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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 8/16/22 Ecrid, Inc. 10-Q 6/30/22 5:170K Securex Filings/FA |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 144K 2: EX-31.1 Certification -- §302 - SOA'02 HTML 10K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 10K 4: EX-32.1 Certification -- §906 - SOA'02 HTML 6K 5: EX-32.2 Certification -- §906 - SOA'02 HTML 6K
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: June 30, 2022
OR
o 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: 333-255110
ECRID, INC.
(Exact name of registrant as specified in its charter)
| Nevada | 27-3617248 | |
|
(State or other jurisdiction of incorporation) |
(IRS Employer Identification No.) |
1320 S. Federal Hwy, Suite 215
(Address of principal executive offices)
800-380-9096
(Registrant’s telephone number, including area code)
n/a
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| n/a | n/a | n/a |
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 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 every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files. Yes ☒ No ¨
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 |
| 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 ¨ No x
As of August 15, 2022, there were 288,889,511 shares outstanding of the registrant’s common stock.
| C: 1 |
| PART I – FINANCIAL INFORMATION | ||
| Item 1. | Financial Statements | F-1 |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 3 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
| Item 4. | Controls and Procedures | |
| PART II – OTHER INFORMATION | ||
| Item 1. | Legal Proceedings | 4 |
| Item 1A. | Risk Factors | 4 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 4 |
| Item 3. | Defaults Upon Senior Securities | 5 |
| Item 4. | Mine Safety Disclosures | 5 |
| Item 5. | Other Information | 5 |
| Item 6. | Exhibits | 5 |
| Signatures | 6 | |
C:
| 2 |
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements.
Ecrid, Inc.
Index to the Condensed unaudited Financial Statements
| Contents | Page(s) | |
| Condensed Balance Sheets at June 30, 2022 (unaudited) and March 31, 2022 | F-2 | |
| Condensed Statements of Operations for the Three Months Ended June 30, 2022 and 2021 (unaudited) | F-3 | |
| Condensed Statements of Stockholders’ Deficit for the Three Months Ended June 30, 2022 and 2021 (unaudited) | F-4 | |
| Condensed Statements of Cash Flows for the Three Months Ended June 30, 2022 and 2021 (unaudited) | F-5 | |
| Notes to the Condensed Financial Statements (unaudited) | F-6 |
C:
| F-1 |
Ecrid, Inc.
Condensed Balance Sheets
| June 30, 2022 | ||||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | - | $ | 10,019 | ||||
| Due from officer | 7,571 | - | ||||||
| Total Assets | $ | 7,571 | $ | 35,632 | ||||
| Liabilities and Stockholders’ Deficit | ||||||||
| Current Liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 24,341 | $ | 20,000 | ||||
| Payable to officer | - | 2,496 | ||||||
| Total Liabilities | 24,341 | 20,496 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ Deficit | ||||||||
| Common stock par value $0.0001: 700,000,000 shares authorized; 288,889,511 shares issued and outstanding, respectively | 28,890 | 28,890 | ||||||
| Additional paid-in capital | 9,382,555 | 9,382,555 | ||||||
| Accumulated deficit | (9,428,215 | ) | (9,423,922 | ) | ||||
| Total Stockholders’ Deficit | (16,770 | ) | (12,477) | |||||
| Total Liabilities and Stockholders’ Deficit | $ | 7,571 | $ | 10,019 | ||||
See accompanying notes to the unaudited condensed financial statements.
C:
| F-2 |
Ecrid, Inc.
Condensed Statements of Operations
(unaudited)
| For the Three Months Ended | ||||||||
| June 30, 2022 | June 30, 2021 | |||||||
| (unaudited) | (unaudited) | |||||||
| Revenues | $ | - | $ | - | ||||
| Operating expenses | ||||||||
| General and administrative | 4,293 | - | ||||||
| Total operating expenses | 4,293 | - | ||||||
| Loss from operations | (4,293 | ) | - | |||||
| Other income (expenses) | ||||||||
| Loss before income tax provision | (4,293 | ) | - | |||||
| Income tax provision | - | - | ||||||
| Net loss | $ | (4,293 | ) | $ | - | |||
| Loss per share – basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | ||
| Weighted average common shares outstanding – basic and diluted | 288,889,511 | 283,893,944 | ||||||
See accompanying notes to the unaudited condensed financial statements.
