Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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: June 30, 2024

☐ 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: 732-887-8511

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 August 14, 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		5
Condensed and Consolidated Statements of Cash Flows		7
Notes to the Condensed and Consolidated Unaudited Financial Statements		8
Item 2. Management’s Discussion and Analysis of Financial Conditions and Results of Operations		15
Item 3. Quantitative and Qualitative Disclosures about Market Risk		23
Item 4. Controls and Procedures		23
PART II — OTHER INFORMATION		24
Item 1. Legal Proceedings		24
Item 1A. Risk Factors		24
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		24
Item 3. Defaults Upon Senior Securities		24
Item 4. Mine Safety Disclosures		24
Item 5. Other Information		24
Item 6. Exhibits		24
Signatures		25

QUARTA-RAD, INC. AND SUBSIDIARIES

CONDENSED AND CONSOLIDATED BALANCE SHEETS

(unaudited)

	June 30, 2024			December 31, 2023
	As of
	June 30, 2024			December 31, 2023
ASSETS
Current Assets
Cash	$	63,734		$	72,625
Accounts receivable		5,573			7,289
Marketable securities, trading		38,824			52,148
Notes receivable - related party - current portion		25,931			80,813
Inventory		8,397			30,398
Total Current Assets		142,459			243,273

Fixed Assets, Net		1,170			1,570

Other Assets
Notes receivable - related party, net of current portion and discount of $12,026 and $13,360 at June 30, 2024 and December 31, 2023, respectively		356,411			341,557
Interest receivable - related party		54,505			44,172
Trade receivable		30,385			28,673
Deferred tax asset		34,976			24,069
Total Other Assets		476,277			438,471

TOTAL ASSETS	$	619,906		$	683,314

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities
Accounts payable and accrued expenses	$	116,600		$	105,244
Payable - related parties		263,708			184,477
Total Liabilities		380,308			289,721

Commitments and Contingencies – Note 8		-			-

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 June 30, 2024 and December 31, 2023, respectively		1,568			1,568
Additional paid-in capital		346,726			346,726
Retained earnings/(accumulated deficit)		(108,696	)		45,299
Total Stockholders’ Equity		239,598			393,593

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	619,906		$	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 June 30, 2024			For the three months ended June 30, 2023			For the six months ended June 30, 2024			For the six months ended June 30, 2023

Sales -Quarta Rad, Inc., net	$	29,044		$	62,082		$	51,086		$	199,061
Sales - Sellavir, Inc., net - related party		-			40,000			-			102,000

Total sales, net		29,044			102,082			51,086			301,061

Cost of goods sold - Quarta-Rad, Inc.		18,424			31,256			28,673			131,821
Cost of goods sold - Sellavir Inc.		-			18,235			-			40,966
Cost of goods sold		-			18,235			-			40,966

Gross profit		10,620			52,591			22,413			128,274

Expenses:
General and administrative		53,725			13,986			99,567			26,404
Advertising		-			16,484			-			33,577
Professional and consulting fees		30,837			41,501			59,346			74,901
Operating expenses		84,562			71,971			158,913			134,882

Net income/(loss) from operations		(73,942	)		(19,380	)		(136,500	)		(6,608	)
Other income - interest and dividends		1			7			2			301
Other expense - foreign currency translation loss		(2,427	)		-			(16,110	)		-
Other income - interest - related party		11,703			13,779			23,406			13,779
Other expense - loss on loan modification		-			-			(11,469	)		-
Other income - unrealized gain/(loss) on investments		2,321			(32,691	)		(13,324	)		21,780
Other income - realized gain/(loss) on investments		-			21,511			-			(3,529	)
Net income/(loss) before provision for income taxes		(62,344	)		(16,774	)		(153,995	)		25,723

Income tax expense/(benefit)		-			(3,522	)		-			5,402

Net income/(loss)	$	(62,344	)	$	(13,252	)	$	(153,995	)	$	20,321

Income/(loss) per share - basic and diluted	$	-		$	-		$	(0.01	)	$	-

Weighted average shares - basic and diluted		15,674,483			15,674,483			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

For the six months ended June 30, 2024

(Unaudited)

	Shares		Amount		Capital		Deficit)			Equity

	Common Stock				Additional Paid-In		Retained Earnings/(Accumulated			Total Stockholders’
	Shares		Amount		Capital		Deficit)			Equity
Balance, December 31, 2023		15,674,483	$	1,568	$	346,726	$	45,299		$	393,593
Net loss		-		-		-		(153,995	)		(153,995	)
Balance, June 30, 2024		15,674,483	$	1,568	$	346,726	$	(108,696	)	$	239,598

CONDENSED AND CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the six months ended June 30, 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
Net income		-		-		-		20,321		20,321
Balance, June 30, 2023		15,674,483	$	1,568	$	346,726	$	21,128	$	369,422

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		Deficit			Equity

	Common Stock				Additional Paid-In		Accumulated			Total Stockholders’
	Shares		Amount		Capital		Deficit			Equity
Balance, March 31, 2024		15,674,483	$	1,568	$	346,726	$	(46,352	)	$	301,942
Net loss		-		-		-		(62,344	)		(62,344	)
Balance, June 30, 2024		15,674,483	$	1,568	$	346,726	$	(108,696	)	$	239,598

CONDENSED AND CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Three Months Ended March 31, 2023

(Unaudited)


