UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
FORM 10-Q
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended SeptemberJune 30, 20202021
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
Commission File Number: 000-54953
NEWPOINT FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
| 47-2653358 | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| (Address of principal executive offices) | (Zip Code) |
Phone number: (877) 351-3223
Indicate by check mark whether the registrant (1) 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 past 90 days Yes☒Yes No ☐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☒Yes No ☐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 accelerated filer,” “accelerated filer” , “smaller reporting company” and "emerging“emerging growth company"company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer ☐ | Accelerated filer ☐ | |||
| (Do not check if a smaller reporting company) | Smaller reporting 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☒
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'sissuer’s classes of common stock, as of the latest practicable date: 69,322,426 shares of common stock as of October 13, 2020.June 30, 2021.
NEWPOINT FINANCIAL CORP.
JUDO CAPITAL CORP.
FORM 10-Q
TABLE OF CONTENTS
| Item # | Description | Page Numbers |
| PART I | 4 | |
| ITEM 1 | UNAUDITED FINANCIAL STATEMENTS | 4 |
| 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 | 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 | 16 |
| SIGNATURES | 17 |
| 2 |
2
INFORMATION REGARDING FORWARD-LOOKING DISCLOSURE
This quarterly report on Form 10-Q contains forward-looking statements. Statements in this report that are not historical facts, including statements about management’s beliefs and expectations, constitute forward-looking statements. These statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined under Item 1A, Risk Factors, in our most recent annual report on Form 10-K, and any updated risk factors we include in our quarterly reports on Form 10-Q and other filings with the SEC. Forward-lookingForward- looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, the following:
| ● | risks arising from material weaknesses in our internal control over financial reporting, including material weaknesses in our control environment; |
| ● | our ability to attract new clients and retain existing clients; |
| ● | our ability to retain and attract key employees; |
| ● | risks associated with assumptions we make in connection with our critical accounting estimates; |
| ● | potential adverse effects if we are required to recognize impairment charges or other adverse accounting-related developments; |
| ● | potential downgrades in the credit ratings of our securities; |
| ● | risks associated with the effects of global, national and regional economic and political conditions, including fluctuations in economic growth rates, interest rates and currency exchange rates; and |
| ● | developments from changes in the regulatory and legal environment for advertising and marketing and communications services companies around the world. |
• risks arising from material weaknesses in our internal control over financial reporting, including material weaknesses in our control environment;
• our ability to attract new clients and retain existing clients;
• our ability to retain and attract key employees;
• risks associated with assumptions we make in connection with our critical accounting estimates;
• potential adverse effects if we are required to recognize impairment charges or other adverse accounting-related developments;
• potential downgrades in the credit ratings of our securities;
• risks associated with the effects of global, national and regional economic and political conditions, including fluctuations in economic growth rates, interest rates and currency exchange rates; and
• developments from changes in the regulatory and legal environment for advertising and marketing and communications services companies around the world.
Investors should carefully consider these factors and the additional risk factors outlined in more detail under Item 1A, Risk Factors, in our 20192020 Annual Report on Form 10-K and other filings with the SEC.
| 3 |
3
PART I
| ITEM 1 | FINANCIAL STATEMENTS |
ITEM 1NEWPOINT FINANCIAL STATEMENTSCORP.
JUDO CAPITAL CORP.
UNAUDITED FINANCIAL STATEMENTS
SeptemberJune 30, 20202021
CONTENTS
| 4 |
NEWPOINT FINANCIAL CORP.
