0001493152-22-014799.txt : 20220523 0001493152-22-014799.hdr.sgml : 20220523 20220523162415 ACCESSION NUMBER: 0001493152-22-014799 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 41 CONFORMED PERIOD OF REPORT: 20220331 FILED AS OF DATE: 20220523 DATE AS OF CHANGE: 20220523 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Newpoint Financial Corp CENTRAL INDEX KEY: 0001445831 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MEMBERSHIP SPORTS & RECREATION CLUBS [7997] IRS NUMBER: 472653358 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-54953 FILM NUMBER: 22951876 BUSINESS ADDRESS: STREET 1: 433 NORTH CAMDEN DRIVE, SUITE 725 CITY: BEVERLY HILLS STATE: CA ZIP: 90210 BUSINESS PHONE: (860) 574-9190 MAIL ADDRESS: STREET 1: 433 NORTH CAMDEN DRIVE, SUITE 725 CITY: BEVERLY HILLS STATE: CA ZIP: 90210 FORMER COMPANY: FORMER CONFORMED NAME: JUDO Capital Corp. DATE OF NAME CHANGE: 20170329 FORMER COMPANY: FORMER CONFORMED NAME: Classic Rules Judo Championships, Inc. DATE OF NAME CHANGE: 20080922 10-Q 1 form10-q.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended: March 31, 2022

 

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from __________ to __________

 

Commission File Number: 000-54953

 

Newpoint Financial Corp.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

 

47-2653358

(State or other jurisdiction
of incorporation)
  (IRS Employer
Identification No.)

 

433 North Camden Drive, Suite 725

Beverly Hills, CA 90210

(Address of principal executive offices)

 

(860) 574-9190

(Registrant’s telephone number, including area code)

 

 

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act: None.

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

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

 

Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
  Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

 

As of May 20, 2022, there were 19,153,923 shares outstanding of the registrant’s common stock, par value $0.001.

 

 

 

 

 

 

TABLE OF CONTENTS 

 

    Page No.
     
PART I - FINANCIAL INFORMATION 3
Item 1. Financial Statements 3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 12
Item 3. Quantitative and Qualitative Disclosures About Market Risk 14
Item 4 Controls and Procedures 14
     
PART II - OTHER INFORMATION 15
Item 1. Legal Proceedings 15
Item 1A. Risk Factors 15
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 15
Item 3. Defaults Upon Senior Securities 15
Item 4. Mine Safety Disclosures 15
Item 5. Other Information 15
Item 6. Exhibits 15

 

2
 

 

PART I

 

Item 1. Financial Statements.

 

NEWPOINT FINANCIAL CORP.

UNAUDITED CONDENSED BALANCE SHEETS

 

       2022   2021 
      March 31,   December 31, 
   Note  2022   2021 
ASSETS:             
Current Assets:             
Cash     $-   $5,843 
Interest Receivable      4,860    - 
TOTAL CURRENT ASSETS     $4,860   $5,843 
              
Other Assets:             
Investments  4   50,000,000    50,000,000 
Deposits  5   1,000,000      
Credit facilities  6   330,800    163,500 
Total Other Assets      51,330,800    50,163,500 
              
TOTAL ASSETS     $51,335,660   $50,169,343 
              
LIABILITIES & STOCKHOLDERS’ DEFICIT:             
              
Current Liabilities:             
Accounts Payable     $35,631   $31,730 
Accounts Payable - Related Parties  7   235,821    68,021 
Total Current Liabilities     $271,452   $99,751 
              
Non-Current Liabilities:             
Loan payable-Related Parties  7   51,330,800    50,163,500 
              
Total Liabilities     $51,602,252   $50,263,251 
              
Stockholders’ Deficit:             
Preferred Stock, par value $0.001, 50,000,000 shares Authorized, 0 Issued or Outstanding at March 31, 2022 and December 31, 2021      -      
Common Stock, par value $0.001, 100,000,000 shares Authorized, 19,153,923 shares Issued and Outstanding at March 31, 2022 and 216,185 shares Issued at December 31, 2021      19,154    19,154 
Additional Paid-In Capital      419,028    419,028 
Accumulated Deficit  8   (704,774)   (532,090)
              
Total Stockholders’ Deficit      (266,592)   (93,908)
              
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT     $51,335,660   $50,169,343 

 

The accompanying notes are an integral part of these condensed financial statements

 

3
 

 

NEWPOINT FINANCIAL CORP.

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2022 AND 2021

 

E

   2022   2021 
   March 31,   March 31, 
   2022   2021 
         
Revenues  $

-

   $

-

 
           

Expenses:

      
Professional fees   14,457      
General and administrative expense   20,621    20,924 
           
Total Operating Expenses   35,078    20,924 
           
Operating Loss  $(35,078)  $(20,924)
           
Other Income (Expense)          
Interest Income   4,860    - 
Interest expense   (142,466)   - 
           
Total Other Income (Expense)   (137,606)   - 
           
Net Loss  $(172,684)  $(20,924)
           
Basic & Diluted Loss per Common Share  $(0.01)  $(0.00)
           
Weighted Average Common Shares Outstanding   19,153,923    15,111,035 

 

The accompanying notes are an integral part of these condensed financial statements

 

4
 

 

NEWPOINT FINANCIAL CORP.

UNAUDITED CONDENSED STATEMENTS OF STOCKHOLDERS’ DEFICIT

THREE MONTHS ENDED MARCH 31, 2022 AND 2021

 

                                    
  Preferred Stock   Common Stock   Additional       Total 
  Shares  

Par Value

   Shares  

Par Value

  

Paid-In Capital

  

Accumulated Deficit

  

Stockholders’ Deficit

 
                             
Balance as of December 31, 2021                -   $-    19,153,923   $19,154   $419,028   $(532,090)  $(93,908)
                                    
Net Loss for the Three Months Ended March 31, 2022   -    -    -    -    -    (172,684)   (172,684)
                                    
Balance as of March 31, 2022   -   $-    19,153,923   $19,154   $419,028   $(704,774)  $(266,592)

 

                                    
  

Preferred Stock

  

Common Stock

   Additional       Total 
   Shares  

Par Value

   Shares  

Par Value

  

Paid-In Capital

  

Accumulated Deficit

  

Stockholders’ Deficit

 
                             
Balance as of December 31, 2020               -   $-    216,185   $216   $350,931   $(444,912)  $(93,765)
                                    
Issue of Common Shares   -    -    18,937,738    18,938    68,097    -    87,035 
                                    
Net Loss for the Three Months Ended March 31, 2021   -    -    -    -    -    (20,924)   (20,924)
                                    
Balance as of March 31, 2021   -   $-    19,153,923   $19,154   $419,028   $(465,836)  $(27,654)

 

The accompanying notes are an integral part of these condensed financial statements

 

5
 

 

NEWPOINT FINANCIAL CORP.

UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2022 AND 2021

 

N  2022  $2021
   For the Three Months Ended 
   March 31, 
   2022   2021 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net Loss  $(172,684)  $(20,924)
Expenses paid by Related Party   167,800    20,924 
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:           
Changes In:          
Accounts Payable   3,901    - 
Interest Receivable   (4,860)   - 
Net Cash Provided by (Used in) Operating Activities   (5,843)   - 
           
Net Increase (decrease) in Cash   (5,843)   - 
Cash at Beginning of Period   5,843    - 
           
Cash at End of Period  $-   $- 
           
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:          
Cash paid during the Period for:          
Interest  $-   $- 
Income Taxes  $-   $- 
           
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES          
Deposit paid to AMIC, Inc. financed with related party debt  $1,000,000   $- 
Credit Commitment funded with related party debt  $167,300   $- 

 

The accompanying notes are an integral part of these condensed financial statements

 

6
 

 

Newpoint Financial Corp.

Notes to Financial Statements

March 31, 2022 and March 31, 2021

 

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

 

Newpoint Financial Corp. (“Newpoint”) was incorporated in the State of Delaware on November 16, 2005 under the name Blue Ribbon Pyrocool, Inc. (“Blue Ribbon”). Blue Ribbon changed its name to Classic Rules Judo Championships, Inc. on July 15, 2008 then to Judo Capital Corp on February 15, 2017. The Company formed a subsidiary in the State of Connecticut on August 13, 2008 named Classic Rules World Judo Championships, Inc. to develop an annual judo championship tournament. Collectively the entities are referred to as “the Company”. On June 2, 2014, the Company ceased its principal activities of hosting and sponsoring judo tournaments. The Company had planned to operate in real estate investment activities focused in the New York City metropolitan area. On February 28, 2018, the Company ceased its plans to operate in the real estate investment market. On January 19, 2021, the Company had a 500-1 reverse stock split with FINRA and Change of Control. All share and per share information has been retroactively adjusted to reflect the reverse stock split. On February 9, 2021, new officers and directors were elected and the name of the Company was changed to Newpoint Financial Corp. (Delaware).

 

NOTE 2 – GOING CONCERN

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has generated interest on the credit facility provided of $4,860 for the quarter ended 31 March 2022 and has incurred net losses of $172,684 and $20,924 during the Quarter ended March 31, 2022 and March 31, 2021. The Company has an accumulated deficit of $704,774 and $532,090 as of March 31, 2022 and December 31, 2021, and has experienced negative cash flows from operations. These circumstances raise some doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

The Company to date has been financially supported by related party entities which are also owned by the majority shareholders of the Company. The Company will continue to be financially supported by related party entities until such time as the company generates sufficient cashflow to support its expense requirements or completes an external capital raising.

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Estimates

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates. Actual results and outcomes may differ materially from the estimates as additional information becomes known.

 

Cash and Cash Equivalents

 

Cash and cash equivalents includes highly liquid instruments with original maturities of three months or less.

 

Investments

 

Short-term investments, Fixed maturities and equity securities

 

Short-term investments comprise investments with a maturity greater than three months up to one year from the date of purchase. Short-term investments are carried at fair value, with realized and unrealized gains and losses included in net earnings are reported as net realized and unrealized gains and losses, respectively.

 

7
 

 

Newpoint Financial Corp.

Notes to Financial Statements

March 31, 2022 and 2021

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Investments in debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities. Trading securities are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period included in earnings. Debt securities held as investments that the Company classifies as held-to-maturity securities are recorded at amortized cost, net of a valuation allowance for credit losses. Investments in debt securities not classified as either held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities are recorded at fair value, with the change in fair value during the period excluded from earnings and recorded net of tax as a component of other comprehensive income.

 

Investments in equity securities are reported at fair value with realized and unrealized gains and losses included in net earnings are reported as net realized and unrealized gains and losses, respectively. If there are no readily determinable fair values, investments in equity securities are measured at cost less impairment.

 

Valuation allowance for fixed income securities

 

Management evaluates impairment losses for all HTM securities each quarter. The HTM securities are evaluated for potential impairment on investments not measured at fair value through net earnings. An allowance for impairment is derived based on various data sources, multiple key inputs and forecast scenarios. These include default rates specific to the individual security, vintage of the security, geography of the issuer of the security, industry analyst reports, credit ratings and consensus economic forecasts. Securities that meet any one of the criteria included above will be subject to a discounted cash flow analysis by comparing the present value of expected future cash flows with the amortized cost basis. Projected cash flows are driven primarily by assumptions regarding probability of default and the timing and amount of recoveries associated with defaults.

 

Fair Value of Financial Instruments

 

The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The carrying value of cash and cash equivalents and accounts payable approximate their fair value because of the short-term nature of these instruments and their liquidity. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments.

 

Income Taxes

 

Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss and credit carryforwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. The Company records an estimated valuation allowance on its deferred income tax assets if it is not more likely than not that these deferred income tax assets will be realized.

 

The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of March 31, 2022 and December 31, 2021, the Company has determined it does not have any uncertain tax positions.

 

Segment Reporting

 

The Company’s business currently operates in one segment.

 

8
 

 

Newpoint Financial Corp.

Notes to Financial Statements

March 31, 2022 and March 31, 2021

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Net Loss per Share

 

The computation of basic net loss per common share is based on the weighted average number of shares that were outstanding during the year. The computation of diluted net loss per common share is based on the weighted average number of shares used in the basic net loss per share calculation plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding using the treasury stock method.

 

Recently Issued Accounting Pronouncements

 

The Company reviews new accounting standards as issued. Although some of these accounting standards issued or effective after the end of the Company’s previous fiscal year may be applicable to the Company, it has not identified any standards that it believes merit further discussion. The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows.

 

Related Parties

 

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20 the related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

 

The financial statements include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

 

NOTE 4 – INVESTMENTS

 

On December 10, 2021, the Company entered into a stock purchase agreement with Novea Inc., a Wyoming corporation (“Novea”), whereby we acquired five hundred thousand (500,000) units (“Units”), each Unit having a stated value of $100 and consisting of (i) one share of Series B Convertible Redeemable Preferred Stock (“Novea Preferred Stock”) and (ii) 2.503474 shares of common stock of Novea (“Novea Common Stock”). We also acquired a warrant exercisable for ten years for additional shares of common stock of up to $50,000,000, subject to adjustment as set forth therein. In aggregate, we acquired (i) 500,000 shares of Novea Preferred Stock, (ii) 1,251,737 shares of Novea Common Stock, representing ten percent (10%) of Novea’s common stock, and (iii) one warrant to purchase up to $50,000,000 of Novea Common Stock. Novea is a financial and insurance services software company.