C:
| F-3 |
Ecrid, Inc.
Condensed Statement of Stockholders’ Deficit
(unaudited)
For the Three Months Ended June 30, 2022
| Additional | ||||||||||||||||||||||||
| Common Stock | Paid-in | Accumulated | Common Stock | Total | ||||||||||||||||||||
| Shares | Amount | Capital | Deficit | Total | Deficit | |||||||||||||||||||
| Balance at March 31, 2022 | 288,889,511 | $ | 28,890 | $ | 9,382,555 | $ | (9,423,922 | ) | $ | (12,477 | ) | $ | 35,632 | |||||||||||
| Net loss | - | - | (4,293 | ) | (4,293 | ) | (87,163 | ) | ||||||||||||||||
| Balance at June 30, 2022 | 288,889,511 | $ | 28,890 | $ | 9,382,555 | $ | (9,428,215 | ) | $ | (16,770 | ) | $ | (51,531 | ) | ||||||||||
For the Three Months Ended June 30, 2021
| Balance at March 31, 2021 | 283,893,944 | $ | 28,390 | $ | 8,747,589 | $ | (7,705,347 | ) | $ | (1,035,000 | ) | $ | 35,632 | |||||||||||
| Net loss | - | - | - | - | - | |||||||||||||||||||
| Balance at June 30, 2021 | 283,893,944 | $ | 28,390 | $ | 8,747,589 | $ | (7,705,347 | ) | $ | (1,035,000 | ) | $ | 35,632 |
See accompanying notes to the unaudited condensed consolidated financial statements.
C:
| F-4 |
Ecrid, Inc.
Condensed Statements of Cash Flows
| For the Six Months Ended | ||||||||
| September 30, 2021 | September 30, 2020 | |||||||
| (unaudited) | (unaudited) | |||||||
| Cash Flows From Operating Activities: | ||||||||
| Net loss | $ | (4,293 | ) | $ | - | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Receivable from officer | (7,571 | ) | - | |||||
| Accounts payable and accrued expenses | 4,431 | - | ||||||
| Payable to officer | (2,496 | ) | - | |||||
| Net Cash Used in Operating Activities | (10,019 | ) | - | |||||
| Net Cash from Investing Activities | - | - | ||||||
| Net Cash from Financing Activities | - | - | ||||||
| Net change in cash and cash equivalents | (10,019 | ) | - | |||||
| Cash and cash equivalents at beginning of reporting period | 10,019 | - | ||||||
| Cash and cash equivalents at end of reporting period | $ | - | - | |||||
| Supplemental disclosures of cash flow information: | ||||||||
| Interest paid | $ | - | $ | - | ||||
| Income tax paid | $ | - | $ | - | ||||
See accompanying notes to the unaudited condensed financial statements.
C:
| F-5 |
Ecrid, Inc.
