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, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

EXCHANGE ACT

Commission File Number: 333-100046

CHUN CAN CAPITAL GROUP

(Exact name of registrant as specified in its charter)

Nevada

 UNITED STATES

52-2360156

 SECURITIES AND EXCHANGE COMMISSION
 Washington, D. C. 20549
 Form 10-Q
[X] QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019
 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: 333-1000046
  Chun Can Capital Group

(Exact name of registrant as specified in its charter)

  Nevada52-2360156
 (StateState or other jurisdiction of incorporation)incorporation or organization)

 (IRS

(IR.S. Employer Identification Number)

No.)

Costa Rica Street, Yesiana Alma Rosa 1

Santo Domingo, Este

7325 Oswego Road

11506

Liverpool, New York13090
   (Address

(Address of principal executive offices and Zip Code)offices)

(Zip Code)

 (315) 451-7515
 (Registrant's telephone number, including area code)


Indicate by check mark whether the issuerregistrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the lastpast 90 days. daysYES [X]   NO [  ]☒


Yes☐ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (SS (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES [X]     NO [  ]
☒ Yes☐ No

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


Large accelerated filer☐

Accelerated Filer

[  ]Accelerated Filer[  ]filer☐

Non-accelerated Filer

[  ]Smaller Reporting Company[X]
(Dofiler☐  (Do not check if a smaller reporting company)

Smaller reporting company☒

Emerging growth companyGrowth 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  YES [  ]    NO [X]☐ No☒


APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes☐ No☐

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 220,033,011 shares of common stock as of May 22, 2020.


TABLE OF CONTENTS

 APPLICABLE ONLY TO CORPORATE ISSUERS:

PART I

 As of February 26, 2020, there were 33,011 shares of the registrant's $0.001 par value common stock issued and outstanding.


1

 Chun Can Capital Group

Form 10-Q

Item 1

Financial Statements

4

For the Fiscal Quarter Ended June 30, 2019
TABLE OF CONTENTS
Page
 Part I 
 Item 1Financial Statements 3

Item 2

Management

Management's Discussion and Analysis of Financial Condition and Results of Operations

 10

13

Item 3

Quantitave

Quantitative and Qualitative Disclosures About Market RiskRisks

13

Item 4

Controls and Procedures

13

Part

PART II

 Item 1

Legal Proceedings

 14

Item 1A1

Risk Factors

Legal Proceedings

 14

16

Item 1A.

Risk Factors

16

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

 14

16

Item 3

Defaults

Default Upon Senior Securities

 14

16

Item 4

Mine Safety DisclosuresDisclosure

 14

16

Item 5

Other Information

 14

16

Item 6

Exhibits

 15

17


Signatures

SIGNATURES

18

 16


2

PART 1FINANCIAL STATEMENTS

Table of Content

CHUN CAN CAPITAL GROUP

FINANCIAL STATEMENTS

FOR THE FISCAL QUARTER ENDED MARCH 31, 2020

C O N T E N T S

PART I - FINANCIAL INFORMATION
 Item 1Financial Statements
  Chun Can Capital Group
(Formerly Cintel Corp. and Sunsidiary)
Financial Statements
 For the Fiscal Quarter Ended June 30, 2019
TABLE OF CONTENTS
 Page
Condensed

Consolidated Balance Sheets (unaudited)(Unaudited)

F-2

5

Condensed

Consolidated Statements of Operations and Comprehensive Income (unaudited)(Unaudited)

F-3

6

Condensed

Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited)

7

Consolidated Statements of Cash Flows (unaudited)(Unaudited)

F-4

8

Condenses Consolidated Statements if Stockholders Deficit (Unaudited)

F-5 

Notes to the Financial Statements (unaudited)(Unaudited)

F-6

9

F-1   


Chun Can Capital Group

 

 

 

 

(formerly Cintel Corp. and Subsidiary)

 

 

 

 

Condensed Consolidated Balance Sheets

 

 

 

 

March 31, 2920 and December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

 

 

2020

 

2019

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash and cash equivalents

 

$                         -   

 

$                     -   

 

 

Total current assets

 

       -   

 

       -   

 

 

 

 

 

 

 

Total assets

 

$                         -   

 

$                      -   

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Accounts payable

 

16,889

 

       -   

 

Accounts payable - related

 

2,245

 

       -   

 

