UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended MarchDecember 31, 20192022
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to _________
Commission File Number:333-227194
United Express Inc.
(Exact name of Registrant as specified in its charter)
Nevada | 82-1965608 | |
(State of incorporation) | (IRS Employer ID Number) |
4345 w. Post Rd, Las Vegas, Nevada89118
(Address of principal executive offices) Zip Code
949-350-0123949-350-0123
(Registrant’s telephone number)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities 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 ☒ 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 ☒ No ☐
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐ | Accelerated filer ☐ |
Non-accelerated filer ☐ | 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).
Yes ☐ No ☒
As of MarchDecember 31, 2019,2022, there were 15,582,000 shares of our common stock authorized for issue and outstanding.
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TABLE OF CONTENTS
Page | |
PART I | |
Financial Statements | |
Item 1. | |
Balance Sheets as of | 3 |
Statements of Operations for the for the three months ended | 4 |
Statements of Stockholders’ Equity for the six months ended December 31, 2022 and for the six months December 31, 2021 (Unaudited) | 5 |
Statements of Cash Flows for the | |
Notes to Financial Statements | |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 11 |
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 13 |
Item 4. Controls and Procedures | 13 |
PART II Other Information | |
Item 1. Legal Proceedings | 14 |
Item 1A. Risk Factors | 14 |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 14 |
Item 3. Defaults Upon Senior Securities | 14 |
Item 4. Mine Safety Disclosures | 14 |
Item 5. Other Information | 14 |
Item 6. Exhibits, Signatures | 15 |
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UNITED EXPRESS, INC.
BALANCE SHEET
DECEMBER 31, 2022 AND JUNE 30, 2022
December 31, 2022 | June 30, 2022 | |||||||
Unaudited | Audited | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 7,113 | $ | 7,737 | ||||
TOTAL CURRENT ASSETS | $ | 7,113 | $ | 7,737 | ||||
TOTAL ASSETS | $ | 7,113 | $ | 7,737 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accrued Accounts Payable | $ | 1 | $ | 1 | ||||
Accrued Taxes | $ | 0 | $ | 0 | ||||
TOTAL CURRENT LIABILITIES | $ | 1 | $ | 1 | ||||
STOCKHOLDERS’ EQUITY | ||||||||
Common stock, $ | par value; shares authorized shares issued and outstanding at December 31, 2022 and at June 30, 2022 respectively$ | 15,592 | $ | 15,592 | ||||
Additional paid in capital | $ | 59,219 | $ | 59,219 | ||||
Net Profit (loss) accumulated during development stage | $ | (67,699 | ) | $ | (67,075 | ) | ||
TOTAL STOCKHOLDERS’ EQUITY | $ | 7,112 | $ | 7,736 | ||||
Total Liabilities and Stockholders’ Equity | $ | 7,113 | $ | 7,737 |
March 31, Unaudited | June 30, Audited | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 3,296 | $ | 1,501 | ||||
TOTAL CURRENT ASSETS | $ | 3,296 | $ | 1,501 | ||||
FIXED ASSETS: | ||||||||
Automobile | $ | 20,000 | $ | 20,000 | ||||
Accumulated Depreciation | — | — | ||||||
TOTAL FIXED ASSETS | $ | 20,000 | $ | 20,000 | ||||
TOTAL ASSETS | $ | 23,296 | $ | 21,501 | ||||
LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Loan Payable - Related Party | $ | 0 | $ | 72 | ||||
Income Taxes Payable | $ | — | $ | — | ||||
TOTAL CURRENT LIABILITIES | $ | 0 | $ | 72 | ||||
STOCKHOLDERS' EQUITY | ||||||||
Common stock, $0.001 par value, 75,000,000 shares authorized; 15,582,000 shares issued and outstanding as of March 31, 2019 and 15,582,000 as of June 30, 2018 | $ | 15,582 | $ | 15,582 | ||||
Additional Paid-In Capital | $ | 34,229 | $ | 34,229 | ||||
Retained Earnings | $ | (28,382 | ) | $ | 0 | |||
Net profit (loss) | $ | 1,867 | $ | (28,382 | ) | |||