UNAUDITED BALANCE SHEETS
| 2021 | 2020 | |||||||
| June 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | - | ||||||
| Total Current Assets | - | - | ||||||
| TOTAL ASSETS | $ | - | $ | - | ||||
| LIABILITIES & STOCKHOLDER’S DEFICIT | ||||||||
| Current Liabilities: | ||||||||
| Accounts Payable | $ | 6,730 | $ | 6,730 | ||||
| Accounts Payable - Related Party | 29,829 | 29,829 | ||||||
| Interest Payable - Related Party | 11,156 | 11,156 | ||||||
| Intercompany payable | 175,429 | |||||||
| Loan Payable - Related Party | 46,050 | 46,050 | ||||||
| Total Current Liabilities | 269,194 | 93,765 | ||||||
| Total Liabilities | 269,194 | 93,765 | ||||||
| Stockholder’s Deficit | ||||||||
| Preferred Stock, par value , shares Authorized, Issued or Outstanding at December 31, 2020 and December 31, 2019 | ||||||||
| Common Stock, par value , shares Authorized, shares Issued and Outstanding at December 31, 2020 and December 31, 2019 | 216 | 216 | ||||||
| Additional Paid-In Capital | 350,931 | 350,931 | ||||||
| Accumulated Deficit | (620,341 | ) | (444,912 | ) | ||||
| Total Stockholder’s Deficit | (269,194 | ) | (93,765 | ) | ||||
| TOTAL LIABILITIES AND STOCKHOLDER’S DEFICIT | $ | - | $ | - | ||||
The accompanying notes are an integral part of these unaudited financial statements
| 5 |
NEWPOINT FINANCIAL CORP.
UNAUDITED COMPREHENSIVE INCOME
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| For the three months ended | For the six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenues: | ||||||||||||||||
| Expenses: | ||||||||||||||||
| General and administrative expense | 121 | $ | 1,794 | 23,950 | $ | 2,824 | ||||||||||
| Professional fees | 51,479 | 500 | 151,479 | 2,000 | ||||||||||||
| Total Operating Expenses | 51,600 | 2,294 | 175,429 | 4,824 | ||||||||||||
| Operating Loss | (51,600 | ) | (2,294 | ) | (175,429 | ) | (4,824 | ) | ||||||||
| Other Income (Expense) | ||||||||||||||||
| Gain on Debt Extinguishment | - | 748 | - | 1,496 | ||||||||||||
| Interest expense | - | - | - | - | ||||||||||||
| Total Other Income (Expense) | - | 748 | - | 1,496 | ||||||||||||
| Net Loss | $ | (51,600 | ) | $ | (3,042 | ) | $ | (175,429 | ) | $ | (6,320 | ) | ||||
| Basic & Diluted Loss per Common Share | $ | (0.24 | ) | $ | (0.00 | ) | $ | (0.81 | ) | $ | (0.00 | ) | ||||
| Weighted Average Common Shares Outstanding | 216,185 | 69,322,426 | 216,185 | 69,322,426 | ||||||||||||
The accompanying notes are an integral part of these unaudited financial statements
| 6 |
NEWPOINT FINANCIAL CORP.
UNAUDITED STATEMENT OF STOCKHOLDERS’ EQUITY
For The Six Months Ended June 30, 2021
| Shares | Par Value | Shares | Par Value | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders’ Deficiency | ||||||||||||||||||||||
| Preferred Stock | Common Stock | |||||||||||||||||||||||||||
| Shares | Par Value | Shares | Par Value | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders’ Deficiency | ||||||||||||||||||||||
| Balance as of December 31, 2019 | - | - | - | - | - | - | - | |||||||||||||||||||||
| Net Loss for the Year Ended December 31, 2019 | - | - | - | - | - | (17,608 | ) | (17,608 | ) | |||||||||||||||||||
| Balance as of December 31, 2019 | - | - | 216,185 | 216 | $ | 350,931 | $ | (434,459 | ) | $ | (83,312 | ) | ||||||||||||||||
| Net Loss for the Year Ended December 31, 2020 | - | - | - | $ | (10,453 | ) | $ | (10,453 | ) | |||||||||||||||||||
| Balance as of December 31, 2020 | - | - | 216,185 | $ | 216 | $ | 350,931 | $ | (444,912 | ) | $ | (93,765 | ) | |||||||||||||||
| Net Loss for the Quarter Ended March 31, 2021 | - | - | - | - | - | $ | (123,829 | ) | $ | (123,829 | ) | |||||||||||||||||
| Balance as of December 31, 2020 | - | - | 216,185 | $ | 216 | $ | 350,931 | $ | (568,741 | ) | $ | (217,594 | ) | |||||||||||||||
| Net Loss for the Quarter Ended June 30, 2021 | - | - | - | - | - | $ | (51,600 | ) | $ | (51,600 | ) | |||||||||||||||||
| Balance as of June 30, 2021 | - | - | 216,185 | $ | 216 | $ | 350,931 | $ | (620,341 | ) | $ | (269,194 | ) | |||||||||||||||
The accompanying notes are an integral part of these unaudited financial statements
| 7 |
NEWPOINT FINANCIAL CORP.
