NOTES
TO UNAUDITED FINANCIAL STATEMENTS
NOTE
1 – ORGANIZATION AND DESCRIPTION OF BUSINESS
Atlantis
Glory Inc. (formerly known as Shengshi Elevator International Holding Group Inc.) (“Atlantis”, “Shengshi Holding”,
or the “Company”), together with its subsidiaries, focus on elevator technology research and development, sales, maintenance,
and installation.
Galem
Group, Inc. was incorporated in the State of Nevada on March 31, 2016. On September 5, 2019, Galem Group Inc. changed its name to Shengshi
Elevator International Holding Group Inc.
On
October 19, 2018, Shengshi International Holdings Co., Ltd. (“Shengshi International”) was incorporated under the law of
Cayman Islands.
On
September 30, 2019, Shengshi Holding entered into a share exchange agreement (the “Share Exchange Agreement”) with Shengshi
International. Under the Share Exchange Agreement, One Hundred Percent (100%) of the ownership interest of Shengshi International was
exchanged for 600,000,000 shares of common stock of Shengshi Holding. The former stockholders of Shengshi International acquired a majority
of the issued and outstanding common stock as a result of the share exchange transaction.
The
following is the organization structure of Shengshi International along with ownership detail and its subsidiaries:
Shengshi
Shengshun (Hong Kong) Co., Ltd. (“Shengshi Hong Kong”), was established in Hong Kong Special Administrative Region of the
People’s Republic of China (the “PRC”) on September 18, 2018.
Shengshi
Yinghe (Shenzhen) Technology Co. Ltd. was established as a wholly foreign owned enterprise on November 08, 2018 under the laws of the
PRC.
Shenzhen
Shengshi Elevator Co., Ltd. (“Shenzhen Shengshi”) was incorporated on April 2, 2014 under the laws of the PRC. Shenzhen Shengshi
is an elevator provider company and provides one-stop service to its customers.
Sichuan
Shengshi Elevator Technology Co., Ltd. (“Sichuan Shengshi”) was incorporated on July 13, 2018 under the laws of the PRC.
Sichuan Shengshi is a wholly owned subsidiary of Shenzhen Shengshi, which has the same business scope and offers similar products and
services as Shenzhen Shengshi.
The
Company has been dormant since May 14, 2020.
On
May 18, 2021, as a result of a receivership in Clark County, Nevada, Case Number: A-21-827642-F, David Lazar was appointed receiver of
the Company. Receiver David Lazar was granted the authority to rehabilitate the Company, including but not limited to the reinstatement
or revival of the Company’s corporate charter with the Nevada Secretary of State, to prepare and file all documents as reasonably
necessary to comply with Rule 15c2-11 of the Securities Act of 1934, to collect the debts and property belonging to the Company, to compromise
and settle with any debtor of the Company, to prosecute and defend lawsuits in the name of the Company, to do all other acts as might
be done by the Company, to do all other acts as may be reasonable or necessary to continue the business of the Company, and to appoint
agents for the exercise of these duties. Receiver David Lazar saw no possibility of recovering any assets located in China and accessing
any information of subsidiaries. The subsidiaries in China were deconsolidated.
On
September 8, 2021, as a result of Order barring unasserted claims and terminating receivership in Clark County, Nevada, Case Number:
A-21-827642-F, the claimants and creditors of the Company were barred from presenting claims and debts against the Company which arose
on or before the date of the Order.
On
July 28, 2021 the Company designated 10,000,000 shares of Series A Preferred Stock with a par value of $0.001. These shares were awarded
to Custodian Ventures managed by David Lazar in satisfaction of a judgement in the amount of $53,679.52 and for services performed for
the Company. The Series A Preferred Stock was valued at $250,000 and was based on the current market pricing for a shell company of this
nature.