TOTAL STOCKHOLDERS' EQUITY | $ | 23,296 | $ | 21,429 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 23,296 | $ | 21,501 |
The accompanyingSee notes are an integral part of theseto financial statements. statements
3 |
UNITED EXPRESS, INC. | ||||||||||||||||
STATEMENTS OF OPERATIONS | ||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND MARCH 31, 2018 (Unaudited) | ||||||||||||||||
FOR THE NINE MONTHS ENDED MARCH 31, 2019 AND MARCH 31, 2018 (Unaudited) | ||||||||||||||||
For the three months ended March 31, 2019 | For the three months ended March 31, 2018 | For the nine months ended March 31, 2019 | For the nine months ended March 31, 2018 | |||||||||||||
REVENUE | ||||||||||||||||
Sales | $ | 7,825 | $ | 47,471 | $ | 21,384 | $ | 95,128 | ||||||||
Total Revenues | $ | 7,825 | $ | 47,471 | $ | 21,384 | $ | 95,128 | ||||||||
COST OF SALES | ||||||||||||||||
Logistic and Dispatcher Service | $ | 3,600 | $ | 46,955 | $ | 12,583 | $ | 101,491 | ||||||||
Total cost of goods sold | $ | 3,600 | $ | 46,955 | $ | 12,583 | $ | 101,491 | ||||||||
Gross Profit (Loss) | $ | 4,225 | $ | 516 | $ | 8,801 | $ | (6,363 | ) | |||||||
OPERATING EXPENSES | ||||||||||||||||
Office rental, storage rent and repairs expense | $ | 890 | $ | 8,365 | $ | 890 | $ | 13,014 | ||||||||
General and administration expense | $ | 1,072 | $ | 3,220 | $ | 6,044 | $ | 6,417 | ||||||||
Total operating expenses | $ | 1,962 | $ | 11,584 | $ | 6,934 | $ | 19,430 | ||||||||
Income (Loss) before income taxes | $ | 2,263 | $ | (11,068 | ) | $ | 1,867 | $ | (25,794 | ) | ||||||
Income tax | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Net income (loss) | $ | 2,263 | $ | (11,068 | ) | $ | 1,867 | $ | (25,794 | ) | ||||||
Net income per basic and diluted shares | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||
Weights average number of shares outstanding | 15,582,000 | 15,582,000 | 15,582,000 | 15,582,000 |
UNITED EXPRESS, INC.
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS ENDED DECEMBER 31, 2022 AND DECEMBER 31, 2021
AND FOR THE SIX MONTHS ENDED DECEMBER 31, 2022 AND DECEMBER 31, 2021
For the three months ended December 31, 2022 | For the three months ended December 31, 2021 | For the six months ended December 31, 2022 | For the Six months ended December 31,2021 | |||||||||||||
Revenue: | ||||||||||||||||
Sales | $ | 114,342 | $ | 300,564 | $ | 179,537 | $ | 643,422 | ||||||||
Total Revenues | $ | 114,342 | $ | 300,564 | $ | 179,537 | $ | 643,422 | ||||||||
COST OF SALES | ||||||||||||||||
Logistic, Dispatcher Service, Call Center, Freight broker | $ | 101,500 | $ | 168,180 | $ | 160,425 | $ | 356,630 | ||||||||
Equipment Rental | $ | 2,500 | $ | 2,500 | ||||||||||||
Used Appliances | $ | 79,000 | $ | 248,850 | ||||||||||||
TOTAL COST OF GOODS SOLD | $ | 101,500 | $ | 249,680 | $ | 160,425 | $ | 607,980 | ||||||||
Gross Profit (Loss) | $ | 12,482 | $ | 50,884 | $ | 19,112 | $ | 35,442 | ||||||||
Operating expenses: | ||||||||||||||||
Transportation, OTC Market fees | $ | 7,620 | $ | 7,500 | $ | 7,620 | $ | 7,506 | ||||||||
General and administration expenses | $ | 2,479 | $ | 3,175 | $ | 12,116 | $ | 13,152 | ||||||||
Total operating expenses | $ | 10,099 | $ | 10,675 | $ | 19,736 | $ | 20,658 | ||||||||
Income(loss) before income taxes | $ | 2,473 | $ | 40,209 | $ | (624 | ) | $ | 14,784 | |||||||
Income tax | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Net income (loss) | $ | 2,473 | $ | 40,209 | $ | (624 | ) | $ | 14,784 | |||||||
Net income per basic and diluted shares | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Weights average number of shares outstanding | 15,592,000 | 15,582,000 | 15,592,000 | 15,582,000 |
The accompanying
See notes are an integral part of theseto financial statements.statements
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UNITED EXPRESS INC.
STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2022
UNITED EXPRESS, INC. | ||||||||
STATEMENTS OF CASH FLOWS | ||||||||
FOR THE NINE MONTHS ENDED MARCH 31, 2019 | ||||||||
AND MARCH 31, 2018 (Unaudited) | ||||||||
For the nine months ended March 31, 2019 | For the nine months ended March 31, 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 1,867 | $ | (25,794 | ) | |||
Increase/(Decrease) in Loan Payable-Related party | $ | (72 | ) | (5,000 | ) | |||
Net cash used in operating activities | $ | 1,795 | $ | (30,794 | ) | |||
Cash flows from investing activities: | ||||||||
Net cash used in investing activities | $ | 0 | $ | 29,811 | ||||
Cash flows from financing activities: | ||||||||
Proceeds from sale of common stock | $ | 0 | $ | 0 | ||||
Net cash provided by financing activities | $ | 0 | $ | 0 | ||||
Net increase (decrease) in cash | $ | 1,795 | $ | (983 | ) | |||
Cash, beginning of the period | $ | 1,501 | $ | 5,000 | ||||
Cash, end of the period | $ | 3,296 | $ | 4,017 |
Common Stock | ||||||||||||||||||||
Shares | Par Value | APIC | Accumulated Gain (Deficit) | Total Stockholders’ Equity | ||||||||||||||||
Balance, June 30, 2022 | 15,592,000 | $ | 15,582 | $ | 59,219 | $ | (67,075 | ) | $ | 7,736 | ||||||||||
Net profit (loss) | - | - | $ | (624 | ) | $ | (624 | ) | ||||||||||||
Balance, December 31, 2022 | 15,592,000 | $ | 15,592 | $ | 59,219 | $ | (67,699 | ) | $ | 7,112 |
The accompanyingUNITED EXPRESS INC.
STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2021
Common Stock | ||||||||||||||||||||
Shares | Par Value | APIC | Accumulated Gain (Deficit) | Total Stockholders’ Equity | ||||||||||||||||
Balance, June 30, 2021 | 15,582,000 | $ | 15,582 | $ | 34,229 | $ | 738 | $ | 50,549 | |||||||||||
Net profit (loss) | - | - | $ | 14,784 | $ | 14,784 | ||||||||||||||
Balance, December 31, 2021 | 15,582,000 | $ | 15,582 | $ | 34,229 | $ | 15,552 | $ | 65,333 |
See notes are an integral part of theseto financial statements.
statements
5 |
UNITED EXPRESS INC.
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2022 AND DECEMBER 31, 2021
For the six months ended December 31, 2022 | For the six months ended December 31, 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (624 | ) | $ | 14,784 | |||
Accrued Taxes | $ | 0 | $ | 0 | ||||
Accrued Expenses | $ | 0 | $ | 0 | ||||
Depreciation | $ | 0 | $ | 0 | ||||
Net cash (used in) provided by operating activities | $ | (624 | ) | $ | 14,784 | |||
Cash flows from investing activities: | ||||||||
Net cash used in investing activities | $ | 0 | $ | 0 | ||||
Cash flows from financing activities: | ||||||||
Proceeds from sale of common stock | $ | 0 | $ | 0 | ||||
Net cash provided by financing activities | $ | 0 | $ | 0 | ||||
NET INCREASE (DECREASE) IN CASH | $ | (624 | ) | $ | 14,784 | |||
CASH AND CASH EQ - BEGINNING OF PERIOD | $ | 7,737 | $ | 34,550 | ||||
CASH AND CASH EQ - ENDING OF PERIOD | $ | 7,113 | $ | 49,334 |
See notes to financial statements
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UNITED EXPRESS, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2022 AND
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2021
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NOTE 1 — Description of Business
United Express Inc. (the “Company”) was incorporateda Nevada corporation with revenue generating operations. We were formed on June 23, 2017 and have five years of business experience. Our shares trade on the OTC Markets trading platform under the lawssymbol UNXP.
