannot be predicted, it is expected that the parties to the business transaction will desire to avoid the creation of a taxable event and thereby structure the acquisition in a tax-free reorganization under Sections 351 or 368 of the Internal Revenue Code of 1986, as amended.


The Company will participate in a business combination only after the negotiation and execution of appropriate agreements. Although the terms of such agreements cannot be predicted, generally such agreements will require certain representations and warranties of the parties thereto, will specify certain events of default, will detail the terms of closing and the conditions which must be satisfied by the parties prior to and after such closing and will include miscellaneous other terms.


2011 Year-End Analysis


The Company has received no income, has had neither operations nor expenses, other than Nevada state fees and accounting fees as required for incorporation and for the preparation of the Company's financial statements.


As of December 31, 2011, the Company had not generated revenues and had no income or cash flows from operations since inception. At December 31, 2011, the Company had sustained net loss of ($3,835) and had accumulated a deficit of ($3,835).


Item 8. Financial Statements and Supplementary Data


The unaudited financial statements for the year ended December 31, 2011 are attached hereto.





Item 9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure


There were no changes in or disagreements with accountants on accounting and financial disclosure for the period covered by this report.


Item 9A.  Controls and Procedures


Under the supervision and with the participation of our management, we have conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as of the end of the period covered by this report. Based on this evaluation, our management concluded as of the evaluation date that our disclosure controls and procedures were not fully effective such that the material information required to be included in our Securities and Exchange Commission reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms relating to our Company, particularly during the period when this report was being prepared.


We identified the following material weaknesses in our internal control over financial reporting as of December 31, 2011:

 

1.  

The Company has not established adequate financial reporting monitoring activities to mitigate the risk of management override, specifically because there are no employees and only two officers with management functions and therefore there is lack of segregation of duties. In addition, the Company has installed accounting software that does not prevent erroneous or unauthorized changes to previous reporting periods and does not provide an adequate audit trail of entries made in the accounting software. However, although our controls are not effective, these significant weaknesses did not result in any material misstatements in our financial statements.

2.  

In addition, there is insufficient oversight of accounting principles implementation and insufficient oversight of external audit functions.

3.  

There is a strong reliance on the external service providers to review and adjust the annual and quarterly financial statements, to monitor new accounting principles, and to ensure compliance with GAAP and SEC disclosure requirements.

4.  

There is a strong reliance on the external attorneys to review and edit the annual and quarterly filings and to ensure compliance with SEC disclosure requirements.


Because of the material weaknesses noted above, management has concluded that we did not maintain effective internal control over financial reporting as of December 31, 2011, based on Internal Control over Financial Reporting - Guidance for Smaller Public Companies issued by COSO.


Remediation of Material Weaknesses in Internal Control over Financial Reporting


As a small business, without a viable business and revenues, the Company does not have the resources to install a dedicated staff with deep expertise in all facets of SEC disclosure and



GAAP compliance. As is the case with many small businesses, the Company will continue to work with its external service providers and attorneys as it relates to new accounting principles and changes to SEC disclosure requirements. The Company has found that this approach worked well in the past and believes it to be the most cost effective solution available for the foreseeable future.


The Company will conduct a review of existing sign-off and review procedures as well as document control protocols for critical accounting spreadsheets. The Company will also increase management's review of key financial documents and records.


As a small business, the Company does not have the resources to fund sufficient staff to ensure a complete segregation of responsibilities within the accounting function. However, Company management does review, and will increase the review of, financial statements on a monthly basis. These actions, in addition to the improvements identified above, will minimize any risk of a potential material misstatement occurring.


Changes in Internal Control over Financial Reporting


There were no changes in our internal control over financial reporting during the quarter ended December 31, 2011 that materially affected, or are reasonably likely to materially affect, the Companys internal control over financial reporting.

 

Weaver & Martin, LLC the independent registered public accounting firm for the Company , has not issued an attestation report on the effectiveness of the Company 's internal control over financial reporting.


Item 9B. Other Information


Not applicable.





PART III


Item 10. Directors, Executive Officers, and Corporate Governance;


The Directors and Officers of the Company are as follows:


Name

Age

Offices Held

Michael Burns

34

President, CEO, Secretary


Management of the Company


The Company has no full time employees. Michael Burns is the sole officer and director of the Company and its sole stockholder. Mr. Burns will allocate a limited portion of time to the activities of the Company without compensation. Potential conflicts may arise with respect to the limited time commitment by management and the potential demands of the activities of the Company .


There are no agreements or understandings for the officer or director to resign at the request of another person and the above-named officer and director is not acting on behalf of nor will act at the direction of any other person.