On
December 22, 2021, a Stock Purchase Agreement was entered into between NYJJ (Hong Kong) Limited (the “Seller”) and Atlantis
Glory Company Limited (the “Purchaser”), whose controlling person is Ms. CHENG, Sau Heung, wherein the Purchaser purchased
10,000,000 shares of Series A Preferred Shares, par value $0.001 per share (the “Shares”), of Shengshi Elevator International
Holding Group, Inc., a Nevada corporation (the “Company”). As a result, the Purchaser became an approximately 90% holder
of the voting rights of the issued and outstanding shares of the Company, on a fully-diluted basis, and became the controlling shareholder.
The consideration paid for the Shares was $400,000. The source of the cash consideration for the Shares was personal fund of the controlling
person of Purchaser.
On
January 3, 2022, the sole officer and director of the Company, David Lazar, tendered his resignations as Director, President, Chief Executive
Officer, Secretary, and Treasurer of the Company, and appointed Ms. CHENG, Sau Heung as new President, Chief Executive Officer, Secretary,
Treasurer, and Director of the Company, effective January 5, 2022.
On
March 28, 2022, Shengshi Elevator International Holding Group, Inc. (the “Company”), amended its articles of incorporation,
changing its name to Atlantis Glory Inc. (the “Name Change”). The change was made in anticipation of entering into a new
line of business operations. Market effective February 28, 2023, the Company changed its stock ticker symbol from SSDT to AGLY (the “Symbol
Change”). The Company’s name change and symbol change were announced by FINRA in their daily list on February 27, 2023.
The
Company’s year-end is December 31.
NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of Presentation
The
accompanying financial statements have been prepared in accordance with the Financial Accounting Standards Board (“FASB”)
“FASB Accounting Standard Codification™” (the “Codification”) which is the source of authoritative
accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in
conformity with generally accepted accounting principles (“GAAP”) in the United States.
Management’s
Representation of Interim Financial Statements
The
accompanying unaudited financial statements have been prepared by the Company without audit pursuant to the rules and regulations of
the Securities and Exchange Commission (“SEC”). The Company uses the same accounting policies in preparing quarterly and
annual financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance
with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted as allowed by
such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading.
These financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of
financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily
indicative of results for a full year. These financial statements should be read in conjunction with the audited financial statements
and notes thereto on December 31, 2022, as presented in the Company’s Annual Report on Form 10-K.
Use
of Estimates
The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements,
and the reported amounts of revenue and expenses during the reporting period. Management makes these estimates using the best information
available at the time the estimates are made; however actual results could differ from those estimates. Significant items subject to
such estimates and assumptions include valuation of inventory, and recoverability of carrying amount and the estimated useful lives of
long-lived assets.
Cash
and cash equivalents
The
Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents
as of March 31, 2023.
Income
taxes
The
Company accounts for income taxes under FASB ASC 740, “Accounting for Income Taxes”. Under FASB ASC 740, 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. Under FASB ASC 740, 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. FASB ASC 740-10-05, “Accounting for Uncertainty in Income Taxes” prescribes
a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or
expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained
upon examination by taxing authorities.
The
amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate
settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions quarterly to determine if facts or
circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position’s sustainability
under audit.
Net
Loss per Share
Net
loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined
by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”)
calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year.
Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares
and dilutive common share equivalents outstanding.
Recent
Accounting Pronouncements
There
are no recent accounting pronouncements that impact the Company’s operations.
NOTE
3 – GOING CONCERN
As
of March 31, 2023, the Company had $-0- in cash and cash equivalents. The Company has net loss of $35,556 for the period ended March
31, 2023 and has negative working capital of $98,479 and accumulated deficit of $1,034,258 as of March 31, 2023. Losses have principally
occurred as a result of the substantial resources required for professional fees and general and administrative expenses associated with
our operations. The continuation of the Company as a going concern through December 31, 2023 is dependent upon the continued financial
support from its stockholders or external financing. Management believes the existing stockholders will provide the additional cash to
meet with the Company’s obligations as they become due. However, there is no assurance that the Company will be successful in securing
sufficient funds to sustain the operations.