 

As consideration for such purchase, Newpoint Financial Corp (a Wyoming corporation), now known as NPFC SPV 1, Inc., an entity that was owned by the current controlling shareholders, issued to Novea ten (10) secured $5,000,000 notes (each a “Collateral Note”), totaling $50,000,000. The Collateral Notes are due on demand and we have the right to prepay the Collateral Notes at any time on NPFC SPV 1, Inc’s behalf.

 

As of March 31, 2022 and December 31, 2021, investments in debt securities include mandatorily redeemable preferred stock which is classified as held to maturity, with a term ending in December 2031. The amortized cost was $50,000,000 as of March 31, 2022 and December 31, 2021. The Novea Common Stock and warrants purchased as part of the transaction are considered to have a de minimis value as of December 31, 2021. Novea issued 1,251,737 shares of Novea Common Stock to the Company, representing ten percent (10%) of Novea’s common stock outstanding. The shares issued had no par value. Novea is a private company and does not have a readily determinable fair value.

 

9
 

 

Newpoint Financial Corp.

Notes to Financial Statements

March 31, 2022 and March 31, 2021

 

NOTE 5 - DEPOSITS

 

In August 2021, the Company entered into an agreement with Citadel Risk Holdings, Inc., (“CRHI”) which owns all the shares of American Millennium Insurance Co., (“AMIC”) a New Jersey based insurance company. We agreed to purchase 3.75% of AMIC’s outstanding shares per year over the course of 10 years for an aggregate total 37.5% of outstanding shares at the end of the term. Closing is expected to occur in 2022 subject to receipt of regulatory approval and other customary closing conditions. As at March 31, 2022, NPFC SPV1, Inc. had made a deposit of $1,000,000 to AMIC, on behalf of the Company, as part of an agreement that remains subject to approval.

 

NOTE 6 – CREDIT COMMITMENT

 

The Company entered into a five (5) year revolving credit facility agreement with Novea dated as of December 10, 2021 (“Credit Facility”). The Credit Facility provides for a revolving credit with a commitment equal to the lesser of: (i) $5,000,000; or (ii) on any amount greater than $500,000, the lender shall only disburse any such excess up to the amount of 50% of the qualified receivables outstanding of the borrower, bearing interest at LIBOR plus 5.25%. As of March 31, 2022 and December 31, 2021 there was $4,669,200 and $4,836,500 respectively of additional borrowings were available to Novea subject to the borrowing criteria.

 

NOTE 7 – RELATED PARTY TRANSACTIONS AND NOTE PAYABLE

 

   March 31, 2022   December 31, 2021 
Due to Related Parties          
Newpoint Financial Corp (Wyoming) (1)  $51,142,466   $50,000,000 
Newpoint Reinsurance Limited (2)  $163,500   $163,500 
Newpoint Capital Limited (3)  $260,655   $68,021 
Total  $51,566,621   $50,231,521 

 

  (1) Newpoint Financial Corp (a Wyoming corporation), now known as NPFC SPV 1, Inc. entered into an agreement dated December 13, 2021 with the Company as part of the transaction to provide the collateral notes to Novea. In December 2021 the Company entered into a Loan Facility Agreement (the “LFA”) with NPFC SPV I, an entity owned by the Company’s principal stockholders, in connection with the Stock Purchase Agreement between the Company and Novea (see Note 4). The LFA provides total principal of $50,000,000 and is due in December 2031. If the Company is in default, as defined, at any time during the term of the LFA, then the lender can demand repayment within 30 days. The LFA calls for interest at a fixed rate of 1% per annum. Interest can be deferred for up to two years upon the Company’s request. As of March 31, 2022, NPFC SPV1, Inc. had made a deposit of $1,000,000 to AMIC, on behalf of the Company, as part of an agreement that remains subject to approval. The remaining portion of $142,466 relates to interest incurred on amounts outstanding.
     
  (2) Newpoint Reinsurance Limited registered under the provisions of the Nevis business Corporation 1984 Ordinance, as amended. In December 2021 the Company entered into a Revolving Credit Facility Agreement (the “RCFA”) with Newpoint Reinsurance Company Limited, an entity owned by the Company’s majority shareholder. The RCFA provides for available borrowings up to $1,000,000 for a term of three years and an option to roll the facility. As of March 31, 2022 and December 31, 2021 the Company has additional available borrowings of $836,500 after it was provided $163,500 as a related party transaction for the credit commitment agreement with Novea. As of March 31, 2022 no further payments have been made from Newpoint Reinsurance Limited.
     
  (3) Newpoint Capital Limited, a company registered in the United Kingdom has provided $260,655 of related party transactions to the Company as of March 31, 2022 for the payment of amounts requested per the credit agreement with Novea totaling $167,300 and the remaining portion for accounting, auditor fees and fees associated with filings with the SEC for annual and quarterly reports.

 

10
 

 

Newpoint Financial Corp.

Notes to Financial Statements

March 31, 2022 and March 31, 2021

 

NOTE 8 – STOCKHOLDERS’ DEFICIT

 

Preferred Stock

 

The Company is authorized to issue 50,000,000 shares of preferred stock with a par value of $0.001 per share. There were no preferred shares issued or outstanding as of March 31, 2022 or December 31, 2021.

 

Common Stock

 

The Company is authorized to issue up to 100,000,000 shares of common stock with a par value of $0.001 per share. As at March 31, 2022 there were 19,153,923 shares of common stock issued and outstanding and at December 31, 2021 there were 19,153,923 shares of common stock issued and outstanding. During the three months ended March 31, 2021, the Company issued 18,937,738 shares to settle related party liabilities.

 

NOTE 9 – SUBSEQUENT EVENTS

 

We are in the process of seeking regulatory approval for the Company’s acquisitions of AMIC and CRHI shares. Upon approval, we expect the transactions to be completed sometime in 2022.

 

11
 

 

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

 

Forward-Looking Statements

 

This report contains forward-looking statements. The statements regarding Newpoint Financial Corp. contained in this report that are not historical in nature, particularly those that utilize terminology such as “may,” “will,” “should,” “likely,” “expects,” “anticipates,” “estimates,” “believes” or “plans,” or comparable terminology, are forward-looking statements based on current expectations and assumptions, and entail various risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements.

 

Important factors known to us that could cause such material differences include: uncertainties associated with the following:

 

 

Inadequate capital and barriers to raising the additional capital or to obtaining the financing needed to implement our business plans;

     
  Our failure to earn revenues or profits;
     
 

Risks associated with potential acquisitions, including increased operating expenses and cash requirements; assimilation of operations, intellectual property and products of an acquired company, and

     
  Lack of an active trading market for our common stock;

 

We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law. You are advised, however, to consult any future disclosures we make on related subjects in future reports to the SEC.

 

Overview

 

Newpoint Financial Corp., a Delaware corporation (the “Company,” “we,” “us,” or “our”) is a holding company that strategically invests primarily in regulated entities such as banks and insurance companies. These investments may result in us acquiring a controlling or non-controlling interests of these entities. To date, we have entered into three such transactions (one of which has closed): in December 2021 we acquired a 10% interest in Novea, Inc., a financial and insurance services software company; we have also entered into an agreement for the acquisition of an interest in American Millennium Insurance Co., a New Jersey based insurance company through purchase of shares of its parent holding companies. Closing is subject to receipt of regulatory approvals and other customary closing conditions.

 

Since our current investments (one of which has closed) constitute (or will constitute) a minority interest in these companies, we anticipate that our income will be dependent on the ability of these companies to generate revenue and payment of dividends.

 

Critical Accounting Policies

 

Use of Estimates

 

The preparation of financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

12
 

 

Certain of the Company’s accounting policies that we believe are the most important to the portrayal of the Company’s financial condition and results of operations and that require management’s subjective judgments are described below to facilitate a better understanding of our business activities. Management bases its judgments on its experience and assumptions which it believes are reasonable and applicable under the circumstances.

 

We expect that uncertainty and volatility in financial markets relating to the COVID-19 pandemic will continue to impact the company. The scope, duration and magnitude of the direct and indirect effects of the COVID-19 pandemic are changing rapidly and are difficult to anticipate.

 

We are subject to economic factors such as interest rates, inflation, foreign exchange rates, adverse reserve developments, regulation, tax policy changes, political risks and other market risks that can impact our strategy, operations, and results.

 

Results of Operations for the three months ended March 31, 2022 and March 31, 2021

 

Revenues. The Company had $4,860 of interest income during the three months ended March 31, 2022 and $0 for the three months ended March 31, 2021.

 

Cost of Revenues. The Company had no cost of revenues for the three months ended March 31, 2022 or 2021.

 

General and Administrative expenses. The Company incurred $20,621 of general and administrative expenses during the three months ended March 31, 2022, compared to $20,924 during the same period in 2021. The decline in general and administrative expenses was a result of higher costs related to personnel costs being offset by lower costs related to filing and banking fees.

 

Professional fees. The Company incurred $14,457 of professional fees during the three months ended March 31, 2022 compared to $0 during the same period in 2021. The increase in professional fees is the result of costs relating the financial and audit costs during the period.

 

Loss From Operations. The Company incurred an operating loss of $35,078 during the three months ended March 31, 2022 compared to $20,924 during the same period in 2021. The decrease in net loss is a result of lower general and administration fees incurred in the quarter.

 

Net Loss. The Company incurred a net loss of $172,684 during the three months ended March 31, 2022 compared to $20,924 during the same period in 2021. The increase in net loss is a result of higher interest costs incurred during the period.

 

Liquidity and Capital Resources 

 

As of March 31, 2022, we had cash and cash equivalents of $0 with current assets totaling $4,860 and current liabilities totaling $271,452 creating a working capital deficit of $ 266,592. Current liabilities consisted of accounts payable and accrued liabilities totaling $35,631 and related party payable of $235,821.

 

As of December 31, 2021, we had cash and cash equivalents of $5,843 with current assets totaling $5,843 and current liabilities totaling $99,751 creating a working capital deficit of $93,908. Current liabilities consisted of accounts payable and accrued liabilities totaling $31,730 and related party payable of $68,021.

 

Any liquidity needs will be met by the related entities.

 

Cash Flows

 

Net cash used in operating activities was $5,843 and $0 during the three months ended March 31, 2022 and 2021, respectively. The decrease of $5,843 was a result of a decline in cash costs during the quarter.

 

Net cash provided by financing activities was $0 and $0 during the three months ended March 31, 2022 and 2021, respectively.

 

Net cash provided by investing activities were $0 and $0 during the years ended March 31, 2022 and 2021, respectively.

 

The Company to date has been financially supported by related party entities which are also owned by the principal shareholders of the Company. The Company will continue to be financially supported by related party entities until such time as the company generates sufficient cash flow to support its expense requirements or completes an external capital raising.

 

Off-Balance Sheet Arrangements 

 

During 2021, the Company entered into a revolving credit commitment with Novea, Inc. The initial borrowing of the revolving credit loans under the revolving credit commitments may be an amount up to $500,000. Subject to agreed terms, the total obligation of the Company to make revolving credit loan in an aggregate principal amount shall not exceed $5,000,000. The loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate equal to LIBOR plus 5.25%.

 

The Company entered into a Revolving Credit Facility Agreement (the “RCFA”) with Newpoint Reinsurance Company Limited, an entity owned by the Company’s principal shareholders. The RCFA provides for available borrowings up to $1,000,000 for a term of three years and an option to roll the facility. As of March 31, 2022, the Company has additional available borrowings of $836,500 after it was provided $163,500 as a related party transaction for the credit commitment agreement with Novea.  

 

13
 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

Not required for smaller reporting companies.

 

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

The Securities and Exchange Commission, or the SEC defines the term “disclosure controls and procedures” to mean a company’s controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, or the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its chief executive and chief financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Exchange Act is recorded, processed, summarized and reported within the time periods specified under the SEC’s rules and forms and that information required to be disclosed is accumulated and communicated to its chief executive officer to allow timely decisions regarding disclosure.

 

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 Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were not effective as of such date due to the material weaknesses identified in the Company’s annual report on Form 10-K for the year ending December 31, 2021.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 

 

14
 

 

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

We are not party to, and our property is not the subject of, any material legal proceedings.  

 

Item 1A. Risk Factors.

 

Not required for smaller reporting companies.

 

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

 

None.

 

Item 3. Defaults Upon Senior Securities.

 

None. 

 

Item 4. Mine Safety Disclosures.

 

No disclosure required.

 

Item 5. Other Information.

 

None. 

 

Item 6. Exhibits.

 

Exhibit No.   Description
     
31.1   Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
31.2   Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
32.1   Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
101   Inline XBRL Document Set for the financial statements and accompanying notes in Part I, Item 1, of this Quarterly Report on Form 10-Q.*
104   Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set.*

 

* Filed herewith.

 

** Furnished herewith.

 

15
 

 

SIGNATURES

 

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

 

    NEWPOINT FINANCIAL CORP.
     