UNAUDITED STATEMENT OF CASH FLOWS
| 2021 | 2020 | |||||||
| For the six months ended | ||||||||
| June 30, | ||||||||
| 2021 | 2020 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net Loss | $ | (175,429 | ) | $ | (3,278 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Changes In: | ||||||||
| Accounts Payable | - | 982 | ||||||
| Accounts Payable - Related Party | - | 1,500 | ||||||
| Interest Payable - Related Party | - | 748 | ||||||
| Net Cash Used in Operating Activities | (175,429 | ) | (48 | ) | ||||
| CASH FLOWS FROM FINANCING | ||||||||
| Proceeds from Loan Payable - Related Party | 175,429 | - | ||||||
| Net Cash Provided by Financing Activities | 175,429 | - | ||||||
| Net (Decrease) Increase in Cash | 175,429 | |||||||
| Cash at Beginning of Period | - | 78 | ||||||
| Cash at End of Period | $ | - | $ | 30 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
| Cash paid during the year for: | ||||||||
| Interest | $ | - | $ | - | ||||
| Franchise Taxes | $ | - | $ | - | ||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
| Reverse Stock Split 500-1 stated retroactively as of 12.31.2020 and 12.31.2019 | ||||||||
The accompanying notes are an integral part of these unaudited financial statements
4
| Judo Capital Corp. | ||||||||
| BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| September 30, | December 31, | |||||||
| 2020 | 2019 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 34 | $ | 78 | ||||
| Total Current Assets | 34 | 78 | ||||||
| TOTAL ASSETS | $ | 34 | $ | 78 | ||||
| LIABILITIES & STOCKHOLDER'S DEFICIT | ||||||||
| Current Liabilities: | ||||||||
| Accounts Payable | $ | 5,000 | $ | 12,299 | ||||
| Accounts Payable - Related Party | 22,909 | 16,885 | ||||||
| Interest Payable - Related Party | 10,408 | 8,156 | ||||||
| Loan Payable - Related Party | 46,050 | 46,050 | ||||||
| Total Current Liabilities | 84,367 | 83,390 | ||||||
| Total Liabilities | 84,367 | 83,390 | ||||||
| Stockholder's Deficit | ||||||||
| Preferred Stock, par value $0.001, | ||||||||
| 50,000,000 shares Authorized, 0 Issued or Outstanding at | ||||||||
| September 30, 2020 and December 31, 2019 | — | — | ||||||
| Common Stock, par value $0.001, | ||||||||
| 100,000,000 shares Authorized, 69,322,426 shares Issued and | ||||||||
| Outstanding at September 30, 2020 and December 31, 2019 | 69,322 | 69,322 | ||||||
| Additional Paid-In Capital | 281,825 | 281,825 | ||||||
| Accumulated Deficit | (435,480 | ) | (434,459 | ) | ||||
| Total Stockholder's Deficit | (84,333 | ) | (83,312 | ) | ||||
| TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIT | $ | 34 | $ | 78 | ||||
| The accompanying notes are an integral part of these unaudited financial statements | ||||||||
5
| Judo Capital Corp. | ||||||||||||||||
| STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenues: | ||||||||||||||||
| Expenses: | ||||||||||||||||
| Professional fees | 1,000 | 1,352 | 3,000 | 12,891 | ||||||||||||
| General and administrative expense | 750 | 48 | 3,574 | 817 | ||||||||||||
| Total Operating Expenses | 1,750 | 1,400 | 6,574 | 13,708 | ||||||||||||
| Operating Loss | (1,750 | ) | (1,400 | ) | (6,574 | ) | (13,708 | ) | ||||||||
| Other Income (Expense) | ||||||||||||||||
| Gain on Debt Extinguishment | 7,805 | — | 7,805 | — | ||||||||||||
| Interest expense | (756 | ) | (756 | ) | (2,252 | ) | (2,244 | ) | ||||||||
| Total Other Income (Expense) | 7,049 | (756 | ) | 5,553 | (2,244 | ) | ||||||||||
| Net Income (Loss) | $ | 5,299 | $ | (2,156 | ) | $ | (1,021 | ) | $ | (15,952 | ) | |||||
| Basic & Diluted Income (Loss) per Common Share | $ | 0.00 | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | |||||