 

Total current liabilities

 

19,134

 

       -   

 

 

 

 

 

 

 

 

 

Total Liabilities

 

19,134

 

       -   

 

 

 

 

 

 

 

Stockholders' deficit

 

 

 

 

 

Preferred stock: par value $0.001 per share, 30,000,000

 

 

 

 

 

    Shares authorized, none issued and outstanding

 

       -   

 

       -   

 

Common stock: par value $0.001 per share, 270,000,000

 

 

 

 

 

 

shares authorized; 220,033,011 and 33,011 shares issued

 

 

 

 

 

 

and outstanding

 

220,033

 

33

 

Additional paid-in capital

 

20,458,967

 

20,668,967

 

Accumulated deficit

 

(20,698,134)

 

(20,669,000)

 

 

Total stockholders' deficit

 

(19,134)

 

       -   

 

 

 

 

 

 

 

Total liabilities and stockholders' deficit

 

$                    -   

 

$                    -   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to financial statements.


Chun Can Capital Group

 

 

 

 

(formerly Cintel Corp. and Subsidiary)

 

 

 

 

Condensed Consolidated Statements of Operations

 

 

 

 

Three Months Ended March 31, 2020 and 2019

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

 

March 31,

 

 

 

 

2020

 

2019

 

 

 

 

 

 

 

Revenues

 

$                       -   

 

$                       -   

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

General and administrative

 

29,134

 

 -   

 

 

Total operating expenses

 

29,134

 

 -  

 

 

 

 

 

 

 

Loss from operations

 

(29,134)

 

 -  

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

Interest expenses

 

 -  

 

 -  

 

 

Total other expense

 

 -  

 

 -  

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(29,134)

 

 -  

 

 

 

 

 

 

 

Income tax expense

 

 -  

 

 -  

 

 

 

 

 

Net loss

 

$           (29,134)

 

$                       -   

 

 

 

 

 

 

 

Net loss per share (basic and diluted)

 

$                (0.00)

 

$                       -   

 

 

 

 

 

 

 

Weighted average shares outstanding

 

100,255,233

 

33,011

 

 

 

 

 

 

 

See accompanying notes to financial statements.


Chun Can Capital Group

 

 

 

 

(formerly Cintel Corp. and Subsidiary)

 

 

 

 

Condensed Consolidated Statements of Cash Flows

 

 

 

 

Three Months Ended March 31, 2020 and 2019

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

 

March 31,

 

 

 

 

2020

 

2019

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$           (29,134)

 

$                  -   

Adjustments to reconcile net loss to net  cash

 

 

 

 

 

provided by (used in) operating activities

 

 

 

 

Increase (decrease) in liabilities

 

 

 

 

 

Accounts payable

 

16,889

 

 -   

 

Accounts payable - related party

 

12,245

 

 -   

 

 

 

 

 

 

 

Cash provided by (Used in) Operating Activities

 

 -  

 

 -  

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

Cash provided by in Investing Activities

 

 -  

 

 -  

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Proceeds from motes payable

 

 -  

 

 -  

Principal payments of notes payable

 

 -  

 

 -  

Cash used in financing activities

 

 -  

 

 -  

 

 

 

 

 

Net decrease in cash and cash equivalent

 

 -  

 

 -  

 

 

 

 

 

 

 

Cash and cash equivalent - beginning of period

 

-  

 

 -  

 

 

 

 

 

 

 

Cash and cash equivalent - end of period

 

$                         -  

 

$                   -  

 

 

 

 

 

 

 

Supplemental Disclosures of Cash Flow Information:

 

 

 

 

Cash paid during the year for:

 

 

 

 

 

Interest

 

$                         -  

 

$                   -  

 

Income taxes

 

$                         -  

 

$                   -  

 

 

 

 

 

 

 

Non-cash financing activities:

 

 

 

 

 

Conversion of payables to common stock

 

$              10,000

 

$                   -  

 

 

 

 

 

 

 

See accompanying notes to financial statements.