Dated: May 20, 2022 By: /s/ Keith Beekmeyer
      Keith Beekmeyer
      Chief Executive Officer
      (principal executive officer)
       
    By: /s/ Julian Jammine
      Julian Jammine
      Chief Financial Officer
      (principal financial and accounting officer)

 

16

 

EX-31.1 2 ex31-1.htm

 

EXHIBIT 31.1

 

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Keith Beekmeyer, certify that:

 

1) I have reviewed this Quarterly Report on Form 10-Q of Newpoint Financial Corp. (the “registrant”);
   
2)

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by the report;

   
3)

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

   
4)

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

     
  a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

     
  b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

     
  c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

     
  d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

     
5)

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

       
  a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

       
  b)

Any fraud, whether or not material, that involved management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

/s/ Keith Beekmeyer  
Keith Beekmeyer  
Chief Executive Officer  
   
May 20, 2022  

 

 

 

EX-31.2 3 ex31-2.htm

 

EXHIBIT 31.2

 

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Julian Jammine, certify that:

 

1) I have reviewed this Quarterly Report on Form 10-Q of Newpoint Financial Corp. (the “registrant”);
   
2)

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by the report;

   
3)

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

   
4)

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

     
  a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

     
  b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

     
  c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

     
  d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

     
5)

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

       
  a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

       
  b)

Any fraud, whether or not material, that involved management or other employees who have a significant role in the registrant’s internal control over financial reporting. 

 

/s/ Julian Jammine  
Julian Jammine  
Chief Financial Officer  
   
May 20, 2022  

 

 


 

EX-32.1 4 ex32-1.htm

 

Exhibit 32.1 

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of Newpoint Financial Corp. (the “Company”), as filed with the U.S. Securities and Exchange Commission on the date hereof (the “Report”), the undersigned in the capacities and on the date indicated below, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
   
(2)

The information contained in such Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: May 20, 2022

 

/s/ Keith Beekmeyer  
Keith Beekmeyer  
Chief Executive Officer  
   
/s/ Julian Jammine  
Julian Jammine  
Chief Financial Officer  

 

 

 

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Related Parties Total Current Liabilities Non-Current Liabilities: Loan payable-Related Parties Total Liabilities Stockholders’ Deficit: Preferred Stock, par value $0.001, 50,000,000 shares Authorized, 0 Issued or Outstanding at March 31, 2022 and December 31, 2021 Common Stock, par value $0.001, 100,000,000 shares Authorized, 19,153,923 shares Issued and Outstanding at March 31, 2022 and 216,185 shares Issued at December 31, 2021 Additional Paid-In Capital Accumulated Deficit Total Stockholders’ Deficit TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT Preferred stock, par value Preferred stock, shares authorized Preferred stock, shares issued Preferred stock, shares outstanding Common stock, par value Common stock, shares authorized Common stock, shares issued Common stock, shares outstanding Income Statement [Abstract] Revenues Expenses: Professional fees General and administrative expense Total Operating Expenses Operating Loss Other Income (Expense) Interest Income Interest expense Total Other Income (Expense) Net Loss Basic & Diluted Loss per Common Share Weighted Average Common Shares Outstanding Statement [Table] Statement [Line Items] Beginning balance Beginning balance, shares Net Loss Issue of Common Shares Issue of Common Shares, shares Ending balance Ending balance, shares Statement of Cash Flows [Abstract] CASH FLOWS FROM OPERATING ACTIVITIES: Expenses paid by Related Party Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Changes In: Accounts Payable Interest Receivable Net Cash Provided by (Used in) Operating Activities Net Increase (decrease) in Cash Cash at Beginning of Period Cash at End of Period SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the Period for: Interest Income Taxes SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES Deposit paid to AMIC, Inc. financed with related party debt Credit Commitment funded with related party debt Organization, Consolidation and Presentation of Financial Statements [Abstract] ORGANIZATION AND NATURE OF BUSINESS GOING CONCERN Accounting Policies [Abstract] SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Investments, All Other Investments [Abstract] INVESTMENTS Banking and Thrift Disclosure [Text Block] DEPOSITS Credit Commitment CREDIT COMMITMENT Related Party Transactions [Abstract] RELATED PARTY TRANSACTIONS AND NOTE PAYABLE Equity [Abstract] STOCKHOLDERS’ DEFICIT Subsequent Events [Abstract] SUBSEQUENT EVENTS Estimates Cash and Cash Equivalents Investments Valuation allowance for fixed income securities Fair Value of Financial Instruments Income Taxes Segment Reporting Net Loss per Share Recently Issued Accounting Pronouncements Related Parties SCHEDULE OF RELATED PARTY TRANSACTION Entity incorporation, state or country code Entity incorporation, date of incorporation Equity reverse stock split Interest receivable Net income (loss) Accumulated deficit Company acquired shares Share issued price per share Number of shares issued Warrants term Shares of common stock value Percentage of common stock Warrants to purchase common stock Debt amont Amortized cost Schedule of Defined Benefit Plans Disclosures [Table] Defined Benefit Plan Disclosure [Line Items] Share purchase description Purchase price percentage Deposit Collaborative Arrangement and Arrangement Other than Collaborative [Table] Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] Debt term Line of credit facility commitment amount Line of credit maximum commitment amount Interest rate Additional borrowing amount Schedule of Related Party Transactions, by Related Party [Table] Related Party Transaction [Line Items] Total Related party payables Related party transaction rate Deposits Interest incurred Maximum borrowing capacity Addition available borrowings Payment to related party Accumulated Other Comprehensive Income (Loss) [Table] Accumulated Other Comprehensive Income (Loss) [Line Items] Number of shares issued Number of shares outstanding Shares issued to settle related party liabilities Credit facility. Stock Purchase Agreement [Member] Novea Inc. [Member] American Millennium Insurance Co [Member] Credit Commitment [Text Block] Revolving Credit Facility Agreement [Member] Newpoint Financial Corp (Wyoming) [Member] Newpoint Reinsurance Limted [Member] Newpoint Capital Limited [Member] Shares issued to settle related party liabilities. Credit commitment funded with related party debt. Cash paid during year for. Related party payments expenses. Shares acquisition description. Deposit paid to financed with related party debt. Valuation Allowance for Fixed Income Securities [Policy Text Block] Related Parties [Policy Text Block] Assets, Current Assets, Noncurrent Assets Liabilities, Current Liabilities Stockholders' Equity Attributable to Parent Liabilities and Equity Operating Expenses Operating Income (Loss) Interest Expense Shares, Outstanding Increase (Decrease) in Accounts Payable, Trade Increase (Decrease) in Interest and Dividends Receivable Net Cash Provided by (Used in) Operating Activities Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations Investment, Policy [Policy Text Block] Income Tax, Policy [Policy Text Block] EX-101.PRE 9 npfc-20220331_pre.xml INLINE XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT XML 10 R1.htm IDEA: XBRL DOCUMENT v3.22.1
Cover - shares
3 Months Ended
Mar. 31, 2022
May 20, 2022
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2022  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2022  
Current Fiscal Year End Date --12-31  
Entity File Number 000-54953  
Entity Registrant Name Newpoint Financial Corp.  
Entity Central Index Key 0001445831  
Entity Tax Identification Number 47-2653358  
Entity Incorporation, State or Country Code DE  
Entity Address, Address Line One 433 North Camden Drive  
Entity Address, Address Line Two Suite 725  
Entity Address, City or Town Beverly Hills  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 90210  
City Area Code (860)  
Local Phone Number 574-9190  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   19,153,923
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.22.1
Condensed Balance Sheets (Unaudited) - USD ($)
Mar. 31, 2022
Dec. 31, 2021
Current Assets:    
Cash $ 5,843
Interest Receivable 4,860
TOTAL CURRENT ASSETS 4,860 5,843
Other Assets:    
Investments 50,000,000 50,000,000
Deposits 1,000,000  
Credit facilities 330,800 163,500
Total Other Assets 51,330,800 50,163,500
TOTAL ASSETS 51,335,660 50,169,343
Current Liabilities:    
Accounts Payable 35,631 31,730
Accounts Payable - Related Parties 235,821 68,021
Total Current Liabilities 271,452 99,751
Non-Current Liabilities:    
Loan payable-Related Parties 51,330,800 50,163,500
Total Liabilities 51,602,252 50,263,251
Stockholders’ Deficit:    
Preferred Stock, par value $0.001, 50,000,000 shares Authorized, 0 Issued or Outstanding at March 31, 2022 and December 31, 2021  
Common Stock, par value $0.001, 100,000,000 shares Authorized, 19,153,923 shares Issued and Outstanding at March 31, 2022 and 216,185 shares Issued at December 31, 2021 19,154 19,154
Additional Paid-In Capital 419,028 419,028
Accumulated Deficit (704,774) (532,090)
Total Stockholders’ Deficit (266,592) (93,908)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 51,335,660 $ 50,169,343
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.22.1
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Mar. 31, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 50,000,000 50,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 19,153,923 216,185
Common stock, shares outstanding 19,153,923  
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.22.1
Condensed Statements of Operations (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income Statement [Abstract]    
Revenues
Expenses:    
Professional fees 14,457  
General and administrative expense 20,621 20,924
Total Operating Expenses 35,078 20,924
Operating Loss (35,078) (20,924)
Other Income (Expense)    
Interest Income 4,860
Interest expense (142,466)
Total Other Income (Expense) (137,606)
Net Loss $ (172,684) $ (20,924)
Basic & Diluted Loss per Common Share $ (0.01) $ (0.00)
Weighted Average Common Shares Outstanding 19,153,923 15,111,035
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.22.1
Condensed Statements of Stockholders' Deficit (Unaudited) - USD ($)
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Total
Beginning balance at Dec. 31, 2020 $ 216 $ 350,931 $ (444,912) $ (93,765)
Beginning balance, shares at Dec. 31, 2020 216,185      
Net Loss (20,924) (20,924)
Issue of Common Shares $ 18,938 68,097 87,035
Issue of Common Shares, shares   18,937,738      
Ending balance at Mar. 31, 2021 $ 19,154 419,028 (465,836) (27,654)
Ending balance, shares at Mar. 31, 2021 19,153,923      
Beginning balance at Dec. 31, 2020 $ 216 350,931 (444,912) (93,765)
Beginning balance, shares at Dec. 31, 2020 216,185      
Ending balance at Dec. 31, 2021 $ 19,154 419,028 (532,090) (93,908)
Ending balance, shares at Dec. 31, 2021 19,153,923      
Net Loss (172,684) (172,684)
Ending balance at Mar. 31, 2022 $ 19,154 $ 419,028 $ (704,774) $ (266,592)
Ending balance, shares at Mar. 31, 2022 19,153,923      
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.22.1
Condensed Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Loss $ (172,684) $ (20,924)
Expenses paid by Related Party 167,800 20,924
Changes In:    
Accounts Payable 3,901
Interest Receivable (4,860)
Net Cash Provided by (Used in) Operating Activities (5,843)
Net Increase (decrease) in Cash (5,843)
Cash at Beginning of Period 5,843
Cash at End of Period
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest
Income Taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES    
Deposit paid to AMIC, Inc. financed with related party debt 1,000,000
Credit Commitment funded with related party debt $ 167,300
XML 16 R7.htm IDEA: XBRL DOCUMENT v3.22.1
ORGANIZATION AND NATURE OF BUSINESS
3 Months Ended
Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION AND NATURE OF BUSINESS

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

 

Newpoint Financial Corp. (“Newpoint”) was incorporated in the State of Delaware on November 16, 2005 under the name Blue Ribbon Pyrocool, Inc. (“Blue Ribbon”). Blue Ribbon changed its name to Classic Rules Judo Championships, Inc. on July 15, 2008 then to Judo Capital Corp on February 15, 2017. The Company formed a subsidiary in the State of Connecticut on August 13, 2008 named Classic Rules World Judo Championships, Inc. to develop an annual judo championship tournament. Collectively the entities are referred to as “the Company”. On June 2, 2014, the Company ceased its principal activities of hosting and sponsoring judo tournaments. The Company had planned to operate in real estate investment activities focused in the New York City metropolitan area. On February 28, 2018, the Company ceased its plans to operate in the real estate investment market. On January 19, 2021, the Company had a 500-1 reverse stock split with FINRA and Change of Control. All share and per share information has been retroactively adjusted to reflect the reverse stock split. On February 9, 2021, new officers and directors were elected and the name of the Company was changed to Newpoint Financial Corp. (Delaware).

 

XML 17 R8.htm IDEA: XBRL DOCUMENT v3.22.1
GOING CONCERN
3 Months Ended
Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GOING CONCERN

NOTE 2 – GOING CONCERN

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has generated interest on the credit facility provided of $4,860 for the quarter ended 31 March 2022 and has incurred net losses of $172,684 and $20,924 during the Quarter ended March 31, 2022 and March 31, 2021. The Company has an accumulated deficit of $704,774 and $532,090 as of March 31, 2022 and December 31, 2021, and has experienced negative cash flows from operations. These circumstances raise some doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

The Company to date has been financially supported by related party entities which are also owned by the majority shareholders of the Company. The Company will continue to be financially supported by related party entities until such time as the company generates sufficient cashflow to support its expense requirements or completes an external capital raising.

 

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.22.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Estimates

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates. Actual results and outcomes may differ materially from the estimates as additional information becomes known.