| Weighted Average Common Shares Outstanding | 69,322,426 | 69,322,426 | 69,322,426 | 69,322,426 | ||||||||||||
| The accompanying notes are an integral part of these unaudited financial statements | ||||||||||||||||
6
| Judo Capital Corp. | ||||||||||||||||||||||||||||
| STATEMENT OF STOCKHOLDERS' DEFICIT | ||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| Preferred Stock | Common Stock | |||||||||||||||||||||||||||
Shares | Par Value | Shares | Par Value | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders' Deficiency | ||||||||||||||||||||||
| Balance as of December 31, 2018 | — | — | 69,322,426 | 69,322 | 281,825 | (416,851 | ) | (65,704 | ) | |||||||||||||||||||
| Net Loss for the Three Months Ended March 31, 2019 | — | — | — | — | — | (6,982 | ) | (6,982 | ) | |||||||||||||||||||
| Balance as of March 31, 2019 | 69,322,426 | 281,825 | (423,833 | ) | (72,686 | ) | ||||||||||||||||||||||
| Net Loss for the Three Months Ended June 30, 2019 | — | — | — | — | — | (6,814 | ) | (6,814 | ) | |||||||||||||||||||
| Balance as of June 30, 2019 | — | — | 69,322,426 | 69,322 | 281,825 | (430,647 | ) | (79,500 | ) | |||||||||||||||||||
| Net Loss for the Three Months Ended September 30, 2019 | — | — | — | — | — | (2,156 | ) | (2,156 | ) | |||||||||||||||||||
| Balance as of September 30, 2019 | — | $ | — | 69,322,426 | $ | 69,322 | $ | 281,825 | $ | (432,803 | ) | $ | (81,656 | ) | ||||||||||||||
| Judo Capital Corp. | ||||||||||||||||||||||||||||
| STATEMENT OF STOCKHOLDERS' DEFICIT | ||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| Preferred Stock | Common Stock | |||||||||||||||||||||||||||
| Shares | Par Value | Shares | Par Value | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders' Deficiency | ||||||||||||||||||||||
| Balance as of December 31, 2019 | — | — | 69,322,426 | 69,322 | 281,825 | (434,459 | ) | (83,312 | ) | |||||||||||||||||||
| Net Loss for the Three Months Ended March 31, 2020 | — | — | — | — | — | (3,278 | ) | (3,278 | ) | |||||||||||||||||||
| Balance as of March 31, 2020 | 69,322,426 | 69,322 | 281,825 | (437,737 | ) | (86,590 | ) | |||||||||||||||||||||
| Net Loss for the Three Months Ended June 30, 2020 | — | — | — | — | — | (3,042 | ) | (3,042 | ) | |||||||||||||||||||
| Balance as of June 30, 2020 | — | — | 69,322,426 | 69,322 | 281,825 | (440,779 | ) | (89,632 | ) | |||||||||||||||||||
| Net Income for the Three Months Ended September 30, 2020 | — | — | — | — | — | 5,299 | 5,299 | |||||||||||||||||||||
| Balance as of September 30, 2020 | — | $ | — | 69,322,426 | $ | 69,322 | $ | 281,825 | $ | (435,480 | ) | $ | (84,333 | ) | ||||||||||||||
| The accompanying notes are an integral part of these unaudited financial statements | ||||||||||||||||||||||||||||
7
| Judo Capital Corp. | ||||||||
| STATEMENT OF CASH FLOWS | ||||||||
| (Unaudited) | ||||||||
| For the Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2020 | 2019 | |||||||
| CASH FLOWS FROM OPERATING | ||||||||
| ACTIVITIES: | ||||||||
| Net Loss | $ | (1,021 | ) | $ | (15,952 | ) | ||
| Adjustments to reconcile net loss to net cash | ||||||||
| used in operating activities: | ||||||||
| Gain on Debt Extinguishment | 7,805 | — | ||||||
| Changes In: | ||||||||
| Accounts Payable | (12,231 | ) | (5,532 | ) | ||||
| Accounts Payable - Related Party | 3,151 | 11,985 | ||||||
| Interest Payable - Related Party | 2,252 | 2,244 | ||||||
| Net Cash Provided by (Used in) Operating Activities | (44 | ) | (7,255 | ) | ||||
| CASH FLOWS FROM FINANCING | ||||||||
| Proceeds from Loan Payable - Related Party | — | 7,050 | ||||||
| Net Cash Provided by Financing Activities | — | 7,050 | ||||||
| Net (Decrease) Increase in Cash | (44 | ) | (205 | ) | ||||
| Cash at Beginning of Period | 78 | 231 | ||||||