Notes to the Consolidated Financial Statements
(unaudited)
1. Organization, History and Business
DPOLLUTION INTERNATIONAL, INC. (the “Company” formerly Ram Gold & Exploration, Inc.) was incorporated under the laws of the State of Delaware on February 6, 1987 under the name of Shopping at Home Television Network, Inc. In December 1987, the Company changed its name to TV Net, Inc. In February 1989, the Company changed its name to Vegas Chips, Inc. In October 1996, the Company changed its name Skydoor Media and Entertainment, Inc. and then to Ice Holdings, Inc. In 1997, Ice Holdings, Inc. was formed in the State of Nevada and in 1999, Ice Holdings, Inc. (Nevada) merged with Ice Holdings, Inc. (Delaware) with Ice Holdings, Inc. (Nevada) becoming the survivor of the merger. In December 2006, the Company changed its name to Gaia Resources, Inc. and in January 2008, the Company changed its name to Ram Gold & Exploration, Inc. On July 27, 2010, the Company changed its name to Dpollution International, Inc. Since the disposal of the Company’s assets and the cessation of operations, majority control of the Company changed several times between 1995 and 2008. In December 2006, the Company approved a forward stock split of 1.010:1 with the fractional shares rounded to 100 shares. A change in Capitalization was filed on December 1, 2006 from 50 million common shares at $0.001 par value to 210 million shares at $0.0001 par value. The shares were divided into two classes, 200 million common shares authorized, and 10 million preferred shares authorized. There are currently no issued or outstanding preferred shares. In February 2008, the Company approved a reverse stock split of 1:50 with all fractional shares being rounded up to 100 shares. On July 10, 2010, the Company acquired 100% ownership in Dpollution, Inc., a private company operating in Quebec, Canada that owned and controlled technologies for pollution reduction and improved vehicle mileage. The Company liquidated its business in 2013.
The DPollution Asset Purchase Agreement was completed July 1, 2017 by ECRID, Inc. FINRA approved ECRID Corporate Action Request on October 13, 2017 at which time there was a reverse stock split (70 to 1). The new stock symbol is ECDD. ECRID’s primary objective going forward is to grow its membership base by offering its services to each of its members to establish or create their own ECRID CREDIT PROFILE (positive trade lines to immediately validate their credit worthiness to ECRID CERTIFIED LENDERS) Home, Car, Retail Credit, Credit Cards, and personal loans.
Note 2 - Significant and Critical Accounting Principles and Practices
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) with respect to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the annual report on Form 10-K of the Company for the year ended March 31, 2022 and notes thereto contained as filed with the SEC.
Fiscal year
The Company has elected a fiscal year ending on March 31.
Use of Estimates
The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain prior period amounts in the consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation.
Cash and Cash Equivalents
Cash equivalents are highly liquid investments with an original maturity of three months or less.
Fair Value of Financial Instruments
For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amount of the Company’s short- term financial instruments approximates fair value due to the relatively short period to maturity for these instruments.
C:
| F-6 |
Fair Value of Measurements
The Company follows ASC 820-10 of the FASB Accounting Standards Codification to measure the fair value of its financial instruments and disclosures about fair value of its financial instruments. ASC 820-10 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP) and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, ASC 820-10 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The three (3) levels of fair value hierarchy defined by ASC 820-10 are described below:
| Level 1 | Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. |
| Level 2 | Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. |
| Level 3 | Pricing inputs that are generally unobservable inputs and not corroborated by market data. |
Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.
The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.
The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, inventory, prepaid expenses and other current assets, accounts payable and accrued expenses approximate their fair values because of the short maturity of these instruments.
Transactions involving related parties typically cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. However, in the case of the convertible promissory note discussed in Note 5, the Company obtained a fairness opinion from an independent third party which supports that the transaction was carried out at an arm’s length basis.
Revenue Recognition
There were no revenues during the three months ended June 30, 2022 and 2021. If the Company has revenues in the future, the Company will recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is recognized when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met:
| 1) | Identify the contract with a customer |
A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the services to be transferred and identifies the payment terms related to these services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer.
| 2) | Identify the performance obligations in the contract |
Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services, the Company must apply judgment to determine whether promised services are capable of being distinct and distinct in the context of the contract. If these criteria are not met the promised services are accounted for as a combined performance obligation.
C:
| F-7 |
| 3) | Determine the transaction price |
The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.
| 4) | Allocate the transaction price to performance obligations in the contract |
If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. However, if a series of distinct services that are substantially the same qualifies as a single performance obligation in a contract with variable consideration, the Company must determine if the variable consideration is attributable to the entire contract or to a specific part of the contract. For example, a bonus or penalty may be associated with one or more, but not all, distinct services promised in a series of distinct services that forms part of a single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations.
| 5) | Recognize revenue when or as the Company satisfies a performance obligation |
The Company satisfies performance obligations either over time or at a point in time. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised service to a customer.
