QURT Quarta Rad Inc (PK)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

☒ quarterly REPORT under SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended: March 31, 2024

 

or

 

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______ to ______

 

Commission File No. 000-55964

 

Quarta-Rad, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

Delaware		45-4232089
(State or other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
1201 N. Orange St., Suite 700
Wilmington, DE		19801
(Address of Principal Executive Offices)		(Zip Code)

 

Registrant’s telephone number, including area code: (302) 575-0877

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class		Trading Symbol		Name of Each Exchange on Which Registered
Common Stock, par value $0.0001 per share		QURT		OTC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§230.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☐ No ☒

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated file,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☐ (Do not check if a smaller reporting company)	Smaller reporting company ☒

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

Yes ☐ No ☒

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section l2, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

 

Yes ☐ No ☐

 

APPLICABLE ONLY TO CORPORATE ISSUERS

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of May 15, 2024, the number of shares outstanding of the issuer’s sole class of common stock, $0.0001 par value per share, is 15,674,483.

 

 

 

table of contents

 

Part I – FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed and Consolidated Balance Sheets	3
Condensed and Consolidated Statements of Operations	4
Condensed and Consolidated Statements of Stockholders’ Equity/Deficit	5
Condensed and Consolidated Statements of Cash Flows	6
Notes to the Condensed and Consolidated Unaudited Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Conditions and Results of Operations	14
Item 3. Quantitative and Qualitative Disclosures about Market Risk	20
Item 4. Controls and Procedures	20
PART II — OTHER INFORMATION	21
Item 1. Legal Proceedings	21
Item 1A. Risk Factors	21
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	21
Item 3. Defaults Upon Senior Securities	21
Item 4. Mine Safety Disclosures	21
Item 5. Other Information	21
Item 6. Exhibits	21
Signatures	22

 

 

QUARTA-RAD, INC. AND SUBSIDIARIES

 

CONDENSED AND CONSOLIDATED BALANCE SHEETS

(unaudited)

 

		March 31, 2024				December 31, 2023
		As of
		March 31, 2024				December 31, 2023
ASSETS
Current Assets
Cash		$	50,068			$	72,625
Accounts receivable			7,373				7,289
Marketable securities, trading			36,503				52,148
Notes receivable - related party - current portion			-				80,813
Inventory			23,558				30,398
Total Current Assets			117,502				243,273
Fixed Assets, Net			1,370				1,570
Other Assets
Notes receivable - related party, net of current portion and discount of $12,858 and $13,630 on March 31, 2024 and December 31, 2023, respectively.			409,489				341,557
Interest receivable - related party			43,604				44,172
Trade receivable			29,529				28,673
Deferred tax asset			34,976				24,069
Total Other Assets			517,598				438,471
TOTAL ASSETS		$	636,470			$	683,314
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued expenses		$	115,729			$	105,244
Payable - related parties			218,799				184,477
Total Liabilities			334,528				289,721
Commitments and Contingencies			-				-
Stockholders’ Equity
Common Stock: authorized 50,000,000 common shares, $0.0001 par value 15,674,483 and 15,674,483 were issued and outstanding on March 31, 2024 and December 31, 2023, respectively			1,568				1,568
Additional paid-in capital			346,726				346,726
Retained earnings/(accumulated deficit)			(46,352	)			45,299
Total Stockholders’ Equity			301,942				393,593
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	636,470			$	683,314

 

See accompanying notes to unaudited condensed and consolidated financial statements

 

 

QUARTA-RAD, INC. AND SUBSIDIARIES

 

CONDENSED AND CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

		For the Three Months Ended March 31, 2024				For the Three Months Ended March 31, 2023
Sales -Quarta Rad, Inc., net		$	22,042			$	136,979
Sales - Sellavir, Inc., net - related party			-				62,000
Total sales, net			22,042				198,979
Cost of goods sold - Quarta-Rad, Inc.			10,249				100,565
Cost of goods sold - Sellavir Inc.			-				22,731
Cost of goods sold
Gross profit			11,793				75,683
Expenses:
General and administrative			45,842				12,418
Advertising			-				17,093
Professional and consulting fees			28,509				33,400
Operating expenses			74,351				62,911
Net income/(loss) from operations			(62,558	)			12,772
Other income - interest and dividends			1				294
Other expense - foreign currency translation loss			(13,683	)			-
Other income - interest - related party			11,703				-
Other expense - loss on loan modification			(11,469	)			-
Other income - unrealized gain/(loss) on investments			(15,645	)			54,471
Other income - realized loss on investments			-				(25,040	)
Net income/(loss) before provision for income taxes			(91,651	)			42,497
Income tax expense/(benefit)			-				8,924
Net income/(loss)		$	(91,651	)		$	33,573
Income/(loss) per share - basic and diluted		$	(0.01	)		$	-
Weighted average shares - basic and diluted			15,674,483				15,674,483

 

See accompanying notes to unaudited condensed and consolidated financial statements

 

 

QUARTA-RAD, INC. AND SUBSIDIARIES

 

CONDENSED AND CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Three Months Ended March 31, 2024

(Unaudited)

 

		Shares				Amount				Capital				Earnings				Equity
		Common Stock								Additional Paid-In				Retained				Total Stockholders’
		Shares				Amount				Capital				Earnings/(Accumlated Deficit)				Equity
Balance, December 31, 2023			15,674,483			$	1,568			$	346,726			$	45,299			$	393,593
Net loss			-				-				-				(91,651	)			(91,651	)
Balance, March 31, 2024			15,674,483			$	1,568			$	346,726			$	(46,352	)		$	301,942

 

CONDENSED AND CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Three Months Ended March 31, 2023

(Unaudited)

 

		Common Stock								Additional Paid-In				Retained				Total Stockholders’
		Shares				Amount				Capital				Earnings				Equity
Balance, December 31, 2022			15,674,483			$	1,568			$	346,726			$	807			$	349,101
Balance			15,674,483			$	1,568			$	346,726			$	807			$	349,101
Net income			-				-				-				33,573				33,573
Net income loss			-				-				-				33,573				33,573
Balance, March 31, 2023			15,674,483			$	1,568			$	346,726			$	34,380			$	382,674
Balance			15,674,483			$	1,568			$	346,726			$	34,380			$	382,674

 

See accompanying notes to unaudited condensed and consolidated financial statements

 

 

QUARTA-RAD, INC. AND SUBSIDIARIES

 

CONDENSED AND CONSOLIDATED STATEMENTS OF CASH FLOWS

 

		For the Three Months Ended March 31, 2024				For the Three Months Ended March 31, 2023
OPERATING ACTIVITIES:
Net income/(loss)		$	(91,651	)		$	33,573
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation			200				200
Foreign currency translation loss			13,683				-
Amortization of discount			(802	)			-
Net realized loss on investments			-				25,040
Net unrealized (gain)/loss on investments			15,645				(54,471	)
Income tax expense/(benefit)			-				8,924
Changes in operating assets and liabilities:
Accounts receivable			(84	)			37,444
Inventory			6,840				75,340
Trade receivables			(856	)			-
Accrued interest receivable - related party			568				-
Accounts payable and accrued expenses			10,485				32,958
Deferred revenue - related party			-				(62,000	)
Deferred taxes			(10,907	)			-
Related party payable			34,322				-
Net cashed provided/(used) by operating activities			(22,557	)			97,008
INVESTING ACTIVITIES:
Sale of marketable securities, trading			-				72,004
Issuance of notes payable - related party			-				(245,000	)
Purchase of marketable securities, trading			-				(57,921	)
Net cash used in Investing Activities			-				(230,917	)
Net change in cash			(22,557	)			(133,909	)
Cash, beginning of period			72,625				293,878
Cash, end of period		$	50,068			$	159,969
Supplemental cash flow information:
Cash paid for interest		$	-			$	-
Cash paid for income taxes		$	10,907			$	-

 

See accompanying notes to unaudited condensed and consolidated financial statements

 

 

QUARTA-RAD, INC. AND SUBSIDIARIES

 

Notes to the (unaudited) Condensed and Consolidated Financial Statements

 

NOTE 1 - BASIS OF PRESENTATION

 

The condensed and consolidated balance sheet of Quarta-Rad, Inc. and Subsidiaries (the “Company”) as of March 31, 2024, and the statements of operations and changes in stockholders’ equity for the three months ended March 31, 2024, and 2023, and the cash flows for three months ended March 31, 2024, and 2023 have not been audited. However, in the opinion of management, such information includes all adjustments (consisting of normal recurring adjustments), which are necessary to accurately reflect the financial position of the Company as of March 31, 2024, the results of operations and cash flows for the periods ended March 31, 2024, and 2023.

 

The condensed and consolidated balance sheet as of December 31. 2023 has been derived from audited financial statements. Certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted, although management believes that the disclosures are adequate to make the information presented not misleading. Interim period results are not necessarily indicative of the results to be achieved for an entire year. These condensed and consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31. 2023.

 

NOTE 2 - NATURE OF BUSINESS

 

The Company distributes detection devices, including but not limited to Geiger counters, to homeowners and interested customers in North America and Europe. The Company targets homebuilders and home renovation contractors. As noted in RISKS AND UNCERTAINTIES, the Company has encountered certain restrictions in securing inventory and has secured a new supplier.

 

Sellavir is a video analytics company whose platform empowers organizations to decode videos to develop creative marketing strategies and analysis through advanced and proprietary technologies using artificial intelligence (“AI”).

 

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of Consolidation

 

The consolidated financial statements include the accounts Quarta-Rad, Inc. and its wholly-owned subsidiaries Quarta-Rad USA, Inc. and Sellavir, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.

 

Use of Estimates and Assumptions

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and judgments that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods.

 

Significant estimates made by management include, among others, provisions for the valuation of related party revenue,and notes receivable. The Company bases its estimates on historical experience, knowledge of current conditions and belief of what could occur in the future considering available information. The Company reviews its estimates on an on-going basis. The actual results experienced by the Company may differ materially and adversely from its estimates. To the extent there are material differences between the estimates and actual results, future results of operations will be affected.

