Legend Spices (LGSP) 10-Q19 Aug 242024 Q2 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 12, 2024
Cover [Abstract]
Entity Registrant Name	LEGEND SPICES, INC.
Entity Central Index Key	0001970129
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		6,850,000
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	333-271201
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	38-4247159
Entity Address Address Line 1	14 Kajaznuni Street
Entity Address Address Line 2	Apt. 70
Entity Address City Or Town	Yerevan
Entity Address Country	AM
Entity Address Postal Zip Code	0070
City Area Code	99
Local Phone Number	432000
Security 12b Title	Common Stock
Entity Interactive Data Current	Yes

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets
Cash in Bank	$ 601	$ 16
Accounts Receivable	1,812	2,539
Inventories	3,081	2,391
Total current assets	5,494	4,946
Total assets	5,494	4,946
LIABILITIES
Income and other taxes payable	149	112
Accounts payable	4,283	5,050
Total current liabilities	4,432	5,162
Long-term liabilities
Due to related parties	57,381	36,833
Total long-term liabilities	57,381	36,833
Total liabilities	61,813	41,995
Commitments and Contingencies	0	0
STOCKHOLDERS' DEFICIT
Preferred stock, $0.0001 par value; 50,000,000 shares authorized zero shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	0	0
Common stock, $0.0001 par value; 500,000,000 shares authorized; 6,850,000 and 6,850,000 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively.	2,350	2,350
Additional paid in capital	39,554	39,554
Other comprehensive loss	(19,270)	(801)
Accumulated deficit	(78,953)	(78,152)
Total stockholders' deficit	(56,319)	(37,049)
Total liabilities and stockholders' deficit	$ 5,494	$ 4,946

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Condensed Consolidated Balance Sheets
Preferred stock, par value	$ 0.0001	$ 0.0001
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	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	6,850,000	6,850,000
Common stock, shares outstanding	6,850,000	6,850,000

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Unaudited Condensed Consolidated Statements of Operations
Sales	$ 1,217	$ 1,204	$ 2,986	$ 2,431
Cost of Goods sold	767	1,138	2,058	2,583
Gross profit / (Loss)	450	66	928	(152)
Operating expenses
Wages and benefits	771	775	1,515	1,539
Professional Fees	12,317	5,840	17,211	11,802
Sales and marketing	29	0	29	0
General and administration	17	33	33	733
Total operating expenses	13,134	6,648	18,788	14,074
Net Loss from operations	(12,684)	(6,582)	(17,860)	(14,226)
Other expenses
Other expenses	0	0	0	0
Net Loss before income taxes	(12,684)	(6,582)	(17,860)	(14,226)
Income taxes	0	0	0	0
Net Loss	(12,684)	(6,582)	(17,860)	(14,226)
Foreign currency loss	(476)	0	(1,410)	(1,504)
Net comprehensive loss	$ (13,160)	$ (6,582)	$ (19,270)	$ (15,730)
Net loss per common share
Basic and diluted	$ 0	$ 0	$ 0	$ 0
Weighted average number of common shares
Basic and diluted	6,850,000	5,000,000	6,850,000	5,000,000

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Statement of Stockholders' Equity - USD ($)	Total	Common Stock	Additional Paid-In Capital	CS to be issued	Other comprehensive loss	Accumulated Deficit
Balance, shares at Dec. 31, 2022		5,000,000
Balance, amount at Dec. 31, 2022	$ (10,978)	$ 500	$ 4,500	$ 0	$ 0	$ (15,332)
Net loss for the period	(14,226)					(14,226)
Foreign currency loss	(1,504)				(1,504)
Balance, shares at Jun. 30, 2023		5,000,000
Balance, amount at Jun. 30, 2023	(26,708)	$ 500	4,500	$ 0	(1,504)	(30,204)
Balance, shares at Dec. 31, 2023		6,850,000
Balance, amount at Dec. 31, 2023	(37,049)	$ 2,350	39,554		(801)	(78,152)
Net loss for the period	(17,860)					(17,860)
Foreign currency loss	(1,410)				(1,410)
Balance, shares at Jun. 30, 2024		6,850,000
Balance, amount at Jun. 30, 2024	$ (56,319)	$ 2,350	$ 39,554		$ (2,211)	$ (96,012)