Set forth below are the names of the directors and officers of the Company, all positions and offices with the Company held, the period during which they have served as such, and the business experience during at least the last five years:


Name

Age

Offices Held

Dates Held

Michael Burns

34

President, CEO, Secretary

May 10, 2011-present



Mr. Burns is currently originating loans for Emery Federal Credit Union, based in Cincinnati Ohio.  Mr. Burns has been originating loans since 2010 where he was a loan consultant at North American Savings Bank where he was one of the top producers and closed over $25M in loans in his first six months of production.  Prior to loan production, Mr. Burns owned and operated several successful companies where he developed products, services, and a business plan that resulted in growth to over 50 employees and over $10M in sales.


There are no agreements or understandings for the above-named officers or directors to resign at the request of another person and the above-named officers and directors are not acting on behalf of nor will act at the direction of any other person.


Recent Blank Check Companies


Mr. Burns is not involved in any other blank check companies.





Conflicts of Interest


The officer and director of the Company works with other companies not similar in nature to the Company.  Because Mr. Burns spends only a limited amount of time and resources on the Company, there are potential inherent conflicts of interest.


Code of Ethics.


The Company has not at this time adopted a Code of Ethics pursuant to rules described in Regulation S-K. The Company has a sole stockholder and who serves as the director and sole officer. The Company has no operations or business and does not receive any revenues or investment capital. The adoption of an Ethical Code at this time would not serve the primary purpose of such a code to provide a manner of conduct as the development, execution and enforcement of such a code would be by the same persons and only persons to whom such code applied. Furthermore, because the Company does not have any activities, there are activities or transactions which would be subject to this code. At the time the Company enters into a business combination or other corporate transaction, the current officers and directors will recommend to any new management that such a code be adopted. The Company does not maintain an Internet website on which to post a code of ethics.


Corporate Governance.


For reasons similar to those described above, the Company does not have a nominating nor audit committee of the board of directors. At this time, the Company consists of one stockholder who serves as the corporate directors and officers. the Company has no activities, and receives no revenues. At such time that the Company enters into a business combination and/or has additional stockholder and a larger board of directors and commences activities, the Company will propose creating committees of its board of directors, including both a nominating and an audit committee. Because there is only one stockholder of the Company, there is no established process by which a stockholder to the Company can nominate members to the Company's board of directors. Similarly, however, at such time as the Company has more stockholders and an expanded board of directors, the new management of the Company may review and implement, as necessary, procedures for shareholder nomination of members to the Company's board of directors.


Item 11. Executive Compensation


The Company's sole officer and director does not receive any compensation for services rendered to the Company, nor has he received such compensation in the past. The officer and director are not accruing any compensation pursuant to any agreement with the Company.


No retirement, pension, profit sharing, stock option or insurance programs or other similar programs have been adopted by the Company for the benefit of its employees.


The Company does not have a compensation committee for the same reasons as described above.




Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters


The following table sets forth, as of December 31, 2011, each person known by the Company to be the beneficial owner of five percent or more of the Company's common stock and the director and officer of the Company. the Company does not have any compensation plans and has not authorized any securities for future issuance. Except as noted, the holder thereof has sole voting and investment power with respect to the shares shown.


Name and Address

Amount of Beneficial Ownership

Percent of Outstanding Stock

Michael Burns

3,100,000

100%


Item 13. Certain Relationships and Related Transactions and  Director Independence


The Company has issued a total of 37,500,000 shares of common stock pursuant to Section 4(2) of the Securities Act for a total of $3,750 in cash.


Michael Burns is CEO, president, secretary and a director of the company and the sole stockholder.

 

Michael Burns may be considered a promoter. Michael Burns has provided services to the  Company without charge consisting of preparing the registration statement. Michael Burns has paid, and will continue to pay, all expenses incurred by the Company until a business combination is effected, without repayment. Michael Burns, as the sole shareholder of the Company, may receive benefits in the future if the Company is able to effect a business combination beneficial to the Company.


The Company is not currently required to maintain an independent director as defined by Rule 4200 of the Nasdaq Capital Market nor does it anticipate that it will be applying for listing of its securities on an exchange in which an independent directorship is required. Mr. Burns would not be considered an independent


Item 14. Principal Accounting Fees and Services.


The Company has no activities, no income and no expenses except for independent audit and Nevada state fees. The Company's president has donated his time in preparation and filing of all state and federal required taxes and reports.


Audit Fees


The aggregate fees incurred for each of the last two years for professional services rendered by the independent registered public accounting firm for the audits of the Company's annual financial statements and services normally provided in connection with statutory and regulatory filings or engagements were as follows:




Audit related fees as of December 31, 2011

$3,000


The Company does not currently have an audit committee serving and as a result its board of directors performs the duties of an audit committee. The board of directors will evaluate and approve in advance, the scope and cost of the engagement of an auditor before the auditor renders audit and non-audit services. The Company does not rely on pre-approval policies and procedures.