Convention revenue is generally earned upon completion of the convention. Unearned convention revenue is deposits received for conventions that have not yet taken place, which are fully or partially refundable depending upon the terms and conditions of the agreements.
The Company recognizes cost of revenues in the period in which the revenues was earned. In the event the Company incurs cost of revenues for conventions that are yet to occur, the Company records such amounts as prepaid expenses and such prepaid expenses are expensed during the period the convention takes place.
Stock-based Compensation
Stock-based compensation is accounted for under FASB ASC Topic No. 718 – Compensation – Stock Compensation. The guidance requires recognition in the financial statements of the cost of employee services received in exchange for an award of equity instruments over the period the employee is required to perform the services in exchange for the award (presumptively the vesting period). The guidance also requires measurement of the cost of employee services received in exchange for an award based on the grant-date fair value of the award. The Company accounts for non-employee share-based awards in accordance with guidance related to equity instruments that are issued to other than employees for acquisition, or in conjunction with selling, goods or services.
Income Taxes
Income taxes are accounted for in accordance with the provisions of FASB ASC Topic No. 740 - Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized.
Basic and Diluted Net Loss per Common Share
Basic and diluted net loss per share calculations are presented in accordance with FASB ASC Topic No. 260 – Earnings per Share and are calculated on the basis of the weighted average number of common shares outstanding during the period. Diluted per share calculations includes the dilutive effect of common stock equivalents in years with net income. The Company has no dilutive instruments as of June 30, 2022 and March 31, 2022, respectively.
C:
| F-8 |
Recently Issued Accounting Pronouncements
Management has evaluated all recent accounting pronouncements as issued by the FASB in the form of Accounting Standards Updates (“ASU”) through the date these financial statements were available to be issued and found no recent accounting pronouncements issued, but not yet effective accounting pronouncements, when adopted, will have a material impact on the financial statements of the Company.
Note 3 - Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. Currently, the Company has no operating history and has incurred operating losses, and as of June 30, 2022, the Company had an accumulated deficit of $9,428,215 (of which stock-based compensation is $9,213,696) and $0 in cash. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management believes that the Company’s Capital requirements will depend on many factors, including the success of the Company’s service offering operations and its efforts to raise capital. The financial statements of Company do not include any adjustments relating to the recoverability and classification of recoded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.
The effects of the COVID-19 virus are uncertain and may still have an impact on the Company’s operations.
Note 4 - Stockholders’ Equity
Common Stock
The Company is authorized to issue 700,000,000 shares of common stock. The holders of the Company’s common stock are entitled to one vote per share of common stock held. A controlling interest was purchased on June 14, 2017. As of June 30, 2022, the Company had 288,889,511 common shares issued and outstanding.
No common shares were issued during the three months ended June 30, 2022.
Note 5 - Related Party Transactions
Receivable from and Payable to Officer
The sole officer of the Company has advanced and received funds to and from the Company for operations and working capital. The net amount of this type of transaction resulted in a receivable from the officer as of June 30, 2022 of 7,571 and a payable to the officer of $2,496 as of March 31, 2022.
Note 6 - Commitments and Contingencies
The Company has no commitments, litigation or other contingencies.
Coronavirus Pandemic
The novel coronavirus (COVID-19) pandemic has had adverse impacts on local, national and the global economies. The Company has not experienced significant impact on the business, the impact to our results of operations and financial position cannot be reasonably estimated at this time.
Russia-Ukraine conflict
The Russian-Ukraine conflict is a global concern. The Company does not have any direct exposure to Russia or Ukraine through its operations, employee base, investments or sanctions. We have no basis to evaluate the possible risks of this conflict.
Note 7 - Subsequent Events
Subsequent events have been evaluated through the date these financial statements were available to be released, and no other events required disclosures.
