EDGAR 10-K Filing

Company CIK: 1549631
Filing Year: 2025
Filename: 1549631_10-K_2025_0001641172-25-001687.json

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ITEM 1. BUSINESS
Item 1. Description of Business.
Organization
We were incorporated in the State of Delaware as a for-profit company on November 29, 2011, under the name Quatra-Rad, Inc. and our incorporator adopted our bylaws and appointed our two directors. On February 29, 2012, we amended our Certificate of Incorporation to change our name to Quarta-Rad, Inc. On July 16, 2012, we amended and restated its Certificate of Incorporation to increase its authorized shares of common stock to 50,000,000, $0.0001 par value from 1,500, no par value and effected a 10,000 to 1 forward split. On February 4, 2015, we filed a Certificate of Correction to our Certificate of Amendment to Certificate of Incorporation to correct it for inadvertently excluding the 10,000 to 1 forward stock split, which our shareholders and directors approved on June 29, 2012. From November 29, 2011 (inception) through May 2012, we had limited operations. Commencing in May 2012, we began sales and implemented our business plan to distribute detection devices, including but not limited to Geiger counters, to homeowners and interested customers in North America by selling them on consignment on behalf of a related party owned by our majority shareholder and which are purchased from a company owned by our minority shareholder. We also purchase the products directly from the company owned by our minority shareholder and sell them to independent third party resellers. A Geiger counter is an instrument used for measuring ionizing radiation. It detects radiation such as Beta particles, Gamma rays and X-rays using the ionization produced in a Geiger-Müller tube, which gives its name to the instrument. We do not currently manufacture any of the products that we sell. We intend to continue to target homebuilders and home renovation contractors for the sale of products and resellers that market to these customers. Our business activities are now focused on expanding our Internet sales. We have established a fiscal year end of December 31. Initially we sold the products on consignment on behalf of Star Systems Corporation, a Japanese company owned by Victor Shvetsky, our majority shareholder, and purchase products from Quarta-Rad, Ltd., a Russian company owned by Alexey Golovanov, a former minority shareholder, which we sell to independent third party resellers. Commencing in 2013, we began selling the products directly to third parties through Internet sales.
On November 29, 2011, we issued 1,500 pre-split shares of our no par value common stock, valued at $1 per share, to our 2 founders, which includes 1,200 pre-split common shares to our chief executive officer, Victor Shvetsky and 300 pre-split common shares to our president, Alexey Golovanov in exchange for organizational services incurred in our formation valued at $1,200 and $300, respectively. We believe that our present capital is sufficient to cover our monthly burn rate for the next 12 months. However, we believe that we will require between $70,000 to $400,000 in cash in to accomplish the goals set out in our plan of operation (See Item 7). To the extent we are unable to accomplish our goals with the proceeds from the issuance of our common stock, then we intend to use our existing cash or raise additional capital from investors through the sale of our common stock or from loans or advances from our majority shareholder. Our majority shareholder has orally agreed to advance us the funds without interest and has agreed to defer repayment until we are able to repay him. In the fourth quarter of 2016, we raised $65,230 from 34 investors through the issuance of our common stock pursuant to our registration statement. No additional funds were raised in 2023 or 2024.
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. The subsidiary was dissolved in 2022. There was no activity, assets or liabilities in the subsidiary through December 31, 2024.
During December 2020, we acquired Sellavir, Inc, a Delaware corporation, under common control, as a wholly owned subsidiary We acquired the company in exchange for 333,333 shares on 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. Sellavir is now focused on developing CenterEye, a call center software platform that leverages AI and advanced analytics to improve call center operations.
Our principal business, executive and registered statutory office is located at 1201 N. Orange St., Suite 700, Wilmington, DE 19801-1186 and our telephone number is (302) 887-9916 and email contact is info@quartarad.com. Our URL address is www.quartarad.com.
Business
We commenced operations in May 2012, by selling products on consignment from a company owned by our majority shareholder. In 2012, we purchased products from a company owned by our minority shareholder and sold them to a company owned by our majority shareholder and to third party resellers. We believe the terms of those sales were arms-length. In 2012, we began use of the Internet as well as the services of an independent sales representative to market the products to homeowners and interested customers in North America and the majority of our sales were from unrelated third parties. We market the products to homebuilders and home renovation contractors. We have had limited operations and have limited financial resources. In 2011, our operations were devoted primarily to start-up, development and operational activities as well as related party and third party sales, which included:
1. Formation of the Company;
2. Development of our business plan;
3. Evaluating various detection devices;
4. Research on marketing channels/strategies for our detection devices and the industry;
5. Secured our website domain www.quartarad.com and beginning the development of our initial online website; and
6. Research on future products to distribute.
7. Consignment sales on behalf of a related party.
8. Sales to third party resellers.
In May 2012, we commenced our business operations by selling products on consignment from a related party company and developing our distribution network. In June 2012, we began to utilize our website to market the products we sell on consignment to our potential customers. We also began implementing our business plan by promoting these products for sale on various websites. We also engaged independent, third party distributors to sell the products. In 2013, increased our Internet presence and increased our sales whereby the majority of our sales were from unrelated third parties. From 2014 to the present, we have continued to sell the products through the Internet to unrelated third parties.
We believe that our principal source of revenue will continue through Sellavir as Quarta-Rad wind down Internet Sales and sales to resellers for the following products;
Radiation Detection Equipment
RADEX RD1503 - basic model of a hand-held radiation detector for the consumer market.
RADEX RD1706 - enhanced model of a hand-held radiation detector; additional radiation counter provides for a more accurate results (confirmed by JQA - Japan Quality Assurance organization), vibration alarm and several additional functions improve on the RD1503 design specifications.
RADEX RD1008 - high-end radiation detection device that provides readings for Gamma- and Beta- radiation values separately. Equivalent devices from other manufacturers cost 5-10 times more.
RADEX RD1212 - new model of hand-held radiation detector for the consumer market. It includes all the functionality of RD1503 model as well as ability to store measured values in memory for later transfer to PC. This device comes with newly developed software, RadexRead, developed by Quarta-Rad Inc to further enhances the RADEX family of Geiger counters by combining the power of PC and Internet, allowing the user to visualize and share their measurements with other RADEX consumers.
RADEX RD1212-BT - upgraded version of RD1212 with Bluetooth, now capable of linking to smartphones or tablets to transfer data in real time. Also measures atmospheric pressure and air temperature. Special Android/iOS application for smartphones can be used alongside with this product.
RADEX RD ONE - compact personal radiation detector, smaller and less expensive than any of the other models. Besides the size, the device has additional features such as: counts accumulative dose, can display measurements in CPMs and links via USB cord to PC for data transfer and analysis. Other standard features include audio/vibration alarm and adjustable alarm thresholds like on all other models. New analytical software was created to chart and analyze received data.
Radon Detection Equipment
RADEX M107 - simple Radon gas detector that provides visual/audio alarm when a certain (or legal) threshold is reached.
EMI Detection Equipment
RADEX EMI50 - hand-held device that provides real-time measuring of Electric Field Strength (in kiloVolt/meter) and Electro Magnetic Field (in microTesla).
Light and brightness Detection Equipment
RADEX Lupin - Light Meter, Pulse meter and Lucimeter. A hand-held device that measures illumination, brightness and flicker ratio of LED screens, any type of light bulbs or monitors at work or at home. RadexLight Software allows PC connection and data transfer. Spectral sensitivity is identical to a human eye, which separates this model from the competition.
Although we have commenced our marketing sales campaign with our own resources and are selling products through online retailers and through resellers, we believe that we need additional capital to increase our sales and expand our marketing program. Our ability to achieve and maintain profitability and positive cash flow is dependent upon our ability to cost effectively purchase and sell the products and market them through the Internet and through distributors. We intend to rely on our Chairman and President’s relationships in the industry to supply us with products and introduce us to resellers. We also intend to market our website to the home renovation industry to solicit orders for the sale of products. There can be no guarantee or assurance that our Chairman or President and/or our website will enable us to purchase products on attractive terms that will allow us to resale them to independent third party distributors.
No assurance can be given that the products we purchase will be sold to resellers and, if sold to them, will return an investment or make a profit. To achieve the goal of purchasing products on favorable terms, we plan to be selective in our choice of suppliers and work with our shareholders’ companies as well as other cost-effective suppliers.
Major advantages that can be capitalized on immediately are:
● existing brand recognition of RADEX name;
● existing product line up that can be sold now;
● access to device library that are in the prototyping stage for a quicker push into production and sales phases;
● access to Quarta-Rad, Ltd. engineers and its proprietary tech library that would allow for quick prototyping and manufacture of devices based on reports from the field sales-force; and
● Exclusive distribution rights for the RADEX brand in the United States, Canada and the European Union
Quarta-Rad, Ltd.’s proprietary tech library is combination of source code, database, firmware and hardware used for measuring and displaying radiation measurements. The source code is for the: (i) RD1212 web program; (ii) RD1212 BT application for Android and iPhone; (iii) Web RadexRead; and (iv) database of radiation measurements
At the end of 2023, we discontinued the RADEX series, thereby eliminating our reliance on Quarta-Rad Ltd, the Russian producer, including any dependency on their firmware. We maintain ownership of the RadexRead component’s source code and are investigating the potential for its compatibility with the SMADEV series. Victor Shvetsky remains responsible for the ongoing maintenance of this product’s source code.
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 initial services were focused on offering customized solutions for image processing.. Quarta-Rad had initially 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
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. These products are designed to process live video, audio, as well as meta-data related to the call and agent performance, thereby significantly enhancing the operational efficiency of call centers.