| Cash at End of Period | $ | 34 | $ | 26 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
| Cash paid during the year for: | ||||||||
| Interest | $ | — | $ | — | ||||
| Franchise Taxes | $ | — | $ | — | ||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
| Gain on Debt Extinguishment | $ | 7,805 | $ | — | ||||
| The accompanying notes are an integral part of these unaudited financial statements | ||||||||
| 8 |
Newpoint Financial Corp.
Judo Capital Corp.
Notes to Financial Statements
SeptemberJune 30, 20202021
(Unaudited)
NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS
Judo CapitalNewpoint Financial Corp. (“Judo”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. theThe entity is referred to as “the Company”. 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 referredtournament, this subsidiary is no longer active and has ceased to as “the Company”. exist.
On June 2, 2014, the Company ceased its principal activities of hosting and sponsoring judo tournaments and dissolved Classic Rules World Judo Championships, Inc..Inc. The Company had planned to operate in real estate investment activitiesmarket focused in the New York City metropolitan area. On February 28, 2018, the Company ceased its plans to operate in the real estate investment activities. The Company is seeking to consummate a merger or acquisition.
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. As of September 30, 2020,market. On January 19, 2021, the Company had a working capital deficit500-1 reverse stock split with FINRA and Change of $84,333Control. On February 9, 2021, new officers and accumulated deficitdirectors were elected and the name of $435,480. These circumstances raise substantial 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 needs to raise additional capital in order to fully develop its business plan. Failure to raise adequate capital and generate adequate revenues could result in the Company havingwas changed to curtail or cease operations. Additionally, even if the Company does raise sufficient capital to support its operating expenses and generate adequate revenues, there can be no assurance that the revenue will be sufficient to enable it to develop business to a level where it will generate profits and adequate cash flows from operations.Newpoint Financial Corp. (Delaware). On February 12, 2021.
NOTE 3. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited interim financial statements as of the ninesix months ended SeptemberJune 30, 20202021 and SeptemberJune 30, 20192020 have been prepared in accordance with accounting principles generallyUnited States Generally Accepted Accounting Principles accepted for interim financial statement presentation and in accordance with the instructions to Form 10-Q. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statement presentation. They should be read in conjunction with the Company’s annual report on Form 10-K10- K for the year ended December 31, 2019.2020. In the opinion of management, the financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to fairly present the financial position as of SeptemberJune 30, 20202021 and the results of operations for the ninesix months ended SeptemberJune 30, 20202021 and 20192020 and cash flows for the ninesix months ended SeptemberJune 30, 20202021 and 2019.2020. The results of operations for the ninesix months ended SeptemberJune 30, 20202021 are not necessarily indicative of the results to be expected for the full year.
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.
Reclassifications
Reclassifications
None.
Certain reclassifications have been made to the presentation for the nine months ended September 30, 2019 to make them comparable to the current years presentation.