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
OPERATING ACTIVITIES
Net income loss	$ (17,860)	$ (14,226)
Changes in:
Inventories	(690)	(488)
Receivables	727	199
Accounts Payable	(767)	(5,689)
Accruals	37	(33)
Net cash used by operating activities	(18,553)	(20,237)
FINANCING ACTIVITIES
Related party note borrowings	20,548	21,730
Related party note repayments	0	0
Net cash provided by financing activities	20,548	21,730
NET CHANGE IN CASH	1,995	1,493
Foreign Currency change	(1,410)	(1,504)
CASH, Beginning	16	199
CASH, Ending	$ 601	$ 188

Nature of the business

Nature of the business	6 Months Ended
Nature of the business	Jun. 30, 2024
Nature of the business
Nature of the business	1. Nature of the Business Legend Spices, Inc. (“the Company”) is incorporated under the Nevada Business Corporation Act. Its principal business activity is production and sales of seasonings and spices.

Significant accounting policies

Significant accounting policies	6 Months Ended
Significant accounting policies	Jun. 30, 2024
Significant accounting policies
Significant accounting policies	2. Significant accounting policies: (a) Basis of presentation: (i) Basis of accounting These unaudited condensed financial statements have been prepared in accordance with US GAAP and are in accordance with US GAAP . (ii) Non-publicly accountable enterprises Accounting for financial instruments, which require all financial instruments, including financial derivatives and certain embedded derivatives, to be recorded at fair value. These financial instrument standards also prescribe other presentation, measurement and disclosure requirements. Accordingly, the Company continues to apply the measurement, recognition, presentation and disclosure standards permitted for non-publicly accountable enterprises. (b) Revenue recognition: We recognize revenue in accordance with generally accepted accounting principles as outlined in the Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue From Contracts with Customers, which requires that five basic criteria be met before revenue can be recognized: (i) identify the contract with the customer; (ii) identity the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price; and (v) recognize revenue when or as the entity satisfied a performance obligation. Revenue recognition occurs at the time product is shipped to customers, when control transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. The Company only records revenue when collectability is probable. c) Inventories: Inventories (consisting entirely of raw materials) are measured at the lower of cost and net realizable value, with cost assigned by using the weighted average cost formula. Cost comprises the purchase price plus freight-in. Materials reported on the statement of operations represent inventories recognized as an expense in the period in which the related revenue is recognized. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. (d) Use of estimates: The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Significant items subject to such estimates and assumptions include valuation of accounts receivable, inventory, goodwill and pension obligation and the estimated useful life of buildings and equipment. Actual results could differ from those estimates. (e) Foreign currency translation: The functional currency the Armenian subsidiary is Armenian dram. Monetary assets and liabilities denominated in foreign currencies are translated at the prevailing rates of exchange at the balance sheet date. Revenues and expenses are translated at the exchange rates prevailing on the transaction dates and the translation is recorded in accumulated other comprehensive loss. Realized and unrealized exchange gains and losses are included in earnings. The Company does not use derivative instruments to mitigate foreign exchange risk.

Going Concern

Going Concern	6 Months Ended
Going Concern	Jun. 30, 2024
Going Concern
Going Concern	3. Going Concern: As shown in the accompanying unaudited condensed financial statements, we have an accumulated deficit of $96,012 since inception, and a working capital deficit of $216 as at December 31, 2023 and working capital $1,062 as at June 30, 2024. These conditions among others raise substantial doubt as to our ability to continue as a going concern. In response to these conditions, we intend to raise capital through our offering. The unaudited condensed financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

Advances from to shareholders

Advances from to shareholders	6 Months Ended
Advances from to shareholders	Jun. 30, 2024
Advances from to shareholders
Advances from/to shareholders	4. Advances from/to shareholders: The amounts advanced from/to the shareholders are non-interest bearing and have no specified terms of repayment and are subordinated to the bank.