 

7

 

 

QUARTA-RAD, INC. AND SUBSIDIARIES

 

Notes to the (unaudited) Condensed and Consolidated Financial Statements

 

Advertising

 

The Company expenses advertising costs, consisting primarily of placement in multiple publications, along with design and printing costs of sales materials, when incurred. Advertising expenses for the three ended March 31, 2024, and 2023, amounted to $-0- and $17,093, respectively.

 

Notes Receivable – related party

 

Notes Receivable – related party consists of loan agreements entered into by Sellavir discussed in Note 4. Amounts payable marked to value in functional currency at the balance sheet date where the Company records foreign translation gain or loss. The Company’s functional currency is the United States Dollar.

 

Concentration of Credit Risk

 

Credit is extended to online platforms and suppliers based on an evaluation of their financial condition, and collateral is generally not required. The Company performs ongoing credit evaluations of its customers and provides an allowance for doubtful accounts as appropriate.

 

One selling platform/distributor accounted for 92% of accounts receivable at March 31, 2024 and two selling platforms/distributors accounted for 88% of accounts receivable at December 31. 2023.

 

Quarta Rad purchased 100% of its inventory through a third party in 2023.

 

Earnings per Share

 

The Company’s basic earnings per share are calculated by dividing its net income available to common stockholders by the weighted average number of common shares outstanding for the period. The Company’s dilutive earnings per share is calculated by dividing its net income available to common shareholders by the diluted weighted average number of shares outstanding during the period. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There were no potentially dilutive instruments outstanding during the periods ended March 31, 2024, and 2023.

 

Fair Value of Financial Instruments

 

The Company’s financial instruments as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 825, “Financial Instruments” include cash, trade accounts receivable, and accounts payable and accrued expenses. All instruments, except marketable securities are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at March 31, 2024 and December 31. 2023. Marketable securities are level one assets recorded at fair value.

 

FASB ASC 820 “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value in accordance with U.S. GAAP, and expands disclosures about fair value measurements. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

	●	Level 1. Observable inputs such as quoted prices in active markets;
	●	Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
	●	Level 3. Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.

 

8

 

 

QUARTA-RAD, INC. AND SUBSIDIARIES

 

Notes to the (unaudited) Condensed and Consolidated Financial Statements

 

The Company’s investment securities consist of common and options. Substantially all the Company’s investments are Level 1. The fair market value is based on quoted prices in active markets for identical assets. Financial assets are measured at fair value on a recurring basis. The following table provides information at March 31, 2024 about the Company’s financial assets measured at fair value on a recurring basis.

 

Values on March 31, 2024:

SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS 

		Level 1				Level 2				Level 3				Total
Assets at fair value:
Marketable Securities		$	36,503			$	-			$	-			$	36,503
Total assets at fair value, March 31, 2024		$	36,503			$	-			$	-			$	36,503

 

Values on December 31. 2023:

 

		Level 1				Level 2				Level 3				Total
Assets at fair value:
Marketable Securities		$	52,148			$	-			$	-			$	52,148
Total assets at fair value, December 31. 2023		$	52,148			$	-			$	-			$	52,148

 

Revenue Recognition

 

The Company follows guidance from FASB Accounting Standards Codification ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The guidance sets forth a five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects to receive in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance.

 

Our principal activities from which we generate our revenue are product sales and consulting services.

 

Revenue is measured based on consideration specified in a contract with a customer. A contract with a customer exists when we enter into an enforceable contract with a customer. The contract is based on either the acceptance of standard terms and conditions on the websites for e-commerce customers and via telephone with our third-party call center for our print media and direct mail customers, or the execution of terms and conditions contracts with retailers and wholesalers. These contracts define each party’s rights, payment terms and other contractual terms and conditions of the sale. Consideration is typically paid prior to shipment via credit card or check when our products are sold direct to consumers or approximately 30 days from the time control is transferred when sold to wholesalers, distributors and retailers. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience and, in some circumstances, published credit and financial information pertaining to the customer.

 

9

 

 

QUARTA-RAD, INC. AND SUBSIDIARIES

 

Notes to the (unaudited) Condensed and Consolidated Financial Statements

 

A performance obligation is a promise in a contract to transfer a distinct product to the customer, which for us is transfer of devices to our customers. Performance obligations promised in a contract are identified based on the goods that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract, whereby the transfer of the goods is separately identifiable from other promises in the contract. We have concluded the sale of goods and related shipping and handling are accounted for as the single performance obligation.

 

The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation. The transaction price is determined based on the consideration to which we will be entitled to receive in exchange for transferring goods to the customer. We issue refunds to e-commerce and print media customers, upon request, within 30 days of delivery. We estimate the amount of potential refunds at each reporting period using a portfolio approach of historical data, adjusted for changes in expected customer experience, including seasonality and changes in economic factors. For retailers, distributors and wholesalers, we do not offer a right of return or refund and revenue is recognized at the time products are shipped to customers. In all cases, judgment is required in estimating these reserves. Actual claims for returns could be materially different from the estimates. There was no reserve for sales returns and allowances, at March 31, 2024 and December 31. 2023, respectively.

 

We recognize revenue when we satisfy a performance obligation in a contract by transferring control over a product to a customer when a product is shipped. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by us from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfilment cost and are included in cost of product sales.

 

We recognize consulting revenue over time as services are performed.

 

Risks and Uncertainties

 

RUSSIAN INVASION OF UKRAINE

 

In February 2022, Russia invaded the nation of Ukraine and certain sanctions and banking restrictions were levied upon Russia. As a result, the Company’s ability to purchase inventory from Russia has been impacted.

 

The Company is actively monitoring the situation and working closely with their suppliers and logistics companies to mitigate the impact. During October 2022 the Company has encountered additional restrictions in the EU and believes their ability to continue to sell in the EU will be diminished. The Company has found another factory to supply inventory in Kazakhstan, which received a shipment of 200 units at the end of 2023. The units were partially sold during the first quarter of 2024.

 

10

 

 

QUARTA-RAD, INC. AND SUBSIDIARIES

 

Notes to the (unaudited) Condensed and Consolidated Financial Statements

 

The Company is continuing to expand its Artificial Intelligence business through development of new services and software, and consulting on strategies and implementation, and are in the process of transforming our company from an import heavy revenue entity to AI services revenue becoming the majority of total sales. Due to the constraints with the Quarta Rad related income, additional focus and resources will be utilized by Sellavir Beginning in 2024, Sellavir will strategically focus on harnessing its advanced AI capabilities and extensive experience to innovate within the call center industry. The industry’s evolving landscape, particularly the shift from traditional on-premise solutions to cloud-hosted platforms, presents a unique opportunity for Sellavir to introduce a suite of AI-driven products.

 

NOTE 4–NOTE RECEIVABLE – RELATED PARTY

 

During March 2023, Sellavir entered into a loan agreement with a related Thai Corporation. for the purchase of land and to ultimately build a structure. The Company’s CEO and majority shareholder became the CEO and a minority shareholder in the Thai entity in May 2023. The Thai Corporation will repay Sellavir $9,000,000 Thai Bhat, valued at $261,038, at the time of the loan, which includes a premium of $16,038 plus interest a rate of 15% per annum. In January 2024, the note was amended to reduce the interest rate to 10% and for Sellavir to receive 3% of the selling price of the secured property. The Company recorded a loss of $8,188 in connection with this loan modification. The Company marked the note to Thai Bhat, valued at $247,317 and $261,072 recording a loss on foreign currency translation of $13,683 and $36 at March 31, 2024 and December 31, 2023, respectively. The amount of unamortized premium at March 31, 2024 and December 31, 2023 is $12,858 and $13,362, respectively. Payments are deferred until April 1, 2024, with quarterly principal payments due through April 1, 2029. Interest is payable at the end of the loan. The Company will amortize the premium over the life of the loan. Payments are payable in Thai Baht. The loan is secured by land located in Thailand.

 

The Company issued an additional loan to the Thai Corporation in May 2023 for $175,000, at the rate of 15% per annum. In January 2024, the note was amended to reduce the interest rate to 10% and for Sellvir to receive 3% of the selling price of the secured property. The Company recorded a loss of $3,281 in connection with this loan modification. Payments are deferred until April 1, 2024, with quarterly principal payments due through April 2029. Interest is payable at the end of the loan. The loan is secured by land located in Thailand.

 

During January 2024, both notes were amended to provide a one year extension for all payment due dates.

 

Accrued interest at March 31, 2024 and December 31, 2023 for both loans is $43,604 and $44,172, respectively, included as a long-term asset, interest receivable – related party.

 

Principal amounts to be received for the two notes are as follows:

SCHEDULE OF PRINCIPAL AMOUNT OF NOTES RECEIVABLES 

		$261,038 Note				$175,000 Note				Total
2025		$	46,366			$	31,875			$	78,241
2026		$	61,830				42,500				104,330
2027			61,830				42,500				104,330
2028			61,830				42,500				104,330
2029			15,491				15,625				31,116
Totals		$	247,347			$	175,000			$	422,347

 

11

 

 

QUARTA-RAD, INC. AND SUBSIDIARIES

 

Notes to the (unaudited) Condensed and Consolidated Financial Statements

 

NOTE 5–PROPERTY AND EQUIPMENT

 

Property and Equipment at March 31, 2024 and December 31. 2023 consisted of:

SCHEDULE OF PROPERTY AND EQUIPMENT 

		March 31,				December 31,
		2024				2023
Computer Equipment		$	4,005			$	4,005
Accumulated Depreciation			(2,635	)			(2,435	)
Net Property & Equipment		$	1,370			$	1,570

 

The Company recognized $200, and $200 in depreciation expense in each period for the three ended March 31, 2024 and 2023, respectively.

 

NOTE 6–RELATED PARTY TRANSACTIONS

 

During July 2017, the Company entered into an agreement with Quarta Rad, LTD (“QRR”), a company in Russia, which is owned by the Company’s minority shareholder to develop and update software for a new device for $180,000. The development contract ended December 31, 2019. The amount due in connection with this agreement as of March 31, 2024, and December 31. 2023, is $91,850 and $91,850, respectively. The balances are due on demand and do not incur interest.