	Common Stock				Additional Paid-In		Retained Earnings/(Accumulated			Total Stockholders’
	Shares		Amount		Capital		Deficit)			Equity
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
Net loss		-		-		-		(13,252	)		(13,252	)
Net income (loss)		-		-		-		(13,252	)		(13,252	)
Balance, June 30, 2023		15,674,483	$	1,568	$	346,726	$	21,128		$	369,422
Balance		15,674,483	$	1,568	$	346,726	$	21,128		$	369,422

See accompanying notes to unaudited condensed and consolidated financial statements

QUARTA-RAD, INC. AND SUBSIDIARIES

CONDENSED AND CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the six months ended June 30, 2024			For the six months ended June 30, 2023

OPERATING ACTIVITIES:
Net income/(loss)	$	(153,995	)	$	20,321

Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation		400			400
Loss on loan modification		11,469			-
Foreign currency translation loss		16,110			-
Amortization of note premium		(1,604	)		-
Net realized loss on investments		-			3,529
Net unrealized (gain)/loss on investments		13,324			(21,780	)
Income tax expense/(benefit)		-			5,402
Deferred income tax		(10,907	)		-
Changes in operating assets and liabilities:
Accounts receivable		1,716			44,195
Inventory		22,001			104,068
Trade receivables		(1,712	)		-
Miscellaneous receivable - related party		-			(5,000	)
Accrued interest receivable - related party		(21,802	)		(13,779	)
Accounts payable and accrued expenses		11,356			28,108
Deferred revenue - related party		-			(102,000	)
Deferred tax		-			-
Related party payable		79,231			51,456
Net cashed provided/(used) by operating activities		(34,413	)		114,920

INVESTING ACTIVITIES:
Sale of marketable securities, trading		-			201,894
Issuance of notes receivable - related party		-			(415,000	)
Payments on notes receivable – related party		25,522			-
Purchase of marketable securities, trading		-			(57,920	)
Net cash provide/(used) by Investing Activities		25,522			(271,026	)

Net change in cash		(8,891	)		(156,106	)
Cash, beginning of period		72,625			293,878
Cash, end of period	$	63,734		$	137,772

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 June 30, 2024, and the statements of operations and changes in stockholders’ equity for the three and six months ended June 30, 2024, and 2023, and the cash flows for three and six months ended June 30, 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 June 30, 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.

The Company has experienced recurring operating losses, primarily due to limited revenues. The Company’s current financial conditions and recurring losses raise substantial doubt about its ability to continue as a going concern.

Management intends to maintain adequate working capital and adhere to prudent financial forecasting. Beginning September 2024, Sellavir will be receiving regular monthly revenue and any shortfalls will be funded with related party loans. The Company is also implanting new strategies to expand the sale of Geiger counters.

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 and call center management solutions 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.

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 and six ended June 30, 2024, and 2023, amounted to $-0-, $-0-, $16,484 and $33,577, 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.

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 June 30, 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 June 30, 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.

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 June 30, 2024 about the Company’s financial assets measured at fair value on a recurring basis.

QUARTA-RAD, INC. AND SUBSIDIARIES

Notes to the (unaudited) Condensed and Consolidated Financial Statements

Values on June 30, 2024:

	Level 1		Level 2		Level 3		Total
Assets at fair value:
Marketable Securities	$	38,824	$	-	$	-	$	38,824

Total assets at fair value, June 30, 2024	$	38,824	$	-	$	-	$	38,824

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.

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 June 30, 2024 and December 31. 2023, respectively.

QUARTA-RAD, INC. AND SUBSIDIARIES

Notes to the (unaudited) Condensed and Consolidated Financial Statements

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.

Recent Accounting Pronouncements

We have adopted all recently issued accounting pronouncements. The adoption of the new accounting pronouncements is not anticipated to have a material effect on our operations.

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 and second quarters of 2024.

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 2024, the note was amended to reduce the interest rate to 10%, effective January 2024, 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 $229,993 and $261,072 recording a loss on foreign currency translation of $16,110 and $36 at June 30, 2024 and December 31, 2023, respectively. The amount of unamortized premium at June 30, 2024 and December 31, 2023 is $12,026 and $13,362, respectively. Payments are deferred until April 1, 2025, with quarterly principal payments due through April 1, 2028. 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. Sellavir received a $14,897 principal payment in April 2024 in connection with this loan.

QUARTA-RAD, INC. AND SUBSIDIARIES

Notes to the (unaudited) Condensed and Consolidated Financial Statements

The Company issued an additional loan to the Thai Corporation in May 2023 for $175,000, at the rate of 15% per annum. In 2024, the note was amended to reduce the interest rate to 10% effective January 2024 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, 2025, with quarterly principal payments due through April 2028. Interest is payable at the end of the loan. The loan is secured by land located in Thailand. . Sellavir received a $10,625 principal payment in April 2024 in connection with this loan.

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

Accrued interest at June 30, 2024 and December 31, 2023 for both loans is $54,505 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:

	$261,038 Note		$175,000 Note		Total
2025	$	43,129	$	21,250	$	64,379
2026	$	57,514		42,500		100,014
2027	$	57,514		42,500		100,014
2028	$	57,514		42,500		100,014
2029	$	14,322		15,625		29,947
1Totals	$	229,993	$	164,375	$	394,368

NOTE 5–PROPERTY AND EQUIPMENT

Property and Equipment at June 30, 2024 and December 31. 2023 consisted of:

SCHEDULE OF PROPERTY AND EQUIPMENT

	June 30,			December 31,
	2024			2023
Computer Equipment	$	4,005		$	4,005
Accumulated Depreciation		(2,835	)		(2,435	)
Net Property & Equipment	$	1,170		$	1,570

The Company recognized $200, $400, $200, and $400 in depreciation expense in each period for the three and six months ended June 30, 2024 and 2023, respectively.