Earnings per share

Earnings per share	6 Months Ended
Earnings per share	Jun. 30, 2024
Earnings per share
Earnings per share	5. Earnings per share June 30, 2024 (6 months) June 30, 2023 (6 months) June 30, 2024 (3 months) June 30, 2023 (3 months) Weighted average number of common shares Basic and diluted 6,850,000 5,000,000 6,850,000 5,000,000 * Net loss is less than $0.001 per share.

Financial assets and liabilitie

Financial assets and liabilities	6 Months Ended
Financial assets and liabilities	Jun. 30, 2024
Financial assets and liabilities
Financial assets and liabilities	6. Financial assets and liabilities: (a) Fair value: The fair values of the Company’s cash, accounts receivable, accounts payable and accrued liabilities and management bonuses payable approximate their carrying amounts. The fair value of the other investments is market value which represents the closing bid price noted on the stock exchange. The fair value of the long-term debt approximates its carrying value as the interest rate does not differ significantly from the current market rates available to the Company for similar debt. The significant financial risks to which the Company is exposed are credit risk, interest rate risk, market risk, currency risk and liquidity risk. (b) Credit risk exposure: Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company is exposed to credit risk in the event of non-performance by counterparties in connection with its accounts receivable. The Company does not obtain collateral or other security to support the accounts receivable subject to credit risk but mitigates this risk by dealing only with what management believes to be financially sound counterparties and, accordingly, does not anticipate significant loss for non-performance. (c) Interest rate risk: Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The bank demand loan bears interest at the bank at 6.0%. Changes in the bank’s prime lending rate can cause fluctuations in interest payments and cash flows. The Company does not use derivative financial instruments to alter the effects of this risk. (d) Market risk: Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company’s investments in publicly traded securities expose the Company to market risk as such investments are subject to price changes in the open market. The Company does not use derivative financial instruments to alter the effects of this risk. (e) Currency risk: Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company enters into foreign currency purchase and sale transactions and has assets and liabilities that are denominated in foreign currencies and thus is exposed to the financial risk of earnings fluctuations arising from changes in foreign exchange rates and the degree of volatility of these rates. The Company does not currently use derivative instruments to reduce its exposure to foreign currency risk. (e) Liquidity risk: Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The Company is exposed to liquidity risk arising primarily from the bank demand loan. The Company’s ability to meet obligations depends on the receipt of funds from its operating subsidiaries and other related sources, whether in the form of revenue or advances. (f) Future income taxes: The Company uses the tax payable method of accounting for income taxes. The tax payable method records is where the tax expense is equal to the provision for taxes payable in a particular period and deferred income tax is not recognized.

Income taxes

Income taxes	6 Months Ended
Income taxes	Jun. 30, 2024
Income taxes
Income taxes	7 Income taxes: For the six-month periods ended Jun 30, 2024 and June 30, 2023, the cumulative net operating loss carry-forward from continuing operations is approximately $17,860 and $14,226, respectively, and will expire beginning in the year 2032. The cumulative tax effect at the expected rate of 21% of significant items comprising the Company's net deferred tax amount is as follows as of June 30, 2024 and June 30, 2023. June 30, 2024 June 30, 2023 Deferred tax asset attributable to: Net operating loss carryover (17,860 ) (14,226 ) Valuation allowance (17,860 ) (14,226 ) Net deferred tax asset 6,850,000 6,850,000 Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately 5,176 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years. Due to the enactment of the Tax Reform Act of 2017, the corporate tax rate for those tax years beginning with 2023 has been reduced to 21%.

Subsequent events

Subsequent events	6 Months Ended
Subsequent events	Jun. 30, 2024
Subsequent events
Subsequent events	8. Subsequent Events: No subsequent events.