Our target market includes users of prominent platforms such as Genesys and Nice. By developing sophisticated tools that integrate seamlessly with these platforms, we aim to simplify the complex tasks faced by call center operators. Our solutions will not only expedite problem resolution for callers but also refine the overall user experience. By proactively detecting potential issues and either automatically resolving them or equipping agents with the necessary information for resolution, Sellavir intends to revolutionize the call center industry’s approach to customer service and support. This strategic direction underscores our commitment to innovation and excellence in the realm of AI technology, setting a new standard for operational efficiency and customer satisfaction in call centers. Sellavir is now focused on developing CenterEye, a call center software platform that leverages AI and advanced analytics to improve call center operations.
In March 2023, we entered into two loan agreements with a related Thai corporation for the purchase of land for development. Payments are due through 2029.
Financing Strategy
Our ability to increase our inventory will depend on additional outside financing, advances from our majority shareholder and reinvesting our profits. Primary responsibility for the overall inventory planning and management will rest with our management. For each detection device product, we plan to purchase, management will need to assess the market and our financing needs to acquire product at cost-effective prices. All decisions will be subject to budgetary restrictions and our business control. We cannot provide any guarantee that we will be able to ever purchase product on cost-effect terms or employ independent distributors to effectively sell the products.
Once we determine our inventory needs, there are various methods of obtaining the funds needed to complete the purchase of the detection devices. Examples of financing alternatives include the assignment of our rights to purchase order financing. Alternatively, we may form a limited liability company or partnership where we will be the managing member or the general partner and raise funds to finance inventory. We may also obtain favorable pre-sales commitments from various customers such as home restoration contractors, distributors and developers. These various techniques, which are commonly used in the industry, can be combined to finance our inventory without a major bank financing.
Distribution Arrangements
Effective distribution is critical to the economic success of the detection devices, particularly when made by a small company without sufficient marketing resources. We have negotiated a few independent distribution agreements.
We intend to continue to distribute the products in the United States through existing independent distributors and the Internet. Our primary emphasis will be on marketing to homebuilders, home renovation contractors and general contractors. In addition, we intend to also target direct consumers via the Internet through online retailers and through national and regional retailers.
To the extent that we may engage in distribution of the products in foreign markets, we will be subject to all of the additional risks of doing business abroad including, but not limited to, government censorship, currency fluctuations, exchange controls, greater risk of “piracy” copying, and licensing or qualification fees.
It is not possible to predict, with certainty, the nature of the distribution arrangements, if any, that we may secure for the detection devices we sell.
We believe that the catastrophic events such as the March 11, 2011 nuclear accident in Japan will drive consumers and the market to radiation detection devices and other detection devices will either be in demand from the construction community and will be cost effective for the consumer and the industry professional.
We believe that effective Internet advertising along with participation in trade shows is the quickest and most cost effective method to let consumers know about the products. Additionally, large resellers and distributors will require promotional packages that we will need to develop and produce.
Competition
The detection device industry is highly competitive. We compete with a variety of companies, many of which have greater financial and other resources than us, or are subsidiaries or divisions of larger organizations. In particular, the industry is characterized by a small number of large, dominant organizations that perform this service, such as United Technologies Corporation, Radiation Alert, Osun Technologies, Lutron, General Tools, Mazur Instruments, First Alert, Inc./BRK Brands, Inc., which is wholly owned by Sunbeam Corporation, as well as many companies that have greater financial and other resources than us.
The major competitive factors in our business are the timeliness and quality of customer service, the quality of finished products and price. Our ability to compete effectively in providing customer service and quality finished products depends primarily on our manufacturers’ standards and the level of training of our future staff, the utilization of computer software and equipment and the ability to deliver the Products we sell. We believe we will compete effectively in all of these areas.
Many of our competitors have substantially greater financial, technical, managerial, marketing and other resources than we do and they may compete more effectively than we can. If our competitors offer detection devices at lower prices than we do, we may have to lower the prices we charge, which will adversely affect our results of operations. Furthermore, many of our competitors are able to obtain more experienced employees than we can.
Intellectual Property Rights
We do not currently have any intellectual property rights. In the summer of 2013, Victor Shvetsky, our majority shareholder and director developed a software program called RadexRead, which Quarta-Rad, Ltd is using in the manufacture of its RD1212 products that we purchase as party of our inventory. We are not incurring any additional costs or benefits from Mr. Shvetsky’ s ownership of this software and, there are no current plans for Mr. Shvetsky to sell the software to the Company or contribute it for additional shares of our common stock.
Through Sellavir, we are in the process of obtaining patents.
Status Of Any Publicity Announced New Products and Services
In late 2013, we began distributing a new product named RD1212, which we believe has a sleek new design. It has the ability to store measurements in internal memory and transfer this data to a personal computer (“PC”). The RadexRead software utilized in this device allows users to view values retrieved from the Geiger counter, map them on Google Maps, and share their data with other Radex users.
We estimate that the cost for us to purchase software from an independent party that performs the same functions as RadexRead would be approximately $30,000. This software allows us to retrieve data from the RD1212 device to a Windows PC, analyze it, and geo-tag the values and place them on Google Map. The software offers an interactive view of the world map with readings other Radex RD1212 users can, at their option, submit.
We believe RadexRead brings numerous advantages to us over our competition, specifically:
● RadexRead distinguishes the products we sell from other Geiger counters in its price range by providing free visualization software;
● RadexRead, to the best of our knowledge, is the only software for Geiger counters in the RD1212 price range that allows users to mark radiation values collected by Geiger counters and place them on a map;
● RadexRead is the only software in this Geiger counter class that allows users to share their data with each other over the Internet;
● RadexRead is designed for use by users with little or no scientific background, making it simple and fun to collect, visualize and share radiation measurements with the community; and
● RadexRead allows us to further increase its visibility through collaboration with Safecast, a worldwide volunteer organization that collects radiation data. RadexRead gives user an option of saving data online and submit its radiation and geographical data shared with other users to Safecast monitoring network.
We believe RadexRead has increased RADEX’s appeal over our competition and helped RD1212 become one of our top selling Geiger counters, despite the product’s manufacturer’s suggested retail price being almost forty percent higher than the previous top-selling device, the low-cost RD1503.
At the end of 2023, we discontinued the RADEX series, thereby eliminating our reliance on Quarta-Rad Ltd, the Russian producer, including any dependency on their firmware. We maintain ownership of the RadexRead component’s source code and are investigating the potential for its compatibility with the SMADEV series. Victor Shvetsky remains responsible for the ongoing maintenance of this product’s source code.
Our Website
Our website is located at www.quartarad.com and provides a description of our company, the products we sell and our contact information including our address, telephone number and e-mail address.
Trademarks And Patents
We do not have any registered trademarks or patents.
Need for any Government Approval of Principal Products or Services
We are also subject to federal, state and local laws and regulations generally applied to businesses, such as payroll taxes on the state and federal levels. Sales of the products we sell on consignment or sell to independent, third party distributors and services we may provide internationally are subject to U.S. and local government regulations and procurement policies and practices including regulations relating to import-export control. Violations of export control rules could result in suspension of our ability to export items from one or more businesses or the entire corporation. Depending on the scope of the suspension, this could have a material effect on our ability to perform certain international contracts. We believe that we are in conformity with all applicable laws in the states we conduct business and the United States.
Research and Development
From our inception through September 30, 2014, we have not spent any money on research and development activities. In the fourth quarter of 2014, we began spending money on research and development for a new software program that we may license to others and $155,000 to our related party supplier for the development of a new product for us to sell. In 2023 and 2024, we spent $0 and 0, respectively, on research and development with our related party. We have paid an independent contractor to improve and upgrade our website and Victor Shvetsky, our majority shareholder and director, has developed, at no cost to us, a software program called RadexRead, which was used in the manufacture of our RD1212 products. In 2018, we also entered into an agreement with our related party developer for $180,000 to develop software for the device RADEX AQ.
Employees
Presently, we do not have any employees other than our officers and directors who devote their time as needed to our business and expect to devote 10 hours per week.

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ITEM 1A. RISK FACTORS
Item 1A. Risk Factors
Not required to disclose since we are a “smaller reporting” company.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
Item 1B. Unresolved Staff Comments
None.

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ITEM 2. PROPERTIES
Item 2. Properties
We hold no real property. We do not presently own any interests in real estate. Our executive, administrative and operating offices are located at 1201 N. Orange St., Suite 700, Wilmington, DE 19801. We do not have a written lease with the landlord and rent space on a month-to-month basis at the rate of $30 per month.

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ITEM 3. LEGAL PROCEEDINGS
Item 3. Legal Proceedings
We are not involved in any legal proceedings nor are we aware of any pending or threatened litigation against us. None of our officers or director is a party to any legal proceeding or litigation. None of our officers or director has been convicted of a felony or misdemeanor relating to securities or performance in corporate office.

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ITEM 4. MINE SAFETY DISCLOSURE
Item 4. Mine Safety Disclosures
Not applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Beginning in February 2018, our common stock is traded on the OTC Bulletin Board under the symbol “QURT.” The following table sets forth the high and low bid information of our common stock on the OTC Bulletin Board for each quarter during the last two fiscal years, as reported by the OTC Bulletin Board. This information reflects inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions.
Year Period High Bid Low Bid
First Quarter 1.40 0.45
Second Quarter 1.40 0.70
Third Quarter 1.75 0.60
Fourth Quarter 1.50 0.77
Year Period High Bid Low Bid
February and March 0.45 0.21
Second Quarter 0.31 0.30
Third Quarter 0.42 0.30
Fourth Quarter 1.00 0.15
Common Stock Currently Outstanding
As of March 31, 2025, we have 15,899,483 shares of our common stock outstanding.
Holders
As of the date of this Report, we had 39 stockholders of record of our common stock.