Chun Can Capital Group

 

 

 

 

 

 

 

 

(formerly Cintel Corp. and Subsidiary)

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Stockholders' Deficit

 

 

 

 

 

 

Three Months Ended March 31, 2020 and 2019

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Common Stock

 

Paid-in

 

Accumulated

 

 

 

 

Shares

 

Amount

 

Capital

 

Deficit

 

Total

Balance, December 31, 2019

 

33,011

 

$          33

 

$ 20,668,967

 

$ (20,669,000)

 

$                -   

 

 

 

 

 

 

 

 

 

 

 

Shares issued to cover payable

 

220,000,000

 

220,000

 

(210,000)

 

 -   

 

10,000

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 -   

 

 -   

 

 -   

 

(29,134)

 

(29,134)

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2020

 

202,033,011

 

$202,180

 

$ 20,458,603

 

$  (20,698,134)

 

$    (19,134)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2018

 

33,011

 

$        33

 

$ 20,668,967

 

$  (20,669,000)

 

$                 -   

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 -   

 

 -   

 

 -   

 

 -   

 

 -   

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2019

 

33,011

 

$         33

 

$ 20,668,967

 

$  (20,669,000)

 

$                 -   

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to financial statements


3
CHUN CAN CAPITAL GROUP      
(formerly CINTEL CORP. AND SUBSIDIARY)      
CONDENSED CONSOLIDATED BALANCE SHEETS      
JUNE 30, 2019 AND DECEMBER 31, 2018      
(In thousands, except share and per share amounts)      
       
    June 30,  December 31, 
  2019  2018 
    (Unaudited)    
ASSETS      
Current assets:      
Cash and cash equivalents 
$
-
  
$
-
 
Loans receivable  
-
   
-
 
Total current assets  
-
   
-
 
         
Long-term investments  
-
   
-
 
Property and equipment, net  
-
   
-
 
Equity method investments  
-
   
-
 
Deposits and other assets  
-
   
-
 
         
Total assets 
$
-
  
$
-
 
         
LIABILITIES AND STOCKHOLDERS' DEFICIT        
         
Current liabilities:        
Accounts payable  
-
   
-
 
Accrued liabilities  
-
   
-
 
Other current liabilities  
-
   
-
 
Total current liabilities  
-
   
-
 
Accrued severance benefits  
-
   
-
 
Convertible debt  
-
   
-
 
Total liabilities  
-
   
-
 
         
Commitments  
-
   
-
 
         
Stockholders' deficit:        
Preferred stock:  par value $0.001 per share, 30,000,000        
shares authorized, none issued and outstanding  
-
   
-
 
Common stock:  par value $0.001 per share, 270,000,000        
shares authorized, 33,011 and 33,011 shares issued and        
outstanding  
3
   
3
 
Additional paid-in capital  
20,666
   
20,666
 
Accumulated deficit  
(20,669
)
  
(20,669
)
Accumulated other comprehensive loss  
-
   
-
 
Total stockholders' deficit  
-
   
-
 
         
Total liabilities and stockholders' deficit  
-
   
-
 
         
         
See accompanying notes to financial statements.        
F-2
CHUN CAN CAPITAL GROUP            
(formerly CINTEL CORP. AND SUBSIDIARY)            
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME       
THREE AND SIX MONTHS ENDED JUNE 30, 2019 AND 2018            
(Unaudited, in thousands, except per share amounts)            
             
   For the Three Months Ended  For the Six Months Ended 
  June 30,     June 30,    
  2019  2018  2019  2018 
             
Net revenues 
$
-
  
$
-
  
$
-
  
$
-
 
Operating expenses:                
General and administrative expenses  
-
   
-
   
-
   
-
 
Depreciation and amortization  
-
   
-
   
-
   
-
 
Goodwill impairment loss  
-
   
-
   
-
   
-
 
Total operating expenses  
-
   
-
   
-
   
-
 
Loss from operations  
-
   
-
 
  
-
   
-
 
                 
Other income (expenses):                
 Net loss on sale of property and equipment  
-
   
-
   
-
   
-
 
 Interest expense  
-
   
-
 
  
-
   
-
 
 Impairment loss on investment  
-
   
-
 
  
-
   
-
 
 Share of loss from equity investment  
-
   
-
 
  
-
   
-
 
 Foreign currency transactions, net  
-
   
-
   
-
   
-
 
Gain on debt settlement  
-
   
-
   
-
   
-
 
Other income (expenses), net  
-
   
-
 
  
-
   
-
 
                 
Income (loss) before income taxes  
-
   
-
 
  
-
   
-
 
                 
Income tax expense  
-
   
-
   
-
   
-
 
                 
Net income (loss) 
$
-
  
$
-
 
 
$
-
  
$
-
 
                 
Income (loss) per share – basic and diluted: 
$
-
  
$
-
 
 
$
-
  
$
-
 
                 
Weighted average number of                
common shares outstanding - basic and diluted  
33,011
   