QUARTA-RAD, INC. AND SUBSIDIARIES

Notes to the (unaudited) Condensed and Consolidated Financial Statements

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 June 30, 2024, and December 31. 2023, is $91,850 and $91,850, respectively. The balances are due on demand and do not incur interest. In April 2024, the minority shareholder sold their total shares and is no longer affiliated with the Company.

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 June 30, 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, $16,000, $8,000 and $16,000 for the three and six months ended June 30, 2024, and 2023, respectively. As of June 30, 2024 and December 31, 2023 the Company has accrued $104,000 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 June 30, 2024 and December 31, 2023, is due $129,356 and $56,125, respectively, for expenses paid on behalf of the Company. The balances are due on demand and do not accrue interest.

Sellavir recognized $-0-, $-0-, $40,000 and $102,000 of revenue for the three and six months ended June 30, 2024, and 2023, respectively in 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).

Segment information for the three and six months ended June 2024 and 2023 is as follows:

SCHEDULE OF SEGMENT INFORMATION

	Quarta-Rad			Sellavir			Consolidated
For the six months ended June 30, 2024
	Quarta-Rad			Sellavir			Consolidated
Revenues	$	51,086			-		$	51,086
Loss from operations		(78,072	)		(58,428	)		(136,500	)
Net loss	$	(78,072	)		(75,923	)	$	(153,995	)

	Quarta-Rad			Sellavir			Consolidated
For the three months ended June 30, 2024
	Quarta-Rad			Sellavir			Consolidated
Revenues	$	29,044			-		$	29,044
Loss from operations		(40,908	)		(33,034	)		(73,942	)
Net income/(loss)	$	(40,908	)		(21,436	)	$	(62,344	)

	Quarta-Rad			Sellavir		Consolidated
For the six months ended June 30, 2023
	Quarta-Rad			Sellavir		Consolidated
Revenues	$	199,061		$	102,000	$	301,061
Income/(loss) from operations		(63,158	)		56,550		(6,608	)
Net income/(loss)	$	(49,895	)	$	70,216	$	20,321

	Quarta-Rad			Sellavir		Consolidated
For the three months ended June 30, 2023
	Quarta-Rad			Sellavir		Consolidated
Revenues	$	62,082		$	40,000	$	102,082
Income/(loss) from operations		(37,911	)		18,531		(19,380	)
Net income/(loss)	$	(29,948	)	$	16,696	$	(13,252	)

Total Assets	As of June 30, 2024		As of December 31, 2023
Quarta-Rad	$	127,676	$	151,789
Sellavir		492,230		531,525
Total Assets	$	619,906	$	683,314

QUARTA-RAD, INC. AND SUBSIDIARIES

Notes to the (unaudited) Condensed and Consolidated Financial Statements

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 June 30, 2024 through August 14, 2024. Based on its evaluation, other than the note below there is nothing to be disclosed herein.

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 six months ended June 30, 2024 and 2022. 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, Prior to April 2024, 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.. 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 six 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 and six months ended June 30, 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 income for the six months ended June 30, 2024, is comprised of:

	Quarta Rad			Sellavir			Total
Sales	$	51,086		$	-		$	51,086
Cost of Good Sold		28,673			-			28,673
Gross Profit		22,413			-			22,413

Expenses:
General & administrative		43,639			55,928			99,567
Advertising		-			-			-
Professional and consulting fees		56,846			2,500			59,346
Operating expenses		100,485			58,428			158,913

Net loss from operations		(78,072	)		(58,428	)		(136,500	)

Interest and dividends		-			2			2
Other expense - foreign currency translation loss		(16,110	)		(16,110	)
Other income - interest - related party		-			23,406			23,406
Other expense - loss on loan modification					(11,469	)		(11,469	)
Unrealized gain/(loss) on investments		-			(13,324	)		(13,324	)
Realized gain/(loss) on investments		-			-			-
Interest expense					-			-
Income tax benefit								-

Net loss	$	(78,072	)	$	(75,923	)	$	(153,995	)

The Company has two operating segments through the operations of Quarta-Rad and Sellavir. Net income for the six months ended June 30, 2023, is comprised of:

	Quarta Rad			Sellavir			Total
Sales		199,061			102,000			301,061
Cost of Good Sold		131,821			40,966			172,787
Gross Profit		67,240			61,034			128,274

Expenses:
General & administrative		25,920			484			26,404
Advertising		33,577			-			33,577
Professional and consulting fees		70,901			4,000			74,901
Operating expenses		130,398			4,484			134,882

Net income (loss) from operations		(63,158	)		56,550			(6,608	)

Interest and dividends		-			301			301
Other expense - foreign currency translation loss
Other income - interest - related party		-			13,779			13,779
Unrealized gain/(loss) on investments		-			21,780			21,780
Realized gain/(loss) on investments					(3,529	)		(3,529	)
Interest expense					-			-
Income tax benefit (/expense)		13,263			(18,665	)		(5,402	)

Net income/(loss)		(49,895	)		70,216			20,321

Management’s Plan to Address Going Concern Considerations

Management intends to maintain adequate working capital and adhere to prudent financial forecasting.

