NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 1 – ORGANIZATION AND BUSINESS
ZEUUS, INC. (formerly Kriptech International Corp.) (the “Company”) is a corporation
established under the corporation laws in the State of Nevada on March 20, 2016. The Company has adopted September 30 fiscal year end.
On June 11, 2020, Meshal Al Mutawa, acquired control of 8,000,000
restricted shares of the Company’s issued and outstanding common stock, representing approximately 75.97% of the Company’s total
issued and outstanding common stock, from Anatolii Antontcev and Aleksandr Zausayev in exchange for $270,000 under the terms of a Stock
Purchase Agreement by and among Messrs. Al Mutawa, Zausayev and Antontcev.
On June 11, 2020, (i) Mr. Anatolii
Antontcev resigned from all positions with the Company, including as President, Chief
Executive Officer, Treasurer, Chief Financial Officer and as a Director, (ii) Aleksandr Zausayev resigned as the Secretary.
On June 11, 2020, Mr. Meshal Al Mutawa was appointed to the Company’s
Board of Directors and as the Company’s President, Chief Executive Officer, Treasurer, Chief Financial Officer, and Secretary.
On August 31, 2020, Bassam A.I. Al-Mutawa, acquired control of
eight million (8,000,000) restricted shares of the Company’s issued and outstanding common stock, representing approximately 75.97%
of the Company’s total issued and outstanding common stock, from Meshal Al Mutawa through an Assignment by and between Mr. Meshal
Al Mutawa, and Mr. Bassam A.I. Al-Mutawa.
On August 31, 2020, Mr. Bassam A.I. Al-Mutawa was appointed to
the Company’s Board of Directors and as the Company’s President, Chief Executive Officer, Treasurer, Chief Financial Officer,
and Secretary.
On March 9, 2021, the Financial Industry Regulatory Authority (“FINRA”) approved
the Company’s name change to Zeuus, Inc. and its trading symbol to ZUUS. The market effective date of the name and trading symbol
change was March 10, 2021.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The Company’s unaudited condensed consolidated financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed
financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary
for a fair statement of the results of operations for the periods shown and are not necessarily indicative of the results to be expected
for the full year ending September 30, 2022. These unaudited condensed consolidated financial statements should be read in conjunction
with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year
ended September 30, 2021.
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. Actual results may differ from those estimates.
Concentrations of Credit Risk
We maintain our cash in bank deposit accounts, the balances of which at times
may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any
losses in our accounts. At times, such deposits may be in excess of the Federal Deposit Insurance Corporation insurable amount (“FDIC”).
Principles of Consolidation
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The accompanying condensed consolidated unaudited financial statements for
the three months ended December 31, 2021 and 2020, include the accounts of the Company and its wholly owned subsidiaries. Zeuus Energy,
incorporated on July 27, 2021 in Montenegro is currently the only operating subsidiary.
Reclassifications
Certain reclassifications have been made to the prior period financial information to conform to the presentation
used in the financial statements for the three months ended December 31, 2021.
Translation Adjustment
For the three months ended December 31, 2021 and the year ended September 30, 2021, the accounts of
the Company’s subsidiary Zeuus Energy, Inc, are maintained in Euros. According to the Codification, all assets and liabilities
were translated at the current exchange rate at respective balance sheets dates, members’ capital are translated at the historical
rates and income statement items are translated at the average exchange rate for the period. The resulting translation adjustments are
reported under other comprehensive income in accordance with the Comprehensive Income Topic of the Codification (ASC 220), as a component
of members’ capital. Transaction gains and losses are reflected in the income statement.
Comprehensive Income
The Company uses SFAS 130 “Reporting Comprehensive Income” (ASC Topic 220). Comprehensive
income is comprised of net income and all changes to the statements of members’ capital, except those due to investments by members,
changes in paid-in capital and distributions to members. Comprehensive income for the three months ended December 31, 2021 is included
in net loss and foreign currency translation adjustments.
Recently issued accounting pronouncements
The Company has implemented all new applicable 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 Company’s consolidated unaudited financial statements as of December 31, 2021 were prepared
using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization
of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenue
sufficient to cover its operating costs and allow it to continue as a going concern. The Company has an accumulated deficit at December
31, 2021 of $714,663.
In order to continue as a going concern, the Company will need, among other things, additional capital
resources. Management’s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders
sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide
any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments
related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should
the Company be unable to continue as a going concern.
