Onar Holding Corp 10-Q for FY2022 Q2

Onar Holding Corp (ONAR)

10-Q 2022-08-15 For: 2022-06-30

Added on April 07, 2026

About this 10-Q

Onar Holding Corp filed this 10-Q on August 15, 2022, covering the quarter ended June 30, 2022 (FY2022 Q2).

Headline figures

Quarter ended June 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.05M; up 29.6% from $807.46K a year earlier
Net income: $116.44K; down 18.1% from net income of $142.21K a year earlier

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Nevada		47-2200506
(State or other jurisdiction of		(I.R.S. Employer Identification No.)
incorporation or organization)

12343 Hymeadow Drive, Suite 3-A Austin, Texas		78750
(Address of principal executive offices)		(Zip Code)

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☒	Smaller reporting company	☒
Emerging growth	☒

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION.		2

PART I – FINANCIAL INFORMATION.		4

ITEM 1. FINANCIAL STATEMENTS.		4
Consolidated Balance Sheets.		4
*Consolidated Statements of Operations.*		5
*Consolidated Statements of Stockholders’ Deficit*		6
Consolidated Statements of Cash Flows.		7
Notes to the Consolidated Financial Statements.		8
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		18
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK..		26
ITEM 4. CONTROLS AND PROCEDURES.		26

PART II – OTHER INFORMATION.		28

ITEM 1. LEGAL PROCEEDINGS.		28
ITEM 1A. RISK FACTORS.		28
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.		30
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.		30
ITEM 4. MINE SAFETY DISCLOSURES.		30
ITEM 5. OTHER INFORMATION.		30
ITEM 6. EXHIBITS.		30

	●	the need for additional funding;
	●	our lack of a significant operating history;
	●	the fact that our sole officer and director has significant control over our voting stock;
	●	the loss of key personnel or failure to attract, integrate and retain additional personnel;
	●	corporate governance risks;
	●	economic downturns;
	●	the level of competition in our industry and our ability to compete;
	●	our ability to respond to changes in our industry;
	●	our ability to protect our intellectual property and not infringe on others’ intellectual property;
	●	our ability to scale our business;
	●	our ability to maintain supplier relationships;
	●	our ability to obtain and retain customers;
	●	our ability to execute our business strategy in a very competitive environment;
	●	trends in and the market for recreational pools and services;
	●	lack of insurance policies;
	●	dependence on a small number of customers;
	●	changes in laws and regulations;
	●	the market for our common stock;
	●	our ability to effectively manage our growth;
	●	dilution to existing stockholders;
	●	costs and expenses associated with being a public company;
	●	client lawsuits, damages, judgments and settlements required to be paid in connection therewith and the effects thereof on our reputation;
	●	health risks, economic slowdowns and rescissions and other negative outcomes caused by COVID-19 and governmental responses thereto;
	●	increased inflation, interest rates and supply constraints, and possible recessions;
	●	economic downturns both in the United States and globally;
	●	risk of increased regulation of our operations; and
	●	other risk factors included under “Risk Factors” below.

	June 30,			December 31,
	2022			2021
ASSETS
Current Assets
Cash	$	256,548		$	339,996
Accounts receivable		1,405			1,405
Federal income tax receivable		416			416
House and real estate inventory		184,996			45,721
Contract assets		24,195			7,325
Prepaid expenses		19,210			17,114

Total current assets		486,770			411,977

Equipment, net of accumulated depreciation of $61,694 and $43,506 as of
June 30, 2022 and December 31, 2021, respectively		50,668			58,497
Right-of-use asset		44,820			-

Total Assets	$	582,258		$	470,474

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Accounts payable and accrued liabilities	$	59,100		$	80,595
Contract liabilities		515,219			583,726
Construction loan		53,415			-
Current portion of note payable		10,451			10,174
Current portion of right-of-use liability		24,860			-

