UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 2018

x
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED
JANUARY 31 2020
Commission file number 000-55369

ADAIAH DISTRIBUTION INC.

(Exact name of registrant as specified in its charter)

Nevada

(State or other jurisdiction of incorporation or organization)

Poruka iela 3 Madona

LV-4801 Latvia

C/O
YOSEF YAFE
BET IRAEL 4
JERUSALEM
ISRAEL
(Address of principal executive offices, including zip code.)

(702)924-0637

972-52-5408519
(Telephone number, including area code)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 last 90 days. YES
x
NOo

¨
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 (§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
NOo

¨
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,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

¨

Smaller reporting company

x

(Do not check if a smaller reporting company)Emerging growth 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).YESo
x
NOx

¨
State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 141,000207,141,180 shares as of March 7, 2018.

JANUARY 31 2020

 
 
 
 

ITEM 1. FINANCIAL STATEMENTS

ADAIAH DISTRIBUTION INC.

(A DEVELOPMENT STAGE COMPANY)

BALANCE SHEETS

 

 

 

 

Three Months

Ended

 

 

Year

Ended

 

 

 

January 31,

2018

 

 

October 31,

2017

 

 

 

(Unaudited)

 

 

(Audited)

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

      Cash 

 

$731

 

 

$33

 

      Inventory 

 

 

-

 

 

 

-

 

 

 

$731

 

 

$33

 

 

 

 

 

 

 

 

 

 

FIXED ASSETS

 

 

 

 

 

 

 

 

      Furniture & Equipment

 

 

8,000

 

 

 

8,000

 

      Accumulated Depreciation - F&E

 

 

(2,678)

 

 

(2,571)
      Sewing Shop

 

 

16,940

 

 

 

16,940

 

      Accumulated Depreciation - Sewing Shop

 

 

(2,435)

 

 

(2,329)

 

 

$19,827

 

 

$20,040

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$20,558

 

 

$20,073

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts Payable

 

 

-

 

 

 

-

 

Product Paid - Pending Shipment

 

 

-

 

 

 

-

 

Deferred Tax Liability

 

 

-

 

 

 

-

 

Loan Payable - Related Party

 

 

1,415

 

 

 

1,415

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

$1,415

 

 

$1,415

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Common stock:  authorized 75,000,000; $0.001 par value; 141,000 shares issued and outstanding at January 31, 2018 and October 31, 2017

 

 

5,000

 

 

 

5,000

 

Additional Paid in Capital

 

 

39,000

 

 

 

39,000

 

Profit (loss) accumulated during the development stage

 

 

(24,857)

 

 

(25,342)

 

 

 

 

 

 

 

 

 

Total Stockholders' Equity 

 

$19,143

 

 

$18,658

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$20,558

 

 

$20,073

 

ADAIAH DISTRIBUTION INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
  
January 31,
2020
 
 
October 31,
2019
 
  ( Unaudited )  ( Audited ) 
       
ASSETS      
       
Current Assets      
       
Cash      
  0   0 
         
TOTAL ASSETS  0   0 
         
LIABILITIES AND STOCKHOLDERS EQUITY        
         
LIABILITIES        
         
Accrued expenses  11,179   11,141 
Convertible Promissory Note (Related Party)  15,351   9,956 
         
TOTAL LIABILITIES  26,530   21,097 
         
STOCKHOLDERS' EQUITY (DEFECIENC )        
         
Common Stock; Authorized 750,000,000 , par value $0.001 Issued and Outstanding as at October 31 2019 and as at January 31 2020, 207,141,118  207,141   207,141 
Additional Paid in Capital  43,859   43,859 
(Accumulated Deficit)  (277,530)  (272,097)
         
Total Stockholders ' equity (deficiency)  (26,530)  (21,097)
         
TOTAL LIABILITIES AND STOCKHOLDERS ' EQUITY (DEFICIENCY)  0   0 
The accompanying notes are an integral part of these financial statements

 
2
 
 