Significant accounting polici_2

Significant accounting policies (Policies)	6 Months Ended
Significant accounting policies (Policies)	Jun. 30, 2024
Significant accounting policies
Basis of Presentation	These unaudited condensed financial statements have been prepared in accordance with US GAAP and are in accordance with US GAAP .
Non-publicly accountable enterprises	Accounting for financial instruments, which require all financial instruments, including financial derivatives and certain embedded derivatives, to be recorded at fair value. These financial instrument standards also prescribe other presentation, measurement and disclosure requirements. Accordingly, the Company continues to apply the measurement, recognition, presentation and disclosure standards permitted for non-publicly accountable enterprises.
Revenue Recognition	We recognize revenue in accordance with generally accepted accounting principles as outlined in the Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue From Contracts with Customers, which requires that five basic criteria be met before revenue can be recognized: (i) identify the contract with the customer; (ii) identity the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price; and (v) recognize revenue when or as the entity satisfied a performance obligation. Revenue recognition occurs at the time product is shipped to customers, when control transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. The Company only records revenue when collectability is probable.
Inventories	Inventories (consisting entirely of raw materials) are measured at the lower of cost and net realizable value, with cost assigned by using the weighted average cost formula. Cost comprises the purchase price plus freight-in. Materials reported on the statement of operations represent inventories recognized as an expense in the period in which the related revenue is recognized. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
Use of estimates	The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Significant items subject to such estimates and assumptions include valuation of accounts receivable, inventory, goodwill and pension obligation and the estimated useful life of buildings and equipment. Actual results could differ from those estimates.
Foreign currency translation	The functional currency the Armenian subsidiary is Armenian dram. Monetary assets and liabilities denominated in foreign currencies are translated at the prevailing rates of exchange at the balance sheet date. Revenues and expenses are translated at the exchange rates prevailing on the transaction dates and the translation is recorded in accumulated other comprehensive loss. Realized and unrealized exchange gains and losses are included in earnings. The Company does not use derivative instruments to mitigate foreign exchange risk.

Net Earnings Per Share (Table)

Net Earnings Per Share (Table)	6 Months Ended
Net Earnings Per Share (Table)	Jun. 30, 2024
Earnings per share
Schedule Of Basic and diluted earnings and loss per share	June 30, 2024 (6 months) June 30, 2023 (6 months) June 30, 2024 (3 months) June 30, 2023 (3 months) Weighted average number of common shares Basic and diluted 6,850,000 5,000,000 6,850,000 5,000,000 * Net loss is less than $0.001 per share.

Income taxes (Table)

Income taxes (Table)	6 Months Ended
Income taxes (Table)	Jun. 30, 2024
Income taxes
Schedule of deferred tax assets	June 30, 2024 June 30, 2023 Deferred tax asset attributable to: Net operating loss carryover (17,860 ) (14,226 ) Valuation allowance (17,860 ) (14,226 ) Net deferred tax asset 6,850,000 6,850,000

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Going Concern
Accumulated deficit since inception	$ (96,012)
Working capital deficit	$ (1,062)	$ (216)

Earnings per share (Details)

Earnings per share (Details) - shares	3 Months Ended		6 Months Ended
Earnings per share (Details) - shares	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings per share
Weighted average number of common shares basic and diluted	5,000,000	6,850,000	6,850,000	5,000,000

Financial assets and liabilit_2

Financial assets and liabilities (Details Narrative)	6 Months Ended
Financial assets and liabilities (Details Narrative)	Jun. 30, 2024
Financial assets and liabilities
Interest rate risk	6%

Income taxes (Details)

Income taxes (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023
Income taxes
Net operating loss carryover	$ (17,860)	$ (14,226)
Valuation allowance	(17,860)	(14,226)
Net deferred tax asset	$ 6,850,000	$ 6,850,000

Income taxes (Details Narrative

Income taxes (Details Narrative) - USD ($)	6 Months Ended
Income taxes (Details Narrative) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Income taxes
Valuation allowance	$ (5,176)	$ (5,176)
Net operating loss carryover	$ 17,860		$ 14,226
Cumulative tax effect at the expected rate	21%
Corporate tax rate	21%