C:
| F-9 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
THE FOLLOWING DISCUSSION OF OUR PLAN OF OPERATION AND RESULTS OF OPERATIONS SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL STATEMENTS AND RELATED NOTES TO THE FINANCIAL STATEMENTS INCLUDED ELSEWHERE IN THIS REPORT. THIS DISCUSSION CONTAINS FORWARD-LOOKING STATEMENTS THAT RELATE TO FUTURE EVENTS OR OUR FUTURE FINANCIAL PERFORMANCE. THESE STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE OUR ACTUAL RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. THESE RISKS AND OTHER FACTORS INCLUDE, AMONG OTHERS, THOSE LISTED UNDER “FORWARD-LOOKING STATEMENTS” AND “RISK FACTORS” AND THOSE INCLUDED ELSEWHERE IN THIS REPORT.
Overview
We provide an internet interactive software to allow consumers that need credit repair to track all the monthly payments they make and pay all their bills on-time. Once a consumer begins to use the Ecrid bill pay system, the system rewards them with an ECRID credit rating of up to 900 points. Each time the consumer does not pay a bill on-time, Ecrid subtracts points from the credit rating Ecrid assigns the consumer. Maintaining a high Ecrid score will enable the consumer lenders to buy a car, house or other payment related things.
Our founder and sole officer and director, Cleveland Gary, who has education in Business Administration and over 25 years of work experience in business administration, currently handles all facets of the Company's operations, and our strategic development.
The Company developed a credit report monitoring software that gives lenders a sound up to date credit report that validates the members credit worthiness. Within the scope of each member's credit report, Ecrid Credit Tool Analysis provides to the lender a comprehensive analysis report that validates the members credit worthiness along with their ability to assure monthly payments can be made on time based upon each member's income to debt ratio. Inclusive of the credit evaluation software is the Ecrid Bill Pay feature where each member can pay their bill and have it processed to avoid late payments. In addition, each member will receive a monthly alert to inform them of their Ecrid Credit Score through the Ecrid Score Monitoring feature.
The process for creating and the related online software, database and system becomes popular and more and more clients seeking to be able to borrow funds will begin using the Ecrid scoring system. For purposes of demand and marketability, choosing a format that is currently on the demand is vital (consumers are desperate to borrow funds to assist their finances), and this is why a proper needs assessment is essential. We consider it the most important aspect of the entire process.
Next, we determine the feasibility of making our product a success. We consider our product a success when the members are getting approved for a home, car, credit card, personal loan and other products and services that can be financed within each member's income to debt ratio range. With using the Ecrid Credit Analysis Tool, it creates for the borrower and lender a win/win situation because the borrower chances of defaulting on the loan is highly unlikely because the approval is based on what each member can afford to pay.
Basically, a successful payment plan is created through the Ecrid Credit Analysis Tool for each member to succeed in making their monthly payments on time from the beginning to the end of the loan agreement. The Ecrid System makes it easier for the Lender to trust giving the borrower a credit approval because the lender is assured the borrower has the ability to pay off the evaluation from the Ecrid Credit Analysis Tool.
Results of Operations
For the Three Months Ended June 30, 2022 and 2021:
Revenue
The Company has yet to earn revenue for the three months ended June 30, 2022 and 2021, respectively.
Operating Expenses
Operating expenses for the three months ended June 30, 2022, were $4,293, as compared to $0 for the three months ended June 30, 2021. The Company had minimal transactions for the current quarter and had no transactions for the prior year quarter.
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| 3 |
Net Loss
The Company recorded a net loss for the three months ended June 30, 2022 and 2021, respectively of $4,293 and $0 due to general and administrative expenses incurred.
Inflation did not have a material impact on the Company’s operations for the applicable period. Other than the foregoing, management knows of no trends, demands, or uncertainties that are reasonably likely to have a material impact on the Company’s results of operations.