33,011
   
33,011
   
33,011
 
                 
                 
See accompanying notes to financial statements.                
F-3
CINTEL CORP. AND SUBSIDIARY      
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS      
THREE AND SIX MONTHS ENDED JUNE 30, 2019 AND 2018      
(Unaudited, in thousands)      
       
    For the Six Months Ended 
  June 30, 
  2019  2018 
Cash flows from operating activities:      
Net income (loss) 
$
-
  
$
-
 
Adjustments to reconcile net loss to net cash        
provided by (used in) operating activities:        
Investment impairment  
-
   
-
 
Impairment of goodwill  
-
   
-
 
Depreciation expense  
-
   
-
 
Share of loss from equity investment  
-
   
-
 
Net loss on sale of property  
-
   
-
 
Foreign currency transaction (gain) loss  
-
   
-
 
Shares issued for services  
-
   
-
 
Gain on debt settlement  
-
   
-
 
(Increase) decrease in assets:        
Prepaid expenses and other assets  
-
   
-
 
Security deposits  
-
   
-
 
Increase (decrease) in liabilities:        
Accounts payable  
-
   
-
 
Accrued liabilities  
-
   
-
 
Cash provided by (used in) operating activities  
-
   
-
 
         
Cash flows from investing activities:        
Payments on loan receivable  
-
   
-
 
Proceeds from loan receivable  
-
   
-
 
Cash provided by investing activities  
-
   
-
 
         
Cash flows from financing activities:        
Proceeds from notes payable  
-
   
-
 
Principal payments of notes payable  
-
   
-
 
Cash used in financing activities  
-
   
-
 
         
Net decrease in cash and cash equivalent  
-
   
-
 
Effect of foreign currency translation  
-
   
-
 
Cash and cash equivalent - beginning of period  
-
   
-
 
         
Cash and cash equivalent - end of period 
$
-
  
$
-
 
         
Supplemental Disclosure of Cash Flows Information:        
Cash paid during the year for:        
Interest 
$
-
  
$
-
 
Income taxes 
$
-
  
$
-
 
         
         
See accompanying notes to financial statements. 
F-4
 CHUN CAN CAPITAL GROUP               
 (formerly CINTEL CORP. AND SUBSIDIARY)               
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT          
THREE AND SIX MONTHS ENDED JUNE 30, 2019 AND 2018             
 (Unaudited, in thousands, except per share amounts)               
                
                
        Additional       
  Common stock  Paid-in  Accumulated    
  Shares  Amount  Capital  Deficit  Total 
 Balance, December 31, 2018  
33,011
  
$
3
  
$
20,666
   
(20,669
) 
$
-
 
                     
 Net income (loss)  
-
   
-
   
-
   
-
   
-
 
                     
 Balance, March 31, 2019  
33,011
   
3
   
20,666
   
(20,669
)  
-
 
                     
 Net income (loss)  
-
   
-
   
-
   
-
   
-
 
                     
 Balance, June 30, 2019  
33,011
  
$
3
  
$
20,666
   
(20,669
)  
$
-
 
                     
                     
 Balance, December 31, 2017  
33,011
  
$
3
  
$
20,666
   
(20,669
)  
$
-
 
                     
 Net income (loss)  
-
   
-
   
-
   
-
   
-
 
                     
 Balance, March 31, 2018  
33,011
  
$
3
  
$
20,666
   
(20,669
)
 
$
-
 
                     
 Net income (loss)  
-
   
-
   
-
   
-
   
-
 
                     
 Balance, June 30, 2018  
33,011
  
$
3
  
$
20,666
   
(20,669
)
 
$
-
 
                     
                     
                     
See accompanying notes to financial statements. 
CHUN CAN CAPITAL GROUP

(formerly CINTEL CORP. AND SUBSIDIARY)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Cintel Corp. and Subsidiary)

Notes to Unaudited Condensed Consolidated Financial Statements



Note 1 – Basis of Presentation


The accompanying unaudited condensed consolidated financial statements of Chun Can Capital Group (formerly Cintel Corp.) (the "Company"“Company”) have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In management'smanagement’s opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments), necessary to state fairly the financial information included herein.


