| Summary of Significant Accounting Policies | Note
3 – Summary of Significant Accounting Policies Cash
and Cash Equivalents The
Company considers all highly liquid temporary cash investments with an original maturity of 90 days or less to be cash equivalents. At
September 30, 2023, and December 31, 2022, the Company has $ 2,000 BALANCE
LABS, INC. Condensed
Notes to Consolidated Financial Statements As
of September 30, 2023 (Unaudited) Use
of Estimates The
preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States
of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting periods. Estimates may include those pertaining to stock-based compensation, depreciable lives of fixed
assets and deferred tax assets. Actual results could materially differ from those estimates. Accounts
Receivable Accounts
receivable are recorded at fair value on the date revenue is recognized. The Company provides allowances for doubtful accounts by specific
customer identification. If market conditions decline, actual collections may not meet expectations and may result in decreased cash
flow and increased bad debt expense. Once collection efforts by the Company and its collection agency are exhausted, the determination
for charging off uncollectible receivables is made. Revenue
Recognition The
Company accounts for its revenues under FASB ASC 606, which is a comprehensive new revenue recognition model that requires revenue to
be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected
to be received in exchange for those goods or services. The Company considers revenue realized or realizable and earned when all the
five following criteria are met: (1) Identify the Contract with a Customer, (2) Identify the Performance Obligations in the Contract,
(3) Determine the Transaction Price, (4) Allocate the Transaction Price to the Performance Obligations in the Contract, and (5) Recognize
Revenue When (or As) the Entity Satisfies a Performance Obligation. The
Company recognizes consulting income when the services are performed, and performance obligations are satisfied over time or point of
time. Income
Taxes The
Company recognizes deferred tax assets and liabilities for the expected future tax consequences of items that have been included or excluded
in the financial statements or tax returns. Deferred tax assets and liabilities are determined on the basis of the difference between
the tax basis of assets and liabilities and their respective financial reporting amounts (“temporary differences”) at enacted
tax rates in effect for the years in which the temporary differences are expected to reverse. The
Company adopted the provisions of Accounting Standards Codification (“ASC”) Topic 740-10, which prescribes a recognition
threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken
in a tax return. BALANCE
LABS, INC. Condensed
Notes to Consolidated Financial Statements As
of September 30, 2023 (Unaudited) Management
has evaluated and concluded that there are no material tax positions requiring recognition in the Company’s unaudited condensed
consolidated financial statements as of September 30, 2023. The Company does not expect any significant changes in its unrecognized tax
benefits within twelve months of the reporting date. The Company’s 2020, 2021, and 2022 tax returns remain open for audit for Federal
and State taxing authorities. The
Company’s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as general and
administrative expenses in the statement of operations. Marketable
Securities The
Company accounts for marketable and available-for-sale securities under ASU 2016-01, “Financial Instruments – Overall: Recognition
and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 requires equity investments (except those accounted
for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes
in fair value recognized in net income. The
Company accounts for its investment in EZFill Holdings, Inc. as available-for-sale securities pursuant to the S-1 Registration Statement
declared effective on September 14, 2021, therefore, the unrealized gain (loss) on the available-for-sale securities during the nine
months ended September 30, 2023, and 2022 has been recorded in Other Income. On
December 2, 2020, the Company received 1,000
,000 1 On
September 14, 2021, the S-1 Registration Statement for EZFill Holdings, Inc. was declared effective by the U.S. Securities and Exchange
Commission. As a result of becoming a publicly traded company, our investment is now recorded at fair value as available-for-sale securities
on September 30, 2023, with the gains and losses being recorded through other income on the consolidated statements of operations for
the three then ended. On
November 18, 2020, the Company executed a two (2) year, third-party consulting agreement for various corporate services. The current
service agreement has expired effective November 18, 2022. In connection with this agreement, and with the effectiveness of the Company’s
Form S-1 registration statement, the Company was entitled to compensation as follows: ●
1,000,000 1,000,000 1.00 ●
a single payment of $ 200,000 ●
during the first year of the agreement, $ 25,000 st ●
during the second year of the agreement, $ 22,500 ●
on each anniversary of the agreement, 500,000 At
September 30, 2023, the Company owned 66,432 2.69 29,894 1 share for 8 share reverse stock
split BALANCE
LABS, INC. Condensed
Notes to Consolidated Financial Statements As
of September 30, 2023 (Unaudited) Investments
– Related Parties When
the fair value of an investment is indeterminable, the Company accounts for its investments that are under 20% of the total equity outstanding
using the cost method. For investments in which the Company holds between 20-50% equity and is non-controlling are accounted for using
the equity method. For any investments in which the Company holds over 50% of the outstanding stock, the Company consolidates those entities
into their consolidated financial statements herein The
Company holds one investment as of September 30, 2023, and one investment as of December 31, 2022. Investments On
January 29, 2021, the Company received 20 0 0 Concentration
of Credit Risk Financial
instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash, cash equivalents and marketable