ADAIAH DISTRIBUTION INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF OPERATIONS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From Inception

 

 

 

 Three Months Ended  

 

 

 Three Months Ended  

 

 

 (September 12, 2013) to 

 

 

 

January 31,

2018

 

 

January 31,

2017

 

 

January 31,

2018

 

REVENUES

 

 

 

 

 

 

 

 

 

Sales:

 

 

 

 

 

 

 

 

 

Merchandise Sales

 

$10,348

 

 

$11,855

 

 

$289,633

 

Total Income

 

 

10,348

 

 

 

11,855

 

 

 

289,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Goods Sold:

 

 

 

 

 

 

 

 

 

 

 

 

Pillow Purchases

 

 

7,401

 

 

 

9,165

 

 

 

210,913

 

Sales Commission

 

 

-

 

 

 

-

 

 

 

3,180

 

Total Cost of Goods Sold

 

$7,401

 

 

$9,165

 

 

$214,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

2,947

 

 

 

2,690

 

 

 

75,540

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$2,463

 

 

$3,013

 

 

$100,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Expenses

 

 

2,463

 

 

 

3,013

 

 

 

100,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Tax

 

$484

 

 

$(323)

 

$(24,866)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

1

 

 

 

-

 

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income for Period

 

 

485

 

 

 

(323)

 

 

(24,857)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) per share: 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$0.0034

 

 

$(0.0023)

 

$(0.1763)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

141,000

 

 

 

141,000

 

 

 

141,000

 

ADAIAH DISTRIBUTION INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
  
Three Months
Ended
January 31,
2020
 
 
Three Months
Ended
January 31,
2019
 
  (Unaudited)  (Unaudited) 
       
Operating Expenses
      
       
General and Administrative  5,318    
        
Total Expenses  5,318    
        
Interest Expense (related party)  115    
        
Net (Loss) for the Period  5,433    
        
Net (Loss) Per Share       
(Basic and Diluted)  0.0000   0.0000 
         
Weighted Number of Average Shares outstanding  207,141,189   102,141,189 
The accompanying notes are an integral part of these financial statements

 
3
 
 

ADAIAH DISTRIBUTION INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF CASH FLOWS (Unaudited)

 

 

 

 

 

 

 

 

 

 

From inception

 

 

 

Three Months

Ended

 

 

Three Months

Ended

 

 

(September 12, 2013) to

 

 

 

January 31,

2018

 

 

January 31,

2017

 

 

January 31,

2018

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

Net Income

 

$485

 

 

$(323)

 

$(24,857)

Adjustment to reconcile net loss to net cash provided by operations:

 

 

-

 

 

 

-

 

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Net cash used by operating activities

 

 

485

 

 

 

(323)

 

 

(24,857)

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

-

 

 

 

-

 

 

 

44,000

 

Due to related party

 

 

-

 

 

 

-

 

 

 

1,415

 

Net cash provided by financing activities

 

 

-

 

 

 

-

 

 

 

45,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Furniture & Equipment

 

 

-

 

 

 

-

 

 

 

(8,000)

Increase (decrease) Accum Depr - F&E

 

 

107

 

 

 

107

 

 

 

2,678

 

Sewing Shop

 

 

-

 

 

 

-

 

 

 

(16,940)

Increase (decrease) in Accum Depr - Sewing Shop

 

 

106

 

 

 

106

 

 

 

2,435

 

Net cash provided by investing activities

 

 

213

 

 

 

213

 

 

 

(19,827)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase in cash

 

 

698

 

 

 

(110)

 

 

731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, beginning of period

 

 

33

 

 

 

315

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, end of period

 

$731

 

 

$206

 

 

$731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxes

 

$-

 

 

$-

 

 

$-

 

Interest

 

$-

 

 

$-

 

 

$-

 

ADAIAH DISTRIBUTION INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
  
Three months
ended
January 31,
2020
 
 
Three months
ended
January 31,
2019
 
  (Unaudited)  (Unaudited) 
       