 

In May 2022, the Company began using Star Systems Corporation (“STAR”:), a Japanese entity owned by the Company’s majority shareholder, as an intermediary to purchase inventory from QRR. The Company owes Star $42,502 and $42,502 on March 31, 2024 and December 31, 2023, for purchasers and inventory and upgrades from 2022. The balances are due on demand and do not incur interest.

 

In April 2021, the Company began compensating its CEO, who is the majority shareholder. The Company expensed $8,000 and $8,000 for the three months ended March 31,, 2024, and 2023, respectively. As of March 31, 2024 and December 31, 2023 the Company has accrued $96,000 and $88,000, respectively for this compensation, included within accounts payable and accrued expenses on the accompanying balance sheets.

 

From time to time the CEO advanced funds for operations. As of March 31, 2024 and December 31, 2023, is due $73,221 and $38,899, respectively, for expenses paid on behalf of the Company. The balances are due on demand and do not accrue interest.

 

Sellavir recognized $-0- and $62,000 of revenue for the three months ended March 31, 2024, and 2023, respectively m un services to STAR to develop software.

 

NOTE 7–SEGMENTS

 

The Company has two operating segments through the operations of Quarta-Rad and Sellavir. The Company evaluates the performance of its segments based on revenues, operating income(loss) and net income(loss).

 

12

 

 

QUARTA-RAD, INC. AND SUBSIDIARIES

 

Notes to the (unaudited) Condensed and Consolidated Financial Statements

 

Segment information for the three months and nine months ended September 2024 and 2023 is as follows:

SCHEDULE OF SEGMENT INFORMATION 

		Quarta-Rad				Sellavir				Consolidated
For the three months ended March 31, 2024
		Quarta-Rad				Sellavir				Consolidated
Revenues		$	22,042				-			$	22,042
Loss from operations			(37,164	)			(25,394	)			(62,558	)
Net loss		$	(29,360	)			(62,291	)		$	(91,651	)

 

		Quarta-Rad				Sellavir				Consolidated
For the three months ended March 31, 2023
		Quarta-Rad				Sellavir				Consolidated
Revenues		$	136,979			$	62,000			$	198,979
Income/(loss) from operations			(25,249	)			38,021				12,772
Net income/(loss)		$	(19,943	)		$	53,516			$	33,573

 

Total Assets		As of March 31, 2024				As of December 31, 2023
Quarta-Rad		$	138,903			$	151,789
Sellavir			497,567				531,525
Total Assets		$	636,470			$	683,314

 

NOTE 8– COMMITMENTS AND CONTINGENCIES

 

Contingencies

 

Legal

 

In the normal course of business, the Company may become involved in various legal proceedings. The Company knows of no pending or threatened legal proceeding to which the Company is or will be a party that, if successful, might result in material adverse change in the Company’s business, properties or financial condition.

 

NOTE 9–SUBSEQUENT EVENTS

 

The Company has performed an evaluation of events occurring subsequent to March 31, 2024 through May 15, 2024. Based on its evaluation, other than the note below there is nothing to be disclosed herein.

 

During April 2024, a minority shareholder sold and board member, sold their entire interest and resigned from the board.

 

The notes receivable in NOTE 4 were amended to extend the payment dates one year, including the payment due April 1, 2024.

 

 

Item 2. Management’s Discussion and Analysis of Financial Conditions and Results of Operations

 

The following is management’s discussion and analysis of financial condition and results of operations and is provided as a supplement to the accompanying unaudited condensed financial statements and notes to help provide an understanding of our financial condition, results of operations and cash flows during the periods included in the accompanying unaudited condensed financial statements.

 

In this Quarterly Report on Form 10-Q, “Company,” “the Company,” “us,” and “our” refer to Quarta-Rad, Inc., a Delaware corporation, unless the context requires otherwise.

 

We intend the following discussion to assist in the understanding of our financial position and our results of operations for the three and nine months ended March 31, 2024 and 2023. You should refer to the Financial Statements and related Notes in conjunction with this discussion.

 

Results of Operations

 

General

 

We were incorporated under the laws of the State of Delaware on November 29, 2011 with fiscal year end in December 31. We were formed to distribute and sell detection devices to homeowners and interested consumers in North America. Initially, our business plan was to sell products on consignment from Star Systems Japan, a corporation owned by our majority shareholder. We purchased these products from Quarta-Rad, Ltd., a company owned by our minority shareholder. We also targeted direct-to-consumer sales since we believe we can distribute these products through the Internet. We have never been party to any bankruptcy, receivership or similar proceeding, nor have we undergone any material reclassification, merger, consolidation, purchase or sale of a significant amount of assets not in the ordinary course of business.

 

During April 2020, we acquired Quarta-Rad USA, Inc., a Delaware corporation, as a wholly owned subsidiary. There was no consideration paid for the shares. The purpose of the acquisition is to separate the sales of certain products in separate entities. There was no activity, assets or liabilities in the subsidiary through March 31, 2024.

 

During December 2020, we acquired Sellavir, Inc. Sellavir is an AI company whose platform empowers organizations to decode videos to develop creative marketing strategies and analysis through advanced and proprietary technologies.

 

As of the date of this Form 10-Q, we continue to expand our operations and expect to increase our revenues with additional working capital. Our chief executive officer and director, Victor Shvetsky, and our director and president, Alexey Golovanov, are our only employees. Mr. Shvetsky and Mr. Golovanov will devote at least ten hours per week to us but may increase the number of hours as necessary through March 31, 2024. In April 2024, Mr. Golovanov resigned from the Company . Beginning in 2013, we began purchasing the products from Quarta-Rad, Ltd., our related party supplier and it shipped the products to us. We then shipped the products to a third-party online retailer, to hold for Internet sales and sales to our third-party resellers.

 

Our administrative office is located at 1201 N. Orange St., Suite 700, Wilmington, DE 19801, which is a virtual office.

 

We continue to focus our business operations on the development of our distribution agreements and reseller network as well as continue to advertise on the Internet. We plan to continue to utilize our website to promote the products to home renovation contractors and other purchasers of detection devices. We are promoting the detection products by advertising our website and marketing to independent distributors and others interested in detection devices. We purchase the products from QRR, which is owned by our minority shareholder and is the original manufacturer for RADEX product line. Under an oral agreement with QRR, we have the exclusive distribution rights for sale of QRR products in Europe, the US, and Asia (excluding China) for a period of 10 years. We sell the products we purchase from QRR directly to third party buyers and to resellers. The purchase terms require us to prepay for the products we purchase at a price that is set forth in each purchase order. During 2019, our ability to sell through our distributor in the UK was suspended due to an ongoing UK VAT examination, we are currently testing new partners for EU distribution and have resumed UK sales.

 

 

We have secured another factory in Kazakhstan to supply inventory. A test batch of inventory was purchased in December 2023 and partially sold during the first three months of 2024.

 

Sellavir Consulting:

 

We expanded our operations through the acquisition of Sellavir Inc. in December 2020. Sellavir is an AI company that leverages its knowledge in neural networks to provide customized AI and development services to our clients. Our services are focused on offering customized solutions for image processing. Our current business model relies on identifying the specific customer needs and developing a software solution to address them. We currently do not have any clients in the US, and our sole revenue stream is from our Japanese reseller. We rely on their sales staff for the identification of new opportunities in the Japanese market. Quarta-Rad has acquired the company to:

 

- leverage Sellavir capabilities to combine it with its Radex series to offer AI-enhanced radiation detection capabilities

- expand its scope outside the radiation measurement

- recognizing the potential in the call center industry and leveraging Sellavir's, we are set to launch a new product specifically designed to simplify the use of complex cloud-based call center platforms. This product will be offered as a monthly subscription service, which is anticipated to provide a steady and predictable stream of revenue.

 

Critical Accounting Policy and Estimates. Our Management’s Discussion and Analysis of Financial Condition and Results of Operations section discusses our condensed financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these condensed financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments, including those related to revenue recognition, accrued expenses, financing operations, and contingencies and litigation. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The most significant accounting estimates inherent in the preparation of our condensed financial statements include estimates as to the appropriate carrying value of certain assets and liabilities which are not readily apparent from other sources. In addition, these accounting policies are described at relevant sections in this discussion and analysis and in the notes to the condensed financial statements included in this Quarterly Report on Form 10-Q.

 

The following discussion of our financial condition and results of operations should be read in conjunction with our unaudited financial statements for the three months ended March 31, 2024, and 2023, together with notes thereto, which are included in this Quarterly Report on Form 10-Q.

 

The Company has two operating segments through the operations of Quarta-Rad and Sellavir. Net loss for the three months ended March 31, 2024, is comprised of:

 

		Quarta Rad				Sellavir				Total
Sales		$	22,042				-			$	22,042
Cost of Good Sold			10,249				-				10,249
Gross Profit			11,793				-				11,793
Expenses:
General & administrative			21,948				23,894				45,842
Advertising			-				-				-
Professional and consulting fees			27,009				1,500				28,509
Operating expenses			48,957				25,394				74,351
Net loss from operations			(37,164	)			(25,394	)			(62,558	)
Interest and dividends			-				1				1
Other expense - foreign currency translation loss							(13,683	)			(13,683	)
Other income - interest - related party			-				11,703				11,703
Other expense - loss on loan modification							(11,469	)			(11,469	)
Unrealized gain/(loss) on investments			-				(15,645	)			(15,645	)
Net loss		$	(29,360	)		$	(62,291	)		$	(91,651	)

 

 

The Company has two operating segments through the operations of Quarta-Rad and Sellavir. Net income for the three months ended March 31, 2023, is comprised of:

 

		Quarta Rad				Sellavir				Total
Sales		$	136,979			$	62,000			$	198,979
Cost of Good Sold			100,565				22,731				123,296
Gross Profit			36,414				39,269				75,683
Expenses:
General & administrative			12,165				253				12,418
Advertising			17,093				-				17,093
Professional and consulting fees			32,400				1,000				33,400
Operating expenses			61,658				1,253				62,911
Net income (loss) from operations			(25,244	)			38,016				12,772
Interest and dividends			-				294				294
Unrealized gain/(loss) on investments			-				54,471				54,471
Realized gain/(loss) on investments							(25,040	)			(25,040	)
Income tax expense			5,301				(14,225	)			(8,924	)
Net income/(loss)		$	(19,943	)		$	53,516			$	33,573

 

The following discussion of our financial condition and results of operations should be read in conjunction with our audited financial statements for the three months ended March 31, 2024 and 2023, respectively, together with notes thereto.