Consolidated Totals:

Six months ended June 30, 2024 compared with the six months ended June 30, 2023

Revenues. Our net revenues decreased $249,975, or 83.03% to $51.086 for the six months ended June 30, 2024, compared with $301,061for the six months ended June 30, 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 $144,114, or 83.41% to $28,673 for the six months ended June 30, 2024, compared with $172,787 for the comparable period in 2023. The decrease was a result of Quarta Rad direct costs due to reduced revenue.

Operating Expenses. For the six months ended June 30, 2024, our total operating expenses increased $24,031, or 17.82% to $158,913 for the six months ended June 30, 2024, compared with $134,882 for the six months ended June 30, 2023. The increase is primarily attributable to the Company’s classification of Sellavir contractor expenses.

Net Loss. Our net loss increased $174,316 to a net loss of $153,995 for the six months ended June 30, 2024 compared to net income of $20,321 for the six months ended June 30, 2023. The increase was primarily due to a decrease in sales and other losses related to investment income.

QUARTA-RAD

Six months ended June 30, 2024, compared with the six months ended June 30, 2023

Revenues. Our net revenues decreased $147,975, or 74.34% to $51,086 for the six months ended June 30, 2024, compared with $199,061for the six months ended June 30, 2023.The reduction was primarily attributable to the sales of our RD1503 model.

Cost of Goods Sold. Our Cost of Goods Sold decreased $103,148 or 78.25% to $28,673. for the six months ended June 30, 2024, compared to $131,821 for the comparable period in 2023. The decrease was a result of decreased sales.

Operating Expenses. For the six months ended June 30, 2024, our total operating expenses decreased $29.913 to $100,485 compared to $130,398 for the six months ended June 30, 2023. The decrease is primarily attributable to the Company’s reduced professional fees and advertising expenses.

Net Loss. Our net loss increased $28,177 , or 56.47% to $78,072 for the six months ended June 30, 2024, compared to a net loss of $49,895 for the six months ended June 30, 2023. The increase was primarily due to reduced sales.

SELLAVIR

Six months ended June 30, 2024, compared with the six months ended June 30, 2023

Revenues. Our net recognized revenue decreased $102,000, or 100%, to $-0- for the six months ended June 30, 2024 compared with $62,000- for the six months ended June 30, 2023. The decrease is due to timing or revenue recognized.

Cost of Goods Sold. Our Cost of Goods Sold decreased $40,966 or 100% to $-0- for the six months ended June 30, 2024, compared to $40,966 for the comparable period in 2022. The decrease was primarily due to the classification of contractor costs.

Operating Expenses. For the six months ended June 30, 2024, our total operating expenses increased $53,944 or 1203.03% to $58,428 compared to $4,484 for the six months ended June 30, 2023. The increase was primarily due to the classification of contractor costs.

Net Loss. Our net loss increased $146,139 to $75,923 for the six months ended June 30, 2024, compared to net income of $70,216 for the six months ended June 30, 2023. The increase was primarily due to a reduction in sales and other losses related to investments.

Three months ended June 30, 2024 compared with the three months ended June 30, 2023

Revenues. Our net revenues decreased $73,038, or 71.55% to $29,044 for the three months ended June 30, 2024, compared with $102,082 for the three months ended June 30, 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 $31,067or 62.77% to $18,424 for the three months ended June 30, 2024 compared to $49,491 for the comparable period in 2023. The decrease was a result of Quarta Rad direct costs due to reduced revenue and classification of Sellavir contractor costs.

Operating Expenses. For the three months ended June 30, 2024, our total operating expenses increased $12,591 or 17.49% to$84,562 compared to $71,971 for the three months ended June 30, 2023. The increase is primarily attributable to Sellavir’s classification of contractor costs.

Net Loss. Our net loss increased $49,092 or 370.45% to $62,344 for the three months ended June 30, 2024 compared to $13,252 for the three months ended June 30, 2023. The increase was primarily due to a decrease in sales.

QUARTA-RAD

Three months ended June 30, 2024, compared with the three months ended June 30, 2023

Revenues. Our net revenues decreased $33,038, or 53.22% to $29,044 for the three months ended June 30, 2024, compared with $62,082 for the three months ended June 30, 2023. The reduction was primarily attributable to the sales of our RD1503 model.

Cost of Goods Sold. Our Cost of Goods Sold decreased $12,832 or 41.05% to $118,424 for the three months ended June 30, 2024, compared to $31,256 for the comparable period in 2023. The decrease was a result of decreased sales.

Operating Expenses. For the three months ended June 30, 2024, our total operating expenses decreased $17,207 or 25.03% to 51,528 compared to $68,735 for the three months ended June 30, 2023. The decrease is primarily attributable to the Decrease in advertising and professional fees.

Net Loss. Our net loss increased $10,960 or 36.6% to $40,908 for the three months ended June 30, 2024, compared to a net loss of $29,948 for the three months ended June 30, 2023. The increase was primarily due to a decrease in sales.

SELLAVIR

Three months ended June 30, 2024, compared with the three months ended June 30, 2023

Revenues. Our net recognized revenue decreased $40,000 or 100% to $-0- for the three months ended June 30, 2024 compared with $40,000 for the three months ended June 30, 2023. The decrease is due to timing or revenue recognized.

Cost of Goods Sold. Our Cost of Goods Sold decreased $18,235 or 100% to $-0- for the three months ended June 30, 2024, compared to $18,235 for the comparable period in 2023. The increase was primarily due to increased contractor costs.