Net (Loss)  (5,433)   
        
Adjustments to reconcile Net Loss to net cash used in Operations       
        
Operating Activities       
        
Increase (Decrease) in accrued expenses  153    
        
Net cash used in operating activities  (5,280)   
        
Financing Activities       
        
Loans received from a related party  5,280  0 
        
Net cash provided for by financing activities  5,280   0 
         
Investing Activities        
         
Net cash (used in) provided by investing activities        
         
Net (Decrease) in Cash  0     
         
Cash at the beginning of the period        
Cash at the end of the period  0   0 
         
Supplemental disclosure        
         
Cash paid for income taxes  0   0 
Cash paid for interest expense  0   0 
         
Non Cash Transactions        
         
None        
The accompanying notes are an integral part of these financial statements

 
4
 
 

ADAIAH DISTRIBUTION INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CHANGES IN SHAREHOLDER‘S EQUITY (DEFICIENCY)
Period ending January 31 2019
               
                
  
 
 
 
 
 
Additional paid
 
 
Accumulated
 
 
 
 
 
 
Shares
 
 
Common Stock
 
 
In Capital
 
 
Deficit
 
 
Total
 
                
Balance October 31, 2018 (Audited)  102,141,118   43,859   102,141   (146,000)  0 
                     
Net income (loss) for the period ending January 31, 2019                    
                     
Balance January 31, 2019 (Unaudited)  102,141,118   43,859   102,141   (146,000)  0 
Period ending January 31 2020
  
 
 
 
 
Additional paid
 
 
Accumulated
 
 
 
 
 
Shares
 
 
Common Stock
 
 
In Capital
 
 
Deficit
 
 
Total
 
                
Balance October 31, 2019 (Audited)  207,141,118   43,859   207,141   (272,097)  (21,097)
                     
Net income (loss) for the period ending January 31, 2020              (5,433)  (5,433)
                     
Balance January 31, 2020 (Unaudited)  207,141,118   43,859   207,141   (277,530)  (26,530)
The accompanying notes are an integral part of these financial statements 
5
Adaiah Distribution Inc.

Notes to the Financial Statements

January 31, 2018

2020

Note 1: Organization and Basis of Presentation

Adaiah Distribution, Inc. (the “Company”) is a for profit corporation established under the corporation laws in the State of Nevada, United States of America on September 12, 2013.

The Company is not currently engaged in the development phase of its custom pillow distribution business. As such, the Companyany business operations. It is subjecthowever seeking to all risks inherent to the establishment of a start-up business enterprise.

identify, locate and if warranted acquire new commercial opportunities.

The accompanying unaudited interim financial statements of Adaiah Distribution, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Registration Statement on Form S-1 filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the fiscal year ended October 31, 20172019 as reported on Form 10-K have been omitted.

Unless the context otherwise requires, all references to “Adaiah Distribution,” “we,” “us,” “our” or the “company” are to Adaiah Distribution, Inc.

On April 25, 2019, the eighth judicial District Court of Nevada appointed Yosef Yafe as custodian for the Company, proper notice having been given. There was no opposition. Pursuant to the Order of Custodianship, a Special Meeting of Shareholders was held on May 29, 2019 at 8:00 a.m. PST, Yosef Yafe as limited custodian. Notice was sent May 13, 2019 in compliance with Court Order. Present were Yosef (holding shares through Cede & Co.) and two additional proxies also holding shares through Cede & Co.).
Note 2: Going Concern
The accompanying financial statements and notes have been prepared assuming that the Company will continue as a going concern for the one year from the date these financial statements were available to be issued.
The Company’s ability to continue as a going concern is dependent upon the Company’s ability to generate sufficient revenues to operate profitably or raise additional capital through debt financing and/or through sales of common stock. In the event the Company is not able to do so the director of the Company has agreed to provide the necessary funding for the Company to continue in a limited operations scenario for the next 12 months, which would include the costs associated with maintaining reporting status with the Securities and Exchange Commission.
The failure to achieve the necessary levels of profitability or obtain the additional funding would be detrimental to the Company.