 

Consolidated Totals:

 

Three months ended March 31, 2024 compared with the three months ended March 31, 2023

 

Revenues. Our net revenues decreased $176,937, or 88.92% to $22,042 for the three months ended March 31, 2024, compared with $198,979 for the three months ended March 31, 2023. The reduction was primarily attributable to the sales of our RD1503 model and reduction in recognized Sellavir revenue.

 

Cost of Goods Sold. Our Cost of Goods Sold decreased $113,047 or 91.69% to $10,249 for the three months ended March 31, 2024 compared to $123,296 for the comparable period in 2023. The decrease was a result of Quarta Rad direct costs due to reduced revenue.

 

Operating Expenses. For the three months ended March 31, 2024, our total operating expenses increased $11,440 to $74,351 compared to $62,911 for the three months ended March 31, 2023. The increase is primarily attributable to increased professional fees and outside services.

 

Net Income. Our net loss increased $125,224 to a net loss of ($91,651) for the three months ended March 31, 2024 compared to net income of $33,573 for the three months ended March 31, 2023. The increase was primarily due to a decrease in sales.

 

 

QUARTA-RAD

 

Three months ended March 31, 2024, compared with the three months ended March 31, 2023

 

Revenues. Our net revenues decreased $114,937, or 83.91% to $22,042 for the three months ended March 31, 2024, compared with $136,979 for the three months ended March 31, 2023. The reduction was primarily attributable to the sales of our RD1503 model.

 

Cost of Goods Sold. Our Cost of Goods Sold decreased $90,316 or 89.81% to $10,249 for the three months ended March 31, 2024, compared to $100,565 for the comparable period in 2023. The decrease was a result of decreased sales.

 

Operating Expenses. For the three months ended March 31, 2024, our total operating expenses decreased $12,701 or 20.6% to $48,957 compared to $61,658 for the three months ended March 31, 2023. The decrease is primarily attributable to a reduction in advertising expense.

 

Net Loss. Our net loss increased $9,417 or 47.22% to a net loss of ($29,360) for the three months ended March 31, 2024, compared to a net loss of ($19,943) for the three months ended March 31, 2023. The increase was primarily due to a reduction in sales.

 

SELLAVIR

 

Three months ended March 31, 2024, compared with the three months ended March 31, 2023

 

Revenues. Our net recognized revenue decreased $62,000 to $-0- for the three months ended March 31, 2024 compared with $62,000 for the three months ended March 31, 2023. The decrease is due to timing or revenue recognized.

 

Cost of Goods Sold. Our Cost of Goods Sold decreased $22,731 or 100.00% to $-0- for the three months ended March 31, 2024, compared to $22,731 for the comparable period in 2022. The decrease was primarily due to the classification of contractor costs.

 

Operating Expenses. For the three months ended March 31, 2024, our total operating expenses increased $24,141 or 1,926.66% to. $25,394 compared to $1,253 for the three months ended March 31, 2023. The increase was primarily attributable to the classification of contractor costs.

 

Net Income. Our net loss increased $115,807 to ($62,291) for the three months ended March 31, 2024, compared to net income of $53,516 for the three months ended March 31, 2023. The increase was primarily due to a reduction in sales and unrealized gain on investments.

 

Liquidity and Capital Resources. During the three months ended March 31, 2024, we used cash for operating expenses from cash on hand and the sale of products on the Internet and from independent, third-party resellers and from consulting revenue from Sellavir.

 

Our total assets were $636,470 and $683,314 as of March 31, 2024, and December 31, 2023, respectively, consisting of $50,068 and $72,625, respectively, in cash. Our working capital deficit was ($217,026) and ($46,448) as of March 31, 2024 and December 31, 2023, respectively.

 

We had $22,557 used by and $97,008 in cash provided by operating activities for the three months ended March 31, 2024 and 2023, respectively.

 

 

We had $-0- and $230,917 cash used by investing activities for the three months ended March 31, 2024 and 2023, respectively. During March and May 2023 Sellavir entered into loan agreements with a related Thai Corporation. The investment includes a premium of $16,038 plus interest rate of 15% per annum. The loan is secured by land located in Thailand.

 

We had no cash provided by financing activities for the three months ended March 31, 2024 and 2023, respectively.

 

The Company had no formal long-term lines of credit or other bank financing arrangements as of March 31, 2024.

 

The Company has no current plans for the purchase or sale of any plant or equipment.

 

The Company has no current plans to make any changes in the number of employees.

 

Impact of Inflation

 

The Company believes that inflation has had a negligible effect on operations over the past quarter.

 

Capital Expenditures

 

The Company expended no amounts on capital expenditures for the nine months ended March 31, 2024.

 

Plan of Operation

 

Our business strategy is to continue to market our website (www.quartarad.com). We have used our website to market products for sale to consumers as well to third party distributors. We will continue to strengthen our presence on e-commerce sites. We are also focusing on expanding our reseller network by targeting large consumer retail chains.

 

The number of detection devices which we will be able to sell will depend upon the success of our marketing efforts through our website and the distributors that we will enter into agreement with to sell the products.

 

During December 2020, Quarta-Rad acquired Sellavir, Inc, a Delaware corporation, under common control, as a wholly owned subsidiary. We acquired the company in exchange for 333,333 shares of our common stock. The value of the stock on the date of issue was approximately $170,000. Sellavir is a video analytics company whose platform empowers organizations to decode videos to develop creative marketing strategies and analysis through advanced and proprietary technologies. Quarta-Rad has acquired the company to leverage Sellavir capabilities to combine it with its Radex series to offer AI-enhanced radiation detection capabilities and expand its scope outside of radiation measurement.

 

We intend to implement the following tasks within the next twelve months:

 

Inventory: We intend to purchase inventory to increase our sales. We believe that these funds will be initially sufficient for us to increase our inventory from Quarta-Rad, Ltd. The amount needed for inventory purchases is directly related to the demand for sales of our product.

 

Marketing: (Estimated cost $25,000-$75,000). In addition to the website modification costs, we intend to increase our marketing efforts on the Internet to generate leads and sales. We will also utilize funds to develop marketing brochures and materials to market the products to industry professionals such as home renovation contractors.

 

Secure Distribution Agreements: (Estimated cost $10,000). We plan to seek and secure distribution agreements for the sale of our detection devices.

 

Our management does not anticipate the need to hire additional full or part- time employees over the next three (3) months, as the services provided by our officers and directors and our independent contractor appear sufficient at this time. We believe that our operations are currently on a small scale that is manageable by these two individuals as well as our independent contractor. Our management’s responsibilities are mainly administrative at this stage. While we believe that the addition of employees is not required over the next three (3) months, the professionals we plan to utilize will be considered independent contractors. We do not intend to enter into any employment agreements with any of these professionals. Thus, these persons are not intended to be employees of our company.

 

We currently do not own any equipment that we would seek to sell in the near future; we do not have any off-balance sheet arrangements; and we have not paid for expenses on behalf of our directors.

 

 

Off-Balance Sheet Arrangements

 

None.

 

Forward Looking Statements

 

This Quarterly Report on Form 10-Q, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 2 of Part I of this report include forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 (collectively, the “Reform Act”). The Reform Act provides a safe harbor for forward-looking statements to encourage companies to provide prospective information about themselves so long as they identify these statements as forward-looking and provide meaningful cautionary statements identifying important factors that could cause actual results to differ from the projected results. All statements, other than statements of historical fact that we make in this Quarterly Report on Form 10-Q, are forward-looking. The words “anticipates,” “believes,” “expects,” “intends,” “will continue,” “estimates,” “plans,” “projects,” the negative of these terms and similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean the statement is not forward-looking.

 

Forward-looking statements involve risks, uncertainties or other factors which may cause actual results to differ materially from the future results, performance or achievements expressed or implied by the forward-looking statements. These statements are based on our management’s beliefs and assumptions, which in turn are based on currently available information. Certain risks, uncertainties or other important factors are detailed in this Quarterly Report on Form 10-Q and may be detailed from time to time in other reports we file with the Securities and Exchange Commission, including on Forms 8-K and 10-K.

 

We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us to predict all those risks, nor can we assess the impact of all those risks on our business or the extent to which any factor may cause actual results to differ materially from those contained in any forward-looking statement. We believe these forward-looking statements are reasonable. However, you should not place undue reliance on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and unless required by law, we expressly disclaim any obligation or undertaking to update publicly any of them considering new information or future events.

 

Critical Accounting Policies

 

Our condensed financial statements and accompanying notes have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires management to make estimates, judgments and assumptions that affect reported amounts of assets, liabilities, revenues and expenses. We continually evaluate the accounting policies and estimates used to prepare the condensed financial statements. The estimates are based on historical experience and assumptions believed to be reasonable under current facts and circumstances. Actual amounts and results could differ from these estimates made by management. Certain accounting policies that require significant management estimates and are deemed critical to our results of operations or financial position are discussed in our Annual Report on Form 10-K for the year ended December 31, 2023, and Note 1 to the Condensed and Consolidated Financial Statements in this Form 10-Q.

 

Accounts Receivable Accounts Receivable and related party notes receivable amounts from sales to various suppliers and online platforms and loans. Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectable amounts through a charge to bad debt expense and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. A reserve for sales returns and allowances is considered immaterial and, as a result, there was no reserve for sales returns and allowances, at March 31, 2024 and December 31, 2023, respectively.

 

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this item.

 

Item 4. Controls and Procedures

 

Disclosure of controls and procedures.

 

The Company is responsible for establishing and maintaining adequate internal control over financial reporting in accordance with the Rule 13a-15 of the Securities Exchange Act of 1934. The Company’s officer, its president, conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting as of March 31, 2024 based on the criteria establish in Internal Control Integrated Framework issued by the 2013 Committee of Sponsoring Organizations of the Treadway Commission. Based on the foregoing evaluation, we have concluded that our disclosure controls and procedures were not effective as of March 31, 2024 and that they do not allow for information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission (“SEC”) rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to the Company’s management, including its Chief Executive and Principal Accounting & Financial Officers as appropriate to allow timely decisions regarding required disclosure.