The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make judgments, estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ materially from these estimates.  In addition, any changes in these estimates or their related assumptions could have a materially adverse effect on the Company's operating results.


Where the functional currency of the Company's foreign subsidiaries is the local currency, all assets and liabilities are translated into U.S. dollars, using the exchange rate on the consolidated balance sheet date, and revenues and expenses are translated at average rates prevailing during the period.  Accounts and transactions denominated in foreign currencies have been re-measured into functional currencies before translated into U.S. dollars.  Foreign currency transaction gains and losses are included as a component of other income and expense.  Gains and losses from foreign currency translation are included as a separate component of comprehensive income.

These unaudited condensed consolidated financial statements include the accounts of Cintel Corp.the Company and its wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. While the Company believes that the disclosures are adequate to make the information not misleading, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company'sCompany’s Annual Report on Form 10-K for the year ended December 31, 2018.


2019.

Going Concern


The Company'sCompany’s financial statements are presented on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.  The Company is a non-operating shell company which has experienced recurring operating losses and has.an accumulated deficit.  These conditions raise uncertainty about the Company'sCompany’s ability to continue as a going concern for a period of one year from the issuance of these financial statements.


The Company'sCompany’s ability to continue as a going concern is contingent upon its ability to secure additional financing, increase sales of its product and attain profitable operations. It is the intent of management to continue to raise additional funds to sustain operations and to pursue acquisitions of operating companies in order to generate future profits for the Company.  Although the Company plans to pursue additional equity financing, there can be no assurance that the Company will be able to secure financing when needed or obtain such on terms satisfactory to the Company, if at all.

The accompanying financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.


F-6

CHUN CAN CAPITAL GROUP
(formerly CINTEL CORP. AND SUBSIDIARY)
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


Note 2 - Income Taxes


Corporate

The corporate tax rates range from 10% to 34%is 21%. The Company provided a valuation allowance equal to the deferred tax amounts resulting from the tax losses in the United States, as it is not likely that they will be realized.


CHUN CAN CAPITAL GROUP

(formerly Cintel Corp. and Subsidiary)

Notes to Unaudited Condensed Consolidated Financial Statements

Note 2 - Income Taxes (Continued)

The U.S. tax losses can be carried forward for 15 to 20 years to offset future taxable income and expire in years 2020 to 2029.  

The Company had net operating losses of $20,698,134 at March 31, 2020.

The provision for income taxes for the sixthree months ended June 30,March 31, 2020 and 2019 and 2018 are summarized as follows:


 2019 2018 
 (In thousands) 
     
Income tax – current 
$
-
  
$
-
 
Income tax – deferred  
-
   
-
 
  
$
-
  
$
-
 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

Income tax – current

 

$

(6,118

)

 

$

-

 

Income tax – deferred

 

 

6,118

 

 

 

-

 

 

 

$

-

 

 

$

-

 

The Company has deferred tax assets (liabilities) at June 30, 2019March 31, 2020 and December 31, 20182019 as follows:


 2019 2018 
 (In thousands) 
     
Net operating loss carryforwards 
$
-
  
$
-
 
Valuation allowance  
(-
)
  
(-
)
  
$
-
  
$
-
 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

Net operating loss carryforwards

 

$

4,346,608

 

 

$

4,340,490

 

Valuation allowance

 

 

(4,346,608

)

 

 

(4,340,490

)

 

 

$

-

 

 

$

-

 

Note 3 – Capital Stock


On March 12, 2011,February 19, 2020, the Company entered into a share purchase agreement with an officer of the Company, for the sale and issuance of 1,391issued 220,000,000 shares of common stock atto a pricecompany controlled by the legal custodian of $0.03 per share.


In the 4th quarter of 2011, the Company issued 7,795 shares of common stock for services at a price of $0.03 per share.
to convert $10,000 in payables.

On March 16, 2017, the Company effected a 1 for 4,000 reverse stock split.  All share and per share information have been retroactively adjusted for this reverse stock split.
F-8
 ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION.