Note 2:3: Significant Accounting Policies and Recent Accounting Pronouncements

Use of Estimates and Assumptions

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

Due to the limited level of operations, the Company has not had to make material assumptions or estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Fair Value of Financial Instruments

ASC 825, “Disclosures about Fair Value of Financial Instruments”, requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of JulyJanuary 31, 2017.

2020.

The respective carrying values of certain on-balance-sheet financial instruments approximate their fair values. These financial instruments include cash, accrued liabilities and notes payable. Fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair value.

 
56
 
 

Adaiah Distribution Inc.

Notes to the Financial Statements

January 31, 2018

2020

Basic and Diluted Loss Per Share

The Company computes earnings (loss) per share in accordance with ASC 260-10-45 “Earnings per Share”, which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings (loss) per share excludes all potential common shares if their effect is anti-dilutive. The Company has no potential dilutive instruments, and therefore, basic and diluted earnings (loss) per share are equal.

Revenue Recognition

The company follows the guidelines of ASC 605-15 for revenue recognition. Revenue is recognized when
No revenues were recorded for the product has been prepaid by the customer, shipped from either Adaiah Distribution or one of our vendorsfiscal periods ending January 31, 2019 and the product has been delivered and signed for by the customer as evidenced by the shipping company. Customers are allowed to return the products within 30 days for a refund, if the packages are unopened.

January 31, 2020.

Income Taxes

We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.

ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.

Recent Accounting Pronouncements

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

Note 3:4: Property and Equipment

Property and equipment consist of:

 

 

January 31,

2018

 

 

October 31,

2017

 

Furniture & Equipment

 

$8,000

 

 

$8,000

 

Sewing Shop

 

$16,940

 

 

$16,940

 

Accumulated Depreciation

 

$(5,113)

 

$(4,900)

 

 

$19,827

 

 

$20,040

 

Property, plant and equipment are stated at cost.

The Company utilizes MACRS 200 DB HY – 7 yearshas no carrying value of fixed assets as of January 31, 2019 or January 31, 2020 and no depreciation was recorded for furniture and fixture depreciation and ADS straight-line – 40 years for the sewing shop depreciation over the estimated useful lives of the assets.

these respective periods.

 
67
 
 

Adaiah Distribution Inc.

Notes to the Financial Statements

January 31, 2018

Note 4: Concentrations

Initial sales are concentrated with one client. Sales are made without collateral and the credit-related losses are insignificant or non-existent. Accordingly, there is no provision made to include an allowance for doubtful accounts.

2020

Note 5: Legal Matters

The Company has no known legal issues pending.

Note 6: Debt

Nikolay Titov, the Director and President of the Company, has from time to time loaned the Company funds for operational costs. The amount, $1,415 at January 31, 2018, is being carried as a loan payable. The loan is non-interest bearing, unsecured and due upon demand.

Note 7: Capital Stock

On October 28, 2013 the Company authorized 75,000,000 shares of commons stock with a par value of $0.001 per share.

On October 28, 2013 the Company issued 4,000,000 shares of common stock for a purchase price of $0.001 per share to its sole director. The Company received aggregate gross proceeds of $4,000.00.

In January 2015 a total of 1,000,000 shares were issued to a total of 30 shareholders for $.04 per share for total proceeds of $40,000. The shares were registered pursuant to a Registration Statement on Form S-1 as filed with the Securities and Exchange Commission that was declared effective on November 3, 2014.

On November 29, 2015, the Company’s board of directors elected by unanimous written consent to file Articles of Amendment to its Articles of Incorporation with the Nevada Secretary of State to (i) increase the Company’s authorized number of shares of common stock from 75 million to 750 million, and (ii) increase the Company’s total issued and outstanding shares of common stock by conducting a forward split of such shares at the rate of 25 shares for every one (1) share currently issued and outstanding (the “Forward Split”). On December 4, 2015, the Company filed such Articles of Amendment with the Nevada Secretary of State. The record date for the Forward Split is December 1, 2015.