Dividends
We have not declared any cash dividends on our common stock since our Date of Incorporation and do not anticipate paying any dividends in the foreseeable future. We plan to retain future earnings, if any, for use in our business. Any decision as to future payments of dividends will depend on our earnings and financial position and such other facts, as our Director deems relevant.
Transfer Agent
Globex Stock Transfer, LLC, is our independent stock transfer agent.
Recent Sales of Unregistered Securities
None.
Additional Information
Copies of our annual reports on Form 10−K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports, are available free of charge on the Internet at www.sec.gov. All statements made in any of our filings, including all forward-looking statements, are made as of the date of the document, in which the statement is included, and we do not assume or undertake any obligation to update any of those statements or documents unless we are required to do so by law.

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ITEM 6. SELECTED FINANCIAL DATA
Item 6. Selected Financial Data
Not required under Regulation S-K for “smaller reporting companies.”

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
Item 7. Management’s Discussion and Analysis of Financial Conditions and Results of Operations
This Annual Report on Form 10−K contains forward-looking statements. Our actual results could differ materially from those set forth because of general economic conditions and changes in the assumptions used in making such forward-looking statements. The following discussion and analysis of our financial condition and results of operations should be read together with the audited consolidated financial statements and accompanying notes and the other financial information appearing elsewhere in this Report. The analysis set forth below is provided pursuant to applicable Securities and Exchange Commission regulations and is not intended to serve as a basis for projections of future events. Refer also to “Risk Factors” and “Cautionary Note Regarding Forward Looking Statements” in Item 1 above.
The following is management’s discussion and analysis of financial condition and results of operations and is provided as a supplement to the accompanying 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 financial statements.
In this Annual Report on Form 10-K, “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 as of December 31, 2024 and 2023 and our results of operations for the year ended December 31, 2024 and December 31, 2023. You should refer to the Financial Statements and related Notes in conjunction with this discussion.
Results of Operations
General
We were incorporated under the laws of the State of Delaware on November 29, 2011 with fiscal year end in December 31. We were formed to distribute and sell detection devices to homeowners and interested consumers in North America. Initially, our business plan was to sell products on consignment from Star Systems Japan, a corporation owned by our majority shareholder. We purchased these products from Quarta-Rad, Ltd., a company owned by our minority shareholder. We also targeted direct-to-consumer sales since we believe we can distribute these products through the Internet. We have never been party to any bankruptcy, receivership or similar proceeding, nor have we undergone any material reclassification, merger, consolidation, purchase or sale of a significant amount of assets not in the ordinary course of business.
As of the date of this Form 10-K, we continue to expand our operations and expect to increase our revenues with additional working capital by increasing our advertising and marketing. Our chief executive officer and director, Victor Shvetsky, and our director and president, Alexey Golovanov, are our only employees. Mr. Shvetsky and Mr. Golovanov will devote at least ten hours per week to us but may increase the number of hours as necessary. In 2012, Messrs. Shvetsky and Golovanov’s companies have been the source of commissionable consignment sales and we did not carry any inventory. In 2013, we discontinued selling the products on consignment from our majority shareholder’s company for a commission or consignment fee and began purchasing inventory directly from Quarta-Rad, Ltd (Russia) (“QRR”) to sell on the Internet to direct consumers and to third party resellers. In 2012, when a reseller placed an order from us we purchased the product from our related party supplier and have it ship the product directly to the reseller. 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.
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 will focus on the expansion of this line of business.
Our administrative office is located at 1201 N. Orange St., Suite 700, Wilmington, DE 19801, which is a virtual office.
In 2023, we generated $508,316 in sales, and incurred a net profit of $44,492. In 2024, we generated $106.797 in sales and incurred a net loss of ($216,755). We anticipate that we will be able to increase our revenues through Sellavir’s software development. We believe that we have sufficient working capital to continue our operations for the next 12 months; however, we believe that we need to seek additional financing to expand our sales. As of December 31, 2024, we had $63,021 in cash on hand in our corporate bank account and liabilities of $400,976, which consisted of $271,326 in related party payables, and $129,650 in accounts payable and accrued expenses We currently have one officer and director. These individuals allocate time and personal resources to us on a part-time basis and devote approximately 10 hours per week to us. Our sales are to independent, third parties. Since May 2012, we have utilized the services of an independent contractor to assist us in selling the products. He is paid on a commission only basis.
In 2018, we continued 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 which expires in 2027. 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. The product pricing has been discounted pursuant to a discount agreement. We have extended this agreement thru 2027. 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.
During December 2011, Quarta-Rad we acquired Sellavir, Inc, a Delaware corporation, under common control, as a wholly owned subsidiary We acquired the company in exchange for 333,333 shares on 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 had 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 the radiation measurement. Beginning in 2024, Sellavir will strategically focus on harnessing its advanced AI capabilities and extensive experience to innovate within the call center industry.
The Company has two operating segments through the operations of Quarta-Rad and Sellavir. Net income for the year ended December 31, 2024 is comprised of:
Quarta Rad Sellavir Total
Sales $ 66,797 $ 40,000 $ 106,797
Cost of Good Sold 37,240 29,872 67,112
Gross Profit 29,557 10,128 39,685
Expenses:
General & administrative 52,817 88,715 141,532
Advertising - - -
Professional and consulting fees 102,517 2,500 105,017
Operating expenses 155,334 91,215 246,549
Net loss from operations (125,777 ) (81,087 ) (206,864 )
Interest and dividends -
Other expense - foreign currency translation loss
1,837 1,837
Other income - interest - related party - 46,812 46,812
Other expense - loss on loan modification - (11,469 ) (11,469 )
Unrealized gain on investments - 98,416 98,416
Realized loss on investments - (110,561 ) (110,561 )
Income tax benefit/(expense) (55,496 ) 20,520 (34,976 )
Net loss $ (181,273 ) $ (35,482 ) $ (216,755 )
Revenues for the year ended December 31, 2024 were $106,797 comprised of $66,797 from Quarta-Rad and $40,000 from Sellavir.
Operating expenses for the year ended December 31, 2024 were $246,549 comprised of $155,334 from Quarta-Rad and $91,215 from Sellavir.
Income tax expense/benefit for the year ended December 31, 2024 was $34,976 net expense, comprised of $55,496 income tax expense from Quarta-Rad and $20,520 income tax benefit from Sellavir.
Net loss for the year ended December 31, 2024 was $216,755, comprised of $181,273 net loss from Quarta-Rad and a $35,482 net loss from Sellavir.
FOR YEAR ENDED DECEMBER 31, 2023:
Quarta Rad Sellavir Total
Sales $ 321,316 $ 187,000 $ 508,316
Cost of Good Sold 233,944 91,009 324,953
Gross Profit 87,372 95,991 183,363
Expenses:
General & administrative 28,356 3,162 31,518
Advertising 49,940 - 49,940
Professional and consulting fees 110,671 4,000 114,671
Operating expenses 188,967 7,162 196,129
Net income (loss) from operations (101,595 ) 88,829 (12,766 )
Interest and dividends -
Other expense - foreign currency translation loss - (36 ) (36 )
Other income - interest - related party - 46,578 46,578
Unrealized gain on investments - 25,769 25,769
Realized loss on investments - (3,529 ) (3,529 )
Income tax benefit/(expense) 21,335 (33,162 ) (11,827 )
Net income/(loss) $ (80,260 ) $ 124,752 $ 44,492
Revenues for the year ended December 31, 2024 were $508,316 comprised of $321,316 from Quarta-Rad and $187,000 from Sellavir.
Operating expenses for the year ended December 31, 2024 were $196,129 comprised of $188,967 from Quarta-Rad and $7,162 from Sellavir.
Income tax expense/benefit for the year ended December 31, 2024 was $11,827 net expense, comprised of $21,335 income tax benefit from Quarta-Rad and $33,162 income tax expense from Sellavir.
Net Income for the year ended December 31, 2024 was $44,492, comprised of $80,260 net loss from Quarta-Rad and a $124,752 net income from Sellavir.
Critical Accounting Policy and Estimates. Our Management’s Discussion and Analysis of Financial Condition and Results of Operations section discusses our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the 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, foreign investments and contingencies. 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 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 financial statements included in this Annual Report on Form 10-K.
Note Receivable Related Party
Significant estimates made by management include the recoverability of the related party 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
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 each note. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and credit to notes receivable- related party. There was no reseve or allowance recorded at December 31, 2024 and 2023, respectively
The following discussion of our financial condition and results of operations should be read in conjunction with our audited financial statements for the year ended December 31, 2024 and 2023, respectively, together with notes thereto, which are included in this Annual Report on Form 10-K.
For the Year Ended December 31, 2024, compared to the Year Ended December 31, 2023
Revenues. Our net revenues decreased $401,519, or 78.99%, to $106,797 for the year ended December 31, 2024, compared with 508,316 for comparable period in 2023. The decrease was primarily due to a decrease in revenue recognized through Quarta-Rad due to reduced inventory and timing of recognized revenue in Sellavir.
Cost of Goods Sold. Our Cost of Goods Sold decreased 257,841, or 79.35% to $67,112 for the year ended December 31, 2024, compared to $324,953 for the comparable period in 2023. The decrease is due to the decrease in sales.
Operating Expenses. For the year ended December 31, 2024, our total operating expenses increased $50,420 or 25.71%, to $246,549 compared to $196,129 for the comparable period in 2023. Operating expenses were comprised of general and administrative expenses, professional and consulting fees and advertising costs. The components of operating expenses are discussed below.
● General and administrative expenses, including advertising, increased $60,074 or 73.75%, to $141,532 for the year ended December 31, 2024, from $81,458 for the comparable period in 2023. The increase is primarily attributable to an increase in contractor Sellavir expenses.
● Professional and consulting fees decreased $9,954 or 8.66% for the year ended December 31, 2024, to $105,017 from $114,971 for the comparable period in 2023. The decrease primarily due to reduced professional fees through Quarta-Rad.
