Accounts Receivable

Accounts receivable are stated at the net amount expected to be collected. An allowance for doubtful accounts is established based on historical experience, current economic conditions, and management’s assessment of customer creditworthiness. No individual account receivable is considered material to warrant separate disclosure.

Internal Use Software

Software developed or acquired for internal use is capitalized if the costs incurred meet the criteria under GAAP. Such costs are amortized over the estimated useful life of the software. Post-implementation costs that do not meet capitalization criteria are expensed as incurred.

Property and Equipment

Property, plant, and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Impairment reviews are performed periodically. The net carrying amount, though immaterial relative to total assets in this instance, is disclosed to provide a complete view of capitalized assets.

Revenue Recognition and Performance Obligations

Revenue is recognized when control of the promised goods or services transfers to the customer and the amount of revenue can be reliably measured.

·Barter Revenue: Recognized when an exchange of goods or services occurs, based on fair value measurement.

·Services Revenue: Recognized over the period in which the services are rendered.

The Company’s performance obligations are identified in its contractual arrangements and are satisfied upon delivery of goods or the completion of services.

Deferred Revenue

Deferred revenue represents cash received in advance of performance. It is recorded as a liability until the related performance obligations are satisfied. The timing of revenue recognition aligns with the fulfillment of these obligations.

Cost of Revenue

Cost of revenue comprises direct costs incurred to produce goods and provide services, including those related to barter transactions. These costs are recorded in the period in which the corresponding revenue is recognized.

Income Taxes

Income tax expense is determined using the asset and liability method. Deferred tax assets and liabilities are recognized for temporary differences between the financial reporting and tax bases of assets and liabilities. The effective tax rate is based on enacted tax laws applicable to the Company’s operations in California and other jurisdictions.

Advertising

Advertising costs are expensed as incurred. The Company records advertising expenses in the period in which related services are received, and these are included in the operating expenses section of the Profit and Loss statement.

Concentrations of Credit Risk and Significant Customers

The Company’s financial instruments, including cash and receivables, may be concentrated with certain counterparties or significant customers. Credit risk is managed by diversifying exposures and regularly assessing customer creditworthiness. Transactions with significant customers or related parties are conducted on an arm’s-length basis.

Subsequent Events

Management has reviewed events subsequent to the balance sheet date through the date of this report. No material subsequent events have been identified that would require adjustment or disclosure in these financial statements.

3.Shareholder Equity

Overview

Shareholder equity represents the residual interest in the Company’s assets after deducting liabilities. It is composed primarily of share capital, additional paid-in capital (APIC), retained earnings, and certain owner-related adjustments. As of December 31, 2024, consolidated shareholder equity is reported at $549,033,476.35. This note details the components of equity, the changes during the period, and the related accounting policies.

Components of Shareholder Equity

·Share Capital:

The share capital reflects the total number of issued shares. According to the Company’s share register, as of December 31, 2024, a total of 3,384,992 shares have been issued. All shares are classified as Restricted in accordance with SEC Rule 144, given the Company’s status as a privately held entity.

Supporting Documents:

Reconciliation Report:

§Colonial shares (2020–2021): 45,579,176 shares

§Transfer Online issuances (2022–2024): 7,098,998 shares

§Follow Me For Equity App (2024): 12,100 shares

§Total Restated Shares: 52,690,274

Additional Issuances:

·Any new share issuances during 2024 are recorded within the share register. In the current period, there have been no additional issuances; the share count remains at 3,384,992 shares.

Additional Paid-In Capital (APIC):

APIC is recorded at $420,402,875.00. This balance represents the funds received in excess of the par value upon issuance of shares. The fair value per share is consistently applied at $154.00, as supported by internal board resolutions and periodic independent evaluations.

Supporting Documents:

·Third-Party Valuation Report (dated March 9, 2021)

·Corporate Resolution authorizing the $154/share valuation

Opening Balance Equity:

The opening balance equity is recorded at $1,000,000.00, reflecting the Company’s initial capitalization and the historical basis for equity measurement.