 

Cash and Cash Equivalents

 

Cash and cash equivalents includes highly liquid instruments with original maturities of three months or less.

 

Investments

 

Short-term investments, Fixed maturities and equity securities

 

Short-term investments comprise investments with a maturity greater than three months up to one year from the date of purchase. Short-term investments are carried at fair value, with realized and unrealized gains and losses included in net earnings are reported as net realized and unrealized gains and losses, respectively.

 

 

Newpoint Financial Corp.

Notes to Financial Statements

March 31, 2022 and 2021

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Investments in debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities. Trading securities are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period included in earnings. Debt securities held as investments that the Company classifies as held-to-maturity securities are recorded at amortized cost, net of a valuation allowance for credit losses. Investments in debt securities not classified as either held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities are recorded at fair value, with the change in fair value during the period excluded from earnings and recorded net of tax as a component of other comprehensive income.

 

Investments in equity securities are reported at fair value with realized and unrealized gains and losses included in net earnings are reported as net realized and unrealized gains and losses, respectively. If there are no readily determinable fair values, investments in equity securities are measured at cost less impairment.

 

Valuation allowance for fixed income securities

 

Management evaluates impairment losses for all HTM securities each quarter. The HTM securities are evaluated for potential impairment on investments not measured at fair value through net earnings. An allowance for impairment is derived based on various data sources, multiple key inputs and forecast scenarios. These include default rates specific to the individual security, vintage of the security, geography of the issuer of the security, industry analyst reports, credit ratings and consensus economic forecasts. Securities that meet any one of the criteria included above will be subject to a discounted cash flow analysis by comparing the present value of expected future cash flows with the amortized cost basis. Projected cash flows are driven primarily by assumptions regarding probability of default and the timing and amount of recoveries associated with defaults.

 

Fair Value of Financial Instruments

 

The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The carrying value of cash and cash equivalents and accounts payable approximate their fair value because of the short-term nature of these instruments and their liquidity. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments.

 

Income Taxes

 

Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss and credit carryforwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. The Company records an estimated valuation allowance on its deferred income tax assets if it is not more likely than not that these deferred income tax assets will be realized.

 

The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of March 31, 2022 and December 31, 2021, the Company has determined it does not have any uncertain tax positions.

 

Segment Reporting

 

The Company’s business currently operates in one segment.

 

 

Newpoint Financial Corp.

Notes to Financial Statements

March 31, 2022 and March 31, 2021

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Net Loss per Share

 

The computation of basic net loss per common share is based on the weighted average number of shares that were outstanding during the year. The computation of diluted net loss per common share is based on the weighted average number of shares used in the basic net loss per share calculation plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding using the treasury stock method.

 

Recently Issued Accounting Pronouncements

 

The Company reviews new accounting standards as issued. Although some of these accounting standards issued or effective after the end of the Company’s previous fiscal year may be applicable to the Company, it has not identified any standards that it believes merit further discussion. The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows.

 

Related Parties

 

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20 the related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

 

The financial statements include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

 

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.22.1
INVESTMENTS
3 Months Ended
Mar. 31, 2022
Investments, All Other Investments [Abstract]  
INVESTMENTS

NOTE 4 – INVESTMENTS

 

On December 10, 2021, the Company entered into a stock purchase agreement with Novea Inc., a Wyoming corporation (“Novea”), whereby we acquired five hundred thousand (500,000) units (“Units”), each Unit having a stated value of $100 and consisting of (i) one share of Series B Convertible Redeemable Preferred Stock (“Novea Preferred Stock”) and (ii) 2.503474 shares of common stock of Novea (“Novea Common Stock”). We also acquired a warrant exercisable for ten years for additional shares of common stock of up to $50,000,000, subject to adjustment as set forth therein. In aggregate, we acquired (i) 500,000 shares of Novea Preferred Stock, (ii) 1,251,737 shares of Novea Common Stock, representing ten percent (10%) of Novea’s common stock, and (iii) one warrant to purchase up to $50,000,000 of Novea Common Stock. Novea is a financial and insurance services software company.

 

As consideration for such purchase, Newpoint Financial Corp (a Wyoming corporation), now known as NPFC SPV 1, Inc., an entity that was owned by the current controlling shareholders, issued to Novea ten (10) secured $5,000,000 notes (each a “Collateral Note”), totaling $50,000,000. The Collateral Notes are due on demand and we have the right to prepay the Collateral Notes at any time on NPFC SPV 1, Inc’s behalf.

 

As of March 31, 2022 and December 31, 2021, investments in debt securities include mandatorily redeemable preferred stock which is classified as held to maturity, with a term ending in December 2031. The amortized cost was $50,000,000 as of March 31, 2022 and December 31, 2021. The Novea Common Stock and warrants purchased as part of the transaction are considered to have a de minimis value as of December 31, 2021. Novea issued 1,251,737 shares of Novea Common Stock to the Company, representing ten percent (10%) of Novea’s common stock outstanding. The shares issued had no par value. Novea is a private company and does not have a readily determinable fair value.

 

 

Newpoint Financial Corp.

Notes to Financial Statements

March 31, 2022 and March 31, 2021

 

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.22.1
DEPOSITS
3 Months Ended
Mar. 31, 2022
DEPOSITS

NOTE 5 - DEPOSITS

 

In August 2021, the Company entered into an agreement with Citadel Risk Holdings, Inc., (“CRHI”) which owns all the shares of American Millennium Insurance Co., (“AMIC”) a New Jersey based insurance company. We agreed to purchase 3.75% of AMIC’s outstanding shares per year over the course of 10 years for an aggregate total 37.5% of outstanding shares at the end of the term. Closing is expected to occur in 2022 subject to receipt of regulatory approval and other customary closing conditions. As at March 31, 2022, NPFC SPV1, Inc. had made a deposit of $1,000,000 to AMIC, on behalf of the Company, as part of an agreement that remains subject to approval.

 

XML 21 R12.htm IDEA: XBRL DOCUMENT v3.22.1
CREDIT COMMITMENT
3 Months Ended
Mar. 31, 2022
Credit Commitment  
CREDIT COMMITMENT

NOTE 6 – CREDIT COMMITMENT

 

The Company entered into a five (5) year revolving credit facility agreement with Novea dated as of December 10, 2021 (“Credit Facility”). The Credit Facility provides for a revolving credit with a commitment equal to the lesser of: (i) $5,000,000; or (ii) on any amount greater than $500,000, the lender shall only disburse any such excess up to the amount of 50% of the qualified receivables outstanding of the borrower, bearing interest at LIBOR plus 5.25%. As of March 31, 2022 and December 31, 2021 there was $4,669,200 and $4,836,500 respectively of additional borrowings were available to Novea subject to the borrowing criteria.

 

XML 22 R13.htm IDEA: XBRL DOCUMENT v3.22.1
RELATED PARTY TRANSACTIONS AND NOTE PAYABLE
3 Months Ended
Mar. 31, 2022
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS AND NOTE PAYABLE

NOTE 7 – RELATED PARTY TRANSACTIONS AND NOTE PAYABLE

 

   March 31, 2022   December 31, 2021 
Due to Related Parties          
Newpoint Financial Corp (Wyoming) (1)  $51,142,466   $50,000,000 
Newpoint Reinsurance Limited (2)  $163,500   $163,500 
Newpoint Capital Limited (3)  $260,655   $68,021 
Total  $51,566,621   $50,231,521 

 

  (1) Newpoint Financial Corp (a Wyoming corporation), now known as NPFC SPV 1, Inc. entered into an agreement dated December 13, 2021 with the Company as part of the transaction to provide the collateral notes to Novea. In December 2021 the Company entered into a Loan Facility Agreement (the “LFA”) with NPFC SPV I, an entity owned by the Company’s principal stockholders, in connection with the Stock Purchase Agreement between the Company and Novea (see Note 4). The LFA provides total principal of $50,000,000 and is due in December 2031. If the Company is in default, as defined, at any time during the term of the LFA, then the lender can demand repayment within 30 days. The LFA calls for interest at a fixed rate of 1% per annum. Interest can be deferred for up to two years upon the Company’s request. As of March 31, 2022, NPFC SPV1, Inc. had made a deposit of $1,000,000 to AMIC, on behalf of the Company, as part of an agreement that remains subject to approval. The remaining portion of $142,466 relates to interest incurred on amounts outstanding.
     
  (2) Newpoint Reinsurance Limited registered under the provisions of the Nevis business Corporation 1984 Ordinance, as amended. In December 2021 the Company entered into a Revolving Credit Facility Agreement (the “RCFA”) with Newpoint Reinsurance Company Limited, an entity owned by the Company’s majority shareholder. The RCFA provides for available borrowings up to $1,000,000 for a term of three years and an option to roll the facility. As of March 31, 2022 and December 31, 2021 the Company has additional available borrowings of $836,500 after it was provided $163,500 as a related party transaction for the credit commitment agreement with Novea. As of March 31, 2022 no further payments have been made from Newpoint Reinsurance Limited.
     
  (3) Newpoint Capital Limited, a company registered in the United Kingdom has provided $260,655 of related party transactions to the Company as of March 31, 2022 for the payment of amounts requested per the credit agreement with Novea totaling $167,300 and the remaining portion for accounting, auditor fees and fees associated with filings with the SEC for annual and quarterly reports.

 

 

Newpoint Financial Corp.

Notes to Financial Statements

March 31, 2022 and March 31, 2021

 

XML 23 R14.htm IDEA: XBRL DOCUMENT v3.22.1
STOCKHOLDERS’ DEFICIT
3 Months Ended
Mar. 31, 2022
Equity [Abstract]  
STOCKHOLDERS’ DEFICIT

NOTE 8 – STOCKHOLDERS’ DEFICIT

 

Preferred Stock

 

The Company is authorized to issue 50,000,000 shares of preferred stock with a par value of $0.001 per share. There were no preferred shares issued or outstanding as of March 31, 2022 or December 31, 2021.

 

Common Stock

 

The Company is authorized to issue up to 100,000,000 shares of common stock with a par value of $0.001 per share. As at March 31, 2022 there were 19,153,923 shares of common stock issued and outstanding and at December 31, 2021 there were 19,153,923 shares of common stock issued and outstanding. During the three months ended March 31, 2021, the Company issued 18,937,738 shares to settle related party liabilities.

 

XML 24 R15.htm IDEA: XBRL DOCUMENT v3.22.1
SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2022
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 9 – SUBSEQUENT EVENTS

 

We are in the process of seeking regulatory approval for the Company’s acquisitions of AMIC and CRHI shares. Upon approval, we expect the transactions to be completed sometime in 2022.

XML 25 R16.htm IDEA: XBRL DOCUMENT v3.22.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
3 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]  
Estimates

Estimates

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates. Actual results and outcomes may differ materially from the estimates as additional information becomes known.

 

Cash and Cash Equivalents

Cash and Cash Equivalents

 

Cash and cash equivalents includes highly liquid instruments with original maturities of three months or less.

 

Investments

Investments

 

Short-term investments, Fixed maturities and equity securities

 

Short-term investments comprise investments with a maturity greater than three months up to one year from the date of purchase. Short-term investments are carried at fair value, with realized and unrealized gains and losses included in net earnings are reported as net realized and unrealized gains and losses, respectively.

 

 

Newpoint Financial Corp.

Notes to Financial Statements

March 31, 2022 and 2021

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Investments in debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities. Trading securities are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period included in earnings. Debt securities held as investments that the Company classifies as held-to-maturity securities are recorded at amortized cost, net of a valuation allowance for credit losses. Investments in debt securities not classified as either held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities are recorded at fair value, with the change in fair value during the period excluded from earnings and recorded net of tax as a component of other comprehensive income.

 

Investments in equity securities are reported at fair value with realized and unrealized gains and losses included in net earnings are reported as net realized and unrealized gains and losses, respectively. If there are no readily determinable fair values, investments in equity securities are measured at cost less impairment.

 

Valuation allowance for fixed income securities

Valuation allowance for fixed income securities

 

Management evaluates impairment losses for all HTM securities each quarter. The HTM securities are evaluated for potential impairment on investments not measured at fair value through net earnings. An allowance for impairment is derived based on various data sources, multiple key inputs and forecast scenarios. These include default rates specific to the individual security, vintage of the security, geography of the issuer of the security, industry analyst reports, credit ratings and consensus economic forecasts. Securities that meet any one of the criteria included above will be subject to a discounted cash flow analysis by comparing the present value of expected future cash flows with the amortized cost basis. Projected cash flows are driven primarily by assumptions regarding probability of default and the timing and amount of recoveries associated with defaults.

 

Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The carrying value of cash and cash equivalents and accounts payable approximate their fair value because of the short-term nature of these instruments and their liquidity. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments.

 

Income Taxes

Income Taxes

 

Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss and credit carryforwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. The Company records an estimated valuation allowance on its deferred income tax assets if it is not more likely than not that these deferred income tax assets will be realized.

 

The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of March 31, 2022 and December 31, 2021, the Company has determined it does not have any uncertain tax positions.

 

Segment Reporting

Segment Reporting

 

The Company’s business currently operates in one segment.

 

 

Newpoint Financial Corp.

