Onar Holding Corp 10-Q for FY2023 Q2

Onar Holding Corp (ONAR)

10-Q 2023-10-06 For: 2023-06-30

Added on April 07, 2026

About this 10-Q

Onar Holding Corp filed this 10-Q on October 6, 2023, covering the quarter ended June 30, 2023 (FY2023 Q2).

Headline figures

Quarter ended June 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $380.29K; down 63.7% from $1.05M a year earlier
Net loss: $59.9K; compared with net income of $116.44K 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		3

PART I – FINANCIAL INFORMATION		4

Item 1.	Financial Statements	4
	Consolidated Balance Sheets	4
	Consolidated Statements of Operations	5
	Consolidated Statements of Stockholders’ Equity (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	17
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	24
Item 4.	Controls and Procedures	24

PART II – OTHER INFORMATION		26

Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors.	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mine Safety Disclosures	27
Item 5.	Other Information	27
Item 6.	Exhibits	28

	●	the need for additional funding;
	●	the fact that we have filed periodic reports late in the past;
	●	our lack of a significant operating history;
	●	the fact that our sole officer and director has 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 recessions and other negative outcomes caused by COVID-19 and governmental responses thereto;
	●	increased inflation, interest rates and supply constraints, and possible recessions caused thereby;
	●	economic downturns both in the United States and globally;
	●	strategic transactions in the future which may result in a material change in our operations, board of directors, management, and/or a change of control;
	●	risk of increased regulation of our operations; and
	●	other risk factors included and discussed under “Risk Factors” below.

Reliant Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
	June 30,			December 31,
	2023			2022
ASSETS
Current Assets
Cash	$	14,336		$	282,621
Accounts receivable, net		3,000			-
House and real estate inventory		432,201			339,074
Contract assets		1,681			30,571
Prepaid expenses		10,081			22,177
Other current assets		1,405			1,405

Total Current Assets		462,704			675,848

Equipment, net of accumulated depreciation of $77,275 and $69,484 as of
June 30, 2023 and December 31, 2022, respectively		35,088			42,878
Right-of-use asset		19,825			32,520

Total Assets	$	517,617		$	751,246

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	29,492		$	33,246
Accrued liabilities - related parties		53,500			48,000
Contract liabilities		84,950			336,373
Construction loan		215,912			186,404
Current portion of note payable		5,660			9,630
Current portion of right-of-use liability		20,027			25,940

Total Current Liabilities		409,541			639,593

Long-term note payable, net of current portion		-			2,864
Right-of-use liability		-			6,783

Total Liabilities		409,541			649,240

Commitments and Contingencies

Stockholders' Equity
Preferred stock, 5,000,000 shares authorized, $0.001 par value,
0 issued and outstanding as of June 30, 2023 and December 31, 2022, respectively		-			-
Preferred stock Series A, 1,000 shares authorized, $0.001 par value,
1,000 issued and outstanding as of June 30, 2023 and December 31, 2022 respectively		1			1
Common stock, 70,000,000 shares authorized, $0.001 par value,
16,785,000 and 16,385,000 issued and outstanding as of June 30, 2023 and December 31, 2022, respectively		16,785			16,385
Additional paid-in capital		432,164			396,564
Accumulated deficit		(340,874	)		(310,944	)

Total Stockholders' Equity		108,076			102,006

Total Liabilities and Stockholders' Equity	$	517,617		$	751,246

Reliant Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)

	For the Three Months ended						For the Six Months ended
	June 30						June 30
	2023			2022			2023			2022

Revenue	$	380,289		$	1,046,820		$	1,176,139		$	2,078,104
Cost of goods sold		(210,116	)		(729,525	)		(728,972	)		(1,548,109	)
Gross margin		170,173			317,295			447,167			529,995

Operating expenses
General and administrative		228,448			199,786			473,901			414,931

Total operating expenses		(228,448	)		(199,786	)		(473,901	)		(414,931	)

Income (loss) from operations		(58,275	)		117,509			(26,734	)		115,064

Other income (expense)
Interest income		127			117			526			206
Interest expense		(3,065	)		(1,186	)		(3,722	)		(1,659	)

Total other (expense)		(2,938	)		(1,069	)		(3,196	)		(1,453	)