Operating Expenses. For the three months ended June 30, 2024, our total operating expenses incrased $1,067 or 85.16% to. $2,320 compared to $1,253 for the three months ended June 30, 2023.

The decrease was primarily due to the classification of contractor costs.

Net Loss. Our net loss increased $38,132 to ($21,436) for the three months ended June 30, 2024, compared to net income of $16,696 for the three months ended June 30, 2023. The increase was primarily due to a reduction in sales.

Liquidity and Capital Resources. During the three months ended June 30, 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 $619,906 and $683,145 as of June 30, 2024, and December 31, 2023, respectively, consisting of $63,734 and $72,625, respectively, in cash. Our working capital deficit was ($237,849) and ($46,448) as of June 30, 2024 and December 31, 2023, respectively.

We had $34,413 used by and $114,920 in cash provided by operating activities for the six months ended June 30, 2024 and 2023, respectively.

We had $25,522 provided by and $271,026 in cash used by investing activities for the six months ended June 30, 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, adjusted to 10% in January 2024. The loan is secured by land located in Thailand.

We had no cash provided by financing activities for the six months ended June 30, 2024 and 2023, respectively.

The Company had no formal long-term lines of credit or other bank financing arrangements as of June 30, 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 June 30, 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. Sellavir’s platform empowers organizations to decode videos to develop creative marketing strategies and analysis and call center management solutions through advanced and proprietary technologies using artificial intelligence (“AI”).

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 June 30, 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 June 30, 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 June 30, 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*.

101.INS*		Inline XBRL Instance Document
101.SCH*		Inline XBRL Taxonomy Extension Schema
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase
101.PRE*		Inline XBRL Taxonomy Presentation Linkbase
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

* 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.

August 14, 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: August 14, 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”);

(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: August 14, 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 June 30, 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: August 14, 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 June 30, 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: August 14, 2024	/s/ Victor Shvetsky
	Victor Shvetsky
	Chief Financial Officer
	(Principal Financial Officer)

Cover - $ / shares	6 Months Ended
Cover - $ / shares	Jun. 30, 2024	Aug. 14, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
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	732-
Local Phone Number	887-8511
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
Entity Listing, Par Value Per Share	$ 0.0001

Condensed and Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current Assets
Cash	$ 63,734	$ 72,625
Accounts receivable	5,573	7,289
Marketable securities, trading	38,824	52,148
Inventory	8,397	30,398
Total Current Assets	142,459	243,273
Fixed Assets, Net	1,170	1,570
Other Assets
Trade receivable	30,385	28,673
Deferred tax asset	34,976	24,069
Total Other Assets	476,277	438,471
TOTAL ASSETS	619,906	683,314
Current Liabilities
Accounts payable and accrued expenses	116,600	105,244
Total Liabilities	380,308	289,721
Commitments and Contingencies – Note 8
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 June 30, 2024 and December 31, 2023, respectively	1,568	1,568
Additional paid-in capital	346,726	346,726
Retained earnings/(accumulated deficit)	(108,696)	45,299
Total Stockholders’ Equity	239,598	393,593
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	619,906	683,314
Related Party [Member]
Current Assets
Notes receivable - related party - current portion	25,931	80,813
Other Assets
Notes receivable - related party, net of current portion and discount of $12,026 and $13,360 at June 30, 2024 and December 31, 2023, respectively	356,411	341,557
Interest receivable - related party	54,505	44,172
Current Liabilities
Payable - related parties	$ 263,708	$ 184,477

Condensed and Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Notes receivable discount	$ 12,026	$ 13,360
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

Condensed and Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Total sales, net	$ 29,044	$ 102,082	$ 51,086	$ 301,061
Gross profit	10,620	52,591	22,413	128,274
Expenses:
General and administrative	53,725	13,986	99,567	26,404
Advertising		16,484		33,577
Professional and consulting fees	30,837	41,501	59,346	74,901
Operating expenses	84,562	71,971	158,913	134,882
Net income/(loss) from operations	(73,942)	(19,380)	(136,500)	(6,608)
Other income - interest and dividends	1	7	2	301
Other expense - foreign currency translation loss	(2,427)		(16,110)
Other income - interest - related party	11,703	13,779	23,406	13,779
Other expense - loss on loan modification			(11,469)
Other income - unrealized gain/(loss) on investments	2,321	(32,691)	(13,324)	21,780
Other income - realized gain/(loss) on investments		21,511		(3,529)
Net income/(loss) before provision for income taxes	(62,344)	(16,774)	(153,995)	25,723
Income tax expense/(benefit)		(3,522)		5,402
Net income/(loss)	$ (62,344)	$ (13,252)	$ (153,995)	$ 20,321
Income per share - basic			$ (0.01)
Income per share - diluted			$ (0.01)
Weighted average shares - basic	15,674,483	15,674,483	15,674,483	15,674,483
Weighted average shares - diluted	15,674,483	15,674,483	15,674,483	15,674,483
Quarta Rad Inc [Member]
Total sales, net	$ 29,044	$ 62,082	$ 51,086	$ 199,061
Cost of goods sold	18,424	31,256	28,673	131,821
Sellavir Inc [Member]
Total sales, net		40,000		102,000
Cost of goods sold		$ 18,235		$ 40,966