Net Income. Our net loss increased by $261,247 to a net loss of ($216,755) for the year ended December 31, 2024, compared to net income of $44,492 for the year ended December 31, 2023. The increase is primarily attributable to a reduction of income in 2024.
QUARTA-RAD
For the Year Ended December 31, 2024, compared to the Year Ended December 31, 2023
Revenues Our net revenues decreased $254,519, or 79.21%, to $66,797 for the year ended December 31, 2024 compared with $321,316 or comparable period in 2023. The decrease was primarily due to inventory purchase restrictions.
Cost of Goods Sold. Our Cost of Goods Sold decreased $196,704 or 84.08% to $233,944 for the year ended December 31, 2024, compared to $233,944 for the comparable period in 2023. The decrease is primarily due to the decrease in sales.
Operating Expenses. For the year ended December 31, 2024, our total operating expenses decreased $33,633 or 17.80%, to $155,344 compared to $188,967 for the comparable period in 2023. The decrease was attributable to a decrease in advertising expenses.
Net Loss. Our net loss increased by $101,013, or 125.86% to a net loss of $181,273 for the year ended December 31, 2024 compared to a net loss of $80,260 for the year ended December 31, 2023. The increase is primarily attributable to a reduction of sales in 2024.
SELLAVIR
For the Year Ended December 31, 2024, compared to the Year Ended December 31, 2023
Revenues Our net revenues decreased $147,000 or 78.61% to $40,000 for the year ended December 31, 2024 compared with $187,000 for comparable period in 2023. The decrease was due to the timing of recognition of income.
Cost of Goods Sold. Our Cost of Goods Sold decreased $61,137 or 67.18% to $29,872 for the year ended December 31, 2024, compared to $91,009 for the comparable period in 2023. The decrease is due to a reduction of sales.
Operating Expenses. For the year ended December 31, 2024, our total operating expenses increased $84,053 or 1173.60% to $91,215 compared to $7,162 for the comparable period in 2023. The decrease was attributable to an increase contractor and general and administrative expenses.
Net Income. Our net loss increased $160,234 to a net loss of ($35,482) for the year ended December 31, 2024 compared to a net income of $124,752 for the year ended December 31, 2023. The increase is primarily attributable to a decrease in sales and increased expenses.
Liquidity and Capital Resources. During the year ended December 31, 2024, we used cash for operating expenses from cash on hand and the sale of products on the Internet and from independent third-party resellers.
Our total assets were $577,814 and $683,314 as of December 31, 2024 and December 31, 2023, respectively, consisting of $63,021 and $72,625, respectively, in cash. Our working capital was a deficit of $260,907 and $46,448 of as December 31, 2024, and December 31, 2023, respectively.
Our total liabilities were $400,976 and $289,721 as of December 31, 2024, and December 31, 2023, respectively.
Our stockholders’ equity was $176,838 and $393,593 as of December 31, 2024 and 2023, respectively. Our accumulated deficit was ($171,456) and retained earnings were $45,299 as of December 31, 2024 and December 31, 2023, respectively.
We had $75,124 in cash used by and $49,773 in cash provided by operating activities for the year ended December 31, 2024 and 2023, respectively.
We had $65,520 in cash provided by and $271,026 in cash used by investing activities for year ended December 31, 2024 and 2023, respectively.
We had no cash provided by financing activities for the year ended December 31, 2024 and 2023, respectively.
We do not have sufficient funds for pursuing our plan of operation, but we are in the process of trying to procure funds sufficient to fund our operations until we are able to finance our operations through cash flow. There can be no assurance that we will be able to procure funds sufficient for such purpose. If operating difficulties or other factors (many of which are beyond our control) delay our realization of revenues or cash flows from operations, we may be limited in our ability to pursue our business plan. Moreover, if our resources from obtaining additional capital or cash flows from operations, once we commence them, do not satisfy our operational needs or if unexpected expenses arise due to unanticipated pressures or if we decide to expand our business plan beyond its currently anticipated level or otherwise, we will require additional financing to fund our operations, in addition to anticipated cash generated from our operations. Additional financing might not be available on terms favorable to us, or at all. If adequate funds were not available or were not available on acceptable terms, our ability to fund our operations, take advantage of unanticipated opportunities, develop or enhance our business or otherwise respond to competitive pressures would be significantly limited. In a worst-case scenario, we might not be able to fund our operations or to remain in business, which could result in a total loss of our stockholders’ investment. If we raise additional funds through the issuance of equity or convertible debt securities, the percentage ownership of our stockholders would be reduced, and these newly issued securities might have rights, preferences or privileges senior to those of existing stockholders.
The Company had no formal long-term lines of credit or other bank financing arrangements as of March 31, 2025.
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.
Management intends to focus on raising funds going forward. The Company cannot provide any assurance or guarantee that it will be able to raise funds. Potential investors must be aware if it is unable to raise funds through the sale of its common stock and generate sufficient revenues, any investment made into the Company would be lost in its entirety.
The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
Income Tax Expense (Benefit)
The Company has a prospective income tax benefit resulting from a net operating loss carry forward and startup costs that may offset any future operating profit. The Company has net deferred tax assets of $73,151 with a valuation allowance of ($73,151).
Impact of Inflation
The Company believes that inflation has had a negligible effect on operations over the past year.
Capital Expenditures
The Company expended no amounts on capital expenditures for the years ended December 31, 2024 and 2023, respectively.
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.
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-$100,000). In addition to the website development 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. We intend to market our services through Sellavir to obtain new clients and opportunities.
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 six (6) 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 early stage. While we believe that the addition of employees is not required over the next six (6) 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 plants or 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.
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.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Item 7A. 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.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Item 8. Financial Statements and Supplementary Data
Our audited financial statements are set forth in this Annual Report beginning on page.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors
and Stockholders of Quarta-Rad, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Quarta-Rad, Inc. (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of operations, stockholders’ equity, and cash flows for the years then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of their operations and their cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
Going Concern
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has suffered recurring losses from operations and has an accumulated deficit. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current year audit of the financial statements that was communicated, or required to be communicated, to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Evaluation of the Allowance for Credit Losses on Notes Receivable
Description of the Matters:
As discussed in Notes 3 and 7 to the financial statements, the Company has notes receivable from a related entity which are secured by the assets of the related entity. Management’s assessment of the recoverability of these notes receivable involves significant judgment and estimates related to the borrowers’ financial condition and the value of the collateral securing the notes receivable. These were the principal considerations that led us to determine this as a critical audit matter.
How We Addressed the Matter in our Audit:
We evaluated the controls over the Company’s identification of the allowance estimation process, and of the process for such, including walkthroughs. To evaluate the related entities’ ability to repay notes, our audit procedures included, among others, reviewing the related entities’ financial statements, confirming with an independent member of the related entity as to the balance of the notes receivable and accrued interest, performing a sensitivity analysis in connection with the fair market value of the collateral and evaluating subsequent events to identify information that might affect the year-end estimate.
/s/ dbbmckennon
PCAOB #3501
We have served as the Company’s auditor since 2022.
San Diego, California
March 31, 2025
QUARTA-RAD, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2024 December 31, 2023
As of
December 31, 2024 December 31, 2023
ASSETS
Current Assets
Cash $ 63,021 $ 72,625
Accounts receivable 6,233 7,289
Marketable securities, trading 52,148
Notes receivable - related party - current portion 67,750 80,813
Inventory 3,060 30,398
Total Current Assets 140,069 243,273
Fixed Assets, Net 1,570
Other Assets
Notes receivable - related party, net of current portion and discount of $10,422 and $13,360 at December 31, 2024 and December 31, 2023, respectively 334,143 341,557
Interest receivable - related party 76,307 44,172
Trade receivable, net of discount of $18,063 and $21,488 at December 31, 2024 and December 31, 2023, respectively 26,525 28,673
Deferred tax asset - 24,069
Total Other Assets 436,975 438,471
TOTAL ASSETS $ 577,814 $ 683,314
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued expenses $ 129,650 $ 105,244
Payable - related parties 271,326 184,477
Total Liabilities 400,976 289,721
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 December 31, 2024 and December 31, 2023, respectively 1,568 1,568
Additional paid-in capital 346,726 346,726
Retained earnings/(accumulated deficit) (171,456 ) 45,299
Total Stockholders’ Equity 176,838 393,593
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 577,814 $ 683,314
The accompanying notes are an integral part of these consolidated financial statements.
QUARTA-RAD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the year ended
December 31, 2024
For the year ended
December 31, 2023
Sales -Quarta Rad, Inc., net $ 66,797 $ 321,316
Sales - Sellavir, Inc., net - related party 40,000 187,000
Total sales, net 106,797 508,316
Cost of goods sold - Quarta-Rad, Inc. 37,240 233,944
Cost of goods sold - Sellavir Inc. 29,872 91,009
Cost of goods sold 29,872 91,009
Gross profit 39,685 183,363
Expenses:
General and administrative 141,532 31,518
Advertising - 49,940
Professional and consulting fees 105,017 114,671
Operating expenses 246,549 196,129
Net loss from operations (206,864 ) (12,766 )
Other income - interest and dividends
Other income/(expense) - foreign currency translation gain/(loss) 1,837 (36 )
Other income - interest - related party 46,812 46,578
Other expense - loss on loan modification (11,469 ) -
Other income - unrealized gain/(loss) on investments 98,416 25,769
Other income - realized loss on investments (110,561 ) (3,529 )
Net loss before provision for income taxes (181,779 ) 56,319
Income tax expense 34,976 11,827
Net income/(loss) $ (216,755 ) $ 44,492
Income/(loss) per share - basic and diluted $ (0.01 ) $ -
Weighted average shares - basic and diluted 15,674,483 15,674,483
The accompanying notes are an integral part of these consolidated financial statements.