The United Express operates as a general company of transportation, dispatch service, logistics, delivery merchandises and other items for companies and individuals across the United State. As such, it is difficult to determine the average customer of the State of Nevada in June 23, 2017. The company was developed to provide comprehensive management service for longCompany as the business will have the freedom and short distance logistics for clients in the Company’s target market area. The Company will offer its clients the transportation ability to all of their hauling needs through one business which will provide them with the ability to manageeffectively arrange for the transportation any type of merchandise. Management anticipates that the business will receive orders for service from companies seeking to move their shipments inproducts, as well as, people relocating to different areas of the target regional market areas. A primary concern for the Company is its ability to quickly respond to customer request, give affordable price for the services, and carry the full responsibility from pick up to drop off. In this quarter, the price of oil and its associated refined energy products has been within a costreasonable, steady range. In the event of a significant increase the price of fuel, we will also reasonably increase prices (at a standardized rate of markup) to ensure the profitability of the business.
Our other activities are providing dispatch services for the other companies. We working with CVK Express and time effective manner.
After receiving the dispatcher license we are going to providedoing dispatch service for them. In this field, company doing search for transportation providers and connect them to improvecargo owners based upon delivery requirements, transportation routes, type of shipment, equipment requirements, cargo size, delivery time and price.
During reported period our business activities have focused on the efficiencydevelopment of the clients’ supply chain management and delivery operations. As oil prices are currently remains stable we can mostly predict our expenses in logistics industry. These services are now heavily in demand among product distributors and retailers.business plan, dispatch activities, researching for new customers, development of optimal traffic routes.
We have received $21,384$114,342 operating revenues for the ninethree months period ended March 31,2019December 31,2022 and 95,128300,564 for the ninethree months period ended March 31,2018.December 31,2021. Recorded revenues were generated from customers’ payments.dispatch service and logistics. The Company is currently devoting substantially all of its present efforts to securing and establishing the transportation business.business indicated above.
NOTE 2 — Significant Accounting Policies and Recent Accounting Pronouncements
Basis of Presentation
The Company uses the accrual basis of accounting and accounting principles. The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The Financial Statements and related disclosures as of March 31,2019December 31,2022 (Unaudited) and June 30, 2018 are audited pursuant to the rules and regulations of the United States Securities and Exchange Commission (`SEC"(’SEC”). The Company has adopted June 30 fiscal year end.
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.
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.
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UNITED EXPRESS, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2022 AND
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2021
NOTE 2 —Significant Accounting Policies and Recent Accounting Pronouncements – continued
Fair Value of Financial Instruments
ASC 825, 'Disclosures‘Disclosures about Fair Value of Financial Instruments, requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements"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 MarchDecember 31, 2019.2022.
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NOTE 2 —Significant Accounting Policies and Recent Accounting Pronouncements - continued
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.
Basic and Diluted Loss Per Share
The Company computes earnings (loss) per share in accordance with ASC 260-10-45 'Earnings‘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 al 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
We base our judgment on new guidance ASC 606.
The Company considered recognizes its revenue on the accrual basis, which considers revenue to be earned when the services have been performed. We considered gross revenue as a principal. Our revenue includes payments from the costumers for the logistic business.business, dispatch and marketing.
We Estimating Gross Revenue as a Principal. We evaluate the nature of our promises under the contracts and use judgment to determine whether the contracts include services, which we would need to evaluate for a material right or a performance obligation with quantity of services to be delivered.
ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) amends revenue recognition guidance within ASC 606 for these types of transactions. To determine the nature of its promise to the customer, the entity should:
1. | Identify the specified goods or services to be provided to the customer, and |
2. | Assess whether it controls each specified |
We considerare primarily responsible for fulfilling the gross revenue is a principal because we identify and controlpromise to provide the deliveryspecified service.
We have the inventory risk before the specified service before this service ishas been transferred to a customer. If company does notcustomer, or after transfer of control the service before it is transferred to the customer (for example, if the entity is an agent in the transaction.customer has a right for cancel or return).
It is not always clear whether we obtain control of the specified service, therefore we provided the flowing indicators of control that we used to make this determination:
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NOTE 2 —Significant Accounting Policies and Recent Accounting Pronouncements - continued
Recent Accounting Pronouncements
The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company'sCompany’s results of operations, financial position or cash flow.