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)			20,321	20,321
Balance at Jun. 30, 2023	$ 1,568	346,726	21,128	369,422
Balance, shares at Jun. 30, 2023	15,674,483
Balance at Mar. 31, 2023	$ 1,568	346,726	34,380	382,674
Balance, shares at Mar. 31, 2023	15,674,483
Net income (loss)			(13,252)	(13,252)
Balance at Jun. 30, 2023	$ 1,568	346,726	21,128	369,422
Balance, shares at Jun. 30, 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)			(153,995)	(153,995)
Balance at Jun. 30, 2024	$ 1,568	346,726	(108,696)	239,598
Balance, shares at Jun. 30, 2024	15,674,483
Balance at Mar. 31, 2024	$ 1,568	346,726	(46,352)	301,942
Balance, shares at Mar. 31, 2024	15,674,483
Net income (loss)			(62,344)	(62,344)
Balance at Jun. 30, 2024	$ 1,568	$ 346,726	$ (108,696)	$ 239,598
Balance, shares at Jun. 30, 2024	15,674,483

Condensed and Consolidated Statements of Cash Flows - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
OPERATING ACTIVITIES:
Net income/(loss)	$ (62,344)	$ (13,252)	$ (153,995)	$ 20,321
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation	200	200	400	400
Loss on loan modification			11,469
Foreign currency translation loss	2,427		16,110
Amortization of note premium			(1,604)
Net realized loss on investments		(21,511)		3,529
Net unrealized (gain)/loss on investments	(2,321)	32,691	13,324	(21,780)
Income tax expense/(benefit)		(3,522)		5,402
Deferred income tax			(10,907)
Changes in operating assets and liabilities:
Accounts receivable			1,716	44,195
Inventory			22,001	104,068
Trade receivables			(1,712)
Miscellaneous receivable - related party				(5,000)
Accrued interest receivable - related party			(21,802)	(13,779)
Accounts payable and accrued expenses			11,356	28,108
Deferred revenue - related party				(102,000)
Deferred tax
Related party payable			79,231	51,456
Net cashed provided/(used) by operating activities			(34,413)	114,920
INVESTING ACTIVITIES:
Sale of marketable securities, trading				201,894
Issuance of notes receivable - related party				(415,000)
Payments on notes receivable – related party			25,522
Purchase of marketable securities, trading				(57,920)
Net cash provide/(used) by Investing Activities			25,522	(271,026)
Net change in cash			(8,891)	(156,106)
Cash, beginning of period			72,625	293,878
Cash, end of period	$ 63,734	$ 137,772	63,734	137,772
Supplemental cash flow information:
Cash paid for interest
Cash paid for income taxes			$ 10,907

BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

BASIS OF PRESENTATION

NOTE 1 - BASIS OF PRESENTATION

NATURE OF BUSINESS

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF BUSINESS

NOTE 2 - NATURE OF BUSINESS

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Use of Estimates and Assumptions

QUARTA-RAD, INC. AND SUBSIDIARIES

Notes to the (unaudited) Condensed and Consolidated Financial Statements

Advertising

Notes Receivable – related party

Concentration of Credit Risk

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

Fair Value of Financial Instruments

	●	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

Values on June 30, 2024:

	Level 1		Level 2		Level 3		Total
Assets at fair value:
Marketable Securities	$	38,824	$	-	$	-	$	38,824

Total assets at fair value, June 30, 2024	$	38,824	$	-	$	-	$	38,824

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

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

QUARTA-RAD, INC. AND SUBSIDIARIES

Notes to the (unaudited) Condensed and Consolidated Financial Statements

We recognize consulting revenue over time as services are performed.

Recent Accounting Pronouncements

We have adopted all recently issued accounting pronouncements. The adoption of the new accounting pronouncements is not anticipated to have a material effect on our operations.

Risks and Uncertainties

RUSSIAN INVASION OF UKRAINE

NOTE RECEIVABLE – RELATED PARTY

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

NOTE RECEIVABLE – RELATED PARTY

NOTE 4–NOTE RECEIVABLE – RELATED PARTY

QUARTA-RAD, INC. AND SUBSIDIARIES

Notes to the (unaudited) Condensed and Consolidated Financial Statements

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

Accrued interest at June 30, 2024 and December 31, 2023 for both loans is $54,505 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:

	$261,038 Note		$175,000 Note		Total
2025	$	43,129	$	21,250	$	64,379
2026	$	57,514		42,500		100,014
2027	$	57,514		42,500		100,014
2028	$	57,514		42,500		100,014
2029	$	14,322		15,625		29,947
1Totals	$	229,993	$	164,375	$	394,368

PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE 5–PROPERTY AND EQUIPMENT

Property and Equipment at June 30, 2024 and December 31. 2023 consisted of:

SCHEDULE OF PROPERTY AND EQUIPMENT

	June 30,			December 31,
	2024			2023
Computer Equipment	$	4,005		$	4,005
Accumulated Depreciation		(2,835	)		(2,435	)
Net Property & Equipment	$	1,170		$	1,570

The Company recognized $200, $400, $200, and $400 in depreciation expense in each period for the three and six months ended June 30, 2024 and 2023, respectively.

QUARTA-RAD, INC. AND SUBSIDIARIES

Notes to the (unaudited) Condensed and Consolidated Financial Statements

RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2024

RELATED PARTY TRANSACTIONS

NOTE 6–RELATED PARTY TRANSACTIONS

Sellavir recognized $-0-, $-0-, $40,000 and $102,000 of revenue for the three and six months ended June 30, 2024, and 2023, respectively in services to STAR to develop software.