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward Looking Statements

This section and other parts of this Form 10-Q quarterly report includes "forward-looking statements", that involves risks and uncertainties. All statements other than statements of historical facts, included in this Form 10-Q that address activities, events, or developments that we expect or anticipate will or may occur in the future, including such things as future capital expenditures (including the amount and nature thereof), business strategy and measures to implement strategy, competitive strength, goals, expansion and growth of our business and operations, plans, references to future success, reference to intentions as to future matters, and other such matters are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments as well as other factors that we believe are appropriate in the circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks, uncertainties, and other factors, many of which are beyond our control.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Moreover, we do not assume responsibility for the accuracy and completeness of such forward-looking statements. We are under no duty to update any of the forward-looking statements after the date of this report to conform such statements to actual results.

Overview

Chun Can Capital Group (the "Company", "we", or "us") was incorporated under the laws of the State of Nevada on August 16, 1996.

Certain statements contained below are forward-looking statements (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

Our auditors have issued a going concern opinion in the financial statements for the year ended December 31, 2019.

RESULTS OF OPERATIONS

(in thousands)
OPERATIOMS

Working Capital

 

March 31,

 

December 31,

 

 

2020

 

2019

 

 

 

 

 

 

Current Assets

 

$

-

 

 

$

-

 

Current Liabilities

 

 

19,134

 

 

 

-

 

Working Capital (Deficit)

 

$

(19,134

)

 

$

-

 

Cash Flows

 

March 31,

 

March 31,

 

 

2020

 

2019

 

 

 

 

 

 

Cash Flows from (used in) Operating Activities

 

$

-

 

 

$

-

 

Cash Flows from (used in) Financing Activities

 

 

-

 

 

 

-

 

Net Increase (decrease) in Cash During Period

 

$

-

 

 

$

-

 


Working Capital
 June 30, December 31, 
 2019 2018 
     
 Current Assets   $-  $- 
 Current Liabilities  -   -
 Working Capital (Deficit)  $-
 $-
Cash Flows
 June 30, June 30, 
 2019 2018 
     
 Cash Flows from (used in) Operating Activities $-  $-
 Cash Flows provided by Investing Activities  -   -
 Cash Flows from (used in) Financing Activities  -   -
 Net Increase (decrease) in Cash During Period  -   - 


Operating Revenues

Operating Revenues

We have generated revenues of $0$0 for the three months ended March 31, 2020 and $0 for the three and six months ended June 30, 2019March 31, 2019.

Operating Expenses and 2018.



Operating Expenses and Net Loss
Net Loss

Operating expenses for the three months ended June 30, 2019 in thousandsMarch 31, 2020 were $0$29,134.00 compared with $0 for the three months ended June 30, 2018.  

March 31, 2019.  Operating expenses for the sixthree months ended June 30, 2019 in thousands were $0March 31, 2020 consisted of general and administrative expenses of $29,134.00 compared withto $0 for the sixthree months ended June 30, 2018.  
March 31, 2019.

During the three months ended June 30, 2019,March 31, 2020, the Company recorded a net loss in thousands of $0.($29,134.00) compared with net loss of $0 for the three months ended June 30, 2018.      

   During the six months ended June 30, 2019, the Company recorded a net loss in thousands of $0. compared with net loss of $0 for the six months ended June 30, 2018. 

Liquidity and Capital Resources
March 31, 2019.

Liquidity and Capital Resources

As at June 30, 2019,March 31, 2020, the Company's cash balance was $0 compared to cash balance of $0 at June 30, 2018.March 31, 2019. As of June 30, 2019,March 31, 2020, the Company's total assets were $0 compared to total assets of $0 as at June 30, 2018.

March 31, 2019.

As of June 30, 2019,March 31, 2020, the Company had total liabilities of $0$19,134.00 compared with total liabilities of $0 as at June 30, 2018. 


Cashflow from Operating Activities
March 31, 2019.  Liabilities for the three months ended March 31, 2020 consisted ofaccounts payable of $16,889.00 compared to $0 for the three months ended March 31, 2019;and accounts payable – related of $2,245.00 compared to $0 for the three months ended March 31, 2019.

Cashflow from Operating Activities

During the sixthree months ended June 30, 2019March 31, 2020 the Company used $0 of cash for operating activities compared to the use of $0 in thousands of cash for operating activities during the sixthree months ended June 30, 2018. 

TableMarch 31, 2019.

Cashflow from Financing Activities

During the three months ended March 31, 2020 the Company received cash from financing activities of Content


Cashflow from Financing Activities

During the six months ended June 30, 2019 the Company did not receive any cash from financing activities as compared to $0 for the six months ended June 30, 2018.