On December 4, 2015, the Company filed an Issuer Company-Related Action Notification Form with FINRA requesting that the aforementioned Forward Split be effected in the market. Such notification form is being reviewed by FINRA.

On December 2, 2015, the Company by written consent of the Board of Directors approved the issuance to Mr. Nikolay Titov of 16,000,000 restricted shares of the Company’s common stock in exchange for continued services as the sole member of the Board and the Company’s sole executive officer. These shares are being issued subsequent to the stock split and increased the Company’s total issued and outstanding shares following such stock split to 141 million shares.

 
78
 
 

Adaiah Distribution Inc.

Notes to the Financial Statements

January 31, 2018

2020

On September 19, 2016, the Company filed Articles of Amendment to its Articles of Incorporation with the Nevada Secretary of State whereby it amended its Articles of Incorporation by (i) decreasing the Company’s authorized number of shares of common stock from 750 million to 750,000, and (ii) decreasing the Company’s total issued and outstanding shares of common stock by conducting a reverse split of such shares at the rate of one (1) share for every one thousand (1,000) share currently issued and outstanding, resulting in 141,000 shares being issued and outstanding.

On November 8, 2016 the Company’s request for the Reverse Split was approved by FINRA and effected in the market. The Company’s ticker symbol was also changed to “ADAD”.

On November 16, 2016 the Company issued 166 shares to Cede and Company for rounding as a result of the reverse split.
In January 2017 the Company filed with the State of Nevada and increased the authorized shares to 750,000,000.
On February 13, 2017 the Company issued 76,000,000 shares to its sole director for continuation of his services to the Company.
On February 13, 2017 the Company issued 25,000,000 shares in exchange of conversion of $25,000 of debt to a third party.
On May 2, 2017 the Company issued 1,000,000 shares to 3D PIONEER SYSTEMS LTD as an advance payment for an asset purchase agreement.
On September 5, 2019 the Company issued 100,000,000 common shares of the Company to the CEO pursuant to the equity compensation agreement signed August 10 2019 for the fiscal year ending October 31, 2019.
On September 5 the Company issued 5,000,000 common shares upon conversion of $5,000 of the convertible note signed on August 10, 2019.
As of January 31, 20182020 there were no outstanding stock options or warrants.

As of January 31, 2020 there were 207,141,118 shares of common stock outstanding.
Note 8:7: Income Taxes

The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.

ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.

Taxes previously deferred of $3,894 reduced

9
Adaiah Distribution Inc.
Notes to the tax provision for the year ended OctoberFinancial Statements
January 31, 2016.

2020

Note 9:8: Related Party Transactions

The Company’s sole officer and director is involved in other business activities and may in

On August 10, 2019 the future, become involved in other business opportunities as they become available.

The Company hassigned a related party transaction involving a significant shareholder. The nature and details of the transaction are described in Note 6.

On December 2, 2015,convertible note for funds being advanced to the Company by written consent of the Board of Directors approvedCEO as at that date and for a twelve month period following that date which can be converted by the issuance to Mr. Nikolay Titov of 16,000,000CEO at any time into restricted common shares of the Company’s common stock in exchange for continued servicesCompany at a conversion rate of $0.001 per share. The note bears interest of 4% per annum. The CEO advanced as the sole member of the Board and the Company’s sole executive officer.

8

Adaiah Distribution Inc.

Notes to the Financial Statements

at January 31 2018

Note 10: Going Concern

The accompanying financial statements and notes have been prepared assuming that the Company will continue as a going concern for the one year from the date these financial statements were available to be issued.