PART IV


Item 15. Exhibits, Financial Statement Schedules


There are no financial statement schedules nor exhibits filed herewith. The exhibits filed in earlier reports and the Company's Form 10 are incorporated herein by reference.



SOLIDO VENTURES INC.

(A DEVELOPMENT STAGE COMPANY)

FINANCIAL STATEMENTS

(UNAUDITED)


AS OF DECEMBER 31, 2011

AND FOR THE PERIOD MARCH 31, 2011 (INCEPTION)

THROUGH MARCH 31, 2011


 


 

 


December 31, 2011


March 31, 2011



ASSETS

 



 

 

CURRENT ASSETS

 



 

 

Cash

$

(2)

$

3,750

 

TOTAL CURRENT ASSETS

$

(2)

$

3,750

 

 

 



 

 

Deferred offering costs

$

0

$

0

 

TOTAL ASSETS

$

(2)

$

3,750

 

 

 



 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 



 

 

CURRENT LIABILITIES

 



 

 

Accounts Payable

$

83

$

3,750

 

TOTAL CURRENT LIABILITIES

$

83

$

3,750

 

 

 



 

 

Commitments and contingencies (Notes 2, 4, 5, 6, 7, 8 and 9)

 



 

 

 

 



 

 

STOCKHOLDERS' EQUITY

 



 

 

Preferred stock, $0.0001 par value, authorized: 75,000,000 shares, Issued and outstanding: None

 



-

 

Common stock, $0.0001 par value, authorized: 425,000,000 shares, Issued and outstanding: 37,500,000 shares

3,750

$

3,750

 

Deficit accumulated during the development stage

$

(3,835)

$

(3,750)

)

TOTAL STOCKHOLDERS' EQUITY

$

(85)

$

0

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

(2)

$

3,750

 


The accompanying notes are an integral part of the financial statements.




SOLIDO VENTURES INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENT OF OPERATIONS

(UNAUDITED)


 

For the period from

For the period form

 

March 31, 2011

March 31, 2011

 

(Inception) to

(Inception) to


March 31, 2011

December 31, 2011

REVENUE

$

0

$

0

 


 



EXPENSES


 



Finance & Accounting

$

3,000

$

3,000

Incorporation Expenses

$

750

$

750

Bank Charges

$

0

$

83

Total Expenses

$

3,750

$

3,835

NET (LOSS)

$

(3,750)

$

(3,835)

 


 



NET LOSS PER SHARE


 



Basic and diluted

$

(0.00)

$

(0.00)



 



WEIGHTED AVERAGE NUMBER OF SHARES


 



Basic and diluted


37,500,000


37,500,000


The accompanying notes are an integral part of the financial statements.




SOLIDO VENTURES INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

(UNAUDITED)


FOR THE PERIOD MARCH 31, 2011 (INCEPTION) TO MARCH 31, 2011

AND

FOR THE SIX MONTHS MARCH 31, 2011 THROUGH DECEMBER 31, 2011









Deficit Accumulated





Common Stock

Additional

During the

Total

 



$0.0001 Par Value

Paid-in

Development

Stockholders

 



Shares


Amount

Capital

Stage

Deficit

 












Shares issued at $0.0001 per share on March 31, 2011


37,500,000

$

3,750

$

0


-

$

3,750












Net Loss, period ended March 31, 2011


-






(3,750)

$

(3,750)

Balance, December 31, 2010


37,500,000

$

3,750

$

0

$

(3,750)

$

0












Net Loss, period March 31, 2011 to December 31, 2011


-


-


-


(85)

$

(85)

Balance, December 31, 2011


37,500,000

$

3,750

$

0

$

(3,835)

$

(85)



The accompanying notes are an integral part of the financial statements.



SOLIDO VENTURES INC.

(UNAUDITED)

(A DEVELOPMENT STAGE COMPANY)

STATEMENT OF CASH FLOWS


 



 

For the

For the period from

 

Nine Months

March 31, 2011

 

Ended

(Inception) to


December 31, 2011

March 31, 2011

CASH FLOWS FROM OPERATING ACTIVITIES:




 

Net (Loss)

$

(3,835)

$

(3,750)

Adjustments to reconcile net income (loss) to net cash used in operating activities:




 

(Increase) in deferred offering costs

$

(3,750)

$

(3,750)

Increase / Decrease in accounts payable

$

83

$

0

NET CASH PROVIDED BY OPERATING ACTIVITIES

$

(2)

$

0

 




 

CASH FLOWS FROM FINANCING ACTIVITIES




 

Proceeds from sale of common stock

$

3,750

$

3,750

NET CASH PROVIDED BY FINANCING ACTIVITIES


3,750

$

3,750

 




 

INCREASE (DECREASE) IN CASH

$

(3,752)

$

3,750

 




 

CASH, BEGINNING OF PERIOD

$

3,750

$

3,750

 




 

CASH, END OF PERIOD

$

(2)

$

3,750

 




 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:




 

Interest paid

$

0

$

0

Income taxes paid

$

0

$

0

 

 



 

SUPPLEMENTAL NON-CASH TRANSACTIONS:

 



 


$

0


0


The accompanying notes are an integral part of the financial statements.