Notes to Financial Statements

March 31, 2022 and March 31, 2021

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Net Loss per Share

Net Loss per Share

 

The computation of basic net loss per common share is based on the weighted average number of shares that were outstanding during the year. The computation of diluted net loss per common share is based on the weighted average number of shares used in the basic net loss per share calculation plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding using the treasury stock method.

 

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

 

The Company reviews new accounting standards as issued. Although some of these accounting standards issued or effective after the end of the Company’s previous fiscal year may be applicable to the Company, it has not identified any standards that it believes merit further discussion. The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows.

 

Related Parties

Related Parties

 

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to Section 850-10-20 the related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

 

The financial statements include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

 

XML 26 R17.htm IDEA: XBRL DOCUMENT v3.22.1
RELATED PARTY TRANSACTIONS AND NOTE PAYABLE (Tables)
3 Months Ended
Mar. 31, 2022
Related Party Transactions [Abstract]  
SCHEDULE OF RELATED PARTY TRANSACTION

 

   March 31, 2022   December 31, 2021 
Due to Related Parties          
Newpoint Financial Corp (Wyoming) (1)  $51,142,466   $50,000,000 
Newpoint Reinsurance Limited (2)  $163,500   $163,500 
Newpoint Capital Limited (3)  $260,655   $68,021 
Total  $51,566,621   $50,231,521 

 

  (1) Newpoint Financial Corp (a Wyoming corporation), now known as NPFC SPV 1, Inc. entered into an agreement dated December 13, 2021 with the Company as part of the transaction to provide the collateral notes to Novea. In December 2021 the Company entered into a Loan Facility Agreement (the “LFA”) with NPFC SPV I, an entity owned by the Company’s principal stockholders, in connection with the Stock Purchase Agreement between the Company and Novea (see Note 4). The LFA provides total principal of $50,000,000 and is due in December 2031. If the Company is in default, as defined, at any time during the term of the LFA, then the lender can demand repayment within 30 days. The LFA calls for interest at a fixed rate of 1% per annum. Interest can be deferred for up to two years upon the Company’s request. As of March 31, 2022, NPFC SPV1, Inc. had made a deposit of $1,000,000 to AMIC, on behalf of the Company, as part of an agreement that remains subject to approval. The remaining portion of $142,466 relates to interest incurred on amounts outstanding.
     
  (2) Newpoint Reinsurance Limited registered under the provisions of the Nevis business Corporation 1984 Ordinance, as amended. In December 2021 the Company entered into a Revolving Credit Facility Agreement (the “RCFA”) with Newpoint Reinsurance Company Limited, an entity owned by the Company’s majority shareholder. The RCFA provides for available borrowings up to $1,000,000 for a term of three years and an option to roll the facility. As of March 31, 2022 and December 31, 2021 the Company has additional available borrowings of $836,500 after it was provided $163,500 as a related party transaction for the credit commitment agreement with Novea. As of March 31, 2022 no further payments have been made from Newpoint Reinsurance Limited.
     