Cash and Cash Equivalents
Cash and cash equivalents includes highly liquid investments with original maturities of ninethree months or less. On occasion, the Company has amounts deposited with financial institutions in excess of federally insured limits.
| 9 |
Judo Capital
Newpoint Financial Corp.
Notes to Financial Statements
SeptemberJune 30, 20202021
(Unaudited)
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 the previous years ended December 31, 20192020 and 2018,2019, the Company has not recorded any unrecognized tax benefits.
Segment Reporting
Segment Reporting
The Company’s business currently operates in one1 segment.
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. See Note 4. Net Loss Per Share.3. Stockholders’ Deficit.
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.
| 10 |
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.
Newpoint Financial Corp.
10
Judo Capital Corp.
Notes to Financial Statements
SeptemberJune 30, 20202021
(Unaudited)
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Related Parties (Continued)
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 3 – 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 0 revenues, has incurred net losses of $10,453 and $17,608 during the years ended December 31, 2020 and December 31, 2019. The Company has an accumulated deficit of $444,912 and $434,459 as of December 31, 2020 and December 31, 2019, and has experienced negative cash flows from operations. These circumstances raise substantial 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 needs to raise additional capital. Failure to raise adequate capital and generate adequate sales revenues could result in the Company having to curtail or cease operations. Additionally, even if the Company does raise sufficient capital to support its operating expenses and generate adequate revenues, there can be no assurance that the revenue will be sufficient to enable it to develop business to a level where it will generate profits and cash flows from operations.
We understand from the Directors of Newpoint Financial Corp (formally Judo Capital Corp) that the new Shareholders and Directors being put in place will ensure new capitals and revenues are put into the Company.
NOTE 4 – STOCKHOLDERS’ DEFICIT
Preferred Stock
The Company is authorized to issue shares of preferred stock with a par value of $0.001 per share. There were no shares of preferred stock issued or outstanding atas of June 30, 2021 or December 31, 2019 or September 30, 2020.
Common Stock
The Company is authorized to issue up to shares of common stock with a par value of $0.001 per share. ThereAs of June 30, 2021 and December 31, 2020 there were 69,322,426 shares of common stock issued and outstanding at December 31, 2019 and September 30, 2020.outstanding.
NOTE 5 – RELATED PARTY TRANSACTIONS AND NOTE PAYABLE
In 2017, the Company received loans from a related party totaling $30,000. The loans payable bear interest at an annual rate of 10% interest and are due on demand. There was $30,000 due as principal and $8,156 in interest for these notes due to a related party as of December 31, 2019. There was $30,000 due as principal and $10,408 in interest for these notes due to a related party as of September 30, 2020.
In 2018, the Company received loans from a related party totaling $9,000. In 2019, the Company received loans from a related party totaling 7,050. These loans are non-interest bearing and due on demand. There was $16,050 due as non-interest bearing loans to a related party as of the year ended December 31, 2019 and the nine months ended September 30, 2020.
In 2019, the Company received advances from a related party totaling $16,885. The advances are non-interest bearing and due on demand. In the nine months ended September 30, 2020, the Company received advances from a related party totaling $6,024. The advances are non-interest bearing and due on demand. There was $16,885 in accounts payable - related party as of the year ended December 31, 2019 and $22, 909 in accounts payable - related party as of the nine months ended September 30, 2020.
The Company currently operates out of an office of a related party free of rent.
NOTE 65 – SUBSEQUENT EVENTS
The Company had evaluated all events occurring subsequent to the balance sheet date and determined there are no additional events to disclose.
| 11 |
11
Item 2. Management'sManagement’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-looking Information
This Form 10-Q quarterly report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. 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-lookingforward- looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential,"“may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or "continue,"“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.
Results of Operations
Comparison of the three months ended SeptemberJune 30, 20202021 and 20192020
Revenues. The Company had no revenue during the three months ended SeptemberJune 30, 20202021 or 2019.2020.
Cost of Revenues . The Company had no cost of revenuerevenues for the three months ended SeptemberJune 30, 20202021 or 2019.2020.