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UNITED EXPRESS, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2022 AND
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2021
NOTE 3 — Property and Equipment
Property and equipment consist of:
Property and Equipment | ||||
December 31, 2022 | ||||
Automobile | $ | 0 | ||
Accumulated Depreciation | $ | 0 |
December 31, 2021 | ||||
Automobile | $ | 32,000 | ||
Accumulated Depreciation | $ | (16,000 | ) |
March 31, 2019 | ||||
Automobile | $ | 20,000 | ||
Accumulated Depreciation | $ | 20,000 | ||
March 31, 2018 | ||||
$ | 0 |
Property and equipment are stated at cost. The Company utilizes MERCEDES CARGO VAN — 5 years for automobile depreciation over the estimated useful lives of the assets.
NOTE 4 — Concentration of Credit Risk
The Company maintains cash balances at a Bank of America financial institution. The balance, at any given time, may exceed Federal Deposit Insurance Corporation FDIC insurance limits of $250,000$250,000 per institution. The Company'sCompany’s cash balances at MarchDecember 31, 20192022 were within FDIC insured limits.
NOTE 5 — Concentrations
We have a small group of customers from whom we received the income butand in the present time we can'tcan’t diversify in order to mitigate the risks.
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NOTE 6 — Debt
In a present time, we have not any debt.
Andrei Stoukan, an officer of the Company, has from time to time loaned the Company funds for the operational costs. The amount, $72 was returned to him in a reporting period.
NOTE 7 —Capital—Capital Stock
On MarchDecember 31, 20192021 the Company authorized shares of common shares with a par value of $0.001$ per share.
For the ninesix months period ended MarchDecember 31, 20192022 we have issued any new of common shares.
For the ninesix months period ended MarchDecember 31, 2018,2021, we also have issued any new of common shares.
For the 3 months period ended December 31,2022 we have issued 15,582,000 ofno changes in our common shares: 14,001,000 shares were purchased by officer Andrei Stoukan.stock.
1,581,000 shares were purchased by non-affiliate investors.
As of March 31, 2019, and March 31, 2018,December 31,2022, there were total common shares issued and outstanding. held by Arithmetic LLC, and common shares held by 53 non-affiliated shareholders.
As of December 31, 2022, and December 31, 2021, there were outstanding stock options or warrants.
NOTE 8 — Income Taxes
We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, 'Income‘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'sentity’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.dates. 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.
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UNITED EXPRESS, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2022 AND
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2021
NOTE 8 — Income Taxes - continued
ASC Subtopic 740.10. 30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise'senterprise’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 Subtopic 740.10 provides guidance on recognition and measuring tax positions taken or expected to be taken in a tax return that directly or indirectly affect amounts reported in financial statements. We have no material uncertain tax positionsnot TAX liability for any of the reporting periods presented.this period.
NOTE 9 — Related Party Transactions
We have notnot a related party transaction for the ninesix months period ended MarchDecember 31, 2019.2022.
ForAlso, we have not a related party transaction for the ninesix months period ended MarchDecember 31, 2018, the company paid to Mr. Stoukan $14,086 for office rental, storage rent and repairs expense.2021
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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 ninesix months period ended MarchDecember 31, 2019,2022, the Company had a cash balanceStockholders’ Equity of $3,296$7,112 and net profit $1,867loss $624 from operations. For the ninesix months period ended MarchDecember 31, 2018,2021, the Company had a cash balanceStockholders’ Equity of $4,017$65,333 and net loss $25,794profit $14,784 from operations.
The transition from loss to profit isWe still have a positivenegative development dynamic, howeverdynamic; and, it still raises substantial doubt about the Company'sCompany’s ability to continue as a going concern. Management believes that the Company'sCompany’s capital requirements will depend on many factors including the success of our development efforts and our efforts to raise capital. Management also believes the Company needs to raise additional capital for working purposes. There is no assurance that such financing will be available in the future. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.
NOTE 11 — Subsequent Events and climate-related events impacts to financial statement
The rule would require company to disclose, in a footnote to the financial statements, the financial statement impacts of (i) climate-related events, including severe weather events and other natural conditions such as flooding, drought, wildfires, extreme temperatures, and sea level rise, and (ii) transition activities, including efforts to reduce GHG emissions or otherwise mitigate exposure to transition risks.
In accordance with ASC 855 the Company'sThe Company’s management reviewed all material events through MarchDecember 31, 20192022 the date these financial statements were available to be issued, and there are no material subsequent events.our quarter ended. By this date we don’t have any assets that directly or indirectly influenced on environmental. We indicated risks, include climate related risks in Item 1A Risk Factors in our 10K report.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion and analysis should be read in conjunction with the balance sheet as of June 30,201830,2022 and March 31,2019December 31,2022 and the financial statements for the ninesix months period ended MarchDecember 31, 20192022 included herein. The results shown herein are not necessarily indicative of the results to be expected for any future periods.