QUARTA-RAD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
For the Years Ended December 31, 2023 and 2022
Shares Amount Capital Deficit) Equity
Common Stock Additional
Paid-In
Retained Earnings/
(Accumulated
Total
Stockholders’
Shares Amount Capital Deficit) Equity
Balance, December 31, 2022 15,674,483 $ 1,568 $ 346,726 $ 807 $ 349,101
Net income - - - 44,492 44,492
Balance, December 31, 2023 15,674,483 $ 1,568 $ 346,726 $ 45,299 $ 393,593
Balance 15,674,483 $ 1,568 $ 346,726 $ 45,299 $ 393,593
Net loss - - - (216,755 ) (216,755 )
Net income (loss) - - - (216,755 ) (216,755 )
Balance, December 31, 2024 15,674,483 $ 1,568 $ 346,726 $ (171,456 ) $ 176,838
Balance 15,674,483 $ 1,568 $ 346,726 $ (171,456 ) $ 176,838
The accompanying notes are an integral part of these consolidated financial statements.
QUARTA-RAD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended
December 31, 2024
For the year ended
December 31, 2023
OPERATING ACTIVITIES:
Net income/(loss) $ (216,755 ) $ 44,492
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Depreciation
Foreign currency translation (income)/loss (1,837 )
Loss on loan modification 11,469 -
Amortization of note premium (3,208 ) -
Amortization of discount of trade receivable (3,425 )
Net realized loss on investments 110,561 3,529
Net unrealized gain on investments (98,416 ) (25,769 )
Income tax expense 34,976 11,827
Deferred income tax (10,907 ) -
Changes in operating assets and liabilities:
Accounts receivable 6,629 25,696
Inventory 27,338 155,670
Accrued interest receivable - related party (43,604 ) (51,578 )
Accounts payable and accrued expenses 24,406 21,945
Deferred revenue - related party - (187,000 )
Related party payable 86,849 50,125
Net cash provided/(used) by operating activities (75,124 ) 49,773
INVESTING ACTIVITIES:
Sale of marketable securities, trading 39,998 201,894
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 provided/(used) in Investing Activities 65,520 (271,026 )
Net change in cash (9,604 ) (221,253 )
Cash, beginning of period 72,625 293,878
Cash, end of period $ 63,021 $ 72,625
Supplemental cash flow information:
Cash paid for interest $ - $ -
Cash paid for income taxes $ 10,907 $ -
The accompanying notes are an integral part of these consolidated financial statements.
QUARTA-RAD, INC.
Notes to the Consolidated Financial Statements
December 31, 2024 and 2023
NOTE 1 - NATURE OF BUSINESS
Quarta-Rad, Inc. (the “Company”) was incorporated under the laws of the state of Delaware on November 29, 2011, under the name Quatra-Rad, Inc. and amended its Certificate of Incorporation on February 29, 2012 to change its name to Quarta-Rad, Inc. On July 2, 2012, the Company amended and restated its Certificate of Incorporation to increase its authorized shares of common stock to 50,000,000, $0.0001 par value from 1,500, no par value. The Company distributes detection devices, including but not limited to Geiger counters, to homeowners and interested customers in North America, Europe, and Asia. The Company targets homebuilders and home renovation contractors.
During April 2020, the Company 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 December 31, 2024.
During December 2020, the Company acquired Sellavir, Inc., a Delaware. Corporation, as a wholly owned subsidiary, as discussed in Note 7. 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. Sellavir is now focused on developing CenterEye, a call center software platform that leverages AI and advanced analytics to improve call center operations.
The current shareholder is currently funding operations. The Company has decided to explore plans to distribute the current operations in a spin-off.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States and are expressed in United States (US) dollar. The Company’s financial statements are prepared using the accrual method of accounting. The Company has elected a December 31 fiscal year end.
Going Concern and Management’s Plans
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As of December 31, 2024, the Company had an accumulated deficit of ($171,456) and incurred a net loss of $216,755 for the year then ended. The Company has $63,021 in cash and a working capital deficit of ($260,907) at December 31, 2024. The Company requires additional capital to meet its expected uses of cash from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued.
Management is implementing several plans to alleviate the conditions, giving rise to substantial doubt. These plans include:
● Focusing on Sellavir’s CenterEye Platform
● Implementing cost-reduction strategies to lower operating expenses.
● Negotiating extended payment terms with certain vendors; and
● Exploring strategic partnerships to generate near-term revenue.
● Raise Capital
While we believe that these plans will provide sufficient liquidity to meet obligations as they become due, there is no assurance the plans will be successfully executed or that additional financing will be available on terms acceptable to the Company. As such, substantial doubt about the Company’s ability to continue as a going concern remains.
Principles of Consolidation
The consolidated financial statements include the accounts Quarta-Rad, Inc. and its wholly-owned subsidiary Sellavir, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.
Cash and Cash Equivalents
The Company considers all highly liquid investments with maturity of three months or less when purchased to be cash equivalents. The Company maintains its cash balances in one financial institution. The balances are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. The Company’s balance may exceed that limit from time to time throughout the year.
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 the recoverability of the related party 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. The recoverability of the related party note receivable is a critical accounting estimate.
Advertising
The Company expenses advertising costs, primarily consisting of Amazon and other online marketing including search optimization, and placement in multiple publications, along with design and printing costs of sales materials, when incurred. Advertising expense for the years ended December 31, 2024 and 2023 amounted to $0 and $49,940, respectively.
Accounts Receivable
Accounts Receivable represent amounts from sales to various suppliers and online platforms. 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 December 31, 2024 and 2023, respectively.
Quarta-Rad sold certain inventory held on consignment to a third-party supplier for $55,734 payable in equal installments over ten years through October 2033. The Company recorded a discount of $21,488, using a 10% discount rate, related to the transaction The discount was recorded as a reduction of revenues. Amortization will be recorded through 2030 using the effective interest method. The current portion is included in Accounts Receivable with the remainder included in long-term trade receivables. Payments are due each October through 2033. The Company amortized $3,425 and $0 in 2024 and 2023, respectively. The balance of the discount at December 31, 2024 was $18,063.
Notes Receivable - related party
Notes Receivable - related party consists of loan agreements entered into by Sellavir discussed in Note 3.
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 100% of accounts receivable at December 31, 2024 and two selling platforms/distributors accounted for 88% of accounts receivable at December 31, 2023.
Quarta Rad purchased 100% of its inventory through a third party in 2023.
Inventory
Inventories are stated at the lower of cost or market (net realizable value). The Company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions. Write-downs and write-offs are charged to cost of goods sold. The Company’s inventory consists entirely of finished goods available for sale. The Company maintains an inventory reserve for damaged and obsolete inventory. The balance of the reserve was $300 and $6,000 at December 31, 2024 and 2023, respectively.
Equity Investments
Under ASU 2016-01, the Company’s accounting treatment for equity investments differs for those with and without readily determinable fair values. Equity investments with readily determinable fair values are recorded at fair value with changes in fair value recorded in “Unrealized Gain/Loss on Investments.” For equity investments without readily determinable fair values, the Company has elected the “measurement alternative,” and therefore carry these investments at cost, less impairment (if any), plus or minus changes in observable prices. On a quarterly basis, the Company reviews their equity investments without readily determinable fair values for impairment and consider a number of qualitative factors such as whether there is a significant deterioration in earnings performance, credit rating, asset quality, or business prospects of the investee in determining if impairment exists. If the investment is considered impaired, an impairment loss equal to the amount by which the carrying value exceeds its fair value is recorded through a charge to earnings. The impairment loss may be reversed in a subsequent period if there are observable transactions for the identical or similar investment of the same issuer at a higher amount than the carrying amount that was established when the impairment was recognized. Impairment as well as upward or downward adjustments resulting from observable price changes in orderly transactions for identical or similar investments are included in “Income - other.”
Realized gains or losses resulting from the sale of equity investments are calculated using the specific identification method and are included in “Realized gain(loss) on investments.”
Property and Equipment
Property and equipment are stated at cost. Depreciation is provided on the straight-line method over the estimated useful lives of the related assets, which is five years. Leasehold improvements are amortized over the shorter of their estimated useful lives or their related lease terms. Repairs and maintenance costs are charged to expense when incurred.
Long-Lived Assets
Property and equipment are stated at cost. Depreciation is provided on the straight-line method over the estimated useful lives of the related assets, which is five years. Leasehold improvements are amortized over the shorter of their estimated useful lives or their related lease terms. Repairs and maintenance costs are charged to expense when incurred.
Income Taxes
The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, “Accounting for Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year; and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if, based on the weight of available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has recorded a valuation allowance for the full amount of deferred tax asset of $73,150 at December 31, 2024.
ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is “more likely than not” that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable.
As of December 31, 2024, we have analyzed filing positions in each of the federal and state jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions. We have identified the U.S. federal and Delaware as our “major” tax jurisdictions. Generally, we remain subject to Internal Revenue Service examination of our 2021 through 2024 tax returns. However, we have certain tax attribute carry forwards, which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized.
We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position. Therefore, no reserves for uncertain income tax position have been recorded pursuant to ASC 740. In addition, we did not record a cumulative effect adjustment related to the adoption of ASC 740. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable.
Stock Based Compensation
The Company accounts for share-based compensation in accordance with the fair value recognition provision of FASB ASC 718, Compensation - Stock Compensation (“ASC 718”), prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the consolidated financial statements based on the estimated grant date fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).
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 are no dilutive instruments at December 31, 2024 and 2023.
Fair Value of Financial Instruments
The Company’s financial instruments as defined by ASC 825, “Financial Instruments” include cash, trade accounts receivable, and accounts payable and accrued expenses. All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at December 31, 2024 and 2023.