SOLIDO VENTURES INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS


MARCH 31, 2011, AND DECEMBER 31, 2011


NOTE 1 ORGANIZATION AND BUSINESS OPERATIONS


SOLIDO VENTURES INC. (the Company) was incorporated in the State of Nevada on March 31, 2011. The Company is a Development Stage Company as defined by ASC 915-10. The Company is a blank check company that intends to seek a merger or acquisition with an operating company.


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


a) Basis of Presentation


The financial statements have not been prepared according to GAAP. The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has no business operations and has negative working capital and minimal stockholders equity. These conditions raise substantial doubt about the ability of the Company to continue as a going concern.


In view of these matters, continuation as a going concern is dependent upon the continued operations of the Company, which in turn is dependent upon the Company's ability to meet its financial requirements, raise additional capital, and the success of its future operations. The financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should the Company not continue as a going concern.


The company plans to improve its financial condition through a public offering as described in Note 6. However, there is no assurance that the Company will be successful in accomplishing this objective. Management believes that this plan provides an opportunity for the Company to continue as a going concern.


b) Cash and Cash Equivalents


The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.


c) Use of Estimates and Assumptions


The preparation of 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 assets and liabilities at the date of the financial statements and the reported amounts or revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

d) Fair Value of Financial Instruments


ASC Topic 820-10 requires disclosure of fair value information about financial instruments. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2011.


The respective carrying value of certain on-balance-sheet financial instruments approximates their fair values. These financial instruments include cash, stock subscriptions receivable, and accounts payable. Fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair value, or they are receivable or payable on demand.

e) Revenue Recognition


The Company has not generated any revenues since entering the development stage. It is the Company's policy that revenues will be recognized in accordance with ASC Topic 605-10-25, Revenue Recognition. Under ASC Topic 605-10-25, product revenues (or service revenues) are recognized when persuasive evidence of an arrangement exists, delivery has occurred (or service has been performed), the sales price is fixed and determinable, and collectability is reasonably assured.


f) Stock-based Compensation


The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expense related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. To date, the Company has not adopted a stock option plan and has not granted and stock options.

 

g) Income Taxes


The Company follows FASB Codification Topic 740-10-25 (ASC 740-10-25) for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future



changes in such valuation allowance are included in the provision for deferred income taxes in the period of change.


Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse.



h) Basic and Diluted Net Loss per Share


The Company computes net loss per share in accordance with ASC Topic 260-10, Earnings per Share. ASC Topic 260-10 requires presentation of both basic and diluted per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all potentially dilutive shares if their effect is anti-dilutive. The Company had no dilutive common stock equivalents as of December 31, 2011.




i) Development Stage Company


Based on the Company's business plan, it is a development stage Company since planned principle operations have not yet commenced. Accordingly, the Company presents its financial statements in conformity with the accounting principles generally accepted in the United States of America that apply to developing enterprises. As a development stage enterprise, the Company discloses its retained earnings (or deficit accumulated) during the development stage and the cumulative statements of operations and cash flows from commencement of development stage to the current balance sheet date. The development stage began on March 31, 2011, when the Company was organized.


j) Concentrations


The Company is not currently a party to any financial instruments that potentially subject it to concentrations of credit risk.


k) Recent Pronouncements


There were various accounting standards and interpretations issued during 2010 or 2011, none of which are expected to have a material impact on the Company's financial position, operations, or cash flows.



NOTE 3 - GOING CONCERN


The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred a net loss of ($3,835) for the period from March 31, 2011 (inception) to December 31, 2011. The future of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the development of its new business opportunities.


The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. These conditions raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty.


NOTE 4 - CAPITAL STOCK


Preferred Stock. The Company has authorized 75,000,000 shares of preferred stock with a par value of $.0001 per share. These shares may be issued in series with such rights and preferences as may be determined by the Board of Directors. The Company has not issued any preferred shares as of December 31, 2011.




Common Stock. The Company has authorized 425,000,000 shares of common stock with a par value of $.0001 per share. As of December 31, 2011, there were 37,500,000 shares issued and outstanding.


The Companys sole shareholder, Michael Burns, owns all of the Companys issued and outstanding common stock.


SIGNATURE

 

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 hereunto duly authorized.

 

 

Solido Ventures Inc.

 

 

 

 

 

 

Dated: March 31, 2012

By:

 /s/ Michael Burns

 

 

Michael Burns

 

 

President & Chief Executive Officer & Director

 

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