This discussion contains forward-looking statements, based on current expectations with respect to future events and financial performance and operating results, which statements are subject to risks and uncertainties, including but not limited to those discussed below and elsewhere in this Prospectus that could cause actual results to differ from the results contemplated by this forward-looking statement. We urge you to carefully consider the information set forth in our S1formthis form under the heading “Note Regarding Forward Looking Statements” and “Risk Factors”.
We are an emerging growth company incorporated in the State of Nevada on June 23, 2017. The United Express Inc. was developed to provide a comprehensive management service for long and short distance logistics for clients in the Company’s target market area. The Company will offer its clients the transportation ability to all of their hauling needs through one business which will provide them with the ability to manage their shipments in a cost and time effective manner. Also, we develop our dispatch and logistics service.
We are a company with limited revenue generating options. We are currently focused on expanding our network of new customers, drivers, shipping companies and independent transportation providers
Forward-Looking Statements
The Securities and Exchange Commission (“SEC”) encourages companies to disclose forward-looking information so that investors can better understand future prospects and make informed investment decisions. Our registration statement contains these types of statements. Words such as “may,” “expect,” “believe,” “anticipate,” “estimate,” “project,” or “continue” or comparable terminology used in connection with any discussion of future operating results or financial performance identify forward-looking statements. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this prospectus. All forward-looking statements reflect our present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The factors listed in the “Risk Factors” section in our S1 form, as well as any cautionary language in this prospectus, provide examples of these risks and uncertainties. The safe harbor for forward-looking statements is not applicable to this offering pursuant to Section 27A of the Securities Act of 1933.
Business Overview
We are an Emerging growththe smaller reporting company with small revenue generating operations. We were formed on June 23, 2017 and around twohave five years of business experience.
The United Express intends to operate as a general company of transportation and delivery of merchandise, household goods, and other items for companies and individuals across the United State. As such, it is difficult to determine the average customer of the Company as the business will have the licensure and the ability to effectively arrange for the transportation any type of merchandise. Management anticipates that the business will receive orders for service from companies seeking to move merchandise, as well as, people relocating to different areas of the target regional market area. A primary concern for the Company is its ability to quickly respond to customer request, give affordable price for the services, and carry the full responsibility from pick up to drop off. In 2018,this quarter, the price of oil and its associated refined energy products has been within a reasonable, steady range. Lack of major volatile in oil prices has caused the freight and logistic industries costs to be on a straight level during last 93 months. In the event of an increase in the price of fuel, we will also reasonably increase prices (at a standardized rate of markup) to ensure the profitability of the business. The Company hires drivers from any state with CDL or class “B” driver license and at least one year of experience.
For the 93 months ended MarchDecember 31, 20192022 our business activities have focused mostly on dispatch service and logistics. As of December 31,2022, we had income $111,702 from CVK Express LLC., for dispatch, $2,640 from ARI Logistics for the development oflogistic service. Our three months revenues for the period ended December 31,2021 was $114,342.
For the 3 months ended December 31, 2021 our business plan, locating producersactivities have focused on dispatch service, logistics and selling used appliances. As of goods, despatchers, van repairs, researchingDecember 31,2021, we had income $149,127 from CVK Express LLC., for new customers, drivers, storages, van supplies, development of optimal traffic routes.dispatch, $14,577 from ARI Logistics for the logistic service, $136,860 we received from companies for appliances. Our three months revenues for the period ended December 31,2021 was $300,564.
We currently have several customers who workingalso cooperate with us, which we have become dependent. We work with US Concierge Service LLC; Atlas Logistics; Sprinter Expressprivate people and some others.
companies when they ask about transportation service, up in coming move, relocation, and other’s needs.
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Working in logistics industry we observe desire truck owner operators or drivers get paid right after Bill of lading signed and cargo unloaded, instead of waiting 30-40 days. Factoring service can be solutions in this situation. In the simplest terms, invoice factoring is how get paid fast in the trucking industry. It’s a way to get consistent cash flow for unpaid invoices.
Drivers agree get pay 4% (factoring fees) less than original enrings. Based on:
1 driver generates earnings somewhere about $40,000 in a month and 4% is $1,600. We can operate with 100 drivers at the same time during a month. So, our earnings with 100 drivers will be $4,000,000 and 4% is $160,000.