FASB ASC 820 “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, 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 for identical securities 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 preferred stock. 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 December 31, 2024 and 2023 about the Company’s financial assets measured at fair value on a recurring basis
Values at December 31, 2024:
SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS
Level Level Level Total
Assets at fair value:
Marketable securities $ 5 $ - $ - $ 5
Total assets at fair value $ 5 $ - $ - $ 5
Values at December 31, 2023:
Level Level Level Total
Assets at fair value:
Marketable securities $ 52,148 $ - $ - $ 52,148
Total assets at fair value $ 52,148 $ - $ - $ 52,148
Revenue Recognition
We adopted FASB Accounting Standards Codification ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The new guidance sets forth a new 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 new 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.
Our principal activities from which we generate our revenue are product sales.
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. 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. A reserve for sales returns and allowances is considered immaterial and, as a result, there was no reserve for sales returns and allowances, at December 31, 2024 and 2023, respectively.
We recognize revenue when we satisfy a performance obligation in a contract by transferring control over a product to a customer when 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 fulfillment cost and are included in cost of product sales.
We recognize consulting revenue over time as services are performed.
During 2022, Sellavir billed and received $220,000 from a related party for services to be performed, for AI consulting and development, during 2022 and throughout 2023. $187,000 is included as deferred revenue-related party at December 31, 2023 and recognized during the year ended December 31, 2023.
Recent Accounting Pronouncements
Accounting Standard Update 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”). In December 2023, the FASB issued ASU 2023-09, which requires more detailed income tax disclosures. The guidance requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as expanded information on income taxes paid by jurisdiction. The disclosure requirements will be applied on a prospective basis, with the option to apply them retrospectively. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the disclosure requirements related to the new standard.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures which provides guidance to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about reportable segment’s expenses. The new guidance must be adopted for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and retrospective application is required for all periods presented. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures.
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 has been adversely 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 potential factory to supply inventory in Kazakhstan, which received a shipment of 200 units at year-end.
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 In 2024, Sellavir has strategically focused 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. The success of call center product, CenterEye, depends on our ability to develop features that meet client needs, keep up with technological advancements, and address any software bugs or security vulnerabilities promptly. There is no guarantee that CenterEye will achieve market acceptance. Failure to gain traction could adversely affect our financial condition and results of operations.
NOTE 3-NOTE RECEIVABLE - RELATED PARTY
During March 2023, Sellavir entered into a loan agreement with a related Thai Corporation. for the purchase of land for development. The Company’s CEO and majority shareholder became the CEO and a minority shareholder in the Thai entity in May 2023. The Thai Corporation will repay Sellavir $9,000,000 Thai Bhat, valued at $261,038, at the time of the loan, which includes a premium of $16,038 plus interest a rate of 15% per annum. In January 2024, the note was amended to reduce the interest rate to 10% effective January 2024 and for Sellavir to receive 3% of the selling price of the secured property along with a one year extension for all payment due dates. The Company recorded a loss of $8,188 in connection with this loan modification. The Company marked the note to Thai Bhat, valued at $262,909 and $261,072 recording a gain/(loss) on foreign currency translation of $1,837 and ($36) at December 31, 2024 and 2023, respectively. The amount of unamortized premium at December 31, 2024 is $13,360. Payments are deferred until April 1, 2025, with quarterly principal payments due through April 1, 2029. Interest is payable at the end of the loan. The Company will amortize the premium over the life of the loan. Payments are payable in Thai Baht. The loan is secured by land located in Thailand. Sellavir received a $14,897 principal payment in April 2024 in connection with this loan.
The Company issued an additional loan to the Thai Corporation in May 2023 for $175,000, at the rate of 15% per annum. In January 2024, the note was amended to reduce the interest rate to 10% effective January 2024 and for Sellvir to receive 3% of the selling price of the secured property along with a one year extension for all payment due dates. The Company recorded a loss of $3,281 in connection with this loan modification. Payments are deferred until April 1, 2025, for the initial payment, with quarterly principal payments starting April 1, 2025 are due through April 1, 2029. 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 March 2025, the second note of $164,375 and accrued interest of approximately $28,000 was assigned to the Company’s CEO and majority shareholder to satisfy certain obligations outstanding discussed in Note 7.
Accrued interest at December 31, 2024 and December 31, 2023, for both loans is $76,307 and $44,172, respectively, included as a long-term asset, interest receivable - related party.
Principal amounts to be received for the two notes are as follows:
SCHEDULE OF NOTE RECEIVABLE
$261,038 Note $175,000 Note Total
$ 46,500 $ 21,250 $ 67,750
$ 62,000 42,500 104,500
$ 62,000 42,500 104,500
$ 62,000 42,500 104,500
$ 15,440 15,625 31,065
Totals $ 247,940 $ 164,375 $ 412,315
NOTE 4-PROPERTY AND EQUIPMENT
Property and Equipment at December 31, 2024 & 2023 consisted of:
SCHEDULE OF PROPERTY AND EQUIPMENT
Computer Equipment $ 4,005 $ 4,005
Accumulated Depreciation (3,235 ) (2,435 )
Net Property & Equipment $ 770 $ 1,570
The Company recognized $800 and $800 in depreciation expense for the years ended December 31, 2024 and 2023 respectively.
NOTE 5-INCOME TAXES
The Company is subject to taxation in the United States and California. The benefit from income taxes for the years ended December 31, 2024 and 2023 are summarized below:
SCHEDULE OF INCOME TAX PROVISION (BENEFIT)
Current:
Federal $ - $ -
State - -
Total current - -
Deferred:
Federal (38,174 ) 11,827
State - -
Change in valuation allowance 73,150 -
Total deferred 34,976 11,827
Income tax provision (benefit) $ 34,976 $ 11,827
At December 31, 2024, the Company had federal net operating loss and capital loss carry forwards of approximately $113,402 which may be offset against future taxable income through 2040.
At December 31, 2024 and 2023, deferred tax assets (liabilities) consist of the following:
SCHEDULE OF DEFERRED TAX ASSETS
Net operating loss carry-forwards $ 42,806 $ 14,777
Inventory reserve 2,457 1,260
Accrued interest - related party (3,033 ) (9,781 )
Accrued expenses - related party (15,120 ) (7,560 )
Unrealized loss on investments 46,040 25,373
Total deferred tax assets 73,150 24,069
Less: valuation allowance (73,150 ) -
Net deferred tax assets $ - $ 24,069
A reconciliation of the statutory federal income tax rate for the year ended December 31, 2024 and 2023 to the effective tax rate is as follows:
SCHEDULE OF STATUTORY FEDERAL INCOME TAX RATE RECONCILIATION
Expected federal tax 21.00 % 21.00 %
Valuation allowance (21.00 )% 0 %
Total 0 % 21 %
The Company follows ASC 740-10, Uncertainty in Income Taxes. The Company recognizes interest and penalties associated with uncertain tax positions as a component of income tax expense. The Company does not have any unrecognized tax benefits or a liability for uncertain tax positions at December 31, 2024 and 2023. The Company does not expect to have any unrecognized tax benefits within the next twelve months. The Company recognizes accrued interest and penalties associated with uncertain tax positions, if any, as part of income tax expense. There were no tax related interest and penalties recorded for 2024 and 2023. The Company’s income tax returns are subject to examination and adjustments by the IRS for at least three years following the year in which the tax attributes are, including prior year net operating losses.
NOTE 6-STOCKHOLDERS’ EQUITY
The Company was formed with one class of no-par value common stock and was authorized to issue 50,000,000 common shares, as amended. Voting rights are not cumulative and, therefore, the holders of more than 50% of the common stock could, if they chose to do so, elect all of the directors of the Company.
During January 2025, the Company issued 225,000 shares of restricted stock to Sellavir consultants valued at $222,625 the fair market value on the dates of issuance. The shares are fully vest at one year after date of issuance.
NOTE 7-RELATED PARTY TRANSACTIONS
The Company sells radiation monitors and to date purchased all of it inventory from Quarta-Rad, LTD (“QRR”), a company in Russia, which is owned by the Company’s minority shareholder, who disposed of their interest in 2024, through 2022. During 2023 the Company began purchasing inventory through a supplier in Kazakhstan. No inventory purchased from QRR during the years ended December 31, 2024 and 2023, respectively.
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. No inventory purchased from through Star during the years ended December 31, 2024 and 2023, respectively. The Company owes Star $42,502 and $42,502 on December 31, 2024, and 2023 respectively. The balances are due on demand and do not incur interest.
During July 2017 the Company entered into an agreement with the Russian affiliate 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 December 31, 2024 and 2023, is $91,850 and $91,850 respectively. The balances are due on demand and do not accrue interest.
In April 2021, the Company began compensating its CEO, who is the majority shareholder. The Company expensed $32,000 and $32,000 for the years ended December 31, 2024, and 2023, respectively. As of December 31, 2024 and 2023 the Company has accrued $120,000 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 December 31, 2024, and 2023, is due $136,973 and $56,125, respectively, for expenses paid on behalf of the Company. The balances are due on demand and do not accrue interest.
During 2024 and 2023, the Company, through Sellavir, Inc recognized $40,000 and $187,000, respectively, in services to STAR to develop software.
See Note 3 for additional related party transactions.