Total current liabilities		663,045			674,495

Long-term note payable, net of current portion		17,445			27,849
Right-of-use liability		20,027			-

Total Liabilities		700,517			702,344

Commitments and Contingencies

Stockholders’ Deficit
Preferred stock, 5,000,000 shares authorized, $0.001 par value,
0 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively		-			-
Preferred stock Series A, 1,000 shares authorized, $0.001 par value,
1,000 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively		1			1
Common stock, 70,000,000 shares authorized, $0.001 par value,
16,385,000 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively		16,385			16,385
Additional paid-in capital		396,564			396,564
Accumulated deficit		(531,209	)		(644,820	)

Total Stockholders’ Deficit		(118,259	)		(231,870	)

Total Liabilities and Stockholders’ Deficit	$	582,258		$	470,474

*The accompanying notes are an integral part of these unaudited consolidated financial statements.*

	For the Three Months ended						For the Six Months ended
	June 30,						June 30,
	2022			2021			2022			2021

Revenue	$	1,046,820		$	807,463		$	2,078,104		$	1,390,524
Cost of goods sold		(729,525	)		(498,860	)		(1,548,109	)		(971,365	)
Gross margin		317,295			308,603			529,995			419,159

Operating expenses
General and administrative		199,786			217,890			414,931			733,735

Total operating expenses		(199,786	)		(217,890	)		(414,931	)		(733,735	)

Income (loss) from operations		117,509			90,713			115,064			(314,576	)

Other income (expense)
Interest income		117			6			206			6
Interest expense		(1,186	)		(90	)		(1,659	)		(493	)
Gain on forgiveness of debt		-			51,577			-			51,577

Total other income (expense)		(1,069	)		51,493			(1,453	)		51,090

Income (loss) before income taxes		116,440			142,206			113,611			(263,486	)

Provision for income tax		-			-			-			-

Net income (loss)	$	116,440		$	142,206		$	113,611		$	(263,486	)

Net loss per share - basic and diluted	$	0.01		$	0.01		$	0.01		$	(0.02	)

Weighted average common shares outstanding		16,385,000			16,185,000			16,385,000			15,953,889

*The accompanying notes are an integral part of these unaudited consolidated financial statements.*

	Preferred Stock				Common Stock				Additional Paid in		Accumulated
	Shares		Par Value		Shares		Par Value		Capital		Deficit			Total

Balance December 31, 2021		1,000	$	1		16,385,000	$	16,385	$	396,564	$	(644,820	)	$	(231,870	)
															-
Net loss		-		-		-		-		-		(2,829	)		(2,829	)
Balance March 31, 2022		1,000	$	1		16,385,000	$	16,385	$	396,564	$	(647,649	)	$	(234,699	)

Net income		-		-		-		-		-		116,440			116,440

Balance June 30, 2022		1,000	$	1		16,385,000	$	16,385	$	396,564	$	(531,209	)	$	(118,259	)


Balance December 31, 2020		-	$	-		14,785,000	$	14,785	$	48,832	$	(209,623	)	$	(146,006	)

Stock-based compensation		-		-		1,600,000		1,600		335,400		-			337,000

Net loss		-		-		-		-		-		(405,692	)		(405,692	)

Balance March 31, 2021		-	$	-		16,385,000	$	16,385	$	384,232	$	(615,315	)	$	(214,698	)

Stock-based compensation		-		-		-		-		11,333		-			11,333

Preferred Shares issued for Compensation		1,000		1		-		-		999		-			1,000

Net income		-		-		-		-		-		142,206			142,206
Balance June 30, 2021		1,000	$	1		16,385,000	$	16,385	$	396,564	$	(473,109	)	$	(60,159	)

*The accompanying notes are an integral part of these unaudited consolidated financial statements.*

	-	Identification of the contract with a customer
	-	Identification of the performance obligations in the contract
	-	Determination of the transaction price
	-	Allocation of the transaction price to the performance obligations in the contract
	-	Recognition of revenue when, or as, the Company satisfies a performance obligation