SEGMENTS

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

SEGMENTS

NOTE 7–SEGMENTS

Segment information for the three and six months ended June 2024 and 2023 is as follows:

SCHEDULE OF SEGMENT INFORMATION

	Quarta-Rad			Sellavir			Consolidated
For the six months ended June 30, 2024
	Quarta-Rad			Sellavir			Consolidated
Revenues	$	51,086			-		$	51,086
Loss from operations		(78,072	)		(58,428	)		(136,500	)
Net loss	$	(78,072	)		(75,923	)	$	(153,995	)

	Quarta-Rad			Sellavir			Consolidated
For the three months ended June 30, 2024
	Quarta-Rad			Sellavir			Consolidated
Revenues	$	29,044			-		$	29,044
Loss from operations		(40,908	)		(33,034	)		(73,942	)
Net income/(loss)	$	(40,908	)		(21,436	)	$	(62,344	)

	Quarta-Rad			Sellavir		Consolidated
For the six months ended June 30, 2023
	Quarta-Rad			Sellavir		Consolidated
Revenues	$	199,061		$	102,000	$	301,061
Income/(loss) from operations		(63,158	)		56,550		(6,608	)
Net income/(loss)	$	(49,895	)	$	70,216	$	20,321

	Quarta-Rad			Sellavir		Consolidated
For the three months ended June 30, 2023
	Quarta-Rad			Sellavir		Consolidated
Revenues	$	62,082		$	40,000	$	102,082
Income/(loss) from operations		(37,911	)		18,531		(19,380	)
Net income/(loss)	$	(29,948	)	$	16,696	$	(13,252	)

Total Assets	As of June 30, 2024		As of December 31, 2023
Quarta-Rad	$	127,676	$	151,789
Sellavir		492,230		531,525
Total Assets	$	619,906	$	683,314

QUARTA-RAD, INC. AND SUBSIDIARIES

Notes to the (unaudited) Condensed and Consolidated Financial Statements

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 8– COMMITMENTS AND CONTINGENCIES

Contingencies

Legal

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 9–SUBSEQUENT EVENTS

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

Use of Estimates and Assumptions

Use of Estimates and Assumptions

QUARTA-RAD, INC. AND SUBSIDIARIES

Notes to the (unaudited) Condensed and Consolidated Financial Statements

Advertising

Advertising

Notes Receivable – related party

Notes Receivable – related party

Concentration of Credit Risk

Concentration of Credit Risk

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

Fair Value of Financial Instruments

Fair Value of Financial Instruments

	●	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

Values on June 30, 2024:

	Level 1		Level 2		Level 3		Total
Assets at fair value:
Marketable Securities	$	38,824	$	-	$	-	$	38,824

Total assets at fair value, June 30, 2024	$	38,824	$	-	$	-	$	38,824

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

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

QUARTA-RAD, INC. AND SUBSIDIARIES

Notes to the (unaudited) Condensed and Consolidated Financial Statements

We recognize consulting revenue over time as services are performed.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

We have adopted all recently issued accounting pronouncements. The adoption of the new accounting pronouncements is not anticipated to have a material effect on our operations.

Risks and Uncertainties

Risks and Uncertainties

RUSSIAN INVASION OF UKRAINE

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS

Values on June 30, 2024:

	Level 1		Level 2		Level 3		Total
Assets at fair value:
Marketable Securities	$	38,824	$	-	$	-	$	38,824

Total assets at fair value, June 30, 2024	$	38,824	$	-	$	-	$	38,824

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

NOTE RECEIVABLE – RELATED PARTY (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

SCHEDULE OF PRINCIPAL AMOUNT OF NOTES RECEIVABLES

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

	$261,038 Note		$175,000 Note		Total
2025	$	43,129	$	21,250	$	64,379
2026	$	57,514		42,500		100,014
2027	$	57,514		42,500		100,014
2028	$	57,514		42,500		100,014
2029	$	14,322		15,625		29,947
1Totals	$	229,993	$	164,375	$	394,368

PROPERTY AND EQUIPMENT (Tables)

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

SCHEDULE OF PROPERTY AND EQUIPMENT

Property and Equipment at June 30, 2024 and December 31. 2023 consisted of:

SCHEDULE OF PROPERTY AND EQUIPMENT

	June 30,			December 31,
	2024			2023
Computer Equipment	$	4,005		$	4,005
Accumulated Depreciation		(2,835	)		(2,435	)
Net Property & Equipment	$	1,170		$	1,570

SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

SCHEDULE OF SEGMENT INFORMATION

Segment information for the three and six months ended June 2024 and 2023 is as follows:

SCHEDULE OF SEGMENT INFORMATION

	Quarta-Rad			Sellavir			Consolidated
For the six months ended June 30, 2024
	Quarta-Rad			Sellavir			Consolidated
Revenues	$	51,086			-		$	51,086
Loss from operations		(78,072	)		(58,428	)		(136,500	)
Net loss	$	(78,072	)		(75,923	)	$	(153,995	)

	Quarta-Rad			Sellavir			Consolidated
For the three months ended June 30, 2024
	Quarta-Rad			Sellavir			Consolidated
Revenues	$	29,044			-		$	29,044
Loss from operations		(40,908	)		(33,034	)		(73,942	)
Net income/(loss)	$	(40,908	)		(21,436	)	$	(62,344	)