NOTE 8-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 years ended December 31, 2024 and 2023 is as follows:
SCHEDULE OF SEGMENT INFORMATION
For the year ended December 31, 2024
Quarta-Rad Sellavir Consolidated
Revenues $ 66,797 40,000 $ 106,797
Loss from operations (125,777 ) (81,087 ) (206,864 )
Net loss $ (181,273 ) (35,482 ) $ (216,755 )
For the year ended December 31, 2023
Quarta-Rad Sellavir Consolidated
Revenues $ 321,316 $ 187,000 $ 508,316
Income/(loss) from operations (101,595 ) 88,829 (12,766 )
Net income/(loss) $ (80,260 ) $ 124,752 $ 44,492
Total Assets As of December 31, 2024 As of December 31, 2023
Quarta-Rad $ 45,024 $ 151,789
Sellavir 532,790 531,525
Total Assets $ 577,814 $ 683,314
NOTE 9- COMMITMENTS AND CONTINGENCIES
Contingencies
The Company had a multi-year VAT tax examination by certain European tax authorities. The Company had originally accrued $100,000 in 2019 and made payment of $81,825 in payments through 2023. A balance of $0 and $0 was included in accrued expenses at December 31, 2024 and 2023 respectively. An amount of $18,175 was written of in 2023 due to the expiration of the statute of limitations.
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 10-SUBSEQUENT EVENTS
The Company has performed an evaluation of events occurring subsequent to December 31, 2024, through March 31, 2025. Based on its evaluation, other than the note below, there is nothing to be disclosed herein.
See Note 3 and Note 6 for discussions of a subsequent events.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures.
None.

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ITEM 9A. CONTROLS AND PROCEDURES
Item 9A. Controls and Procedures.
(a) Evaluation of Disclosure Controls and Procedures.
Disclosure controls and procedures are designed with an objective of ensuring that information required to be disclosed in our periodic reports filed with the Securities and Exchange Commission, such as this Annual Report on Form 10-K, is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission. Disclosure controls are also designed with an objective of ensuring that such information is accumulated and communicated to our management, including our chief executive officer, in order to allow timely consideration regarding required disclosures.
The evaluation of our disclosure controls by our principal executive officer included a review of the controls’ objectives and design, the operation of the controls, and the effect of the controls on the information presented in this Annual Report. Our management, including our chief executive officer, does not expect that disclosure controls can or will prevent or detect all errors and all fraud, if any. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Also, projections of any evaluation of the disclosure controls and procedures to future periods are subject to the risk that the disclosure controls and procedures may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Principal Financial Officer, of the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures as of December 31, 2024 were not effective in timely alerting them to material information which is required to be included in our periodic reports filed with the SEC as of the end of the period covering this report and to ensure that information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. There have been no material changes in our internal controls over financial reporting or in other factors that could materially affect, or are reasonably likely to affect, our internal controls over financial reporting during the years ended December 31, 2024 and 2023.
(b) Management’s Annual Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as such term as defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.
As of December 31, 2024, our management assessed the effectiveness of our internal control over financial reporting using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework (2013 Framework). Based on this assessment, our management concluded that, as of December 31, 2024, our internal control over financial reporting was not effective as of December 31, 2024 and identified the material weaknesses described below.
Description of Material Weaknesses and Management’s Remediation Initiatives
The following material weaknesses in our internal control over financial reporting were identified by management and the Company’s independent auditor as of December 31, 2024:
Ineffective control environment. The Company did not maintain an effective control environment, which is the foundation necessary for effective internal control over financial reporting. Specifically, the Company (i) did not maintain a functioning independent audit committee; (ii) did not have its Board of Directors review and approve significant transactions; (iii) had an insufficient number of personnel appropriately qualified to perform control design, execution and monitoring activities; (iv) had an insufficient number of personnel with an appropriate level of U.S. GAAP knowledge and experience and ongoing training in the application of U.S. GAAP and SEC disclosure requirements commensurate with the Company’s financial reporting requirements; (v) had inadequate segregation of duties consistent with control objectives; (vi) lack of written documentation of the Company’s key internal control policies and procedures over financial reporting (vii) lack of procedures to identify and disclose related party transactions and (viii) lack of procedures to properly relieve inventory. The Company is required under Section 404 of the Sarbanes-Oxley Act to have written documentation of key internal controls over financial reporting. The Company did not formally document policies and controls to enable management and other personnel to understand and carry out their internal control responsibilities including the lack of closing checklists, budget-to-actual analyses, balance sheet variation analysis, and pro-forma financial statements. Additionally, the Company did not have an adequate process in place to complete its testing and assessment of the design and operating effectiveness of internal control over financial reporting in a timely manner.
Ineffective controls over financial statement close and reporting process. The Company did not maintain effective controls over its financial statement close and reporting process. Specifically, the Company: (i) had insufficient preparation and review procedures for disclosures accompanying the Company’s financial statements; and (ii) did not provide reasonable assurance that accounts were complete and accurate and agreed to detailed support and that reconciliations of accounts were properly performed, reviewed and approved; and
Insufficient segregation of duties in our finance and accounting functions due to limited personnel. We do not have sufficient segregation of duties within accounting functions. During the year ended December 31, 2024, we had limited personnel that performed nearly all aspects of our financial reporting process, including, but not limited to, access to the underlying accounting records and systems, the ability to post and record journal entries and responsibility for the preparation of the financial statements. Due to the fact that these duties were often performed by the same person, this creates a lack of review over the financial reporting process that would likely result in a failure to detect errors in spreadsheets, calculations, or assumptions used to compile the financial statements and related disclosures as filed with the SEC. These control deficiencies could result in a material misstatement to our interim or annual financial statements that would not be prevented or detected.
As of the date of this report, our remediation efforts continue related to each of the material weaknesses that we have identified in our internal control over financial reporting, and additional time and resources will be required in order to fully address these material weaknesses. We have not been able to complete all actions necessary and test the remediated controls in a manner that would enable us to conclude that such controls are effective. We are committed to implementing the necessary controls to remediate the material weaknesses described below as our resources permit. These material weaknesses will not be considered remediated until (1) the new processes are designed, appropriately controlled and implemented for a sufficient period of time and (2) we have sufficient evidence that the new processes and related controls are operating effectively.
This annual report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our independent registered public accounting firm pursuant to the rules of the SEC that permit us to provide only management’s report in this annual report.
(c) Changes in internal controls.
There was no change in our internal control over financial reporting that occurred during the fourth quarter of our fiscal year ended December 31, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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ITEM 9B. OTHER INFORMATION
Item 9B. Other Information.
Not applicable.
PART III

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Item 10. Directors, Executive Officers and Corporate Governance.
Our director serves until his successor is elected and qualified. Our director elects our officers to a term of one (1) year and they serve until their successors are duly elected and qualified, or until they are removed from office. The board of directors has no nominating or compensation committees.
The name, address, age, and position of our present officers and director is set forth below:
Name
Age
Title(s)
Victor Shvetsky
Chairman, Chief Executive Officer, Principal Executive Officer, Chief Financial Officer, Principal Financial Officer, Principal Accounting Officer and Secretary
Alexey Golovanov
President and Director, removed during 2024.
The persons named above have held their offices/positions since November 29, 2011, and we expect them to hold their offices/positions at least until the next annual meeting of our shareholders.
Mr. Victor Shvetsky, Chairman, President, Chief Executive Officer, Chief Financial Officer
Victor Shvetsky is our Chairman, Chief Executive Officer, Chief Financial Officer and Secretary and has served in that capacity since November 29, 2011. Mr. Shvetsky is also the Chairman and Chief Executive Officer of Star Systems Corporation, which is a Japanese corporation he founded in 1998 and headquartered in Tokyo, Japan. Star Systems in engaged in the distribution and resale of various consumer products and provides IT services to customers in Japan. Since its inception, Mr. Shvetsky has grown Star Systems from inception to $6,000,000 (US) in revenues and believes he has established it as one of the leading distributers of Geiger counters in Japan having sold over 15,000 units in 2011. Mr. Shvetsky has established distribution channels for detection products with retailers, including department stores and specialty shops, as well as developing an online marketing presence through online retailers. Mr. Shvetsky has over 16 years’ experience in sales, marketing, product development and branding as well as corporate compliance in the executive office including overseeing his company’s accounting, compliance and finance departments.
Mr. Alexey Golovanov, President and Director
Alexey Golovanov is our President and Director and has served in this capacity since November 29, 2011. From July 2007 to the present, Mr. Golovanov has held several positions at Quarta-Rad, Ltd, a Russian Federation corporation that designs, manufactures and sells various detection devices around the world. Most recently, Mr. Golovanov is the Managing Director of Quarta-Rad, Ltd. and oversees the company’s product designs and product introductions in the various consumer markets in Russia and Europe. Mr. Golovanov has also overseen all of Quarta-Rad, Ltd.’s R&D activities, which led to the development of the RADEX and SINMOR model lines of detection devices. Mr. Golovanov has extensive experience in developing supply channels to procure the various components necessary for the production of cost-effective detection products, which allows the products to be distributed at competitive prices. Mr. Golovanov is no longer associated with the Company and left his position during 2024.
Possible Potential Conflicts
The OTCBB does not currently have any director independence requirements.
No member of management will be required by us to work on a full time basis. Accordingly, certain conflicts of interest may arise between us and our officer and director in that he may have other business interests in the future to which he devotes his attention, and he may be expected to continue to do so although management time must also be devoted to our business. As a result, conflicts of interest may arise that can be resolved only through his exercise of such judgment as is consistent with each officer’s understanding of his fiduciary duties to us. In the course of other business activities, they may become aware of business opportunities that may be appropriate for presentation to us, as well as the other entities with which they are affiliated. As such, there may be conflicts of interest in determining to which entity a particular business opportunity should be presented.
In an effort to resolve such potential conflicts of interest, our officers and sole director have orally agreed that any opportunities that they are aware of independently or directly through their association with us (as opposed to disclosure to them of such business opportunities by management or consultants associated with other entities) would be presented by them solely to us.
We cannot provide assurances that our efforts to eliminate the potential impact of conflicts of interest will be effective.
Currently we have two officers and directors and will seek to add additional officer(s) and/or director(s) as and when the proper personnel are located and terms of employment are mutually negotiated and agreed, and we have sufficient capital resources and cash flow to make such offers.
