Notes
to Financial Statements
June
30, 2021
(Unaudited)
NOTE
1 – ORGANIZATION AND NATURE OF BUSINESS
Newpoint
Financial Corp. (“Newpoint”) was incorporated in the State of Delaware on November 16, 2005 under the name Blue Ribbon Pyrocool,
Inc. (“Blue Ribbon”). Blue Ribbon changed its name to Classic Rules Judo Championships, Inc. on July 15, 2008 then to Judo
Capital Corp on February 15, 2017. The entity is referred to as “the Company”. The Company formed a subsidiary in the State
of Connecticut on August 13, 2008 named Classic Rules World Judo Championships, Inc. to develop an annual judo championship tournament,
this subsidiary is no longer active and has ceased to exist.
On
June 2, 2014, the Company ceased its principal activities of hosting and sponsoring judo tournaments and dissolved Classic Rules World
Judo Championships, Inc. The Company had planned to operate in real estate investment market focused in the New York City metropolitan
area. On February 28, 2018, the Company ceased its plans to operate in the real estate investment market. On January 19, 2021, the Company
had a 500-1 reverse stock split with FINRA and Change of Control. On February 9, 2021, new officers and directors were elected and the
name of the Company was changed to Newpoint Financial Corp. (Delaware). On February 12, 2021.
NOTE
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of Presentation
The
accompanying unaudited interim financial statements as of the six months ended June 30, 2021 and June 30, 2020 have been prepared in
accordance with United States Generally Accepted Accounting Principles accepted for interim financial statement presentation and
in accordance with the instructions to Form 10-Q. Accordingly, they do not include all the information and footnotes required by accounting
principles generally accepted in the United States of America for complete financial statement presentation. They should be read in conjunction
with the Company’s annual report on Form 10- K for the year ended December 31, 2020. In the opinion of management, the financial
statements contain all adjustments (consisting only of normal recurring accruals) necessary to fairly present the financial position
as of June 30, 2021 and the results of operations for the six months ended June 30, 2021 and 2020 and cash flows for the six months ended
June 30, 2021 and 2020. The results of operations for the six months ended June 30, 2021 are not necessarily indicative of the results
to be expected for the full year.
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, liabilities, and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates.
Actual results and outcomes may differ materially from the estimates as additional information becomes known.
Reclassifications
None.
Cash
and Cash Equivalents
Cash
and cash equivalents includes highly liquid investments with original maturities of three months or less. On occasion, the Company has
amounts deposited with financial institutions in excess of federally insured limits.
Newpoint
Financial Corp.
Notes
to Financial Statements
June
30, 2021
(Unaudited)
Fair
Value of Financial Instruments
The
Company measures certain financial assets and liabilities at fair value based on 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. The carrying value of cash and cash equivalents and accounts payable approximate their fair
value because of the short-term nature of these instruments and their liquidity. Management is of the opinion that the Company is not
exposed to significant interest or credit risks arising from these financial instruments.
Income
Taxes
Deferred
income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss and credit carryforwards
and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at
the current enacted tax rates. The Company records an estimated valuation allowance on its deferred income tax assets if it is not more
likely than not that these deferred income tax assets will be realized.
The
Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained
on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements
from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate
settlement. As of the previous years ended December 31, 2020 and 2019, the Company has not recorded any unrecognized tax benefits.
Segment
Reporting
The
Company’s business currently operates in one segment.
Net
Loss per Share
The
computation of basic net loss per common share is based on the weighted average number of shares that were outstanding during the year.
The computation of diluted net loss per common share is based on the weighted average number of shares used in the basic net loss per
share calculation plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares
outstanding using the treasury stock method. See Note 3. Stockholders’ Deficit.
Recently
Issued Accounting Pronouncements
The
Company reviews new accounting standards as issued. Although some of these accounting standards issued or effective after the end of
the Company’s previous fiscal year may be applicable to the Company, it has not identified any standards that it believes merit
further discussion. The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact
on its financial position, results of operations, or cash flows.
Related
Parties
The
Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure
of related party transactions.
Newpoint
Financial Corp.
Notes
to Financial Statements
June
30, 2021
(Unaudited)
Related
Parties (Continued)
The
financial statements include disclosures of material related party transactions, other than compensation arrangements, expense allowances,
and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation
of financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved;
(b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods
for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions
on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented
and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from
or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.
NOTE
3 – GOING CONCERN
The accompanying financial statements have been
prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business. The Company has no revenues, has incurred net losses of $10,453 and $17,608 during the
years ended December 31, 2020 and December 31, 2019. The Company has an accumulated deficit of $444,912 and $434,459 as of December 31,
2020 and December 31, 2019, and has experienced negative cash flows from operations. These circumstances raise substantial doubt about
the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that
might result from the outcome of this uncertainty.
The Company needs to raise additional capital.
Failure to raise adequate capital and generate adequate sales revenues could result in the Company having to curtail or cease operations.
Additionally, even if the Company does raise sufficient capital to support its operating expenses and generate adequate revenues, there
can be no assurance that the revenue will be sufficient to enable it to develop business to a level where it will generate profits and
cash flows from operations.
We understand from the Directors of Newpoint Financial Corp (formally Judo Capital Corp)
that the new Shareholders and Directors being put in place will ensure new capitals and revenues are put into the Company.
NOTE
4 – STOCKHOLDERS’ DEFICIT
Preferred
Stock
The
Company is authorized to issue 50,000,000 shares of preferred stock with a par value of $0.001 per share. There were no shares of preferred
stock issued or outstanding as of June 30, 2021 or December 31, 2020.
Common
Stock
The
Company is authorized to issue up to 100,000,000 shares of common stock with a par value of $0.001 per share. As of June 30, 2021 and
December 31, 2020 there were 216,185 shares of common stock issued and outstanding.
NOTE
5 – SUBSEQUENT EVENTS
The
Company had evaluated all events occurring subsequent to the balance sheet date and determined there are no additional events to disclose.