Subsequent Developments
$0 as compared to $0 for the three months ended March 31, 2019.

Subsequent Developments

None

Going Concern


Going Concern

We have not attained profitable operations and are dependent upon the continued financial support from our shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from our future business. These factors raise substantial doubt regarding our ability to continue as a going concern.

Off-Balance Sheet Arrangements.


Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders..

Future Financing



Future Financings

The Company will consider selling securities in the future to fund operations.  There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund our operations and other activities.


Critical Accounting Policies


Our consolidated financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally  accepted accounting principles 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods.


We regularly evaluate the accounting policies and estimates that we use to prepare our consolidated financial statements. A complete summary of these policies is included in the notes to our consolidated financial statements. In general, management's estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.


Recently Issued Accounting Pronouncements


The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.RISK

Market risk is the risk of loss from adverse changes in market prices and rates. The Company's market risk arises primarily from the fact that the area in which we do business is highly competitive and constantly evolving. The market in which we do business is highly competitive and constantly evolving. We face competition from the larger and more established companies, from companies that have greater resources, including but not limited to, more money, and greater ability to expand their markets also cut into our potential customers. Many of our competitors have longer operating histories, significantly greater financial strength, nationwide advertising coverage and other resources that we do not have.

ITEM 4.

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures


Based on their evaluation of our disclosure controls and procedures(as defined in Rule 13a-15e under the Securities Exchange Act of 1934 the "Exchange Act"), our principal executive officer and principal financial officer have concluded that as of the end of the period covered by this quarterly report on Form 10-Q such disclosure controls and procedures were not effective due to the lack of segregation of duties and lack of a formal review process that includes multiple levels of review to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms because of the identification of a material weakness in our internal control over financial reporting which we view as an integral part of our disclosure controls and procedures. The material weakness relates to the lack of segregation of duties in financial reporting, as our financial reporting and all accounting functions are performed by an external consultant with no oversight by a professional with accounting expertise. Our CEO/CFO does not possess accounting expertise and our company does not have an audit committee. This weakness is due to the company's lack of working capital to hire additional staff. To remedy this material weakness, we intend to engage another accountant to assist with financial reporting as soon as our finances will allow.

Changes in Internal Control over Financial Reporting


Except as noted above, there have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our first quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


PART II - OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS

None

ITEM 1A.

RISK FACTORS

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Not Applicable

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4.

MINE SAFETY DISCLOSURE.

Not Applicable

ITEM 5.

OTHER INFORMATION.INFORMATION

None


Item 6.

EXHIBITS


Exhibit 31.1

None


 ITEM 6.   EXHIBITS

Exhibit Number Form Date Number Filed Herewith
31.1Certification of the Principal Executive Officer pursuantPursuant to Rule 13A-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002X.

31.2

Exhibit 31.2

Certification of the Principal Financial Officer pursuantPursuant to Rule 13A-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

X.

32.1

Exhibit 32.1

Certification of Chiefthe Principal Executive Officer pursuantPursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

X

32.2

Exhibit 32.2

Certification of Chiefthe Principal Financial Officer pursuantPursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

X
 101.INS    XBRL Instance Document. X
 101.SCH    XBRL Taxonomy Extension – Schema.   X
 101.CAL      XBRL Taxonomy Extension – Calculations.  X
 101.LAB     XBRL Taxonomy Extension – Labels.  X
 101.PRE     XBRL Taxonomy Extension – Presentation.  X
 101.DEF    XBRL Taxonomy Extension – Definition.   X
 Reports on Form 8-K:









15

SIGNATURES


Pursuant to

In accordance with the requirements of the Securities Exchange Act, of 1934,the registrant caused this report has beento be signed belowon its behalf by the following person on behalf of the Registrant and in the capacities on this 26th of February 2020.


undersigned, thereunto duly authorized.

Dated: May 22, 2020 

 CHUN CAN CAPITAL GROUP 

Chun Can Capital Group

 (the "Registrant")

 BY:   /s/

By:/s/Clara I. Gomez

Clara II. Gomez,

Chief Executive Officer

Dated: May 22, 2020 

Chun Can Capital Group

By:/s/Clara I. Gomez

Clara I. Gomez, Chief Financial Officer

14

16