securities. As of September 30, 2023, and December 31, 2022, the carrying value of marketable securities was $ 178,702 148,808 Principles
of Consolidation The
consolidated financial statements include the Company and its wholly owned corporate subsidiaries, Balance Labs LLC., from October 12,
2015, Balance AgroTech Co., from July 11, 2016, Advanced Auto Tech Co., from May 10, 2016, Balance Cannabis Co., from May 13, 2016, and
Balance Medical Marijuana Co from December 22, 2015. All intercompany transactions are eliminated. The Company’s four subsidiaries,
Balance AgroTech Co., Advanced AutoTech Co., Balance Cannabis Co., and Balance Medical Marijuana Co. are dormant. BALANCE
LABS, INC. Condensed
Notes to Consolidated Financial Statements As
of September 30, 2023 (Unaudited) Net
Income (Loss) Per Common Share Basic
and diluted income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares
and warrants from convertible debentures outstanding during the periods. The effect of 0 40,000 3,782,645 3,526,378 Stock-Based
Compensation The
Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For
employees, the fair value of the award is measured on the grant date and for non-employees, the fair value of the award is generally
re-measured on vesting dates and financial reporting dates until the service period is complete. The fair value amount is then recognized
over the period during which services are required to be provided in exchange for the award, usually the vesting period. Awards granted
to directors are treated on the same basis as awards granted to employees. The
Company has computed the fair value of warrants granted using the Black-Scholes option pricing model. The expected term used for warrants
is the contractual life. Since the Company’s stock has not been publicly traded for a sufficiently long period, the Company is
utilizing an expected volatility figure based on a review of the historical volatilities, over a period of time, equivalent to the expected
life of the instrument being valued, of similarly positioned public companies within its industry. The risk-free interest rate was determined
from the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument
being valued. Fair
Value of Financial Instruments The
Company measures its financial assets and liabilities in accordance with GAAP. For certain of our financial instruments, including cash,
accounts payable, and the short-term portion of long-term debt, the carrying amounts approximate fair value due to their short maturities. We
adopted accounting guidance for financial and non-financial assets and liabilities (ASC 820). This standard defines fair value, provides
guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but
rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to
measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market
prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity
of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used
to measure fair value into three broad levels. The following is a brief description of those three levels:
● Level
1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
● Level
2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets
or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. BALANCE
LABS, INC. Condensed
Notes to Consolidated Financial Statements As
of September 30, 2023 (Unaudited)
● Level
3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by
us, which reflect those that a market participant would use. The
following table presents certain assets of the Company’s measured and recorded at fair value on the Company’s balance sheet
on a recurring basis and their level within the fair value hierarchy as of September 30, 2023. Schedule of Fair Value of Assets on Recurring Basis
Total (Level 1) (Level 2) (Level 3)
Fair-value – equity securities $ 178,702 $ 178,702 $ - $ -
Total Assets measured at fair value $ 178,702 $ 178,702 $ - $ - The
following table presents certain assets of the Company’s measured and recorded at fair value on the Company’s balance sheet
on a recurring basis and their level within the fair value hierarchy as of December 31, 2022.
Total (Level
1) (Level
2) (Level
3)
Fair-value
– equity securities $ 148,808 $ 148,808 $ - $ -
Total
Assets measured at fair value $ 148,808 $ 148,808 $ - $ - The
Company accounts for its investment in EzFill Holdings, Inc. (“EzFill”) as available-for-sale securities. Since the investment
is valued based on quoted market price using observable inputs. Business
Segments The
Company operates in one Advertising,
Marketing and Promotional Costs Advertising,
marketing, and promotional expenses are expensed as incurred and are included in selling, general and administrative expenses on the
accompanying unaudited condensed consolidated statement of operations. For the nine months ended September 30, 2023, and September 30,
2022, advertising, marketing, and promotion expense was $ 6,785 48 4,392 48 Property
and equipment Property
and equipment consist of furniture and office equipment and is stated at cost less accumulated depreciation. Depreciation is determined
by using the straight-line method for furniture and office equipment, over the estimated useful lives of the related assets, generally
three five years Expenditures
for repairs and maintenance of equipment are charged to expense as incurred. Major replacements and betterments are capitalized and depreciated
over the remaining useful lives of the related assets. BALANCE
LABS, INC. Condensed
Notes to Consolidated Financial Statements As
of September 30, 2023 (Unaudited) Property
and equipment as of September 30, 2023, and December 31, 2022 consisted of the following: Schedule of Property and Equipment
September 30, 2023 December 31, 2022
Website $ 1,336 $ 1,336
Computer equipment & Software 5,358 5,358
Furniture 4,622 4,622
Total 11,316 11,316
Less Accumulated Depreciation (11,316 ) (11,316 )
Property and Equipment, net $ - $ - Depreciation
expense for the nine months ended September 30, 2023, and 2022 totaled $ 0 0 Recently
Issued Accounting Pronouncements The
Company has evaluated all new accounting standards that are in effect and may impact its unaudited condensed consolidated financial statements
and does not believe that there are any other new accounting standards that have been issued that might have a material impact on its
financial position or results of operations. |