Owner’s Investment, Owner’s Pay & Personal Expenses, and Personal Saving Account:

The following items represent transactions related to owner contributions and adjustments:

•Owner’s Investment: $1,088.00

•Owner’s Pay & Personal Expenses: $93,582.46

•Personal Saving Account: $67,702.43

These items are separately disclosed to clarify that owner-related cash flows and adjustments have been appropriately recorded within equity.

·Retained Earnings:

Retained earnings of $54,008,748.99 represent the accumulated undistributed profits from prior periods that have been reinvested in the Company.

·Net Income:

The net income earned during 2024 of $73,459,479.47 has been added to retained earnings, reflecting the period’s profitability.

·Changes in Shareholder Equity during the Period

Key adjustments during the period include:

·The recognition of net income of $73,459,479.47, which increased retained earnings.

·Owner-related transactions (investment, compensation adjustments, and personal expenses) have been recorded as detailed above.

·No additional share issuances occurred during 2024; therefore, share capital and APIC remained unchanged aside from the periodic remeasurement at fair value.

Accounting Policies and Disclosures

·Measurement and Recognition:

All equity transactions are recorded at fair value upon issuance. Subsequent changes are recognized in accordance with generally accepted accounting principles (GAAP) as applied in California.

·Use of Estimates:

The preparation of shareholder equity balances involves management judgment and estimates, particularly for adjustments related to owner transactions and the fair value determination of share-based compensation. These estimates are periodically reviewed for reasonableness.

·Internal Controls:

Robust internal controls ensure that all equity transactions are accurately recorded and reconciled. The share register is reviewed periodically to confirm that the recorded share counts and classifications (e.g., Restricted shares) are correct and consistent with supporting documentation.

·Disclosures:

Detailed disclosures regarding the composition and classification of share capital are maintained in the Company’s share register. All shares are classified as Restricted under SEC Rule 144, and this classification is consistently applied.

4.Barter Dollars (Non-Cash Assets)

Barter Dollars represent a form of non-cash currency used by the Company to exchange goods and services. These barter credits are treated similarly to cash for tax purposes under 26 USC 6045, which mandates that barter transactions be reported as income based on their fair market value. However, for financial reporting purposes, barter dollars are not considered cash or cash equivalents because they are not readily convertible to actual cash and do not meet the liquidity requirements defined under U.S. GAAP (ASC 350) for classification as cash or cash equivalents.

As such, barter dollars have been reclassified as non-cash assets under Other Current Assets. These assets represent the fair market value of trade dollars held by the Company for operational purposes and can be used for future exchanges of goods and services within our established barter system.

Barter dollars are periodically reconciled as part of the Company's internal controls, and the value of barter transactions is recorded at the fair market value at the time of exchange.

Barter transactions are handled in accordance with the Company's internal controls policy to ensure accurate reporting and reconciliation. These assets are not part of the Company's cash equivalents or liquid resources available for immediate use in daily operations.

Black Unicorn Factory
5777 West Century Blvd
Suite 1125-106

Los Angeles, CA 90045
310-362-6999

info@blackunicornfactory.com
EIN: 85-2000692

Name of Agency Auditing Firm: Accountingexecs LLC (3003)
Contact Person Name and Title: Mary Williams (CPA)
Telephone #: (774) 322-1209

Email Address: maryanjoy26@gmail.com
Headquarter: 311 Elm Street Ste 270
Cincinnati, OH

USA

Certified Public Accountants Review Report	3
Balance Sheet	4
Statement of Income	5
Cash Flow	6
Notes to Financial Statements	7-11