Accounts receivable consisted of the following:
	June 30,			December 31,
	2022			2021
Contract receivables	$	4,405			1,405
Less: Allowance for doubtful accounts		(3,000	)		-
Accounts receivable, net	$	1,405		$	1,405

	June 30, 2022			December 31, 2021
Costs and estimated earnings in excess of billings on uncompleted contracts	$	24,195			7,325
Billings in excess of costs and estimated earnings on uncompleted contracts		(515,219	)		(583,726	)
Contract liabilities	$	(491,024	)		(576,401	)

	For the six
	Months Ended
	June 30,
	2022
Finance lease cost:
Amortization of assets		6,006
Interest on lease liabilities		782
Total net lease cost	$	6,788

	June 30,
	2022
Finance lease:
Equipment, at cost	$	50,825
Accumulated amortization		(6,006	)
Equipment, net	$	44,819

Current portion of finance lease liabilities	$	24,860
Noncurrent finance lease liabilities		20,027
Total finance lease liabilities	$	44,887

Weighted average remaining lease term:
Finance leases	1.75 years

Weighted average discount rate:
Finance lease		6.40

Fiscal Year Ending	Minimum Lease
September 30,	Commitments
2022 (for the six months remaining)	$	13,440
2023		34,140
2024		-
2025		-
2026		-
Total future undiscounted lease payments		47,580
Less interest		2,693
Present value of lease payments		44,887
Less current portion		24,860
Long-term operating lease liabilities	$	20,027

	June 30, 2022			December 31, 2021
Term note with a bank secured by car, payable in monthly installments of $660, including interest at 3.99% through February 27, 2025	$	15,234		$	19,879

Term note with a bank secured by car, payable in monthly installments of $1,000, including interest at 6.54% through May 26, 2027		12,662			18,144

Total long-term debt		27,896			38,023
Less: current portion		(10,451	)		(10,174	)
Long-term debt net of current portion	$	17,445		$	27,849

	●	“Exchange Act” refers to the Securities Exchange Act of 1934, as amended;
	●	“SEC” or the “Commission” refers to the United States Securities and Exchange Commission; and
	●	“Securities Act” refers to the Securities Act of 1933, as amended.

	●	Overview. Summary of our operations.

	●	Plan of Operations. A description of our plan of operations for the next 12 months including required funding.

	●	Results of Operations. An analysis of our financial results comparing the three and six months ended June 30, 2022 and 2021.

	●	Liquidity and Capital Resources. An analysis of changes in our consolidated balance sheets and cash flows and discussion of our financial condition.

	●	Critical Accounting Policies and Estimates. Accounting estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results and forecasts.

	For the Three		For the Three
	Months Ended		Months Ended		Increase /			Percentage
Cost of Goods Sold Expense	June 30, 2022		June 30, 2021		(Decrease)			Change
Cost of decking	$	71,506	$	53,110	$	18,396			34.6	%
Plaster used in the construction of pools		34,925		17,899		17,026			95.1	%
Gunite used in the construction of pools		65,870		82,769		(16,899	)		-20.4	%
Pool equipment used to filter and circulate the water used in our pools		95,810		88,239		7,571			8.6	%
Masonry, stone and tile installed in and around our pools and coping expenses associated therewith		79,950		44,021		35,929			81.6	%
Excavation and steel expenses		98,610		81,829		16,781			20.5	%
Other, including labor		282,854		130,993		151,861			115.9	%
Total	$	729,525	$	498,860	$	230,665			46.2	%

	RELIANT HOLDINGS, INC.

Date: August 15, 2022	By:	/s/ Elijah May
		Elijah May
		Chief Executive Officer and President
		(Principal Executive Officer and Principal Financial/Accounting Officer)

1.	I have reviewed this Quarterly Report on Form 10-Q of Reliant Holdings, Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15 (f)) for the registrant and have:

	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.