	Quarta-Rad			Sellavir		Consolidated
For the six months ended June 30, 2023
	Quarta-Rad			Sellavir		Consolidated
Revenues	$	199,061		$	102,000	$	301,061
Income/(loss) from operations		(63,158	)		56,550		(6,608	)
Net income/(loss)	$	(49,895	)	$	70,216	$	20,321

	Quarta-Rad			Sellavir		Consolidated
For the three months ended June 30, 2023
	Quarta-Rad			Sellavir		Consolidated
Revenues	$	62,082		$	40,000	$	102,082
Income/(loss) from operations		(37,911	)		18,531		(19,380	)
Net income/(loss)	$	(29,948	)	$	16,696	$	(13,252	)

Total Assets	As of June 30, 2024		As of December 31, 2023
Quarta-Rad	$	127,676	$	151,789
Sellavir		492,230		531,525
Total Assets	$	619,906	$	683,314

SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Platform Operator, Crypto Asset [Line Items]
Marketable Securities	$ 38,824	$ 52,148
Total assets at fair value	38,824	52,148
Fair Value, Inputs, Level 1 [Member]
Platform Operator, Crypto Asset [Line Items]
Marketable Securities	38,824	52,148
Total assets at fair value	38,824	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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Product Information [Line Items]
Advertising expense		$ 16,484		$ 33,577
Potentially dilutive instruments outstanding			0	0
Reserve for sales returns and allowances			$ 0		$ 0
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%

SCHEDULE OF PRINCIPAL AMOUNT OF NOTES RECEIVABLES (Details)	Jun. 30, 2024 USD ($)
Impairment Effects on Earnings Per Share [Line Items]
2025	$ 64,379
2026	100,014
2027	100,014
2028	100,014
2029	29,947
1Totals	394,368
Notes Receivable One [Member]
Impairment Effects on Earnings Per Share [Line Items]
2025	43,129
2026	57,514
2027	57,514
2028	57,514
2029	14,322
1Totals	229,993
Notes Receivable Two [Member]
Impairment Effects on Earnings Per Share [Line Items]
2025	21,250
2026	42,500
2027	42,500
2028	42,500
2029	15,625
1Totals	$ 164,375

NOTE RECEIVABLE – RELATED PARTY (Details Narrative)	1 Months Ended				3 Months Ended		6 Months Ended		12 Months Ended
NOTE RECEIVABLE – RELATED PARTY (Details Narrative)	Apr. 30, 2024 THB (฿)	Jan. 31, 2024	May 31, 2023 THB (฿)	Mar. 31, 2023 THB (฿)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Jun. 30, 2024 THB (฿)	Dec. 31, 2023 THB (฿)	May 31, 2023 USD ($)	Mar. 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
Principal repayment of additional loan issued					10,625
Additional loan issued												$ 175,000
Interest rate												15.00%
Accrued interest					54,505		54,505		$ 44,172
Thai Corporation [Member] \| Sellavir Inc [Member]
Defined Benefit Plan Disclosure [Line Items]
Loans payable													$ 261,038	฿ 9,000,000
Premium					$ 12,026		12,026		13,362				$ 16,038
Imputed Interest rate		10.00%		15.00%
Secured property selling price rate		3.00%
Loss on loan modification \| ฿				฿ 8,188
Face amount \| ฿										฿ 229,993	฿ 261,072
Loss on foreign currency translation							$ 16,110		$ 36
Principal repayment of additional loan issued \| ฿	฿ 14,897

SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Computer Equipment	$ 4,005	$ 4,005
Accumulated Depreciation	(2,835)	(2,435)
Net Property & Equipment	$ 1,170	$ 1,570

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation	$ 200	$ 200	$ 400	$ 400

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Jul. 31, 2017
Related Party Transaction [Line Items]
Total sales, net	$ 29,044	$ 102,082	$ 51,086	$ 301,061
Sellavir Inc [Member]
Related Party Transaction [Line Items]
Total sales, net		40,000		102,000
Quarta-Rad Ltd [Member]
Related Party Transaction [Line Items]
Due to related party	91,850		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		42,502
Majority Shareholder [Member] \| Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Due to related party	129,356		129,356		56,125
Compensation expense	8,000	$ 8,000	16,000	$ 16,000
Accrued compensation	$ 104,000		$ 104,000		$ 88,000

SCHEDULE OF SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
SCHEDULE OF SEGMENT INFORMATION (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Revenues	$ 29,044	$ 102,082	$ 51,086	$ 301,061
Income/(loss) from operations	(73,942)	(19,380)	(136,500)	(6,608)
Net income/(loss)	(62,344)	(13,252)	(153,995)	20,321
Total Assets	619,906		619,906		$ 683,314
Quarta-Rad Ltd [Member]
Segment Reporting Information [Line Items]
Revenues	29,044	62,082	51,086	199,061
Income/(loss) from operations	(40,908)	(37,911)	(78,072)	(63,158)
Net income/(loss)	(40,908)	(29,948)	(78,072)	(49,895)
Total Assets	127,676		127,676		151,789
Sellavir Inc [Member]
Segment Reporting Information [Line Items]
Revenues		40,000		102,000
Income/(loss) from operations	(33,034)	18,531	(58,428)	56,550
Net income/(loss)	(21,436)	$ 16,696	(75,923)	$ 70,216
Total Assets	$ 492,230		$ 492,230		$ 531,525

SEGMENTS (Details Narrative)	6 Months Ended
SEGMENTS (Details Narrative)	Jun. 30, 2024 Segment
Segment Reporting [Abstract]
Number of operating segments	2

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