 

The material weaknesses relate to the following:

 

	●	We do not have adequate segregation of duties in the handling of our financial reporting. This is caused by a very limited number of personnel.
	●	Our accounting staff does not have sufficient technical accounting knowledge relating to accounting for income taxes and complex US GAAP matters.
	●	The Company has not performed a risk assessment and mapped our process to control objectives.
	●	The Company has not implemented comprehensive entity-level internal controls.
	●	The Company has not implemented adequate system and manual controls.

 

Plan for Remediation of Material Weaknesses

 

We intend to take appropriate and reasonable steps to make the necessary improvements to remediate this deficiency as resources to do so become available. We intend to consider the results of our remediation efforts and related testing as part of our year-end 2022 assessment of the effectiveness of our internal control over financial reporting.

 

Such remediation would entail enhancing the training and oversight of the accounting personnel responsible for non-routine transactions involving complex accounting matters and engaging the services of an independent consultant with sufficient expertise in income tax and complex U.S. GAAP matters to assist us in the preparation of our financial statements.

 

Management believes that the aforementioned material weaknesses did not impact our financial reporting or result in a material misstatement of our condensed financial statements.

 

Changes in internal controls over financial reporting.

 

There were no changes in our internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 

PART II — OTHER INFORMATION

 

Item 1. Legal Proceedings

 

None.

 

Item 1A. Risk Factors

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this item.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

None.

 

Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

None.

 

Item 5. Other Information

 

None.

 

Item 6. Exhibits

 

(a)

The following exhibits are filed with this quarterly report on Form 10-Q or are incorporated herein by reference:

 

Exhibit
Number		Description
31.1		Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934*.
31.2		Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934*.
32.1		Certification of the Chief Executive Officer pursuant to 18 U.S.C Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*.
32.2		Certification of the Chief Financial Officer pursuant to 18 U.S.C Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*.

 

* Filed herewith.

 

 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

	QUARTA-RAD, INC.
May 15, 2024	/s/ Victor Shvetsky
	Victor Shvetsky
	Chairman and Chief Executive Officer (Principal Executive
	Officer) and Chief Financial Officer (Principal Accounting and Financial Officer)

 

 

Exhibit 31.1

 

CERTIFICATION PURSUANT TO SECTION 302 (a) OF THE SARBANES-OXLEY ACT OF 2002

 

I, Victory Shvetsky, Chairman and Chief Executive Officer, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Quarta-Rad, Inc. (the “registrant”);

 

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 quarterly report;

 

3. Based on my knowledge, the financial statements and other financial information included in this quarterly report fairly presents 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 quarterly report;

 

4. The registrant’s other certifying officer(s) and I are 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, is made known to us by others within the entity, 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 controls 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 controls over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal controls 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 controls over financial reporting.

 

Dated: May 15, 2024	/s/ Victor Shvetsky
	Victor Shvetsky
	Chief Executive Officer
	(Principal Executive Officer)

 

 

Exhibit 31.2

 

CERTIFICATION PURSUANT TO SECTION 302 (a) OF THE SARBANES-OXLEY ACT OF 2002

 

I, Victory Shvetsky, Chief Financial Officer of Quarta-Rad, Inc., certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Quarta-Rad, Inc. (the “registrant”);

 

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 quarterly report;

 

3. Based on my knowledge, the financial statements and other financial information included in this quarterly report fairly presents 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 quarterly report;

 

4. The registrant’s other certifying officer(s) and I are 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, is made known to us by others within the entity, 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 controls 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 controls over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal controls 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 controls over financial reporting.

 

Dated: May 15, 2024	/s/ Victor Shvetsky
	Victor Shvetsky
	Chief Financial Officer
	(Principal Financial Officer)

 

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of Quarta-Rad, Inc. (the “Company”) for the quarter ended March 31, 2024, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), I, Victory Shvetsky, the Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

 

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.

 

Dated: May 15, 2024	/s/ Victor Shvetsky
	Victor Shvetsky
	Chief Executive Officer
	(Principal Executive Officer)

 

 

Exhibit 32.2

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ENACTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of Quarta-Rad, Inc. (the “Company”) for the quarter ended March 31, 2024, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), I, Victory Shvetsky, the Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

 

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.

 

Dated: May 15, 2024	/s/ Victor Shvetsky
	Victor Shvetsky
	Chief Financial Officer
	(Principal Financial Officer)

 

v3.24.1.1.u2

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 15, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	000-55964
Entity Registrant Name	Quarta-Rad, Inc.
Entity Central Index Key	0001549631
Entity Tax Identification Number	45-4232089
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	1201 N. Orange St.
Entity Address, Address Line Two	Suite 700
Entity Address, City or Town	Wilmington
Entity Address, State or Province	DE
Entity Address, Postal Zip Code	19801
City Area Code	(302)
Local Phone Number	575-0877
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	QURT
Entity Current Reporting Status	Yes
Entity Interactive Data Current	No
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,674,483

v3.24.1.1.u2

Condensed and Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Current Assets
Cash	$ 50,068	$ 72,625
Accounts receivable	7,373	7,289
Marketable securities, trading	36,503	52,148
Inventory	23,558	30,398
Total Current Assets	117,502	243,273
Fixed Assets, Net	1,370	1,570
Other Assets
Trade receivable	29,529	28,673
Deferred tax asset	34,976	24,069
Total Other Assets	517,598	438,471
TOTAL ASSETS	636,470	683,314
Current Liabilities
Accounts payable and accrued expenses	115,729	105,244
Total Liabilities	334,528	289,721
Commitments and Contingencies
Stockholders’ Equity
Common Stock: authorized 50,000,000 common shares, $0.0001 par value 15,674,483 and 15,674,483 were issued and outstanding on March 31, 2024 and December 31, 2023, respectively	1,568	1,568
Additional paid-in capital	346,726	346,726
Retained earnings/(accumulated deficit)	(46,352)	45,299
Total Stockholders’ Equity	301,942	393,593
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	636,470	683,314
Related Party [Member]
Current Assets
Notes receivable - related party - current portion		80,813
Other Assets
Notes receivable - related party, net of current portion and discount of $12,858 and $13,630 on March 31, 2024 and December 31, 2023, respectively.	409,489	341,557
Interest receivable - related party	43,604	44,172
Current Liabilities
Payable - related parties	$ 218,799	$ 184,477

v3.24.1.1.u2

Condensed and Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Notes receivable discount	$ 12,858	$ 13,630
Common stock, shares authorized	50,000,000	50,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares issued	15,674,483	15,674,483
Common stock, shares outstanding	15,674,483	15,674,483

v3.24.1.1.u2

Condensed and Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Total sales, net	$ 22,042	$ 198,979
Gross profit	11,793	75,683
Expenses:
General and administrative	45,842	12,418
Advertising		17,093
Professional and consulting fees	28,509	33,400
Operating expenses	74,351	62,911
Net income/(loss) from operations	(62,558)	12,772
Other income - interest and dividends	1	294
Other expense - foreign currency translation loss	(13,683)
Other income - interest - related party	11,703
Other expense - loss on loan modification	(11,469)
Other income - unrealized gain/(loss) on investments	(15,645)	54,471
Other income - realized loss on investments		(25,040)
Net income/(loss) before provision for income taxes	(91,651)	42,497
Income tax expense/(benefit)		8,924
Net income/(loss)	$ (91,651)	$ 33,573
Income per share - basic	$ (0.01)
Income per share - diluted	$ (0.01)
Weighted average shares - basic	15,674,483	15,674,483
Weighted average shares - diluted	15,674,483	15,674,483
Quarta Rad Inc [Member]
Total sales, net	$ 22,042	$ 136,979
Cost of goods sold	10,249	100,565
Sellavir Inc [Member]
Total sales, net		62,000
Cost of goods sold		$ 22,731

v3.24.1.1.u2

Condensed and Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2022	$ 1,568	$ 346,726	$ 807	$ 349,101
Balance, shares at Dec. 31, 2022	15,674,483
Net income loss			33,573	33,573
Balance at Mar. 31, 2023	$ 1,568	346,726	34,380	382,674
Balance, shares at Mar. 31, 2023	15,674,483
Balance at Dec. 31, 2023	$ 1,568	346,726	45,299	393,593
Balance, shares at Dec. 31, 2023	15,674,483
Net income loss			(91,651)	(91,651)
Balance at Mar. 31, 2024	$ 1,568	$ 346,726	$ (46,352)	$ 301,942
Balance, shares at Mar. 31, 2024	15,674,483

v3.24.1.1.u2

Condensed and Consolidated Statements of Cash Flows - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2023
OPERATING ACTIVITIES:
Net income/(loss)	$ (91,651)	$ 33,573
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	200	200	$ 200
Foreign currency translation loss	13,683
Amortization of discount	(802)
Net realized loss on investments		25,040
Net unrealized (gain)/loss on investments	15,645	(54,471)
Income tax expense/(benefit)		8,924
Changes in operating assets and liabilities:
Accounts receivable	(84)	37,444
Inventory	6,840	75,340
Trade receivables	(856)
Accrued interest receivable - related party	568
Accounts payable and accrued expenses	10,485	32,958
Deferred revenue - related party		(62,000)
Deferred taxes	(10,907)
Related party payable	34,322
Net cashed provided/(used) by operating activities	(22,557)	97,008
INVESTING ACTIVITIES:
Sale of marketable securities, trading		72,004
Issuance of notes payable - related party		(245,000)
Purchase of marketable securities, trading		(57,921)
Net cash used in Investing Activities		(230,917)
Net change in cash	(22,557)	(133,909)
Cash, beginning of period	72,625	293,878
Cash, end of period	50,068	159,969	$ 159,969
Supplemental cash flow information:
Cash paid for interest
Cash paid for income taxes	$ 10,907

v3.24.1.1.u2

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
BASIS OF PRESENTATION	NOTE 1 - BASIS OF PRESENTATION   The condensed and consolidated balance sheet of Quarta-Rad, Inc. and Subsidiaries (the “Company”) as of March 31, 2024, and the statements of operations and changes in stockholders’ equity for the three months ended March 31, 2024, and 2023, and the cash flows for three months ended March 31, 2024, and 2023 have not been audited. However, in the opinion of management, such information includes all adjustments (consisting of normal recurring adjustments), which are necessary to accurately reflect the financial position of the Company as of March 31, 2024, the results of operations and cash flows for the periods ended March 31, 2024, and 2023.   The condensed and consolidated balance sheet as of December 31. 2023 has been derived from audited financial statements. Certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted, although management believes that the disclosures are adequate to make the information presented not misleading. Interim period results are not necessarily indicative of the results to be achieved for an entire year. These condensed and consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31. 2023.