General and Administrative expenses. The Company incurred $750$121 of general and administrative expenses during the three months ended SeptemberJune 30, 20202021 compared to $48$1,794 during the same period in September 30, 2019. The $702 increase in general and administrative expenses is the result of the Company incurring costs associated with its public filings during the prior period that were not incurred during the current period.2020.
Professional fees. The Company incurred $1,000$51,479 of professional fees during the three months ended SeptemberJune 30, 20202021 compared to $1,342$500 during the same period in September 30, 2019.2020. The $342 decreaseincrease in professional fees is the result of the Company incurring costs associated with Accountants, Auditorsconsultants and Attorneystransfer agent costs during the prior period that were not incurred during the current period.
Loss From OperationOperations. The Company incurred an operating loss of $1,750$51,600 during the three months ended SeptemberJune 30, 20202021 compared to $1,400$2,294 during the same period in September2020. The increase in net loss is a result of increased professional fees and additional costs associated with the change in control.
Other Income (Expense). The Company incurred interest expense of $0 during the three months ended June 30, 2019.2021 compared to $748 during the three months ended June 30, 2020.
Net Loss . The $350Company incurred a net loss of $51,600 during the three months ended June 30, 2021 compared to $3,042 during the same period in 2020. The increase in net loss is a result of increased general and administrative fees as discussed previously.and professional fees.
| 12 |
Other Income (Expense). The Company incurred interest expense of $756 during the three months ended September 30, 2020 compared to $756 during the three months ended September 30, 2019. The Company recognized a gain on debt forgiveness of $7,805 during the three months ended September 30, 2020.
Net Loss . The Company incurred net income of $5,399 during the three months ended September 30, 2020 compared to a net loss of $2,156 during the three months ended September 30, 2019. The net gain in 2020 was the result of a result of decreased professional fees as discussed previously and additionally from a $7,805 Gain from Debt Extinguishment taken in the three months ended September 30, 2020.
12
Comparison of the nine months ended September 30, 2020 and 2019
Revenues . The Company had no revenue during the nine months ended September 30, 2020 or 2019.
Cost of Revenues . The Company had no cost of revenue for the nine months ended September 30, 2020 or 2019.
General and Administrative expenses. The Company incurred $3,574 of general and administrative expenses during the nine months ended September 30, 2020 compared to $817 during the nine months ended September 30, 2019. The $1,519 decrease in general and administrative expenses is the result of the Company incurring costs associated with its public filings during the prior period that were not incurred during the current period.
Professional fees. The Company incurred $3,000 of professional fees during the nine months ended September 30, 2020 compared to $12,891 during the nine months ended September 30, 2019. The $9,891 decrease in professional fees is the result of the Company incurring costs associated with Accountants, Auditors and Attorneys during the prior period that were not incurred during the current period.
Loss From Operation . The Company incurred an operating loss of $6,574 during the nine months ended September 30, 2020 compared to $13,708 during the nine months ended September 30, 2019. The $7,134 decrease in net loss is a result of decreased professional fees as discussed previously.
Other Income (Expense). The Company incurred interest expense of $2,252 during the nine months ended September 30, 2020 compared to $2,244 during the nine months ended September 30, 2019. The Company recognized a gain on debt forgiveness of $7,805 during the nine months ended September 30, 2020.
Net Loss . The Company incurred a net loss of $1,021 during the nine months ended September 30, 2020 compared to a net loss of $15,952 during the same period in 2019. The decrease in net loss in 2020 is a result of decreased professional fees as discussed previously and additionally from a $7,805 Gain from Debt Extinguishment taken in the nine months ended September 30, 2020.
Liquidity and Capital Resources
AtAs of December 31, 2019,2020, we had cash of $78,$0, with current assets totaling $78$0 and current liabilities totaling $83,390$93,765 creating a working capital deficit of $83,312.$93,765. Current liabilities consisted of accounts payable and accrued liabilities totaling $12,299,$6,730, related party payable of $16,885,$28,929, related party interest payable of $8,156$11,156 and a related party loan payable of $46,050.