We cannot provide assurances that our efforts to eliminate the potential impact of conflicts of interest will be effective.
Code of Business Conduct and Ethics
On November 30, 2011, we adopted a Code of Ethics and Business Conduct which is applicable to our future employees, and which also includes a Code of Ethics for our chief executive and principal financial officers and any persons performing similar functions. A code of ethics is a written standard designed to deter wrongdoing and to promote:
● honest and ethical conduct,
● full, fair, accurate, timely and understandable disclosure in regulatory filings and public statements,
● compliance with applicable laws, rules and regulations,
● the prompt reporting violation of the code, and
● accountability for adherence to the code.
A copy of our Code of Business Conduct and Ethics has been filed with the Securities and Exchange Commission as Exhibit 14.1 to our registration statement.
Board of Directors
Our directors hold office until the completion of their term of office, which is not longer than one year, or until a successor(s) have been elected. Our directors’ term of office expires on April 17, 2024. All officers are appointed annually by the board of directors and, subject to existing employment agreements (of which there are currently none), serve at the discretion of the board. Currently, directors receive no compensation for their role as directors but may receive compensation for their role as officers.
Involvement in Certain Legal Proceedings
During the past ten years, no present director, executive officer or person nominated to become a director or an executive officer of us:
(1) had a petition under the federal bankruptcy laws or any state insolvency law filed by or against, or a receiver, fiscal agent or similar officer appointed by a court for the business or property of such person, or any partnership in which he was a general partner at or within two years before the time of such filing, or any corporation or business association of which he was an executive officer at or within two years before the time of such filing;
(2) was convicted in a criminal proceeding or subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);
(3) was subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from or otherwise limiting his involvement in any of the following activities:
i. acting as a futures commission merchant, introducing broker, commodity trading advisor commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;
ii. engaging in any type of business practice; or
iii. engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal or state securities laws or federal commodities laws; or
(4)
was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of an federal or state authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in paragraph (3) (i), above, or to be associated with persons engaged in any such activity; or
(5)
was found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and for which the judgment has not been reversed, suspended or vacated.
Committees of the Board of Directors
Concurrent with having sufficient members and resources, our board of directors will establish an audit committee and a compensation committee. We believe that we will need a minimum of five directors to have effective committee systems. The audit committee will review the results and scope of the audit and other services provided by the independent auditors and review and evaluate the system of internal controls. The compensation committee will manage any stock option plan we may establish and review and recommend compensation arrangements for the officers. No final determination has yet been made as to the memberships of these committees or when we will have sufficient members to establish committees. See “Executive Compensation” hereinafter.
We will reimburse all directors for any expenses incurred in attending directors’ meetings provided that we have the resources to pay these fees. We will consider applying for officers and directors’ liability insurance at such time when we have the resources to do so.

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ITEM 11. EXECUTIVE COMPENSATION
Item 11. Executive Compensation
Summary Executive Compensation Table
The following table shows, for the years ended December 31, 2024 and 2023, compensation awarded to or paid to, or earned by, our Chief Executive Officer (the “Named Executive Officer”).
Non-Equity
Nonqualified
Name
Incentive
Deferred
All
and
Stock
Option
Plan
Compensation
Other
principal
Salary
Bonus
Awards
Awards
Compensation
Earnings
Compensation
Total
position
Year
($)
($)
($)
($)
($)
($)
($)
($)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
Victor Shvetsky CEO, CFO and Director
$ 32,000
-
-
-
-
-
-
$ 32,000
$ 32,000
-
-
-
-
-
-
32,000
Alexey Golovanov, President
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
We have no formal employment arrangement with Mr. Shvetsky or Mr. Golovanov at this time. Mr. Shvetsky’s and Mr. Golovanov’s compensation has not been fixed or based on any percentage calculations. Mr. Shvetsky will make all decisions determining the amount and timing of their compensation and, for the immediate future, will not receive any compensation. Mr. Shvetsky’s compensation amounts will be formalized if and when his annual compensation exceeds $50,000.
Grants of Plan-Based Awards Table
We currently do not have any equity compensation plans. Therefore, none of our named executive officers received any grants of stock, option awards or other plan-based awards for the years ended December 31, 2024 and 2023.
Outstanding Equity Awards at Fiscal Year-End Table
None. We do not have any equity award compensation plans.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
The following table sets forth, as of December 31, 2024, the total number of shares owned beneficially by our officers and directors, and key employees, individually and as a group, and the present owners of 5% or more of our total outstanding shares. The shareholders listed below have direct ownership of their shares and possess sole voting and dispositive power with respect to the shares. As of April 17, 2024, we had 15,659,483 shares of common stock outstanding, which are held by 36 shareholders. There are not any pending or anticipated arrangements that may cause a change in control.
Title of Class Name and Address of Beneficial Owner(1) Amount and Nature of Beneficial Owner Percent of
Class
Common Stock Victor Shvetsky 12,268,103 78.27 %
All Officers and Directors as a Group (1 person) 12,268,103 78.27 %

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Item 13. Certain Relationships and Related Transactions, and Director Independence.
Our promoters are Mr. Shvetsky, our chairman, chief executive officer, chief financial officer and secretary, and Mr. Golovanov, our president.
Our office and mailing address is 1201 N. Orange St., Suite 700, Wilmington, DE 19801.
On November 29, 2011, we issued 12,000,000 post-split shares of our common stock to Victor Shvetsky, our chief executive officer, chief financial officer, secretary and director and 3,000,000 post-split shares of our common stock to Alexey Golovanov, our president. These shares were issued in exchange for services valued at $1,200 and $300, respectively or $1.00 per share.
Our officers and sole director are required to commit time to our affairs and, accordingly, may have conflicts of interest in allocating management time among various business activities. In the course of other business activities, they may become aware of business opportunities that may be appropriate for presentation to us, as well as the other entities with which they are affiliated. As such, there may be conflicts of interest in determining to which entity a particular business opportunity should be presented.
In an effort to resolve such potential conflicts of interest, our officers and directors have orally agreed that any opportunities that they are aware of independently or directly through their association with us (as opposed to disclosure to them of such business opportunities by management or consultants associated with other entities) would be presented by them solely to us.
We cannot provide assurances that our efforts to eliminate the potential impact of conflicts of interest will be effective.
Mr. Golovanov, our president, owns Quarta-Rad, Ltd. (“Quarta-Rad Russia”), which is part of the International Scientific and Technical Park of Moscow Engineering and Physical Institute (“MIFI”) and which is a developer and manufacturer of radiometric, acoustical and pyrometric devices, radiation detecting indicators, Radon detecting indicators and acoustical leak detectors that are used by fuel-energy enterprises of Moscow and other cities of the Russian Federation. In 2011 and 2012, we acted as a consignment agent and purchased products from Quarta-Rad Russia pursuant to a written agreement and sold the merchandise to Star Systems Japan Corporation, a company owned by our majority shareholder, Victor Shvetsky. For the years ended December 31, 2024 and 2023, we purchased $-0- and $506,834, respectively, of inventory from Quarta-Rad Russia and, as of December 31, 2024 and 2023, we owed Quarta-Rad Russia $91,850 and $91,850 in related party payables. In 2017, we entered into an agreement with our related party developer for $180,000 to develop software for the device RADEX AQ. The amount above due at December 31, 2024 and 2023 primarily relates to the development contract.
We believe that each reported transaction and relationship is on terms that are at least as fair to us as would be expected if those transactions were negotiated with third parties.
There have been no other related party transactions, or any other transactions or relationships required to be disclosed pursuant to Item 404 of Regulation S-K.
With regard to any future related party transaction, we plan to fully disclose any and all related party transactions, including, but not limited to, the following:
● disclose such transactions in prospectuses where required;
● disclose in any and all filings with the Securities and Exchange Commission, where required;
● obtain disinterested directors’ consent; and
● obtain shareholder consent where required.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Item 14. Principal Accountant Fees and Services.
The following table sets forth the aggregate fees billed or expected to be billed to our company for professional services rendered by our independent registered public accounting firms, for the fiscal years ended December 31, 2024 and 2023:
Audit Fees $ 53,000 $ 51,601
Audit Related Fees - -
Tax Fees - -
All Other Fees - -
Total Fees $ 53,000 $ 51,601
Audit Fees. Consist of fees billed for professional services rendered for the audits of our financial statements, reviews of our interim financial statements included in quarterly reports, services performed in connection with regular filings with the Securities and Exchange Commission and other services that are normally provided for the fiscal years ended December 31, 2024 and 2023, in connection with statutory and regulatory filings or engagements.
Audit Related Fees. None.
Policy on Pre-Approval by Audit Committee of Services Performed by Independent Registered Public Accounting Firm
Our board of directors pre-approves all services provided by our independent registered public accounting firm. All of the above services and fees were reviewed and approved by our board of directors before the respective services were rendered.
For the 2024 and 2023 audits, our Director has considered the nature and amount of fees billed or expected to be billed by DBB McKennon, and believes that the provision of services for activities unrelated to the audit was compatible with maintaining DBB’s independence.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
Item 15. Exhibits, Financial Statement Schedules.
EXHIBITS
The following exhibits are filed as part of this Report, pursuant to Item 601 of Regulation S-K.
Exhibit Number
Description of Exhibits
3.1*
Certificate of Incorporation
3.1a*
Certificate of Amendment to Certificate of Incorporation
3.1b*
Certificate of Amendment to Certificate of Incorporation
3.1c*
Certificate of Correction to Certificate of Amendment of Certificate of Incorporation
3.2*
Bylaws
14.1*
Code of Ethics
31.1**
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934*.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*.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*.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*.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
Cover Page Interactive Data File (embedded within the Inline XBRL document)
*
Previously filed.
**
Filed herewith.