NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 2022
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Anvi Global Holdings, Inc., (the “Company”
“AGH”) was incorporated under the laws of the State of Nevada on August 15, 2012.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Basis of Presentation
The Company’s financial statements have been
prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Use of Estimates
The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Significant estimates include the estimated useful lives of property and equipment.
Actual results could differ from those estimates.
Concentrations of Credit Risk
Financial instruments that potentially expose the
Company to concentration of credit risk consist primarily of cash and accounts receivable. The Company’s cash is deposited with
major financial institutions. At times, such deposits may be in excess of the Federal Deposit Insurance Corporation insurable amount.
Cash and Cash Equivalents
The Company considers all cash accounts, which are
not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months
or less as cash and cash equivalents. The carrying amount of financial instruments included in cash and cash equivalents approximates
fair value because of the short maturities for the instruments held. There were no cash equivalents for the years ended February 28, 2022
and 2021.
Fair Value of Financial Instruments
Fair value is defined as the exchange price that would
be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or
liability in an orderly transaction between market participants on the measurement date. ASC Topic No. 820 establishes a fair value hierarchy
that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as described below:
| Level 1: |
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. |
| |
|
| Level 2: |
Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable, either directly or indirectly. Level 2 inputs include quoted prices for similar assets, quoted prices in markets that are not considered to be active, and observable inputs other than quoted prices such as interest rates. |
| |
|
| Level 3: |
Level 3 inputs are unobservable inputs. |
The following required disclosure of the estimated
fair value of financial instruments has been determined by the Company using available market information and appropriate valuation methodologies.
However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the use of different
market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.
The methods and assumptions used to estimate the fair
values of each class of financial instruments are as follows: Accounts Receivable, and Accounts Payable. The items are generally short-term
in nature, and accordingly, the carrying amounts reported on the balance sheets are reasonable approximations of their fair values.
The carrying amounts of Notes Payable approximate
the fair value as the notes bear interest rates that are consistent with current market rates.
Income taxes
Income taxes are provided for the tax effects of the
transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to tax net
operating loss carryforwards. The deferred tax assets and liabilities represent the future tax return consequences of these differences,
which will either be taxable or deductible when assets and liabilities are recovered or settled, as well as operating loss carryforwards.
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. A valuation allowance is established against deferred tax assets
when in the judgment of management, it is more likely than not that such deferred tax assets will not become available. Because the judgment
about the level of future taxable income is dependent to a great extent on matters that may, at least in part, be beyond the Company’s
control, it is at least reasonably possible that management’s judgment about the need for a valuation allowance for deferred taxes
could change in the near term.
Tax benefits are recognized only for tax positions
that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount
of benefit that is greater than 50 percent likely to be realized upon settlement. A liability for “unrecognized tax benefits”
is recorded for any tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards.
As of February 28, 2022 and 2021, no liability for unrecognized tax benefits was required to be reported.
Stock-Based Compensation
In June 2018,
the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment
Accounting. ASU 2018-07 allows companies to account for nonemployee awards in the same manner
as employee awards. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those annual
periods. We adopted this ASU on January 1, 2019. The adoption of ASU 2018-07 did not have a material impact on our financial statements.
Net Income (Loss) Per Common Share
Net income (loss) per common share is computed pursuant
to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net
income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common
share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares
of common stock during the period. The weighted average number of common shares outstanding and potentially outstanding common shares
assumes that the Company incorporated as of the beginning of the first period presented. There are no potentially dilutive shares as of
February 28, 2022 and 2021.
Recent Accounting Pronouncements
In August 2020, the FASB issued ASU 2020-06, Debt—Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic
815-40)—Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 reduces the number
of accounting models for convertible debt instruments and convertible preferred stock. For convertible instruments with conversion features
that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in
substantial premiums accounted for as paid-in capital, the embedded conversion features no longer are separated from the host contract.
ASU 2020-06 also removes certain conditions that should be considered in the derivatives scope exception evaluation under Subtopic 815-40, Derivatives
and Hedging—Contracts in Entity’s Own Equity, and clarify the scope and certain requirements under Subtopic 815-40. In
addition, ASU 2020-06 improves the guidance related to the disclosures and earnings-per-share (EPS) for convertible instruments and contract
in entity’s own equity. ASU 2020-06 is effective for public business entities that meet the definition of a Securities and Exchange
Commission (SEC) filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning
after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for
fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but
no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Board specified
that an entity should adopt the guidance as of the beginning of its annual fiscal year.
The Company has implemented all new accounting
pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise
disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have
a material impact on its financial position or results of operations.