These
conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not
include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications
of liabilities that may result from the outcome of these uncertainties. The Company may raise additional capital through the sale of
its equity securities, or through borrowings from financial institutions and related parties. Management believes that the actions presently
being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going
concern.
NOTE
4 – LIABILITIES AND RELATED PARTY NOTES PAYABLE
As
of March 31, 2023, and December 31, 2022, there were $98,479 and $71,923 in liabilities on the Company’s balance sheet. As of March
31, 2023, the balance included $91,929 in-demand loans advanced to the Company by CHENG, Sau Heung, the Company’s CEO. As a result
of Order barring unasserted claims and terminating receivership in Clark County, Nevada, Case Number: A-21-827642-F, the claimants and
creditors of the Company are barred from presenting claims and debts against the Company which arose on or before the date of the Order.
NOTE
5 – EQUITY
Common
Stock
As
of March 31, 2023 and December 31, 2022, the Company has authorized 990,000,000 shares of $0.001 par value, common stock, respectively.
As
of March 31, 2023 and December 31, 2022, there were 603,970,000 shares of Common Stock issued and outstanding, respectively.
Preferred
Stock
On
July 28, 2021, the Company designated 10,000,000 shares of Series A Preferred Stock with a par value of $0.001. These shares were awarded
to Custodian Ventures managed by David Lazar in satisfaction of a judgment for $53,679 and services performed for the Company. The Series
A Preferred Stock was valued at $250,000 and was based on the current market pricing for a shell company of this nature. These shares
have the following rights:
Dividend
Provisions.
Subject
to the rights of any existing series of Preferred Stock or to the rights of any series of Preferred Stock which may from time to time
hereafter come into existence, the holders of shares of Series A Preferred Stock shall be entitled to receive dividends, out of any assets
legally available therefor, upon any payment of any dividend (payable other than in Common Stock or other securities and rights convertible
into or entitling the holder thereof to receive, directly or indirectly, additional shares of Common Stock of the Corporation) on the
Common Stock of the Corporation, as and if declared by the Board of Directors, as if the Series A Preferred Stock had been converted
into Common Stock.
Liquidation
Preference. In the event of any liquidation, dissolution, or winding up of the Corporation, either voluntary or involuntary, the holders
of the Series A Preferred Stock shall be entitled to receive, prior and in preference to any distribution of any of the assets of the
Corporation to the holders of Common Stock, or any other series or class of common stock of the Corporation, whether now in existence
or hereafter created by an amendment to the articles of incorporation of the Corporation or by a certificate of designation.
Conversion.
The
holders of the Series A Preferred Stock, shall have conversion rights as follows (the “Conversion Rights”): (a) Right to
Convert. Subject to Section 4(c), the holder of issued and outstanding shares of Series A Preferred Stock shall be entitled to convert
the Series A Preferred Stock, at the option of the holder(s) thereof, at any time after the date of issuance of such shares, at the office
of the Corporation or any transfer agent for such stock, into such number of fully paid and nonassessable shares of Common Stock that
are equal to ninety percent (90%), post conversion, of the total number of issued and outstanding shares of Common Stock of the Corporation,
as if all i) Series A Preferred Stock, ii) other issued and outstanding classes or series of common or preferred stock of the Corporation
convertible into Common Stock of the Corporation, and iii) outstanding warrants, notes, indentures and/or other instruments, obligations
or securities convertible into Common Stock of the Corporation are converted (the “Conversion Shares”), with the shares of
Series A Preferred Stock so converted to be converted into the number of common shares equal to the Conversion Shares multiplied by the
quotient of the number of the shares of Series A Preferred Stock converted by a holder divided by the number of all Series A Preferred
Stock issued and outstanding.
As
of March 31, 2023 and December 31, 2022, there were 10,000,000 Series A Preferred Stock issued and outstanding, respectively.
NOTE
6 – COMMITMENTS AND CONTINGENCIES
The
Company did not have any contractual commitments as of March 31, 2023.
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 available to be issued and has determined that it does not have any material subsequent events to disclose in these financial
statements.