v3.24.1.1.u2

NATURE OF BUSINESS	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS	NOTE 2 - NATURE OF BUSINESS   The Company distributes detection devices, including but not limited to Geiger counters, to homeowners and interested customers in North America and Europe. The Company targets homebuilders and home renovation contractors. As noted in RISKS AND UNCERTAINTIES, the Company has encountered certain restrictions in securing inventory and has secured a new supplier.   Sellavir is a video analytics company whose platform empowers organizations to decode videos to develop creative marketing strategies and analysis through advanced and proprietary technologies using artificial intelligence (“AI”).

v3.24.1.1.u2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   Principles of Consolidation   The consolidated financial statements include the accounts Quarta-Rad, Inc. and its wholly-owned subsidiaries Quarta-Rad USA, Inc. and Sellavir, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.   Use of Estimates and Assumptions   The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and judgments that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods.   Significant estimates made by management include, among others, provisions for the valuation of related party revenue,and notes receivable. The Company bases its estimates on historical experience, knowledge of current conditions and belief of what could occur in the future considering available information. The Company reviews its estimates on an on-going basis. The actual results experienced by the Company may differ materially and adversely from its estimates. To the extent there are material differences between the estimates and actual results, future results of operations will be affected.     QUARTA-RAD, INC. AND SUBSIDIARIES   Notes to the (unaudited) Condensed and Consolidated Financial Statements   Advertising   The Company expenses advertising costs, consisting primarily of placement in multiple publications, along with design and printing costs of sales materials, when incurred. Advertising expenses for the three ended March 31, 2024, and 2023, amounted to $-0- and $17,093, respectively.   Notes Receivable – related party   Notes Receivable – related party consists of loan agreements entered into by Sellavir discussed in Note 4. Amounts payable marked to value in functional currency at the balance sheet date where the Company records foreign translation gain or loss. The Company’s functional currency is the United States Dollar.   Concentration of Credit Risk   Credit is extended to online platforms and suppliers based on an evaluation of their financial condition, and collateral is generally not required. The Company performs ongoing credit evaluations of its customers and provides an allowance for doubtful accounts as appropriate.   One selling platform/distributor accounted for 92% of accounts receivable at March 31, 2024 and two selling platforms/distributors accounted for 88% of accounts receivable at December 31. 2023.   Quarta Rad purchased 100% of its inventory through a third party in 2023.   Earnings per Share   The Company’s basic earnings per share are calculated by dividing its net income available to common stockholders by the weighted average number of common shares outstanding for the period. The Company’s dilutive earnings per share is calculated by dividing its net income available to common shareholders by the diluted weighted average number of shares outstanding during the period. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There were no potentially dilutive instruments outstanding during the periods ended March 31, 2024, and 2023.   Fair Value of Financial Instruments   The Company’s financial instruments as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 825, “Financial Instruments” include cash, trade accounts receivable, and accounts payable and accrued expenses. All instruments, except marketable securities are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at March 31, 2024 and December 31. 2023. Marketable securities are level one assets recorded at fair value.   FASB ASC 820 “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value in accordance with U.S. GAAP, and expands disclosures about fair value measurements. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:     ● Level 1. Observable inputs such as quoted prices in active markets;         ● Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and         ● Level 3. Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.     QUARTA-RAD, INC. AND SUBSIDIARIES   Notes to the (unaudited) Condensed and Consolidated Financial Statements   The Company’s investment securities consist of common and options. Substantially all the Company’s investments are Level 1. The fair market value is based on quoted prices in active markets for identical assets. Financial assets are measured at fair value on a recurring basis. The following table provides information at March 31, 2024 about the Company’s financial assets measured at fair value on a recurring basis.   Values on March 31, 2024: SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS      Level 1     Level 2     Level 3     Total   Assets at fair value:                         Marketable Securities   $ 36,503     $ -     $ -     $ 36,503                                     Total assets at fair value, March 31, 2024   $ 36,503     $    -     $    -     $ 36,503     Values on December 31. 2023:       Level 1     Level 2     Level 3     Total   Assets at fair value:                         Marketable Securities   $ 52,148     $ -     $ -     $ 52,148                                     Total assets at fair value, December 31. 2023   $ 52,148     $    -     $    -     $ 52,148     Revenue Recognition   The Company follows guidance from FASB Accounting Standards Codification ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The guidance sets forth a five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects to receive in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance.   Our principal activities from which we generate our revenue are product sales and consulting services.   Revenue is measured based on consideration specified in a contract with a customer. A contract with a customer exists when we enter into an enforceable contract with a customer. The contract is based on either the acceptance of standard terms and conditions on the websites for e-commerce customers and via telephone with our third-party call center for our print media and direct mail customers, or the execution of terms and conditions contracts with retailers and wholesalers. These contracts define each party’s rights, payment terms and other contractual terms and conditions of the sale. Consideration is typically paid prior to shipment via credit card or check when our products are sold direct to consumers or approximately 30 days from the time control is transferred when sold to wholesalers, distributors and retailers. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience and, in some circumstances, published credit and financial information pertaining to the customer.     QUARTA-RAD, INC. AND SUBSIDIARIES   Notes to the (unaudited) Condensed and Consolidated Financial Statements   A performance obligation is a promise in a contract to transfer a distinct product to the customer, which for us is transfer of devices to our customers. Performance obligations promised in a contract are identified based on the goods that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract, whereby the transfer of the goods is separately identifiable from other promises in the contract. We have concluded the sale of goods and related shipping and handling are accounted for as the single performance obligation.   The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation. The transaction price is determined based on the consideration to which we will be entitled to receive in exchange for transferring goods to the customer. We issue refunds to e-commerce and print media customers, upon request, within 30 days of delivery. We estimate the amount of potential refunds at each reporting period using a portfolio approach of historical data, adjusted for changes in expected customer experience, including seasonality and changes in economic factors. For retailers, distributors and wholesalers, we do not offer a right of return or refund and revenue is recognized at the time products are shipped to customers. In all cases, judgment is required in estimating these reserves. Actual claims for returns could be materially different from the estimates. There was no reserve for sales returns and allowances, at March 31, 2024 and December 31. 2023, respectively.   We recognize revenue when we satisfy a performance obligation in a contract by transferring control over a product to a customer when a product is shipped. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by us from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfilment cost and are included in cost of product sales.   We recognize consulting revenue over time as services are performed.   Risks and Uncertainties   RUSSIAN INVASION OF UKRAINE   In February 2022, Russia invaded the nation of Ukraine and certain sanctions and banking restrictions were levied upon Russia. As a result, the Company’s ability to purchase inventory from Russia has been impacted.   The Company is actively monitoring the situation and working closely with their suppliers and logistics companies to mitigate the impact. During October 2022 the Company has encountered additional restrictions in the EU and believes their ability to continue to sell in the EU will be diminished. The Company has found another factory to supply inventory in Kazakhstan, which received a shipment of 200 units at the end of 2023. The units were partially sold during the first quarter of 2024.     QUARTA-RAD, INC. AND SUBSIDIARIES   Notes to the (unaudited) Condensed and Consolidated Financial Statements   The Company is continuing to expand its Artificial Intelligence business through development of new services and software, and consulting on strategies and implementation, and are in the process of transforming our company from an import heavy revenue entity to AI services revenue becoming the majority of total sales. Due to the constraints with the Quarta Rad related income, additional focus and resources will be utilized by Sellavir Beginning in 2024, Sellavir will strategically focus on harnessing its advanced AI capabilities and extensive experience to innovate within the call center industry. The industry’s evolving landscape, particularly the shift from traditional on-premise solutions to cloud-hosted platforms, presents a unique opportunity for Sellavir to introduce a suite of AI-driven products.

v3.24.1.1.u2

NOTE RECEIVABLE – RELATED PARTY	3 Months Ended
	Mar. 31, 2024
Receivables [Abstract]
NOTE RECEIVABLE – RELATED PARTY	NOTE 4–NOTE RECEIVABLE – RELATED PARTY   During March 2023, Sellavir entered into a loan agreement with a related Thai Corporation. for the purchase of land and to ultimately build a structure. The Company’s CEO and majority shareholder became the CEO and a minority shareholder in the Thai entity in May 2023. The Thai Corporation will repay Sellavir $9,000,000 Thai Bhat, valued at $261,038, at the time of the loan, which includes a premium of $16,038 plus interest a rate of 15% per annum. In January 2024, the note was amended to reduce the interest rate to 10% and for Sellavir to receive 3% of the selling price of the secured property. The Company recorded a loss of $8,188 in connection with this loan modification. The Company marked the note to Thai Bhat, valued at $247,317 and $261,072 recording a loss on foreign currency translation of $13,683 and $36 at March 31, 2024 and December 31, 2023, respectively. The amount of unamortized premium at March 31, 2024 and December 31, 2023 is $12,858 and $13,362, respectively. Payments are deferred until April 1, 2024, with quarterly principal payments due through April 1, 2029. Interest is payable at the end of the loan. The Company will amortize the premium over the life of the loan. Payments are payable in Thai Baht. The loan is secured by land located in Thailand.   The Company issued an additional loan to the Thai Corporation in May 2023 for $175,000, at the rate of 15% per annum. In January 2024, the note was amended to reduce the interest rate to 10% and for Sellvir to receive 3% of the selling price of the secured property. The Company recorded a loss of $3,281 in connection with this loan modification. Payments are deferred until April 1, 2024, with quarterly principal payments due through April 2029. Interest is payable at the end of the loan. The loan is secured by land located in Thailand.   During January 2024, both notes were amended to provide a one year extension for all payment due dates.   Accrued interest at March 31, 2024 and December 31, 2023 for both loans is $43,604 and $44,172, respectively, included as a long-term asset, interest receivable – related party.   Principal amounts to be received for the two notes are as follows: SCHEDULE OF PRINCIPAL AMOUNT OF NOTES RECEIVABLES      $261,038 Note     $175,000 Note     Total   2025   $ 46,366     $ 31,875     $ 78,241   2026   $ 61,830       42,500       104,330   2027     61,830       42,500       104,330   2028     61,830       42,500       104,330   2029     15,491       15,625       31,116   Totals   $ 247,347     $ 175,000     $ 422,347       QUARTA-RAD, INC. AND SUBSIDIARIES   Notes to the (unaudited) Condensed and Consolidated Financial Statements

v3.24.1.1.u2

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 5–PROPERTY AND EQUIPMENT   Property and Equipment at March 31, 2024 and December 31. 2023 consisted of: SCHEDULE OF PROPERTY AND EQUIPMENT      March 31,     December 31,       2024     2023   Computer Equipment   $ 4,005     $ 4,005   Accumulated Depreciation     (2,635 )     (2,435 ) Net Property & Equipment   $ 1,370     $ 1,570     The Company recognized $200, and $200 in depreciation expense in each period for the three ended March 31, 2024 and 2023, respectively.