The Company’s ability to continue as a going concern is dependent upon the Company’s ability to generate sufficient revenues to operate profitably or raise additional capital through debt financing and/or through sales2020, $ 20,416 of which $5,000 was converted into 5,000,000 restricted common stock. In the event the Company is not able to do so the directorshares of the Company has agreed to provide the necessary funding for the Company to continue in a limited operations scenario for the next 12 months, which would include the costs associated with maintaining reporting status with the Securities and Exchange Commission.

on September 5, 2019. The failure to achieve the necessary levels of profitability or obtain the additional funding would be detrimental to the Company.

Note 11: Asset Purchase Agreement

On May 10, 2017, the Company closed an Asset Purchase Agreement (the “Agreement”) signed February 10, 2017 with 3D Pioneer Systems Inc. (“3D”). Pursuant to the Agreement, once all termsbalance of the agreement are met, Adaiah will acquire certain intellectual property, apps, other assets and related contractual rights held by 3D in exchange for 1 million sharesnote as at January 31, 2020 was $15,351 which also includes accrued interest expense of Adaiah’s common stock and a cash payment of $30,000, along with an obligation to make three (3) additional payments of $30,000 every ninety (90) days following the closing. The payments are held in trust until all terms$115. That fair value of the agreement are met. The assetsnote as at that date approximates the outstanding carrying amount of 3D include intellectual property for 3D printer development, a project for the development of a 3D printing platform and marketplace and the first app, of a series of children’s apps, called Save Your Planet Kids.

$15,351.

Note 12:9 . Subsequent Events

events

The Company has evaluated events subsequent to the date these financial statements have been issued to assess the need for potential recognition or disclosure in this report. Such events were evaluated through the date these financial statements were available to be issued.March 9, 2020. Based upon this evaluation, it was determined that other than the event disclosed above, no other subsequent events occurred that require recognition or disclosure in the financial statements.

 
910
 
 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors” and the risks set out below, any of which may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Forward looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and we undertake no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. 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. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are stated in United States dollars ($US) and are prepared in accordance with United States Generally Accepted Accounting Principles.

In this report, unless otherwise specified, all references to “common stock” refer to the common shares in our capital stock.

As used in this annualquarterly report, the terms “we”, “us”, “our”, “Adaiah” and “Adaiah Distribution” mean Adaiah Distribution Inc., unless the context clearly requires otherwise.

Results of Operations

Our total assets at January 31, 2018 were $20,558, which was comprised of $731 cash in the bank and $19,827 (net) in furniture and equipment and a sewing shop. We currently anticipate that our legal and accounting fees over the next 12 months as a result of being a reporting company with the SEC, and will be approximately $10,000 per year.

We received the initial equity funding of $4,000 from our sole officer and director who purchased 4,000,000 shares of our common stock at $0.001 per share.

In January 2015, the Company issued 1,000,000 shares of common stock to 30 independent persons pursuant to the Registration Statement on Form S-1 for total cash proceeds of $40,000.

On November 29, 2015, the Company’s board of directors elected by unanimous written consent to file Articles of Amendment to its Articles of Incorporation with the Nevada Secretary of State to (i) increase the Company’s authorized number of shares of common stock from 75 million to 750 million, and (ii) increase the Company’s total issued and outstanding shares of common stock by conducting a forward split of such shares at the rate of 25 shares for every one (1) share currently issued and outstanding (the “Forward Split”). On December 4, 2015, the Company filed such Articles of Amendment with the Nevada Secretary of State. The record date for the Forward Split is December 1, 2015.

On December 4, 2015, the Company filed an Issuer Company-Related Action Notification Form with FINRA requesting that the aforementioned Forward Split be effected in the market. Such notification form is being reviewed by FINRA.

11
On December 2, 2015, the Company by written consent of the Board of Directors approved the issuance to Mr. Nikolay Titov of 16,000,000 restricted shares of the Company’s common stock in exchange for continued services as the sole member of the Board and the Company’s sole executive officer. These shares are being issued subsequent to the stock split and increased the Company’s total issued and outstanding shares following such stock split to 141 million shares.