Liquidity and Capital Resources
At June 30, 20221 we had a working capital deficit of $16,770, no cash on hand and an accumulated deficit of $9,428,215 (of which $9,213,696 is stock-based compensation and advisory consulting expenses.) Management intends to raise capital through its current offering and anticipates profitable operations from its software and product offering. There can be no guarantee of success.
Net Cash
Net cash used in operating activities for the three months ended June 30, 2022 and 2021 was $10,019 and $0. The payable to officer change to a receivable from officer resulting in a decrease of cash of $10,067, and the accounts payable and accrued liabilities increased by $4,341.
Related Party Loans
From time to time the officer and majority stockholder has provided funds to and has received payments from the Company. As of June 30, 2022 and March 31, 2022, the amount due from the officer, net of transactions between the Company and an entity controlled by the officer, was $7,571 and $2,496 due to the officer, respectively.
Going Concern Analysis
The Company had a net loss of $4,293 and $0 for the three months ended June 30, 2022 and 2021, respectively. On June 30, 2022 we had no cash and cash equivalents, a working capital deficit of $16,770 and an accumulated deficit of $9,428,215 (of which $9,213,696 represents stock-based compensation and advisory consulting expense). These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management believes that the Company’s Capital requirements will depend on many factors, including the success of the Company’s service offering operations and its efforts to raise capital. The financial statements of Company do not include any adjustments relating to the recoverability and classification of recoded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.
As of June 30, 2022, the Company had no off-balance sheet arrangements.
PART II – OTHER INFORMATION
Item 1. Legal Proceedings.
The Company is not involved in any disputes and does not have any litigation matters pending which the Company believes could have a materially adverse effect on the Company’s financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our Company or any of our subsidiaries, threatened against or affecting our Company, our common stock, any of our subsidiaries or of our Company’s or our Company’s subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.
However, from time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.
Item 1A. Risk Factors.
We believe there are no changes that constitute material changes from the risk factors previously disclosed in our Annual Report on Form 10-K filed with SEC.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
There were no unregistered sales of the Company’s equity securities during the quarter ended June 30, 2022.
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Item 3. Defaults Upon Senior Securities.
There has been no default in the payment of principal, interest, sinking or purchase fund installment, or any other material default, with respect to any indebtedness of the Company.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
There is no other information required to be disclosed under this item which has not been previously disclosed.
Item 6. Exhibits.
| Exhibit No. | Description | |
| 31.1 | Certification by the Principal Executive Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)). * | |
| 31.2 | Certification by the Principal Financial Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)). * | |
| 32.1 | Certification by the Principal Executive Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. * | |
| 32.2 | Certification by the Principal Financial Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. * | |
| 101.INS | iXBRL Instance Document * | |
| 101.SCH | iXBRL Taxonomy Extension Schema * | |
| 101.CAL | iXBRL Taxonomy Extension Calculation Linkbase * | |
| 101.DEF | iXBRL Taxonomy Extension Definition Linkbase * | |
| 101.LAB | iXBRL Taxonomy Extension Label Linkbase * | |
| 101.PRE | iXBRL Taxonomy Extension Presentation Linkbase * |
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
| ECRID, INC. | ||
| Date: August 15, 2022 | By: | /s/ Cleveland Gary |
| Name: | Cleveland Gary | |
| Title: |
Chief Executive Officer (Principal Executive Officer) (Principal Financial and Accounting Officer) | |
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| This ‘10-Q’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| Filed as of: | 8/16/22 | |||
| Filed on: | 8/15/22 | 4/A | ||
| For Period end: | 6/30/22 | |||
| 3/31/22 | 10-K, NT 10-K | |||
| 9/30/21 | 10-Q, NT 10-Q | |||
| 6/30/21 | ||||
| 3/31/21 | ||||
| 9/30/20 | ||||
| 10/13/17 | ||||
| 7/1/17 | ||||
| 6/14/17 | ||||
| 7/27/10 | ||||
| 7/10/10 | ||||
| 12/1/06 | ||||
| List all Filings | ||||