NOTE 3 - GOING CONCERN
The accompanying financial statements have been
prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course
of business. The Company has had no revenue and has accumulated a deficit of $1,601,854 as of February 28, 2022. The Company requires
capital for its contemplated operational and marketing activities. The Company’s ability to raise additional capital through the
future issuances of common stock is unknown. The obtainment of additional financing, the successful development of the Company’s
contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company
to continue operations. These conditions and the ability to successfully resolve these factors raise substantial doubt about the Company’s
ability to continue as a going concern. The financial statements of the Company do not include any adjustments that may result from the
outcome of these uncertainties.
The Company has discussed ways in order to mitigate
conditions or events that may raise substantial doubt about its ability to continue as a going concern, there are no assurances that any
of these measures will successfully mitigate or be effective at all. (1) The Company shall pursue financing plans to raise funds to judiciously
spend towards operational expenses, (2) The Company shall continue to employ low cost measures to operate its business and analyze any
unnecessary cost or expense, (3) The Company will seek to avoid unnecessary expenditures, travel, and lodging costs that are not mission
critical to its business.
NOTE 4 – PREPAID TRANSACTIONS
As February 28, 2022 and
2021, the Company had $11,850 and $11,667 of prepaid expenses, respectively, for OTC Market’s annual fee.
NOTE 5 – RELATED PARTY TRANSACTIONS
On
May 28, 2014, the Company executed a service agreement with Strategic-IT Group Inc. Strategic-IT Group Inc. is owned and operated by Rama
Mohan R. Busa, CEO. Services to be provided at $12,000 a month include, but are not limited to, providing office space, IT and related
services, business consulting, and investor relations. On July 27, 2020, the service agreement was assigned to Anvi Global Inc (a company
owned by the CEO). As of February 28, 2022 and 2021,
the Company has an accrued, unpaid balance due of $900,000 and $900,000, respectively.
On July 27,
2020, Strategic-IT Group Inc., assigned their service agreement with the Company to Anvi Global, Inc. All terms under the original agreement
remain the same. Anvi Global, Inc. is owned by the CEO. As of February 28, 2022 and
2021, the Company has accounts payable due to Anvi Global, Inc. of $180,000 and $72,000,
respectively.
Since 2018 Rama
Mohan R. Busa, CEO, has advanced funds to the Company from his personal account and related companies. The advances are to pay for operating
expenses, are unsecured, non-interest bearing and due on demand. As of February 28, 2022 and
2021, the balance due was $403,830 and $321,458,
respectively.
NOTE 6 – INCOME TAXES
Deferred taxes are provided on a liability method
whereby deferred tax assets are recognized for deductible temporary differences and operating loss, and tax credit carryforwards and deferred
tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts
of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management,
it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities
are adjusted for the effects of changes in tax laws and rates on the date of enactment. The U.S. federal income tax rate of 21.0% is being
used.
Net deferred tax assets consist of the following components
as of:
| Schedule of Net Deferred Tax Assets | |
| | | |
| | |
| | |
February 28, 2022 | | |
February 28, 2021 | |
| Deferred tax asset attributable to: | |
| | | |
| | |
| Net operating loss carryover | |
$ | (336,000 | ) | |
$ | (288,000 | ) |
| Less: valuation allowance | |
| 336,000 | | |
| 288,000 | |
| Net deferred tax asset | |
$ | — | | |
$ | — | |
The income tax provision differs from the amount of income tax determined
by applying the U.S. federal income tax rate to pretax income from continuing operations for the fiscal years ending, due to the following:
| Schedule of Provision for Federal Income Taxes | |
| | | |
| | |
| | |
February 28, 2022 | | |
February 28, 2021 | |
| Federal income tax benefit attributable to: | |
| | | |
| | |
| Current Operations | |
$ | 47,000 | | |
$ | 49,000 | |
| Less: valuation allowance | |
| (47,000 | ) | |
| (49,000 | ) |
| Net provision for Federal income taxes | |
$ | — | | |
$ | — | |
At February 28, 2022, the Company had net operating
loss carry forwards of approximately $336,000 that may be offset against future taxable income. NOLs from tax years up to 2017 can be
carried forward twenty years. Under the CARES Act, the Company can carry forward NOLs indefinitely
for NOLs generated in a tax year beginning after 2017, that remain after they are carried back to tax years in the five-year carryback
period. No tax benefit has been reported in the February 28, 2022 financial statements since the potential tax benefit is offset
by a valuation allowance of the same amount.
Due to the change in ownership provisions of the Tax
Reform Act of 1986, net operating loss carry forwards for Federal Income tax reporting purposes are subject to annual limitations. Should
a change in ownership occur, net operating loss carry forwards may be limited as to use in future years. With few exceptions, the Company
is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before 2016.
NOTE 7 – SUBSEQUENT EVENTS
In accordance with SFAS 165 (ASC 855-10) management
has performed an evaluation of subsequent events through the date that the financial statements were issued and has determined that it
does not have any material subsequent events to disclose in these financial statements.