10

On September 19, 2016, the Company filed Articles of Amendment to its Articles of Incorporation with the Nevada Secretary of State whereby it amended its Articles of Incorporation by (i) decreasing the Company’s authorized number of shares of common stock from 750 million to 750,000, and (ii) decreasing the Company’s total issued and outstanding shares of common stock by conducting a reverse split of such shares at the rate of one (1) share for every one thousand (1,000) share currently issued and outstanding, resulting in 141,000 shares being issued and outstanding.

On November 8, 2016 the Company’s request for the Reverse Split was approved by FINRA and effected in the market. The Company’s ticker symbol was also changed to “ADAD”.

On May 10,November 16, 2016 the Company issued 166 shares to Cede and Company for rounding as a result of the reverse split.
In January 2017 the Company closed an Asset Purchase Agreement (the “Agreement”) signedfiled with the State of Nevada and increased the authorized shares to 750,000,000 .
On February 10,13, 2017 with 3D Pioneer Systems Inc. (“3D”). Pursuantthe Company issued 76,000,000 shares to its sole director for continuation of his services to the Agreement, once all termsCompany.
On February 13, 2017 the Company issued 25,000,000 shares in exchange of conversion of $25,000 of debt to a third party.
On May 2, 2017 the Company issued 1,000,000 shares to 3D PIONEER SYSTEMS LTD as an advance payment for an asset purchase agreement.
On September 5, 2019 the Company issued 100,000,000 common shares of the Company to the CEO pursuant to the equity compensation agreement are met, Adaiah will acquire certain intellectual property, apps, other assets and related contractual rights held by 3D in exchangesigned August 10 2019 for 1 millionthe fiscal year ending October 31 2019.
On September 5 the Company issued 5,000,000 common shares upon conversion of Adaiah’s common stock and a cash payment of $30,000, along with an obligation to make three (3) additional payments of $30,000 every ninety (90) days following the closing. The payments are held in trust until all terms$5,000 of the agreement are met. convertible note signed on August 10 2019.
The assets of 3D include intellectual property for 3D printer development, a project forCompany currently has no operations. It is however seeking to identify, locate and if warranted acquire new commercial opportunities.
During the development of a 3D printing platformthree months ended January 31, 2019 and marketplace and the first app, of a series of children’s apps, called Save Your Planet Kids.

Our revenue for the three months ended January 31, 20182020 the Company incurred expenses in the amount of $0 and 2017 was $10,348$5433 for legal and $11,855, respectively. Our cost of goods soldother professional fees incurred for the three months ended January 31, 2018preparation and 2017 was $7,401filing of the reports required to be filed with the SEC and $10,930 resultingincluding $115 for accrued interest on the note payable to the CEO.

Liquidity and Capital Resources
The Company’s ability to continue as a going concern is dependent upon the Company’s ability to generate sufficient revenues to operate profitably or raise additional capital through debt financing and/or through sales of common stock. In the event the Company is not able to do so the director of the Company has agreed to provide the necessary funding for the Company to continue in a gross profit of $2,947 and $2,690, respectively. Our operating expenses for the three months ended January 31, 2018 and 2017 were $2,463 and $3,013, respectively. Our net income (loss) for the three months ended January 31, 2018 and 2017 was $485 and $(323), respectively.

Our revenue from inception (September 12, 2013) through January 31, 2018 was $289,633. Our cost of goods sold for the same period was $214,093 resulting in a gross profit of $75,540. Our operating expenses for the same period were $100,405, with interest income of $9, resulting in a net income (loss) of $(24,857).

As of January 31, 2018, there is a total of $1,415 in a loan payable that is owed by the company to its officer and director for expenses that he has paid on behalf of the company. The loan payable is interest free and payable on demand.

The following table provides selected financial data about our Company for the period from the date of incorporation through January 31, 2018. For detailed financial information, see the financial statements included in this report.

Balance Sheet Data:

 

1/31/2018

 

 

 

 

 

Cash

 

$731

 

Total assets

 

$20,558

 

Total liabilities

 

$1,415

 

Stockholder’s equity

 

$19,143

 

Plan of Operationlimited operations scenario for the next 12 months,

Because we were not able which would include the costs associated with maintaining reporting status with the Securities and Exchange Commission.