  (3) Newpoint Capital Limited, a company registered in the United Kingdom has provided $260,655 of related party transactions to the Company as of March 31, 2022 for the payment of amounts requested per the credit agreement with Novea totaling $167,300 and the remaining portion for accounting, auditor fees and fees associated with filings with the SEC for annual and quarterly reports.
XML 27 R18.htm IDEA: XBRL DOCUMENT v3.22.1
ORGANIZATION AND NATURE OF BUSINESS (Details Narrative)
3 Months Ended
Jan. 19, 2021
Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Entity incorporation, state or country code   DE
Entity incorporation, date of incorporation   Nov. 16, 2005
Equity reverse stock split 500-1 reverse stock split  
XML 28 R19.htm IDEA: XBRL DOCUMENT v3.22.1
GOING CONCERN (Details Narrative) - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Interest receivable $ 4,860  
Net income (loss) 172,684 $ 20,924  
Accumulated deficit $ 704,774   $ 532,090
XML 29 R20.htm IDEA: XBRL DOCUMENT v3.22.1
INVESTMENTS (Details Narrative) - USD ($)
3 Months Ended 12 Months Ended
Dec. 10, 2021
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Shares of common stock value     $ 87,035  
Percentage of common stock       10.00%
Debt amont $ 50,000,000      
Amortized cost   $ 50,000,000   $ 50,000,000
Secured Debt [Member]        
Debt amont $ 5,000,000      
Common Stock [Member]        
Number of shares issued     18,937,738  
Shares of common stock value     $ 18,938  
Preferred Stock [Member]        
Shares of common stock value      
Stock Purchase Agreement [Member] | Novea Inc. [Member]        
Company acquired shares 500,000      
Share issued price per share $ 100      
Number of shares issued 1,251,737     1,251,737
Warrants term 10 years      
Percentage of common stock 10.00%      
Stock Purchase Agreement [Member] | Novea Inc. [Member] | Maximum [Member]        
Warrants to purchase common stock $ 50,000,000      
Stock Purchase Agreement [Member] | Novea Inc. [Member] | Common Stock [Member]        
Number of shares issued 2.503474      
Stock Purchase Agreement [Member] | Novea Inc. [Member] | Common Stock [Member] | Maximum [Member]        
Shares of common stock value $ 50,000,000      
Stock Purchase Agreement [Member] | Novea Inc. [Member] | Preferred Stock [Member]        
Number of shares issued 500,000      
XML 30 R21.htm IDEA: XBRL DOCUMENT v3.22.1
DEPOSITS (Details Narrative) - USD ($)
1 Months Ended
Aug. 31, 2021
Mar. 31, 2022
Newpoint Financial Corp (Wyoming) [Member] | American Millennium Insurance Co [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Deposit   $ 1,000,000
American Millennium Insurance Co [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Purchase price percentage 37.50%  
American Millennium Insurance Co [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Share purchase description We agreed to purchase 3.75% of AMIC’s outstanding shares per year over the course of 10 years for an aggregate total 37.5% of outstanding shares at the end of the term  
XML 31 R22.htm IDEA: XBRL DOCUMENT v3.22.1
CREDIT COMMITMENT (Details Narrative) - Revolving Credit Facility Agreement [Member] - Novea Inc. [Member] - USD ($)
Dec. 10, 2021
Mar. 31, 2022
Dec. 31, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Debt term 5 years    
Line of credit facility commitment amount $ 5,000,000    
Line of credit maximum commitment amount $ 500,000    
Additional borrowing amount   $ 4,669,200 $ 4,836,500
London Interbank Offered Rate (LIBOR) [Member]      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Interest rate 5.25%    
XML 32 R23.htm IDEA: XBRL DOCUMENT v3.22.1
SCHEDULE OF RELATED PARTY TRANSACTION (Details) - USD ($)
Mar. 31, 2022
Dec. 31, 2021
Related Party Transaction [Line Items]    
Total $ 51,566,621 $ 50,231,521
Newpoint Financial Corp (Wyoming) [Member]    
Related Party Transaction [Line Items]    
Total [1] 51,142,466 50,000,000
Newpoint Reinsurance Limted [Member]    
Related Party Transaction [Line Items]    
Total [2] 163,500 163,500
Newpoint Capital Limited [Member]    
Related Party Transaction [Line Items]    
Total [3] $ 260,655 $ 68,021
[1] Newpoint Financial Corp (a Wyoming corporation), now known as NPFC SPV 1, Inc. entered into an agreement dated December 13, 2021 with the Company as part of the transaction to provide the collateral notes to Novea. In December 2021 the Company entered into a Loan Facility Agreement (the “LFA”) with NPFC SPV I, an entity owned by the Company’s principal stockholders, in connection with the Stock Purchase Agreement between the Company and Novea (see Note 4). The LFA provides total principal of $50,000,000 and is due in December 2031. If the Company is in default, as defined, at any time during the term of the LFA, then the lender can demand repayment within 30 days. The LFA calls for interest at a fixed rate of 1% per annum. Interest can be deferred for up to two years upon the Company’s request. As of March 31, 2022, NPFC SPV1, Inc. had made a deposit of $1,000,000 to AMIC, on behalf of the Company, as part of an agreement that remains subject to approval. The remaining portion of $142,466 relates to interest incurred on amounts outstanding.
[2] Newpoint Reinsurance Limited registered under the provisions of the Nevis business Corporation 1984 Ordinance, as amended. In December 2021 the Company entered into a Revolving Credit Facility Agreement (the “RCFA”) with Newpoint Reinsurance Company Limited, an entity owned by the Company’s majority shareholder. The RCFA provides for available borrowings up to $1,000,000 for a term of three years and an option to roll the facility. As of March 31, 2022 and December 31, 2021 the Company has additional available borrowings of $836,500 after it was provided $163,500 as a related party transaction for the credit commitment agreement with Novea. As of March 31, 2022 no further payments have been made from Newpoint Reinsurance Limited.
[3] Newpoint Capital Limited, a company registered in the United Kingdom has provided $260,655 of related party transactions to the Company as of March 31, 2022 for the payment of amounts requested per the credit agreement with Novea totaling $167,300 and the remaining portion for accounting, auditor fees and fees associated with filings with the SEC for annual and quarterly reports.
XML 33 R24.htm IDEA: XBRL DOCUMENT v3.22.1
SCHEDULE OF RELATED PARTY TRANSACTION (Details) (Parenthetical) - USD ($)
1 Months Ended 3 Months Ended
Dec. 10, 2021
Dec. 31, 2021
Mar. 31, 2022
Related Party Transaction [Line Items]      
Related party payables   $ 50,231,521 $ 51,566,621
Novea Inc. [Member] | Revolving Credit Facility Agreement [Member]      
Related Party Transaction [Line Items]      
Maximum borrowing capacity $ 500,000    
Debt term 5 years    
Addition available borrowings   4,836,500 4,669,200
Newpoint Financial Corp (Wyoming) [Member]      
Related Party Transaction [Line Items]      
Related party payables [1]   $ 50,000,000 51,142,466
Related party transaction rate   1.00%  
Interest incurred     142,466
Newpoint Financial Corp (Wyoming) [Member] | American Millennium Insurance Co [Member]      
Related Party Transaction [Line Items]      
Deposits     1,000,000
Newpoint Reinsurance Limted [Member]      
Related Party Transaction [Line Items]      
Related party payables [2]   $ 163,500 163,500
Payment to related party     0
Newpoint Reinsurance Limted [Member] | Revolving Credit Facility Agreement [Member]      
Related Party Transaction [Line Items]      
Maximum borrowing capacity   $ 1,000,000  
Debt term   3 years  
Addition available borrowings   $ 836,500 836,500
Newpoint Capital Limited [Member]      
Related Party Transaction [Line Items]      
Related party payables [3]   $ 68,021 260,655
Newpoint Capital Limited [Member] | Novea Inc. [Member]      
Related Party Transaction [Line Items]      
Related party payables     $ 167,300
[1] Newpoint Financial Corp (a Wyoming corporation), now known as NPFC SPV 1, Inc. entered into an agreement dated December 13, 2021 with the Company as part of the transaction to provide the collateral notes to Novea. In December 2021 the Company entered into a Loan Facility Agreement (the “LFA”) with NPFC SPV I, an entity owned by the Company’s principal stockholders, in connection with the Stock Purchase Agreement between the Company and Novea (see Note 4). The LFA provides total principal of $50,000,000 and is due in December 2031. If the Company is in default, as defined, at any time during the term of the LFA, then the lender can demand repayment within 30 days. The LFA calls for interest at a fixed rate of 1% per annum. Interest can be deferred for up to two years upon the Company’s request. As of March 31, 2022, NPFC SPV1, Inc. had made a deposit of $1,000,000 to AMIC, on behalf of the Company, as part of an agreement that remains subject to approval. The remaining portion of $142,466 relates to interest incurred on amounts outstanding.
[2] Newpoint Reinsurance Limited registered under the provisions of the Nevis business Corporation 1984 Ordinance, as amended. In December 2021 the Company entered into a Revolving Credit Facility Agreement (the “RCFA”) with Newpoint Reinsurance Company Limited, an entity owned by the Company’s majority shareholder. The RCFA provides for available borrowings up to $1,000,000 for a term of three years and an option to roll the facility. As of March 31, 2022 and December 31, 2021 the Company has additional available borrowings of $836,500 after it was provided $163,500 as a related party transaction for the credit commitment agreement with Novea. As of March 31, 2022 no further payments have been made from Newpoint Reinsurance Limited.
[3] Newpoint Capital Limited, a company registered in the United Kingdom has provided $260,655 of related party transactions to the Company as of March 31, 2022 for the payment of amounts requested per the credit agreement with Novea totaling $167,300 and the remaining portion for accounting, auditor fees and fees associated with filings with the SEC for annual and quarterly reports.
XML 34 R25.htm IDEA: XBRL DOCUMENT v3.22.1
STOCKHOLDERS’ DEFICIT (Details Narrative) - $ / shares
3 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Preferred stock, shares authorized 50,000,000 50,000,000
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, shares authorized 100,000,000 100,000,000
Common stock, par value $ 0.001 $ 0.001
Number of shares issued 19,153,923 216,185
Number of shares outstanding 19,153,923  
Shares issued to settle related party liabilities 18,937,738  
Common Stock [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Number of shares issued   19,153,923
Number of shares outstanding   19,153,923
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DE 47-2653358 433 North Camden Drive Suite 725 Beverly Hills CA 90210 (860) 574-9190 Yes Yes Non-accelerated Filer true false false 19153923 5843 4860 4860 5843 50000000 50000000 1000000 330800 163500 51330800 50163500 51335660 50169343 35631 31730 235821 68021 271452 99751 51330800 50163500 51602252 50263251 0.001 0.001 50000000 50000000 0 0 0 0 0.001 0.001 100000000 100000000 19153923 19153923 216185 19154 19154 419028 419028 -704774 -532090 -266592 -93908 51335660 50169343 14457 20621 20924 35078 20924 -35078 -20924 4860 142466 -137606 -172684 -20924 -0.01 -0.00 19153923 15111035 19153923 19154 419028 -532090 -93908 -172684 -172684 19153923 19154 419028 -704774 -266592 216185 216 350931 -444912 -93765 216 350931 -444912 -93765 18937738 18938 68097 87035 -20924 -20924 19153923 19154 419028 -465836 -27654 19154 419028 -465836 -27654 -172684 -20924 167800 20924 3901 4860 -5843 -5843 5843 1000000 167300 <p id="xdx_801_eus-gaap--NatureOfOperations_zHVoCXRx2Ov1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1 – <span id="xdx_824_z7mLrs6CeAb3">ORGANIZATION AND NATURE OF BUSINESS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Newpoint Financial Corp. (“Newpoint”) was incorporated in the State of <span id="xdx_90B_edei--EntityIncorporationStateCountryCode_c20220101__20220331_zbMO9bCZVMn1" title="Entity incorporation, state or country code">Delaware</span> on <span id="xdx_902_edei--EntityIncorporationDateOfIncorporation_dd_c20220101__20220331_z3s3bls3Q64f" title="Entity incorporation, date of incorporation">November 16, 2005</span> under the name Blue Ribbon Pyrocool, Inc. (“Blue Ribbon”). Blue Ribbon changed its name to Classic Rules Judo Championships, Inc. on July 15, 2008 then to Judo Capital Corp on February 15, 2017. The Company formed a subsidiary in the State of Connecticut on August 13, 2008 named Classic Rules World Judo Championships, Inc. to develop an annual judo championship tournament. Collectively the entities are referred to as “the Company”. On June 2, 2014, the Company ceased its principal activities of hosting and sponsoring judo tournaments. The Company had planned to operate in real estate investment activities focused in the New York City metropolitan area. On February 28, 2018, the Company ceased its plans to operate in the real estate investment market. On January 19, 2021, the Company had a <span id="xdx_906_eus-gaap--StockholdersEquityReverseStockSplit_c20210118__20210119_zhDotTkbOZWl" title="Equity reverse stock split">500-1 reverse stock split</span> with FINRA and Change of Control. All share and per share information has been retroactively adjusted to reflect the reverse stock split. On February 9, 2021, new officers and directors were elected and the name of the Company was changed to Newpoint Financial Corp. (Delaware).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> DE 2005-11-16 500-1 reverse stock split <p id="xdx_80B_eus-gaap--SubstantialDoubtAboutGoingConcernTextBlock_zIAGAbZiCtH3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 2 – <span id="xdx_82C_zWXqVgqXC2C9">GOING CONCERN</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has generated interest on the credit facility provided of $<span id="xdx_904_eus-gaap--InterestReceivableCurrent_iI_c20220331_zwp4RpmQUOhg" title="Interest receivable">4,860</span> for the quarter ended 31 March 2022 and has incurred net losses of $<span id="xdx_90D_eus-gaap--NetIncomeLoss_iN_di_c20220101__20220331_zsxk3JFU2Vqk" title="Net income (loss)">172,684</span> and $<span id="xdx_908_eus-gaap--NetIncomeLoss_iN_di_c20210101__20210331_zxwXGrfcLuDc" title="Net income (loss)">20,924</span> during the Quarter ended March 31, 2022 and March 31, 2021. The Company has an accumulated deficit of $<span id="xdx_904_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_di_c20220331_zXUtM5KG4Fma" title="Accumulated deficit">704,774</span> and $<span id="xdx_901_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_di_c20211231_zP2cLrTmR0ag" title="Accumulated deficit">532,090</span> as of March 31, 2022 and December 31, 2021, and has experienced negative cash flows from operations. These circumstances raise some doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company to date has been financially supported by related party entities which are also owned by the majority shareholders of the Company. The Company will continue to be financially supported by related party entities until such time as the company generates sufficient cashflow to support its expense requirements or completes an external capital raising.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 4860 -172684 -20924 -704774 -532090 <p id="xdx_805_eus-gaap--SignificantAccountingPoliciesTextBlock_z2SxS3SsENmc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 3 – <span id="xdx_826_z2kMBZRh2Epf">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_847_eus-gaap--UseOfEstimates_zVn5VbEHNv1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Estimates</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates. Actual results and outcomes may differ materially from the estimates as additional information becomes known.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_844_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_z2HG370u1Htk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Cash and Cash Equivalents</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash and cash equivalents includes highly liquid instruments with original maturities of three months or less.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84C_eus-gaap--InvestmentPolicyTextBlock_zGfy1GCgCUEb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Investments </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Short-term investments, Fixed maturities and equity securities</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Short-term investments comprise investments with a maturity greater than three months up to one year from the date of purchase. Short-term investments are carried at fair value, with realized and unrealized gains and losses included in net earnings are reported as net realized and unrealized gains and losses, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Newpoint Financial Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>March 31, 2022 and 2021</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investments in debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities. Trading securities are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period included in earnings. Debt securities held as investments that the Company classifies as held-to-maturity securities are recorded at amortized cost, net of a valuation allowance for credit losses. Investments in debt securities not classified as either held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities are recorded at fair value, with the change in fair value during the period excluded from earnings and recorded net of tax as a component of other comprehensive income.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investments in equity securities are reported at fair value with realized and unrealized gains and losses included in net earnings are reported as net realized and unrealized gains and losses, respectively. If there are no readily determinable fair values, investments in equity securities are measured at cost less impairment.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_842_ecustom--ValuationAllowanceForFixedIncomeSecuritiesPolicyTextBlock_z7t5g23L3sJb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Valuation allowance for fixed income securities</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management evaluates impairment losses for all HTM securities each quarter. The HTM securities are evaluated for potential impairment on investments not measured at fair value through net earnings. An allowance for impairment is derived based on various data sources, multiple key inputs and forecast scenarios. These include default rates specific to the individual security, vintage of the security, geography of the issuer of the security, industry analyst reports, credit ratings and consensus economic forecasts. Securities that meet any one of the criteria included above will be subject to a discounted cash flow analysis by comparing the present value of expected future cash flows with the amortized cost basis. Projected cash flows are driven primarily by assumptions regarding probability of default and the timing and amount of recoveries associated with defaults.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_844_eus-gaap--FairValueOfFinancialInstrumentsPolicy_zIKt6NEyPSp2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Fair Value of Financial Instruments</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The carrying value of cash and cash equivalents and accounts payable approximate their fair value because of the short-term nature of these instruments and their liquidity. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p id="xdx_849_eus-gaap--IncomeTaxPolicyTextBlock_zghLYKjNOQ61" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Income Taxes</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss and credit carryforwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. The Company records an estimated valuation allowance on its deferred income tax assets if it is not more likely than not that these deferred income tax assets will be realized.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of March 31, 2022 and December 31, 2021, the Company has determined it does not have any uncertain tax positions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p id="xdx_846_eus-gaap--SegmentReportingPolicyPolicyTextBlock_zYvPLOQf656d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Segment Reporting</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s business currently operates in one segment.