v3.24.1.1.u2

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 6–RELATED PARTY TRANSACTIONS   During July 2017, the Company entered into an agreement with Quarta Rad, LTD (“QRR”), a company in Russia, which is owned by the Company’s minority shareholder to develop and update software for a new device for $180,000. The development contract ended December 31, 2019. The amount due in connection with this agreement as of March 31, 2024, and December 31. 2023, is $91,850 and $91,850, respectively. The balances are due on demand and do not incur interest.   In May 2022, the Company began using Star Systems Corporation (“STAR”:), a Japanese entity owned by the Company’s majority shareholder, as an intermediary to purchase inventory from QRR. The Company owes Star $42,502 and $42,502 on March 31, 2024 and December 31, 2023, for purchasers and inventory and upgrades from 2022. The balances are due on demand and do not incur interest.   In April 2021, the Company began compensating its CEO, who is the majority shareholder. The Company expensed $8,000 and $8,000 for the three months ended March 31,, 2024, and 2023, respectively. As of March 31, 2024 and December 31, 2023 the Company has accrued $96,000 and $88,000, respectively for this compensation, included within accounts payable and accrued expenses on the accompanying balance sheets.   From time to time the CEO advanced funds for operations. As of March 31, 2024 and December 31, 2023, is due $73,221 and $38,899, respectively, for expenses paid on behalf of the Company. The balances are due on demand and do not accrue interest.   Sellavir recognized $-0- and $62,000 of revenue for the three months ended March 31, 2024, and 2023, respectively m un services to STAR to develop software.

v3.24.1.1.u2

SEGMENTS	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
SEGMENTS	NOTE 7–SEGMENTS   The Company has two operating segments through the operations of Quarta-Rad and Sellavir. The Company evaluates the performance of its segments based on revenues, operating income(loss) and net income(loss).     QUARTA-RAD, INC. AND SUBSIDIARIES   Notes to the (unaudited) Condensed and Consolidated Financial Statements   Segment information for the three months and nine months ended September 2024 and 2023 is as follows: SCHEDULE OF SEGMENT INFORMATION      Quarta-Rad     Sellavir     Consolidated   For the three months ended March 31, 2024     Quarta-Rad     Sellavir     Consolidated   Revenues   $ 22,042       -     $ 22,042   Loss from operations     (37,164 )     (25,394 )     (62,558 ) Net loss   $ (29,360 )     (62,291 )   $ (91,651 )       Quarta-Rad     Sellavir     Consolidated   For the three months ended March 31, 2023     Quarta-Rad     Sellavir     Consolidated   Revenues   $ 136,979     $ 62,000     $ 198,979   Income/(loss) from operations     (25,249 )     38,021       12,772   Net income/(loss)   $ (19,943 )   $ 53,516     $ 33,573     Total Assets   As of March 31, 2024     As of December 31, 2023   Quarta-Rad   $ 138,903     $ 151,789   Sellavir     497,567       531,525   Total Assets   $ 636,470     $ 683,314

v3.24.1.1.u2

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 8– COMMITMENTS AND CONTINGENCIES   Contingencies   Legal   In the normal course of business, the Company may become involved in various legal proceedings. The Company knows of no pending or threatened legal proceeding to which the Company is or will be a party that, if successful, might result in material adverse change in the Company’s business, properties or financial condition.

v3.24.1.1.u2

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9–SUBSEQUENT EVENTS   The Company has performed an evaluation of events occurring subsequent to March 31, 2024 through May 15, 2024. Based on its evaluation, other than the note below there is nothing to be disclosed herein.   During April 2024, a minority shareholder sold and board member, sold their entire interest and resigned from the board.   The notes receivable in NOTE 4 were amended to extend the payment dates one year, including the payment due April 1, 2024.

v3.24.1.1.u2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation   The consolidated financial statements include the accounts Quarta-Rad, Inc. and its wholly-owned subsidiaries Quarta-Rad USA, Inc. and Sellavir, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates and Assumptions	Use of Estimates and Assumptions   The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and judgments that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods.   Significant estimates made by management include, among others, provisions for the valuation of related party revenue,and notes receivable. The Company bases its estimates on historical experience, knowledge of current conditions and belief of what could occur in the future considering available information. The Company reviews its estimates on an on-going basis. The actual results experienced by the Company may differ materially and adversely from its estimates. To the extent there are material differences between the estimates and actual results, future results of operations will be affected.
Advertising	Advertising   The Company expenses advertising costs, consisting primarily of placement in multiple publications, along with design and printing costs of sales materials, when incurred. Advertising expenses for the three ended March 31, 2024, and 2023, amounted to $-0- and $17,093, respectively.
Notes Receivable – related party	Notes Receivable – related party   Notes Receivable – related party consists of loan agreements entered into by Sellavir discussed in Note 4. Amounts payable marked to value in functional currency at the balance sheet date where the Company records foreign translation gain or loss. The Company’s functional currency is the United States Dollar.
Concentration of Credit Risk	Concentration of Credit Risk   Credit is extended to online platforms and suppliers based on an evaluation of their financial condition, and collateral is generally not required. The Company performs ongoing credit evaluations of its customers and provides an allowance for doubtful accounts as appropriate.   One selling platform/distributor accounted for 92% of accounts receivable at March 31, 2024 and two selling platforms/distributors accounted for 88% of accounts receivable at December 31. 2023.   Quarta Rad purchased 100% of its inventory through a third party in 2023.
Earnings per Share	Earnings per Share   The Company’s basic earnings per share are calculated by dividing its net income available to common stockholders by the weighted average number of common shares outstanding for the period. The Company’s dilutive earnings per share is calculated by dividing its net income available to common shareholders by the diluted weighted average number of shares outstanding during the period. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There were no potentially dilutive instruments outstanding during the periods ended March 31, 2024, and 2023.
Fair Value of Financial Instruments	Fair Value of Financial Instruments   The Company’s financial instruments as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 825, “Financial Instruments” include cash, trade accounts receivable, and accounts payable and accrued expenses. All instruments, except marketable securities are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at March 31, 2024 and December 31. 2023. Marketable securities are level one assets recorded at fair value.   FASB ASC 820 “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value in accordance with U.S. GAAP, and expands disclosures about fair value measurements. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:     ● Level 1. Observable inputs such as quoted prices in active markets;         ● Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and         ● Level 3. Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.     QUARTA-RAD, INC. AND SUBSIDIARIES   Notes to the (unaudited) Condensed and Consolidated Financial Statements   The Company’s investment securities consist of common and options. Substantially all the Company’s investments are Level 1. The fair market value is based on quoted prices in active markets for identical assets. Financial assets are measured at fair value on a recurring basis. The following table provides information at March 31, 2024 about the Company’s financial assets measured at fair value on a recurring basis.   Values on March 31, 2024: SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS      Level 1     Level 2     Level 3     Total   Assets at fair value:                         Marketable Securities   $ 36,503     $ -     $ -     $ 36,503                                     Total assets at fair value, March 31, 2024   $ 36,503     $    -     $    -     $ 36,503     Values on December 31. 2023:       Level 1     Level 2     Level 3     Total   Assets at fair value:                         Marketable Securities   $ 52,148     $ -     $ -     $ 52,148                                     Total assets at fair value, December 31. 2023   $ 52,148     $    -     $    -     $ 52,148
Revenue Recognition	Revenue Recognition   The Company follows guidance from FASB Accounting Standards Codification ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The guidance sets forth a five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects to receive in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance.   Our principal activities from which we generate our revenue are product sales and consulting services.   Revenue is measured based on consideration specified in a contract with a customer. A contract with a customer exists when we enter into an enforceable contract with a customer. The contract is based on either the acceptance of standard terms and conditions on the websites for e-commerce customers and via telephone with our third-party call center for our print media and direct mail customers, or the execution of terms and conditions contracts with retailers and wholesalers. These contracts define each party’s rights, payment terms and other contractual terms and conditions of the sale. Consideration is typically paid prior to shipment via credit card or check when our products are sold direct to consumers or approximately 30 days from the time control is transferred when sold to wholesalers, distributors and retailers. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience and, in some circumstances, published credit and financial information pertaining to the customer.     QUARTA-RAD, INC. AND SUBSIDIARIES   Notes to the (unaudited) Condensed and Consolidated Financial Statements   A performance obligation is a promise in a contract to transfer a distinct product to the customer, which for us is transfer of devices to our customers. Performance obligations promised in a contract are identified based on the goods that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract, whereby the transfer of the goods is separately identifiable from other promises in the contract. We have concluded the sale of goods and related shipping and handling are accounted for as the single performance obligation.   The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation. The transaction price is determined based on the consideration to which we will be entitled to receive in exchange for transferring goods to the customer. We issue refunds to e-commerce and print media customers, upon request, within 30 days of delivery. We estimate the amount of potential refunds at each reporting period using a portfolio approach of historical data, adjusted for changes in expected customer experience, including seasonality and changes in economic factors. For retailers, distributors and wholesalers, we do not offer a right of return or refund and revenue is recognized at the time products are shipped to customers. In all cases, judgment is required in estimating these reserves. Actual claims for returns could be materially different from the estimates. There was no reserve for sales returns and allowances, at March 31, 2024 and December 31. 2023, respectively.   We recognize revenue when we satisfy a performance obligation in a contract by transferring control over a product to a customer when a product is shipped. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by us from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfilment cost and are included in cost of product sales.   We recognize consulting revenue over time as services are performed.
Risks and Uncertainties	Risks and Uncertainties   RUSSIAN INVASION OF UKRAINE   In February 2022, Russia invaded the nation of Ukraine and certain sanctions and banking restrictions were levied upon Russia. As a result, the Company’s ability to purchase inventory from Russia has been impacted.   The Company is actively monitoring the situation and working closely with their suppliers and logistics companies to mitigate the impact. During October 2022 the Company has encountered additional restrictions in the EU and believes their ability to continue to sell in the EU will be diminished. The Company has found another factory to supply inventory in Kazakhstan, which received a shipment of 200 units at the end of 2023. The units were partially sold during the first quarter of 2024.     QUARTA-RAD, INC. AND SUBSIDIARIES   Notes to the (unaudited) Condensed and Consolidated Financial Statements   The Company is continuing to expand its Artificial Intelligence business through development of new services and software, and consulting on strategies and implementation, and are in the process of transforming our company from an import heavy revenue entity to AI services revenue becoming the majority of total sales. Due to the constraints with the Quarta Rad related income, additional focus and resources will be utilized by Sellavir Beginning in 2024, Sellavir will strategically focus on harnessing its advanced AI capabilities and extensive experience to innovate within the call center industry. The industry’s evolving landscape, particularly the shift from traditional on-premise solutions to cloud-hosted platforms, presents a unique opportunity for Sellavir to introduce a suite of AI-driven products.