Consistent cash flow is a key in being successful in the transportation industry. It’s always good to have business partnership agreementthat safety net to know you will always get paid within 24-48 hours when you use a factoring service.
Another direction in which we are going to excel is directly working with Sprinter Express LLC.,Hyundai manufacturing located in Baja California, Tijuana, Mexico. It’s very close to US border and agreement about dispatching servicewe see a great potential in this. They build over 150 containers per day and we want to delivery their Hyundai dry van containers to US customers. Based on our research they pay $700 per container and allowed to download cargo to deliver it to the final destination. The other dealers who already work with Vladyslav Khorenko, a private person.
We alsoHyundai can pay us only half of this price for the same route. In this activity we plan to deliver cargo through others transportation providersgenerate extra $15,000-$20,000 in a month net income.
In addition, given the high demand for these containers, we can also buy them at the production price and resell them at a premium or even rent them out. For this activity we need at least $30,000 for one dry van. We can give trailer for rent $800-$1000 in a month with full payback in 3 years. We are planning begin with 40-50 trailers and we need about 1,3-1,5 millions of attracted capital. Repairs and maintenance will be calculated additionally if necessary.
Base on the above we get more delivery orders than can afford. In this case here is our position as intermediary company.need around $5,5-6 millions for these new activities.
Our fees are count based on our expenses, spending time, shipments size and type of shipment, distance, route, gas price and other customer needs.
For ninethe three months period ended March 31,2019,December 31,2022, we
• selected business partners;
• Continue work with customers;
• found the van dealers from who we are goingcargo brokers;
• continue to buy vans;
• created a list of potential customers and their requirements;
• found service company for van maintenance and repairs;
• chose optimal routes of traffic;
Insurance coverage | Limits | ||
Bodily Injury/Property Damage | $ | 1,000,000 Combined Single Unit | |
Uninsured/ Uninsured Motorist | $15,000/$30,000 | ||
Motor Trucking Cargo | $ | 100,000 | |
Medical Payments | $ | 1,000 |
traffic
Our revenue for the 9 months 2019 was $21,384.
We generated $1,100 from US Concierge Service LLC; $6,364 from Atlas Logistics; $4,700 from Sprinter Express; $3,150 from AntechAppliancesand rest from other customers. As a result,Because our revenues are concentrated in a few customers. Shouldcustomers and if should one or more of them decrease their orders or cease to use our services, or if we are unable to expendexpand our customer base, our revenues and results of operations will be negatively impacted.
Our revenue for the 3 months ended December 31, 2022 was $114,342. It is a significant decrease than in similar period year ago. Our three months revenues for the period ended December 31,2021 was $300,564.
Liquidity
On MarchAt December 31, 2019,2022, we had $3,296$7,113 in cash for our operations. At December 31, 2021, we had $49,334 in cash for our operations and $20,000$16,000 in capital. For the period ended March 31,2018 we had $4,017 in cash for our operations.
capital We will attempt to fund from our future operations, which may be insufficient to fund such amounts. There is no assurance our estimates of these costs are accurate.
Capital resources
We have not the fixed assets on our balance Mercedes Sprinter as of MarchDecember 31, 2019. Total stockholders'2022. Our total stockholders’ equity $23,296
$7,112.
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Results of Operations for the threesix months period ended MarchDecember 31, 20192022 and for the threesix months period ended MarchDecember 31, 20182021
As an emerging growth company, weWe have received $7,825$179,537 operating revenues for the threesix months period ended March 31,2019December 31,2022 and 47,471643,422 for the threesix months period ended March 31,2018.December 31,2021. Recorded revenues were generated from customers’ payments. The Company is currently devoting substantially all of its present efforts to securingcustomer network and establishing the transportation business. dispatch and logistic activities.
For the threesix months period ended MarchDecember 31, 2019 we2022 our revenue was generated revenue $7,825.from our existing customers for the transportation and dispatch service. Our cash balance was $3,296. $7,113.
For this period, we had $5,562 company expenses consist of $1,072Logistic and Dispatcher Service Expenses $160,425.
Also, for this period, we had $12,116, general and administration expense, $890 office rental, storage rent and repairs expense, $3,600 logistic and dispatcher service.$7,620 Expenses related OTC Market requirements. Our incomenet loss from operations was $2,263. For$ 624 in compare with our net income of $14,784 in similar period year ago.