The failure to raise sufficient capital to execute our full business plan, we are now engaged in discussions with third parties regarding alternative directions forachieve the Company that could enhance shareholder value.

On May 10, 2017,necessary levels of profitability or obtain the Company closed an Asset Purchase Agreement (the “Agreement”) signed February 10, 2017 with 3D Pioneer Systems Inc. (“3D”). Pursuantadditional funding would be detrimental to the Agreement, once all terms of the agreement are met, Adaiah will acquire certain intellectual property, apps, other assets and related contractual rights held by 3D in exchange for 1 million shares of Adaiah’s common stock and a cash payment of $30,000, along with an obligation to make three (3) additional payments of $30,000 every ninety (90) days following the closing. The payments are held in trust until all terms of the agreement are met. The assets of 3D include intellectual property for 3D printer development, a project for the development of a 3D printing platform and marketplace and the first app, of a series of children’s apps, called Save Your Planet Kids.

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3D’s apps are designed to educate young children (starting at 2 years old) about the environment, natural resources and how to make decisions that are consistent with “green” or “save your plant” initiatives. These applications teach children to respect the planet in a fun and engaging manner, utilizing music, caricatures, numerous colors and graphic art. Utilization of the apps allows children to be creative as they paint pictures from the main application or freely from their own mind and fantasies. The apps also help children to learn to play music in a fun and interactive manner. The apps are currently available on smartphones operating on the Android platform.

Once the terms of the Agreement have been met the company will proceed with the business of 3D. If we do not have the revenues we require to operate for the next 12 months funds may be loaned to us by Mr. Titov, who has informally agreed to advance us funds, however, he has no formal commitment, arrangement or legal obligation to advance or loan funds to the company.

If we need additional cash and cannot raise it, we will either have to suspend operations until we do raise the cash, or cease operations entirely.

Liquidity and Capital Resources

At January 31, 2018 the Company had $731 in cash and there were outstanding liabilities of $1,415. Company.

Our director has agreed, verbally, to continue to loan the company funds for operating expenses in a limited scenario, but he has no legal obligation to do so.

Cash Flows
For the fiscal periods ending January 31, 2020 and January 31, 2019 the Company used cash in operating activities of $5,280 and $0, respectively and received cash from financing activities of $5,280 and $0 respectively.
Off-Balance Sheet Arrangements

We do not have any 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 is material to investors.

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ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Management maintains “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

In connection with the preparation of this quarterly report on Form 10-Q, an evaluation was carried out by management, with the participation of the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of January 31, 2018.

2020

Based on that evaluation, management concluded, as of the end of the period covered by this report, that our disclosure controls and procedures were effective in recording, processing, summarizing, and reporting information required to be disclosed, within the time periods specified in the Securities and Exchange Commission’s rules and forms.

Changes in Internal Controls over Financial Reporting

As of the end of the period covered by this report, there have been no changes in the internal controls over financial reporting during the quarter ended January 31 2018,2020, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting subsequent to the date of management’s last evaluation.

 
1213
 
 

PART II. OTHER INFORMATION

ITEM 6. EXHIBITS.

The following exhibits are included with this quarterly filing. Those marked with an asterisk and required to be filed hereunder, are incorporated by reference and can be found in their entirety in our Registration Statement on Form S-1, filed under SEC File Number 000-55369, at the SEC website at www.sec.gov:

Exhibit No.

Description

23.1

Consent

101

Interactive data files pursuant to Rule 405 of Regulation S-T

 
1314
 
 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

Adaiah Distribution Inc.

Registrant

 Registrant
 

DateDate: March 7, 2018

10, 2020
By:
/s/ Nikolay TitovYosef Yafe

Nikolay Titov

 Yosef Yafe
(Principal Executive Officer,
Principal Financial Officer,

Principal Accounting Officer & Sole Director)

 

 14

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