v3.24.1.1.u2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS	SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS      Level 1     Level 2     Level 3     Total   Assets at fair value:                         Marketable Securities   $ 36,503     $ -     $ -     $ 36,503                                     Total assets at fair value, March 31, 2024   $ 36,503     $    -     $    -     $ 36,503     Values on December 31. 2023:       Level 1     Level 2     Level 3     Total   Assets at fair value:                         Marketable Securities   $ 52,148     $ -     $ -     $ 52,148                                     Total assets at fair value, December 31. 2023   $ 52,148     $    -     $    -     $ 52,148

v3.24.1.1.u2

NOTE RECEIVABLE – RELATED PARTY (Tables)	3 Months Ended
	Mar. 31, 2024
Receivables [Abstract]
SCHEDULE OF PRINCIPAL AMOUNT OF NOTES RECEIVABLES	Principal amounts to be received for the two notes are as follows: SCHEDULE OF PRINCIPAL AMOUNT OF NOTES RECEIVABLES      $261,038 Note     $175,000 Note     Total   2025   $ 46,366     $ 31,875     $ 78,241   2026   $ 61,830       42,500       104,330   2027     61,830       42,500       104,330   2028     61,830       42,500       104,330   2029     15,491       15,625       31,116   Totals   $ 247,347     $ 175,000     $ 422,347

v3.24.1.1.u2

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
SCHEDULE OF PROPERTY AND EQUIPMENT	Property and Equipment at March 31, 2024 and December 31. 2023 consisted of: SCHEDULE OF PROPERTY AND EQUIPMENT      March 31,     December 31,       2024     2023   Computer Equipment   $ 4,005     $ 4,005   Accumulated Depreciation     (2,635 )     (2,435 ) Net Property & Equipment   $ 1,370     $ 1,570

v3.24.1.1.u2

SEGMENTS (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
SCHEDULE OF SEGMENT INFORMATION	Segment information for the three months and nine months ended September 2024 and 2023 is as follows: SCHEDULE OF SEGMENT INFORMATION      Quarta-Rad     Sellavir     Consolidated   For the three months ended March 31, 2024     Quarta-Rad     Sellavir     Consolidated   Revenues   $ 22,042       -     $ 22,042   Loss from operations     (37,164 )     (25,394 )     (62,558 ) Net loss   $ (29,360 )     (62,291 )   $ (91,651 )       Quarta-Rad     Sellavir     Consolidated   For the three months ended March 31, 2023     Quarta-Rad     Sellavir     Consolidated   Revenues   $ 136,979     $ 62,000     $ 198,979   Income/(loss) from operations     (25,249 )     38,021       12,772   Net income/(loss)   $ (19,943 )   $ 53,516     $ 33,573     Total Assets   As of March 31, 2024     As of December 31, 2023   Quarta-Rad   $ 138,903     $ 151,789   Sellavir     497,567       531,525   Total Assets   $ 636,470     $ 683,314

v3.24.1.1.u2

SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Platform Operator, Crypto Asset [Line Items]
Marketable Securities	$ 36,503	$ 52,148
Total assets at fair value	36,503	52,148
Fair Value, Inputs, Level 1 [Member]
Platform Operator, Crypto Asset [Line Items]
Marketable Securities	36,503	52,148
Total assets at fair value	36,503	52,148
Fair Value, Inputs, Level 2 [Member]
Platform Operator, Crypto Asset [Line Items]
Marketable Securities
Total assets at fair value
Fair Value, Inputs, Level 3 [Member]
Platform Operator, Crypto Asset [Line Items]
Marketable Securities
Total assets at fair value

v3.24.1.1.u2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Product Information [Line Items]
Advertising expense		$ 17,093
Potentially dilutive instruments outstanding	0	0
Reserve for sales returns and allowances	$ 0		$ 0
Accounts Receivable [Member] | Credit Concentration Risk [Member] | One Selling Platform/Distributor [Member]
Product Information [Line Items]
Concentration risk, percentage	92.00%
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Two Selling Platform/Distributor [Member]
Product Information [Line Items]
Concentration risk, percentage			88.00%
Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Third Party [Member]
Product Information [Line Items]
Concentration risk, percentage			100.00%

v3.24.1.1.u2

SCHEDULE OF PRINCIPAL AMOUNT OF NOTES RECEIVABLES (Details)	Mar. 31, 2024 USD ($)
Impairment Effects on Earnings Per Share [Line Items]
2025	$ 78,241
2026	104,330
2027	104,330
2028	104,330
2029	31,116
Totals	422,347
Notes Receivable One [Member]
Impairment Effects on Earnings Per Share [Line Items]
2025	46,366
2026	61,830
2027	61,830
2028	61,830
2029	15,491
Totals	247,347
Notes Receivable Two [Member]
Impairment Effects on Earnings Per Share [Line Items]
2025	31,875
2026	42,500
2027	42,500
2028	42,500
2029	15,625
Totals	$ 175,000

v3.24.1.1.u2

NOTE RECEIVABLE – RELATED PARTY (Details Narrative)	1 Months Ended			3 Months Ended		12 Months Ended
	Jan. 31, 2024	May 31, 2023 THB (฿)	Mar. 31, 2023 THB (฿)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)	Mar. 31, 2024 THB (฿)	Dec. 31, 2023 THB (฿)	May 31, 2023 USD ($)	Mar. 31, 2023 THB (฿)
Defined Benefit Plan Disclosure [Line Items]
Loss on loan modification				$ 11,469
Thai Corporation [Member]
Defined Benefit Plan Disclosure [Line Items]
Imputed Interest rate	10.00%
Secured property selling price rate	3.00%
Loss on loan modification | ฿		฿ 3,281
Additional loan issued									$ 175,000
Interest rate									15.00%
Accrued interest				43,604		$ 44,172
Thai Corporation [Member] | Sellavir Inc [Member]
Defined Benefit Plan Disclosure [Line Items]
Loans payable					261,038					฿ 9,000,000
Premium				12,858	$ 16,038	13,362
Imputed Interest rate	10.00%		15.00%
Secured property selling price rate	3.00%
Loss on loan modification | ฿			฿ 8,188
Face amount | ฿							฿ 247,317	฿ 261,072
Loss on foreign currency translation				$ 13,683		$ 36

v3.24.1.1.u2

SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Computer Equipment	$ 4,005	$ 4,005
Accumulated Depreciation	(2,635)	(2,435)
Net Property & Equipment	$ 1,370	$ 1,570

v3.24.1.1.u2

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Depreciation	$ 200	$ 200	$ 200

v3.24.1.1.u2

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Jul. 31, 2017
Related Party Transaction [Line Items]
Total sales, net	$ 22,042	$ 198,979
Sellavir Inc [Member]
Related Party Transaction [Line Items]
Total sales, net		62,000
Quarta-Rad Ltd [Member]
Related Party Transaction [Line Items]
Due to related party	91,850		$ 91,850
Quarta-Rad Ltd [Member] | Software Development [Member]
Related Party Transaction [Line Items]
Capitalized Computer Software, Net				$ 180,000
Star Systems Corporation [Member]
Related Party Transaction [Line Items]
Due to related party	42,502		42,502
Majority Shareholder [Member] | Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Due to related party	73,221		38,899
Compensation expense	8,000	$ 8,000
Accrued compensation	$ 96,000		$ 88,000

v3.24.1.1.u2

SCHEDULE OF SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Revenues	$ 22,042	$ 198,979
Income/(loss) from operations	(62,558)	12,772
Net income/(loss)	(91,651)	33,573
Total Assets	636,470		$ 683,314
Quarta-Rad Ltd [Member]
Segment Reporting Information [Line Items]
Revenues	22,042	136,979
Income/(loss) from operations	(37,164)	(25,249)
Net income/(loss)	(29,360)	(19,943)
Total Assets	138,903		151,789
Sellavir Inc [Member]
Segment Reporting Information [Line Items]
Revenues		62,000
Income/(loss) from operations	(25,394)	38,021
Net income/(loss)	(62,291)	$ 53,516
Total Assets	$ 497,567		$ 531,525

v3.24.1.1.u2

SEGMENTS (Details Narrative)	3 Months Ended
	Mar. 31, 2024 Segment
Segment Reporting [Abstract]
Number of operating segments	2

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