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Newpoint Financial Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>March 31, 2022 and March 31, 2021</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84D_eus-gaap--EarningsPerSharePolicyTextBlock_zcjJlGMy8Qni" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Net Loss per Share</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The computation of basic net loss per common share is based on the weighted average number of shares that were outstanding during the year. The computation of diluted net loss per common share is based on the weighted average number of shares used in the basic net loss per share calculation plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding using the treasury stock method.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84B_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zvtSscz1ltKd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Recently Issued Accounting Pronouncements</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company reviews new accounting standards as issued. Although some of these accounting standards issued or effective after the end of the Company’s previous fiscal year may be applicable to the Company, it has not identified any standards that it believes merit further discussion. The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_844_ecustom--RelatedPartiesPolicyTextBlock_zUcpf9iQezW9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Related Parties</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant to Section 850-10-20 the related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The financial statements include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_847_eus-gaap--UseOfEstimates_zVn5VbEHNv1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Estimates</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates. Actual results and outcomes may differ materially from the estimates as additional information becomes known.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_844_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_z2HG370u1Htk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Cash and Cash Equivalents</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash and cash equivalents includes highly liquid instruments with original maturities of three months or less.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84C_eus-gaap--InvestmentPolicyTextBlock_zGfy1GCgCUEb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Investments </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Short-term investments, Fixed maturities and equity securities</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Short-term investments comprise investments with a maturity greater than three months up to one year from the date of purchase. Short-term investments are carried at fair value, with realized and unrealized gains and losses included in net earnings are reported as net realized and unrealized gains and losses, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Newpoint Financial Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>March 31, 2022 and 2021</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investments in debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities. Trading securities are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period included in earnings. Debt securities held as investments that the Company classifies as held-to-maturity securities are recorded at amortized cost, net of a valuation allowance for credit losses. Investments in debt securities not classified as either held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities are recorded at fair value, with the change in fair value during the period excluded from earnings and recorded net of tax as a component of other comprehensive income.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investments in equity securities are reported at fair value with realized and unrealized gains and losses included in net earnings are reported as net realized and unrealized gains and losses, respectively. If there are no readily determinable fair values, investments in equity securities are measured at cost less impairment.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_842_ecustom--ValuationAllowanceForFixedIncomeSecuritiesPolicyTextBlock_z7t5g23L3sJb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Valuation allowance for fixed income securities</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management evaluates impairment losses for all HTM securities each quarter. The HTM securities are evaluated for potential impairment on investments not measured at fair value through net earnings. An allowance for impairment is derived based on various data sources, multiple key inputs and forecast scenarios. These include default rates specific to the individual security, vintage of the security, geography of the issuer of the security, industry analyst reports, credit ratings and consensus economic forecasts. Securities that meet any one of the criteria included above will be subject to a discounted cash flow analysis by comparing the present value of expected future cash flows with the amortized cost basis. Projected cash flows are driven primarily by assumptions regarding probability of default and the timing and amount of recoveries associated with defaults.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_844_eus-gaap--FairValueOfFinancialInstrumentsPolicy_zIKt6NEyPSp2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Fair Value of Financial Instruments</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The carrying value of cash and cash equivalents and accounts payable approximate their fair value because of the short-term nature of these instruments and their liquidity. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p id="xdx_849_eus-gaap--IncomeTaxPolicyTextBlock_zghLYKjNOQ61" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Income Taxes</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss and credit carryforwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. The Company records an estimated valuation allowance on its deferred income tax assets if it is not more likely than not that these deferred income tax assets will be realized.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of March 31, 2022 and December 31, 2021, the Company has determined it does not have any uncertain tax positions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p id="xdx_846_eus-gaap--SegmentReportingPolicyPolicyTextBlock_zYvPLOQf656d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Segment Reporting</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s business currently operates in one segment.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Newpoint Financial Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>March 31, 2022 and March 31, 2021</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84D_eus-gaap--EarningsPerSharePolicyTextBlock_zcjJlGMy8Qni" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Net Loss per Share</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The computation of basic net loss per common share is based on the weighted average number of shares that were outstanding during the year. The computation of diluted net loss per common share is based on the weighted average number of shares used in the basic net loss per share calculation plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding using the treasury stock method.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84B_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zvtSscz1ltKd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Recently Issued Accounting Pronouncements</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company reviews new accounting standards as issued. Although some of these accounting standards issued or effective after the end of the Company’s previous fiscal year may be applicable to the Company, it has not identified any standards that it believes merit further discussion. The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_844_ecustom--RelatedPartiesPolicyTextBlock_zUcpf9iQezW9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Related Parties</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant to Section 850-10-20 the related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The financial statements include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_80D_eus-gaap--InvestmentTextBlock_zuGBgXO9C9R" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 4 – <span id="xdx_828_zx06rAEKUtKf">INVESTMENTS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 10, 2021, the Company entered into a stock purchase agreement with Novea Inc., a Wyoming corporation (“Novea”), whereby we acquired five hundred thousand (<span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20211209__20211210__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember_z9fiTXAnVyMl" title="Company acquired shares">500,000</span>) units (“Units”), each Unit having a stated value of $<span id="xdx_903_eus-gaap--SharesIssuedPricePerShare_c20211210__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember_pdd" title="Share issued price per share">100</span> and consisting of (i) one share of Series B Convertible Redeemable Preferred Stock (“Novea Preferred Stock”) and (ii) <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20211209__20211210__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember_z7O2Xi6G8E2c" title="Number of shares issued">2.503474</span> shares of common stock of Novea (“Novea Common Stock”). We also acquired a warrant exercisable for <span id="xdx_905_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dc_c20211210__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember_zxHHcmS8huJi" title="Warrants term">ten years</span> for additional shares of common stock of up to $<span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodValueNewIssues_pp0p0_c20211209__20211210__srt--RangeAxis__srt--MaximumMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember_zZ9z58KxDIw4" title="Shares of common stock value">50,000,000</span>, subject to adjustment as set forth therein. In aggregate, we acquired (i) <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20211209__20211210__us-gaap--StatementEquityComponentsAxis__us-gaap--PreferredStockMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember_zVsdLa0R5ewe" title="Number of shares issued">500,000</span> shares of Novea Preferred Stock, (ii) <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20211209__20211210__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember_zgUdh4J3rzUj" title="Number of shares issued">1,251,737</span> shares of Novea Common Stock, representing ten percent (<span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardPurchasePriceOfCommonStockPercent_pid_dp_c20211209__20211210__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember_zMY1JbZfxVij" title="Percentage of common stock">10</span>%) of Novea’s common stock, and (iii) one warrant to purchase up to $<span id="xdx_901_eus-gaap--WarrantsAndRightsOutstanding_iI_c20211210__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember__srt--RangeAxis__srt--MaximumMember_z4SWhMpU0HY6" title="Warrants to purchase common stock">50,000,000</span> of Novea Common Stock. Novea is a financial and insurance services software company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As consideration for such purchase, Newpoint Financial Corp (a Wyoming corporation), now known as NPFC SPV 1, Inc., an entity that was owned by the current controlling shareholders, issued to Novea ten (10) secured $<span id="xdx_907_eus-gaap--DebtInstrumentFaceAmount_iI_c20211210__us-gaap--LongtermDebtTypeAxis__us-gaap--SecuredDebtMember_zubQWA6w3yJ2" title="Debt amount">5,000,000</span> notes (each a “Collateral Note”), totaling $<span id="xdx_907_eus-gaap--DebtInstrumentFaceAmount_iI_c20211210_z3oAF6uyiyf3" title="Debt amont">50,000,000</span>. The Collateral Notes are due on demand and we have the right to prepay the Collateral Notes at any time on NPFC SPV 1, Inc’s behalf.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of March 31, 2022 and December 31, 2021, investments in debt securities include mandatorily redeemable preferred stock which is classified as held to maturity, with a term ending in December 2031. The amortized cost was $<span id="xdx_900_eus-gaap--AmortizationOfDebtDiscountPremium_c20220101__20220331_zPkYqjik4fl4"><span id="xdx_90B_eus-gaap--AmortizationOfDebtDiscountPremium_c20210101__20211231_zXCfz36xnxm8" title="Amortized cost">50,000,000</span></span> as of March 31, 2022 and December 31, 2021. The Novea Common Stock and warrants purchased as part of the transaction are considered to have a de minimis value as of December 31, 2021. Novea issued <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20210101__20211231__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember_zun2LMhi4a32" title="Number of shares issued">1,251,737</span> shares of Novea Common Stock to the Company, representing ten percent (<span id="xdx_900_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardPurchasePriceOfCommonStockPercent_pid_dp_uPure_c20210101__20211231_zvmmrSDIL8Ck" title="Percentage of common stock">10</span>%) of Novea’s common stock outstanding. The shares issued had no par value. Novea is a private company and does not have a readily determinable fair value.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Newpoint Financial Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>March 31, 2022 and March 31, 2021</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 500000 100 2.503474 P10Y 50000000 500000 1251737 0.10 50000000 5000000 50000000 50000000 50000000 1251737 0.10 <p id="xdx_800_eus-gaap--DepositLiabilitiesDisclosuresTextBlock_zKD3qBLqXEe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 5 - <span id="xdx_82C_z29Ba1dbjyqk">DEPOSITS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In August 2021, the Company entered into an agreement with Citadel Risk Holdings, Inc., (“CRHI”) which owns all the shares of American Millennium Insurance Co., (“AMIC”) a New Jersey based insurance company. <span id="xdx_908_eus-gaap--DepositLiabilitiesDescription_c20210801__20210831__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AmericanMillenniumInsuranceCoMember_ziD0INRTDnR6" title="Share purchase description">We agreed to purchase 3.75% of AMIC’s outstanding shares per year over the course of 10 years for an aggregate total <span id="xdx_905_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_pid_dp_c20210831__us-gaap--BusinessAcquisitionAxis__custom--AmericanMillenniumInsuranceCoMember_zRAEfjrhrWUe" title="Purchase price percentage">37.5</span>% of outstanding shares at the end of the term</span>. Closing is expected to occur in 2022 subject to receipt of regulatory approval and other customary closing conditions. As at March 31, 2022, NPFC SPV1, Inc. had made a deposit of $<span id="xdx_903_eus-gaap--Deposits_iI_pp0p0_c20220331__us-gaap--RelatedPartyTransactionAxis__custom--NewpointFinancialCorpWyomingMember__dei--LegalEntityAxis__custom--AmericanMillenniumInsuranceCoMember_zGG587EEMJLh" title="Deposit">1,000,000</span> to AMIC, on behalf of the Company, as part of an agreement that remains subject to approval.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> We agreed to purchase 3.75% of AMIC’s outstanding shares per year over the course of 10 years for an aggregate total 37.5% of outstanding shares at the end of the term 0.375 1000000 <p id="xdx_805_ecustom--CreditCommitmentTextBlock_zNDDoVfQwIEd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 6 – <span id="xdx_82D_zXYoa31T2n1g">CREDIT COMMITMENT</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company entered into a five (<span id="xdx_90A_eus-gaap--DebtInstrumentTerm_dtY_c20211209__20211210__us-gaap--TypeOfArrangementAxis__custom--RevolvingCreditFacilityAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember_zZqnNemWMMQ1" title="Debt term">5</span>) year revolving credit facility agreement with Novea dated as of December 10, 2021 (“Credit Facility”). The Credit Facility provides for a revolving credit with a commitment equal to the lesser of: (i) $<span id="xdx_905_eus-gaap--LineOfCreditFacilityCommitmentFeeAmount_pp0p0_c20211209__20211210__us-gaap--TypeOfArrangementAxis__custom--RevolvingCreditFacilityAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember_zRQqkWZSM8L6" title="Line of credit facility commitment amount">5,000,000</span>; or (ii) on any amount greater than $<span id="xdx_904_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_pp0p0_c20211210__us-gaap--TypeOfArrangementAxis__custom--RevolvingCreditFacilityAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember_zajh5tPgsGA6" title="Line of credit maximum commitment amount">500,000</span>, the lender shall only disburse any such excess up to the amount of 50% of the qualified receivables outstanding of the borrower, bearing interest at LIBOR plus <span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20211210__us-gaap--TypeOfArrangementAxis__custom--RevolvingCreditFacilityAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember__us-gaap--VariableRateAxis__us-gaap--LondonInterbankOfferedRateLIBORMember_z3K9Tl4jZMJe" title="Interest rate">5.25</span>%. As of March 31, 2022 and December 31, 2021 there was $<span id="xdx_901_eus-gaap--LineOfCreditFacilityCurrentBorrowingCapacity_iI_pp0p0_c20220331__us-gaap--TypeOfArrangementAxis__custom--RevolvingCreditFacilityAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember_zSvh0tHfbSi4" title="Additional borrowing amount">4,669,200</span> and $<span id="xdx_908_eus-gaap--LineOfCreditFacilityCurrentBorrowingCapacity_iI_pp0p0_c20211231__us-gaap--TypeOfArrangementAxis__custom--RevolvingCreditFacilityAgreementMember__dei--LegalEntityAxis__custom--NoveaIncMember_z2GHp93qUyB9" title="Additional borrowing amount">4,836,500</span> respectively of additional borrowings were available to Novea subject to the borrowing criteria.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> P5Y 5000000 500000 0.0525 4669200 4836500 <p id="xdx_804_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zRzTJXEab5ia" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 7 – <span id="xdx_82D_zBOytb2eKWhj">RELATED PARTY TRANSACTIONS AND NOTE PAYABLE</span></b></span></p> <p id="xdx_89D_eus-gaap--ScheduleOfRelatedPartyTransactionsTableTextBlock_zhPNx1roHrDk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B2_zdzpJVuUQ5k6" style="display: none">SCHEDULE OF RELATED PARTY TRANSACTION</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20220331_zuSBp2vGphXi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">March 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20211231_zKyqSRCfZ5ai" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-decoration: underline; text-align: left">Due to Related Parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_hus-gaap--RelatedPartyTransactionAxis__custom--NewpointFinancialCorpWyomingMember_zzmDlZeLuZ27" style="vertical-align: bottom; background-color: White"> <td style="width: 56%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Newpoint Financial Corp (Wyoming) <sup id="xdx_F4A_zCYoGRjSWJp9">(1)</sup></span></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">51,142,466</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">50,000,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_hus-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zlNPusJna1Pf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Newpoint Reinsurance Limited <sup id="xdx_F41_zrpFJiaYj4M1">(2)</sup></span></td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">163,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">163,500</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_hus-gaap--RelatedPartyTransactionAxis__custom--NewpointCapitalLimitedMember_z9jzpJ2I7nWb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Newpoint Capital Limited <sup id="xdx_F41_zoaBTgbrdqxi">(3)</sup></span></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">260,655</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">68,021</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_z6pnJKabwTe2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">51,566,621</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">50,231,521</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.75in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in"><span id="xdx_F08_zbJ6eJNSHbNe" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F12_zgngSrskauAa" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Newpoint Financial Corp (a Wyoming corporation), now known as NPFC SPV 1, Inc. entered into an agreement dated December 13, 2021 with the Company as part of the transaction to provide the collateral notes to Novea. In December 2021 the Company entered into a Loan Facility Agreement (the “LFA”) with NPFC SPV I, an entity owned by the Company’s principal stockholders, in connection with the Stock Purchase Agreement between the Company and Novea (see Note 4). The LFA provides total principal of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_902_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_pp0p0_c20211231__us-gaap--RelatedPartyTransactionAxis__custom--NewpointFinancialCorpWyomingMember_zrSw7jaeKHP2" title="Related party payables">50,000,000</span> and is due in December 2031. If the Company is in default, as defined, at any time during the term of the LFA, then the lender can demand repayment within 30 days. The LFA calls for interest at a fixed rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_901_eus-gaap--RelatedPartyTransactionRate_pip0_dp_uPure_c20211201__20211231__us-gaap--RelatedPartyTransactionAxis__custom--NewpointFinancialCorpWyomingMember_zJXdHTtAFVt6" title="Related party transaction rate">1</span>% per annum. Interest can be deferred for up to two years upon the Company’s request. As of March 31, 2022, NPFC SPV1, Inc. had made a deposit of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_908_eus-gaap--Deposits_iI_pp0p0_c20220331__us-gaap--RelatedPartyTransactionAxis__custom--NewpointFinancialCorpWyomingMember__dei--LegalEntityAxis__custom--AmericanMillenniumInsuranceCoMember_zs2Mg9WALFCh" title="Deposits">1,000,000</span> to AMIC, on behalf of the Company, as part of an agreement that remains subject to approval. The remaining portion of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_907_eus-gaap--InterestPayableCurrentAndNoncurrent_iI_pp0p0_c20220331__us-gaap--RelatedPartyTransactionAxis__custom--NewpointFinancialCorpWyomingMember_zSeVf77AUvh5" title="Interest incurred">142,466</span> relates to interest incurred on amounts outstanding.