At SeptemberAs of June 30, 2020,2021, we had cash of $34,$0 with current assets totaling $34$0 and current liabilities totaling $84,367 creating a working capital deficit$269,194. The addition of $84,333.an intercompany loan of $175,429 has created an increase in cash flows of $1 million. Current liabilities consisted of accounts payable and accrued liabilities totaling $5,000,$6,730, related party payable of $22,909,$28,929, related party interest payable of $10,408$11,156 and a related party loan payable of $46,050.
Cash Flows
Net cash provided by (used in)used in operating activities was $44$(175,429) and $7,255$(48) during the ninesix months ended SeptemberJune 30, 2021 and 2020, and September 30, 2019, respectively.
Net cash provided by financing activities was $0$175,429 million and $7,050$0 during the ninesix months ended SeptemberJune 30, 2021 and 2020, and September 30, 2019, respectively, which consisted of a $7,050 loan from a related party during the nine months ended September 30, 2019.respectively.
As of September 30, 2020, the Company was primarily relying on its corporate officers, directors, and outside investors for the funding needed for the implementation of its business plan. The Company’s management is currently looking for the capital needed to complete its corporate objectives. The Company cannot predict the extent to which its liquidity and capital resources will be available prior to executing its business plan or whether it will have sufficient capital to fund typical operating expenses.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
| 13 |
13
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Smaller reporting companies are not required to provide the information required by this item.
Item 4. Controls and Procedures
Disclosure Controls and Procedures
Under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, Craig Burton, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), as of the end of the period covered by this quarterly report. Based on this evaluation Craig Burton, our Chief Executive Officer and Chief Financial Officer concluded that as of September 30, 2020 and the date of filing this report on October 13,May 5, 2020, our disclosure controls and procedures were not effective such that the information required to be disclosed in our United States Securities and Exchange Commission (the “SEC”) reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
The material weakness identified relates to the lack of proper segregation of duties. The Company believes that the lack of proper segregation of duties is due to the Company’s limited resources.
Changes in Internal Controls Over Financial Reporting
There were no changes in our internal control over financial reporting identified in connection with our evaluation of these controls as of the end of our last fiscal quarter as covered by this report on SeptemberJune 30, 20202021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Inherent Limitations on Effectiveness of Controls
The Company'sCompany’s management does not expect that its disclosure controls or its internal control over financial reporting will prevent or detect all error or all fraud and is not effective. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system'ssystem’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
| 14 |
14
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
From time to time, the Company may be a party to litigation or other legal proceedings that we consider to be part of the ordinary course of our business. At present, there are no pending legal proceedings to which the Company is a party or in which any director, officer or affiliate of the Company, any owner of record or beneficially of more than 5% of any class of voting securities of the Company, or security holder is a party adverse to the Company or has a material interest adverse to the Company. The Company’s property is not the subject of any pending legal proceedings.
Item 1A. Risk Factors
An investment in our shares is speculative and involves a high degree of risk. Therefore, you should not invest in our shares unless you are able to bear a loss of your entire investment. You should carefully consider the following factors as well as those set forth in our annual report on Form 10-K10- K for the year ended December 31, 20192020 and the other information contained herein before deciding to invest in our shares. Factors that could cause actual results to differ from our expectations, statements or projections include the risks and uncertainties relating to our business described above. The fact that some of the risk factors may be the same or similar to our past filings, means only that the risks are present in multiple periods. We believe that many of the risks detailed here and in our SEC filings are part of doing business in our industry and will likely be present in all periods reported. The fact that certain risks are endemic to our industry does not lessen the significance of the risk. We urge you to carefully consider the following discussion of risks as well as other information regarding our common stock. This report and statements that we may make from time to time may contain forward-looking information. There can be no assurance that actual results will not differ materially from our expectations, statements or projections.
Smaller reporting companies are not required to provide the information required by this item.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
N/A
Item 5. Other Information
None.
| 15 |
None.
15
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
N/A
Item 5. Other Information
None.
Item 6. Exhibits
| 16 |
SIGNATURES
16
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Dated: | ||
| By: | /s/ Jirodhan Dominic Persad | |
| Dated: September 7, 2021 | By: | /s/ Gary Shirshac |
| Gary Shirshac, Chief Financial Officer and Secretary |
| 17 |