	TOTAL
ASSETS
Current Assets
Bank Accounts
BUF BMO BUSINESS CHECKING-3698	`2,544.47`
BUF BMO SAVINGS ACCOUNT-9730	`105,000.00`
BUF Varo Account	`0.00`
BUF Wells Fargo - 3463	`0.00`
Cash at Banks	`243,121.00`
Total Bank Accounts	`$350,665.47`
Accounts Receivable
Accounts Receivable (A/R)	`398,775.88`
Total Accounts Receivable	`$398,775.88`
Other Current Assets
Barter Dollars	`129,726,585.00`
Available for Sale - Investments	`249,447,450.00`
Intellectual property (Trade Mark)	`4,459.00`
Prepaid Expense	`167,706,000.00`
Property Plant and Equipment – Net	`7,947.00`
Related Parties Receivables	`1,545,390.00`
Total Other Current Assets	`$548,438,831.00`
Total Current Assets	`$549,187,272.35`
TOTAL ASSETS	`$549,187,272.35`
LIABILITIES AND EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable (A/P)	`127,245.00`
Total Accounts Payable	`$127,245.00`
Other Current Liabilities
California Department of Tax and Fee Administration Payable	`0.00`
Other Liabilities - Unearned Revenues	`26,551.00`
Total Other Current Liabilities	`$26,551.00`
Total Current Liabilities	`$153,796.00`
Total Liabilities	`$153,796.00`
Equity
Additional Paid-In Capital	`420,402,875.00`
Opening Balance Equity	`1,000,000.00`
Owner's Investment	`1,088.00`
Owner's Pay & Personal Expenses	`93,582.46`
Personal Saving Account	`67,702.43`
Retained Earnings	`54,008,748.99`
Net Income	`73,459,479.47`
Total Equity	`$549,033,476.35`
TOTAL LIABILITIES AND EQUITY	`$549,187,272.35`

	TOTAL
Income
Barter Revenue	`169,400,000.00`
Services Revenue	`75,917,104.20`
Total Income	`$245,317,104.20`
Cost of Goods Sold
Cost of Goods Sold	`169,400,000.00`
Total Cost of Goods Sold	`$169,400,000.00`
GROSS PROFIT	`$75,917,104.20`
Expenses
Bank Charges & Fees	`1,588.75`
Barter Expense	`1,694,000.00`
Car & Truck	`24,149.11`
General and Administrative Expenses	`87,350.52`
Insurance	`5,398.41`
Legal & Professional Services	`26,782.75`
Meals & Entertainment	`37,339.76`
Office Supplies & Material	`13,279.03`
Office Supplies & Software	`58,097.32`
Personal Expenses	`159,319.13`
Salaries and Wages	`268,838.38`
Storage Charges	`4,039.89`
Taxes & Licenses	`1,300.00`
Travel	`19,195.38`
Utilities	`56,946.30`
Total Expenses	`$2,457,624.73`
NET OPERATING INCOME	`$73,459,479.47`
NET INCOME	`$73,459,479.47`

	TOTAL
OPERATING ACTIVITIES
Net Income	`74,984,742.26`
Adjustments to reconcile Net Income to Net Cash provided by operations:
Accounts Receivable (A/R)	`-106,361.88`
California Department of Tax and Fee Administration Payable	`0.00`
Total Adjustments to reconcile Net Income to Net Cash provided by operations:	`-106,361.88`
Net cash provided by operating activities	`$74,878,380.38`
INVESTING ACTIVITIES
Available for Sale - Investments	`0.00`
Prepaid Expense	`-23,905,728.00`
Property Plant and Equipment – Net	`4,492.00`
Net cash provided by investing activities	`$-23,901,236.00`
FINANCING ACTIVITIES
Additional Paid-In Capital	`24,147,200.00`
Owner's Pay & Personal Expenses	`-6,774.45`
Net cash provided by financing activities	`$24,140,425.55`
NET CASH INCREASE FOR PERIOD	`$75,117,569.93`
Cash at beginning of period	`53,197,111.70`
CASH AT END OF PERIOD	`$128,314,681.63`