NOTE 4 – INTANGIBLE ASSET
On June 1, 2021, the Company completed the closing of the transactions
under the terms of the Asset Purchase Agreement with Andrei Seleznev, Nikolay Alekseev, and Ilia Alekseev (collectively, “Sellers”),
dated May 12, 2021, to purchase the assets comprising the Wind Turbine Technology. In exchange for these assets, the Company paid
$100,000 in cash, and issued 14,289 shares of its common stock to the Sellers. The shares were valued at $800,000 based on the average
of the closing price per share of the Company’s common stock for the 30 trading days prior to the effective date of the agreement.
In addition, the Company entered into employment agreements with each Seller to further develop the wind turbine technology and acquired
assets. Before this transaction, the Company had no material relationship with any of the Sellers.
NOTE 5 – PROPERTY AND EQUIPMENT
Property and equipment are recorded at cost. Depreciation is computed using the straight-line method
over the estimated useful lives of the various classes of assets as follows between three and five years.
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Long lived assets, including property and equipment, to be held and used by the Company are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Impairment
losses are recognized if expected future cash flows of the related assets are less than their carrying values. Measurement of an impairment
loss is based on the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair
value less cost to sell.
Maintenance and repair expenses, as incurred, are charged to expense. Betterments and renewals are capitalized
in plant and equipment accounts. Cost and accumulated depreciation applicable to items replaced or retired are eliminated from the related
accounts with any gain or loss on the disposition included as income.
Property and equipment stated at cost, less accumulated depreciation consisted of the following:
|
|
|
|
|
|
|
|
| |
|
|
|
December 31,
2021 |
|
|
September 30,
2021 |
|
|
Property and equipment |
|
$ |
56,227 |
|
|
$ |
45,196 |
|
|
Less: accumulated depreciation |
|
|
(3,853) |
|
|
|
(1,668) |
|
|
Property and equipment, net |
|
$ |
52,374 |
|
|
$ |
43,528 |
|
Depreciation expense
Depreciation expense for the three months ended December 31, 2021
and 2020 was $2,185 and $0. respectively.
NOTE 6 - COMMON STOCK TRANSACTIONS
During the three months ended December 31, 2021, the Company sold 3,373 shares of
common stock for total cash proceeds of $52,000.
NOTE 7 – RELATED PARTY TRANSACTIONS
In support of the Company’s efforts and cash requirements, it may rely on advances from related
parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional
debt financing. There is no formal written commitment for continued support by officers, directors, or shareholders. Amounts represent
advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized
by a promissory note.
Since March 20, 2016, (inception) through December 31, 2021, Meshal Al Mutawa, the
Company’s former president, treasurer and director, and son of Bassam Al-Mutawa, loaned the Company $13,823 to pay for incorporation
costs and operating expenses. This loan is non-interest bearing, due upon demand and unsecured. On August 31, 2021, the Company issued
Mr. Al-Mutawa, a Promissory Note in the principal amount of $100,000 in consideration of cash in the amount of $100,000. The Note
accrues interest at the rate of 8% per annum and matures October 31, 2022. As of December 31, 2021, there is $1,378 of interest
accrued on this note. During the three months ended December 31, 2021. Mr. Mr. Al-Mutawa, made additional loans to the Company of $249,974.
On January 7, 2021, Bassam Al-Mutawa, CEO,
loaned the Company $240,000. On January 8, 2021, the Company issued Mr. Al-Mutawa, a Promissory Note in the principal amount of
$150,000 (the “Note”) in consideration of cash in the amount of $150,000. The Note accrues interest at the rate of 5%
per annum and matures January 8, 2022. As of December 31, 2021, there is $7,438 of interest accrued on this note. In addition to
the Note, Mr. Al-Mutawa, has advanced additional funds to the Company. As of December 31, 2021, the Company owes a total of $460,761.
During the three months ended December 31, 2021, the Company granted 2,310 shares
of common stock to its directors for services. The shares were valued at $15 per share for total non-cash expense of $34,650.
NOTE 8 - SUBSEQUENT EVENTS
Management has evaluated subsequent events pursuant to the requirements of ASC Topic
855, from the balance sheet date through the date the financial statements were issued and has determined that no material subsequent
events exist other than the following.
Subsequent to December 31, 2021, the Company sold 644 shares of common stock for
total cash proceeds of $32,200.
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