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.75in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in"><span id="xdx_F0E_zXqEIrCLGag1" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F14_zO5t9oE46OVj" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Newpoint Reinsurance Limited registered under the provisions of the Nevis business Corporation 1984 Ordinance, as amended. In December 2021 the Company entered into a Revolving Credit Facility Agreement (the “RCFA”) with Newpoint Reinsurance Company Limited, an entity owned by the Company’s majority shareholder. The RCFA provides for available borrowings up to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90B_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_c20211231__us-gaap--TypeOfArrangementAxis__custom--RevolvingCreditFacilityAgreementMember__us-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zqGeAdS2CUO8" title="Maximum borrowing capacity">1,000,000</span> for a term of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_909_eus-gaap--DebtInstrumentTerm_dc_c20211201__20211231__us-gaap--TypeOfArrangementAxis__custom--RevolvingCreditFacilityAgreementMember__us-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zpVL90q8KsPg" title="Debt term">three years</span> and an option to roll the facility. As of March 31, 2022 and December 31, 2021 the Company has additional available borrowings of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_904_eus-gaap--LineOfCreditFacilityCurrentBorrowingCapacity_iI_c20220331__us-gaap--TypeOfArrangementAxis__custom--RevolvingCreditFacilityAgreementMember__us-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zq3jaYZsXapb" title="Addition available borrowings"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_901_eus-gaap--LineOfCreditFacilityCurrentBorrowingCapacity_iI_c20211231__us-gaap--TypeOfArrangementAxis__custom--RevolvingCreditFacilityAgreementMember__us-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zdTWwruun9f5">836,500</span></span> after it was provided $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_904_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_c20220331__us-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zDws6Umqazvi" title="Related party payables"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90C_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_c20211231__us-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zfPEehlzzssc">163,500</span></span> as a related party transaction for the credit commitment agreement with Novea. As of March 31, 2022 <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_909_eus-gaap--RepaymentsOfRelatedPartyDebt_do_c20220101__20220331__us-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zKrL9qMzP63" title="Payment to related party">no</span> further payments have been made from Newpoint Reinsurance Limited. </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F0B_zQ6vh5rf9rgf" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F1D_zuYWvOV9Rvih" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Newpoint Capital Limited, a company registered in the United Kingdom has provided $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90F_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_c20220331__us-gaap--RelatedPartyTransactionAxis__custom--NewpointCapitalLimitedMember_zeeFXDbUF6i6" title="Related party payables">260,655</span> of related party transactions to the Company as of March 31, 2022 for the payment of amounts requested per the credit agreement with Novea totaling $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_908_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_c20220331__us-gaap--RelatedPartyTransactionAxis__custom--NewpointCapitalLimitedMember__dei--LegalEntityAxis__custom--NoveaIncMember_z7wOdvvszBeb">167,300</span> and the remaining portion for accounting, auditor fees and fees associated with filings with the SEC for annual and quarterly reports.</span></td></tr> </table> <p id="xdx_8AF_zsEoCkN3azka" style="margin-top: 0; margin-bottom: 0"> </p> <p style="margin: 0"/> <p style="margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Newpoint Financial Corp.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>March 31, 2022 and March 31, 2021</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p id="xdx_89D_eus-gaap--ScheduleOfRelatedPartyTransactionsTableTextBlock_zhPNx1roHrDk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B2_zdzpJVuUQ5k6" style="display: none">SCHEDULE OF RELATED PARTY TRANSACTION</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20220331_zuSBp2vGphXi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">March 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20211231_zKyqSRCfZ5ai" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-decoration: underline; text-align: left">Due to Related Parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_hus-gaap--RelatedPartyTransactionAxis__custom--NewpointFinancialCorpWyomingMember_zzmDlZeLuZ27" style="vertical-align: bottom; background-color: White"> <td style="width: 56%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Newpoint Financial Corp (Wyoming) <sup id="xdx_F4A_zCYoGRjSWJp9">(1)</sup></span></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">51,142,466</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">50,000,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_hus-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zlNPusJna1Pf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Newpoint Reinsurance Limited <sup id="xdx_F41_zrpFJiaYj4M1">(2)</sup></span></td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">163,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">163,500</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_hus-gaap--RelatedPartyTransactionAxis__custom--NewpointCapitalLimitedMember_z9jzpJ2I7nWb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Newpoint Capital Limited <sup id="xdx_F41_zoaBTgbrdqxi">(3)</sup></span></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">260,655</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">68,021</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_z6pnJKabwTe2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">51,566,621</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">50,231,521</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.75in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in"><span id="xdx_F08_zbJ6eJNSHbNe" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F12_zgngSrskauAa" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Newpoint Financial Corp (a Wyoming corporation), now known as NPFC SPV 1, Inc. entered into an agreement dated December 13, 2021 with the Company as part of the transaction to provide the collateral notes to Novea. In December 2021 the Company entered into a Loan Facility Agreement (the “LFA”) with NPFC SPV I, an entity owned by the Company’s principal stockholders, in connection with the Stock Purchase Agreement between the Company and Novea (see Note 4). The LFA provides total principal of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_902_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_pp0p0_c20211231__us-gaap--RelatedPartyTransactionAxis__custom--NewpointFinancialCorpWyomingMember_zrSw7jaeKHP2" title="Related party payables">50,000,000</span> and is due in December 2031. If the Company is in default, as defined, at any time during the term of the LFA, then the lender can demand repayment within 30 days. The LFA calls for interest at a fixed rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_901_eus-gaap--RelatedPartyTransactionRate_pip0_dp_uPure_c20211201__20211231__us-gaap--RelatedPartyTransactionAxis__custom--NewpointFinancialCorpWyomingMember_zJXdHTtAFVt6" title="Related party transaction rate">1</span>% per annum. Interest can be deferred for up to two years upon the Company’s request. As of March 31, 2022, NPFC SPV1, Inc. had made a deposit of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_908_eus-gaap--Deposits_iI_pp0p0_c20220331__us-gaap--RelatedPartyTransactionAxis__custom--NewpointFinancialCorpWyomingMember__dei--LegalEntityAxis__custom--AmericanMillenniumInsuranceCoMember_zs2Mg9WALFCh" title="Deposits">1,000,000</span> to AMIC, on behalf of the Company, as part of an agreement that remains subject to approval. The remaining portion of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_907_eus-gaap--InterestPayableCurrentAndNoncurrent_iI_pp0p0_c20220331__us-gaap--RelatedPartyTransactionAxis__custom--NewpointFinancialCorpWyomingMember_zSeVf77AUvh5" title="Interest incurred">142,466</span> relates to interest incurred on amounts outstanding.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.75in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in"><span id="xdx_F0E_zXqEIrCLGag1" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F14_zO5t9oE46OVj" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Newpoint Reinsurance Limited registered under the provisions of the Nevis business Corporation 1984 Ordinance, as amended. In December 2021 the Company entered into a Revolving Credit Facility Agreement (the “RCFA”) with Newpoint Reinsurance Company Limited, an entity owned by the Company’s majority shareholder. The RCFA provides for available borrowings up to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90B_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_c20211231__us-gaap--TypeOfArrangementAxis__custom--RevolvingCreditFacilityAgreementMember__us-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zqGeAdS2CUO8" title="Maximum borrowing capacity">1,000,000</span> for a term of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_909_eus-gaap--DebtInstrumentTerm_dc_c20211201__20211231__us-gaap--TypeOfArrangementAxis__custom--RevolvingCreditFacilityAgreementMember__us-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zpVL90q8KsPg" title="Debt term">three years</span> and an option to roll the facility. As of March 31, 2022 and December 31, 2021 the Company has additional available borrowings of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_904_eus-gaap--LineOfCreditFacilityCurrentBorrowingCapacity_iI_c20220331__us-gaap--TypeOfArrangementAxis__custom--RevolvingCreditFacilityAgreementMember__us-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zq3jaYZsXapb" title="Addition available borrowings"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_901_eus-gaap--LineOfCreditFacilityCurrentBorrowingCapacity_iI_c20211231__us-gaap--TypeOfArrangementAxis__custom--RevolvingCreditFacilityAgreementMember__us-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zdTWwruun9f5">836,500</span></span> after it was provided $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_904_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_c20220331__us-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zDws6Umqazvi" title="Related party payables"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90C_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_c20211231__us-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zfPEehlzzssc">163,500</span></span> as a related party transaction for the credit commitment agreement with Novea. As of March 31, 2022 <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_909_eus-gaap--RepaymentsOfRelatedPartyDebt_do_c20220101__20220331__us-gaap--RelatedPartyTransactionAxis__custom--NewpointReinsuranceLimtedMember_zKrL9qMzP63" title="Payment to related party">no</span> further payments have been made from Newpoint Reinsurance Limited. </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F0B_zQ6vh5rf9rgf" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F1D_zuYWvOV9Rvih" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Newpoint Capital Limited, a company registered in the United Kingdom has provided $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90F_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_c20220331__us-gaap--RelatedPartyTransactionAxis__custom--NewpointCapitalLimitedMember_zeeFXDbUF6i6" title="Related party payables">260,655</span> of related party transactions to the Company as of March 31, 2022 for the payment of amounts requested per the credit agreement with Novea totaling $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVFkgVFJBTlNBQ1RJT04gKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_908_eus-gaap--DueToRelatedPartiesCurrentAndNoncurrent_iI_c20220331__us-gaap--RelatedPartyTransactionAxis__custom--NewpointCapitalLimitedMember__dei--LegalEntityAxis__custom--NoveaIncMember_z7wOdvvszBeb">167,300</span> and the remaining portion for accounting, auditor fees and fees associated with filings with the SEC for annual and quarterly reports.</span></td></tr> </table> 51142466 50000000 163500 163500 260655 68021 51566621 50231521 50000000 0.01 1000000 142466 1000000 P3Y 836500 836500 163500 163500 0 260655 167300 <p id="xdx_802_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zCX5tSKoTuk7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 8 – <span id="xdx_827_zWkdDDfl5pui">STOCKHOLDERS’ DEFICIT</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Preferred Stock</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company is authorized to issue <span id="xdx_90E_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20220331_zgvnc1LVyhIf" title="Preferred stock, shares authorized"><span id="xdx_903_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20211231_zHDqDsvBRX4b" title="Preferred stock, shares authorized">50,000,000</span></span> shares of preferred stock with a par value of $<span id="xdx_90A_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_pid_c20220331_zFi2dC1gsAJ1" title="Preferred stock, par value"><span id="xdx_902_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_pid_c20211231_z7O2CkvLsGqb" title="Preferred stock, par value">0.001</span></span> per share. There were <span id="xdx_90D_eus-gaap--PreferredStockSharesIssued_iI_pid_do_c20220331_z0M0mxdsclM6" title="Preferred stock, shares issued"><span id="xdx_90A_eus-gaap--PreferredStockSharesIssued_iI_pid_do_c20211231_zKM48n4pEM14"><span id="xdx_902_eus-gaap--PreferredStockSharesOutstanding_iI_pid_do_c20220331_zkUcpHlZeK9a" title="Preferred stock, shares outstanding"><span id="xdx_907_eus-gaap--PreferredStockSharesOutstanding_iI_pid_do_c20211231_zyeuqHZUZKbc">no</span></span></span></span> preferred shares issued or outstanding as of March 31, 2022 or December 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Common Stock</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company is authorized to issue up to <span id="xdx_902_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20220331_zOOC9t5jSWMa" title="Common stock, shares authorized"><span id="xdx_90F_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20211231_zpvFQ1jovgTl">100,000,000</span></span> shares of common stock with a par value of $<span id="xdx_908_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20220331_zeCtm4RScsyl" title="Common stock, par value"><span id="xdx_904_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20211231_zPBcKDWx4WE">0.001</span></span> per share. As at March 31, 2022 there were <span id="xdx_907_eus-gaap--CommonStockSharesIssued_iI_pid_c20220331_zdOqsZESUR6j" title="Common stock, shares, issued"><span id="xdx_906_eus-gaap--CommonStockSharesOutstanding_iI_c20220331_zxKeMaZPfHt" title="Common stock, shares outstanding">19,153,923</span></span> shares of common stock issued and outstanding and at December 31, 2021 there were <span id="xdx_909_eus-gaap--CommonStockSharesIssued_iI_pid_c20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zFQYss3ojdba" title="Number of shares issued"><span id="xdx_908_eus-gaap--CommonStockSharesOutstanding_iI_c20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z8X6FbDFKMlc" title="Number of shares outstanding">19,153,923</span></span> shares of common stock issued and outstanding. During the three months ended March 31, 2021, the Company issued <span id="xdx_90A_ecustom--StockIssuedDuringPeriodSharesToSettleRelatedPartyLiabilities_pid_c20220101__20220331_zO52Ckxl3xZ1" title="Shares issued to settle related party liabilities">18,937,738</span> shares to settle related party liabilities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> 50000000 50000000 0.001 0.001 0 0 0 0 100000000 100000000 0.001 0.001 19153923 19153923 19153923 19153923 18937738 <p id="xdx_80F_eus-gaap--SubsequentEventsTextBlock_zV4Gww0rTdL4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 9 – <span id="xdx_82C_zXFyqor8bur">SUBSEQUENT EVENTS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We are in the process of seeking regulatory approval for the Company’s acquisitions of AMIC and CRHI shares. Upon approval, we expect the transactions to be completed sometime in 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"/> Newpoint Financial Corp (a Wyoming corporation), now known as NPFC SPV 1, Inc. entered into an agreement dated December 13, 2021 with the Company as part of the transaction to provide the collateral notes to Novea. In December 2021 the Company entered into a Loan Facility Agreement (the “LFA”) with NPFC SPV I, an entity owned by the Company’s principal stockholders, in connection with the Stock Purchase Agreement between the Company and Novea (see Note 4). The LFA provides total principal of $50,000,000 and is due in December 2031. If the Company is in default, as defined, at any time during the term of the LFA, then the lender can demand repayment within 30 days. The LFA calls for interest at a fixed rate of 1% per annum. Interest can be deferred for up to two years upon the Company’s request. As of March 31, 2022, NPFC SPV1, Inc. had made a deposit of $1,000,000 to AMIC, on behalf of the Company, as part of an agreement that remains subject to approval. The remaining portion of $142,466 relates to interest incurred on amounts outstanding. Newpoint Reinsurance Limited registered under the provisions of the Nevis business Corporation 1984 Ordinance, as amended. In December 2021 the Company entered into a Revolving Credit Facility Agreement (the “RCFA”) with Newpoint Reinsurance Company Limited, an entity owned by the Company’s majority shareholder. The RCFA provides for available borrowings up to $1,000,000 for a term of three years and an option to roll the facility. As of March 31, 2022 and December 31, 2021 the Company has additional available borrowings of $836,500 after it was provided $163,500 as a related party transaction for the credit commitment agreement with Novea. As of March 31, 2022 no further payments have been made from Newpoint Reinsurance Limited. 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