Income (loss) before income taxes		(61,213	)		116,440			(29,930	)		113,611

Provision for income tax		1,314			-			-			-

Net income (loss)	$	(59,899	)	$	116,440		$	(29,930	)	$	113,611

Net income (loss) per share – basic and diluted	$	(0.00	)	$	0.01		$	(0.00	)	$	0.01

Weighted average common shares outstanding		16,785,000			16,385,000			16,584,443			16,385,000

Reliant Holdings, Inc. and Subsidiaries
Consolidated Statements of Stockholders’ Equity (Deficit)
For the six months ended June 30, 2023 and 2022
(unaudited)

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

Balance December 31, 2022		1,000	$	1		16,385,000	$	16,385	$	396,564	$	(310,944	)	$	102,006

Shares issued for services		-		-		400,000		400		35,600		-			36,000

Net income		-		-		-		-		-		29,969			29,969

Balance March 31, 2023		1,000		1		16,785,000		16,785		432,164		(280,975	)		167,795

Net loss		-		-		-		-		-		(59,899	)		(59,899	)

Balance June 30, 2023		1,000	$	1		16,785,000	$	16,785	$	432,164	$	(340,874	)	$	108,076

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	)

	-	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,
	2023			2022
Contract receivables	$	6,000		$	3,000
Less: Allowance for doubtful accounts		(3,000	)		(3,000	)
Accounts receivable, net	$	3,000		$	-

	June 30, 2023			December 31, 2022
Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets)	$	1,681		$	30,571
Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities)		(84,950	)		(336,373	)
Contract liabilities, net	$	(83,269	)	$	(305,802	)

	For the Six
	Months Ended
	June 30,
	2023		2022
Right of Use (ROU) Operating lease cost:
Amortization of assets		12,695		6,006
Interest on lease liabilities		880		782
Total net lease cost	$	13,575	$	6,788

	June 30, 2023			December 31, 2022
Term note with a bank secured by car, payable in monthly installments of $660, including interest at 3.99% through February 27, 2025	$	5,660		$	10,494

Term note with a bank secured by car, payable in monthly installments of $1,000, including interest at 6.54% through May 26, 2027		-			2,000

Total long-term debt		5,660			12,494
Less: current portion		(5,660	)		(9,630	)
Long-term debt net of current portion	$	-		$	2,864

	●	“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, 2023 and 2022.
	●	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.

Cost of Goods Sold Expense	For the Three Months Ended June 30, 2023		For the Three Months Ended June 30, 2022		Increase / (Decrease)			Percentage Change
Cost of decking	$	18,449	$	71,506	$	(53,057	)		(74.2	)%
Plaster used in the construction of pools		36,468		34,925		1,543		4.4		%
Gunite used in the construction of pools		13,920		65,870		(51,950	)		(78.9	)%
Pool equipment used to filter and circulate the water used in our pools		21,424		95,810		(74,386	)		(77.6	)%
Masonry, stone and tile installed in and around our pools and coping expenses associated therewith		29,755		79,950		(50,195	)		(62.8	)%
Excavation and steel expenses		480		98,610		(98,130	)		(99.5	)%
Other, including labor		89,620		282,854		(193,234	)		(68.3	)%
Total	$	210,116	$	729,525	$	(519,409	)		(71.2	)%

Cost of Goods Sold Expense	For the Six Months Ended June 30, 2023		For the Six Months Ended June 30, 2022		Increase / (Decrease)			Percentage Change
Cost of decking	$	82,401	$	175,514	$	(93,113	)		(53.1	)%
Plaster used in the construction of pools		102,163		73,256		28,907		39.5		%
Gunite used in the construction of pools		44,360		155,039		(110,679	)		(71.4	)%
Pool equipment used to filter and circulate the water used in our pools		107,814		232,608		(124,794	)		(53.6	)%
Masonry, stone and tile installed in and around our pools and coping expenses associated therewith		85,899		259,682		(173,783	)		(66.9	)%
Excavation and steel expenses		45,295		189,653		(144,358	)		(76.1	)%
Other, including labor		261,040		462,357		(201,317	)		(43.5	)%
Total	$	728,972	$	1,548,109	$	(819,137	)		(52.9	)%

	RELIANT HOLDINGS, INC.

Date: October 6, 2023	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.