As an emerging growth company, we have received $643,422 operating revenues for the threesix months period ended MarchDecember 31,2021. Recorded revenues were generated from customers’ payments. The Company is currently devoting substantially of its present efforts to customer network and establishing the dispatch, transportation and used appliances business.
For the six months period ended December 31, 2018 we2021 our revenue was generated revenue $47,471.from our existing and new customers for the transportation, dispatch and used appliances service. Our cash balance was $4,017 Our expenses for this period was $58,540 and consist of $3,220 general and administration expense, $ 8,365 office rental, storage rent and repairs expense, $46,955 logistic and dispatcher service. Our loss from operations was $11,068. Results of Operations for the nine months period ended March 31, 2019 and for the nine months period ended March 31, 2018 For the nine months period ended March 31, 2019 we generated $21,384 in revenues and our cash balance was $3,296. $49,334.
For this period, we had $19,517 companyLogistic and Dispatcher Service Expenses $356,630 and used appliances expenses consist of$248,850. Also, for this period, we had $13,152 general and administration expense, $6,044, logistic$7,506 Expenses related OTC Market requirements and dispatcher service $12,583, office rental, storage rent and repairs expense $890.transportation, $2,500 Equipment Rental Expenses. Our net income from operations was $1,867. For the nine months period ended March 31, 2018 we generated $95,128 in revenues and our cash balance was $4,017. For the nine months period ended March 31, 2018 we had $120,922 company expenses consist of general and administration expense $6,417, office rental, storage rent and repairs expense $13,014, logistic and dispatcher service $101,491. Our loss from operations was $25,794 $ 14,784.
Our cash balances were not sufficient to fund our limited levels of operations for any period of time without further revenue or proceeds. In order to implement our business plan of operations in the next twelve months we need to raise $881,000 based on the information in our S1 form page 7, where we provided breakdown of our estimated expenses. During start up period, our operations will be limited due to the limited amount of funds on hand. At the present time, we are working to buyraise additional cargo vanscash, increase the activities and generate more revenue.
If we unable to raise additional cash, we will either have to suspend operations until we do raise the cash, or cease operations entirely.
Off Balance Sheet Arrangements
None
None
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Not applicable. We have no investments in market risk sensitive instruments or in any other type of securities.
Item 4. Controls and Procedures
As of the end of the period covered by this Report, our President and Chief Executive Officer, Andrei Stoukan, is responsible for managing us, including compliance with SEC reporting obligations, and maintaining disclosure controls and procedures and internal control over financial reporting. These public reporting requirements and controls are new for our management and will require us to obtain outside assistance from legal, accounting or other professionals that will increase our costs of doing business. Should we fail to comply with SEC reporting and internal controls and procedures and to otherwise comply with other securities law provisions, our costs will increase and negatively affect our results of operations, cash flow and financial condition. Should we fail to comply with SEC reporting and internal controls and procedures, we may be subject to securities laws violations that may result in additional compliance costs or costs associated with SEC judgments or fines, both of which will increase our costs and negatively affect our potential profitability and our ability to conduct our business.
Changes in Internal Control Over Financial Reporting
There have been no changes in the internal controls over financial reporting during the quarter ended MarchDecember 31, 2019,2022, 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.
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PART II
OTHER INFORMATION
Item 1. Legal Proceedings
The Company is not currently a party to any material legal proceedings, nor is we aware of any other pending or threatened litigation that would have a material adverse effect on our business, operating results, cash flows or financial condition should such litigation be resolved unfavorable.
Item 1A. Risk Factors
We are not required to include risk factors in this 10Q report.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
We did not sell unregistered securities during the quarter ended March 31,2019December 31, 2022
Purchases of equity securities by the issuer and affiliated purchasers
During the quarter ended March 31,2019,December 31,2022, there were no purchases of equity securities by us or affiliated purchasers.
Use of Proceeds
None
None
Item 3. Defaults Upon Senior Securities
We have no senior securities outstanding.
Item 4. Mine Safety Disclosures
Not Applicable.
Item 5. Other Information.
None.
None.
Item 6. Exhibits
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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.
UNITED EXPRESS INC. | ||
Date: | By: | /s/Andrei Stoukan |
Andrei Stoukan (CEO) | ||
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