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 JanuaryJuly 31, 2021
☐ 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: 333-218733
Yijia Group Corp.
(Exact name of registrant as specified in its charter)
| Nevada | |
| (State or Other Jurisdiction of | |
| Incorporation or Organization) | |
| 30 N Gould St, Suite 22545, Sheridan, WY | 82801 |
| (Address of principal executive offices) | (Zip Code) |
35-2583762Tel: +1 310-266-3738
IRS Employer
Identification Number
Unit 1623, Tianxia International Center B,
Taoyuan Road, Nanshan District, Shenzhen, Guangdong
Tel:+86 0755 3397 5792
(Address andRegistrant’s telephone number, of principal executive offices)including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of | Trading Symbol | Name of |
| N/A | N/A | N/A |
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 and post 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 . See the definitions of “ large accelerated filer ”, “accelerated filer”, “non-accelerated filer”, “emerging growth company” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
| Large accelerated | Accelerated | ||
| 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☒ No ☐
The number of shares outstanding of the issuer's common stock, as of June 21,August 20, 2021 was
.
QUARTERLY REPORT ON FORM 10-Q
| 2 |
PART 1 – FINANCIAL INFORMATION
The accompanying interim financial statements of Yijia Group Corp. (“the Company”, “we”, “us” or “our”), have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted principles have been condensed or omitted pursuant to such rules and regulations.
The interim financial statements are condensed and should be read in conjunction with the company’s latest annual financial statements.
In the opinion of management, the financial statements contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented.
| 3 |
YIJIA GROUP CORP.
AS OF JANUARYJULY 31, 2021 AND APRIL 30, 20202021
(Currency(Currency expressed in United States Dollars (“US$”), except for number of shares)
| January 31, 2021 (Unaudited) | April 30, 2020 | |||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| Liabilities | ||||||||
| Current Liabilities | ||||||||
| Other payable and accruals | $ | 3,000 | $ | 18,755 | ||||
| Amount due to a related party | 146,107 | 103,821 | ||||||
| Total Current Liabilities | 149,107 | 122,576 | ||||||
| Total Liabilities | 149,107 | 122,576 | ||||||
| Commitments and Contingencies | – | – | ||||||
| Stockholders’ Deficit | ||||||||
| Common stock, par value $0.001; 75,000,000 shares authorized, 5,871,250 and 5,871,250 shares issued and outstanding, respectively | 5,871 | 5,871 | ||||||
| Additional paid in capital | 58,824 | 58,824 | ||||||
| Accumulated deficit | (213,802 | ) | (187,271 | ) | ||||
| Total Stockholders’ Deficit | (149,107 | ) | (122,576 | ) | ||||
| Total Liabilities and Stockholders’ Deficit | $ | – | $ | – | ||||
See accompanying notes, which are an integral part of these condensed financial statements
YIJIA GROUP CORP.
CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED JANUARY 31, 2021 AND 2020
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
| For the three months ended January 31 | For the nine months ended January 31 | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenues | $ | – | $ | – | $ | – | $ | – | ||||||||
| OPERATING EXPENSES | ||||||||||||||||
| General and Administrative Expenses | 2,899 | 6,594 | 26,531 | 45,997 | ||||||||||||
| TOTAL OPERATING EXPENSES | 2,899 | 6,954 | 26,531 | 45,997 | ||||||||||||
| LOSS FROM OPERATIONS BEFORE INCOME TAX | (2,899 | ) | (6,594 | ) | (26,531 | ) | (45,997 | ) | ||||||||
| PROVISION FOR INCOME TAXES | – | – | – | – | ||||||||||||
| NET LOSS | $ | (2,899 | ) | $ | (6,594 | ) | $ | (26,531 | ) | $ | (45,997 | ) | ||||
| NET LOSS PER SHARE: BASIC AND DILUTED | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | ||||
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED | 5,871,250 | 5,871,250 | 5,871,250 | 5,871,250 | ||||||||||||
| July 31, 2021 (Unaudited) | April 30, 2021 (Audited) | |||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| Liabilities | ||||||||
| Current Liabilities | ||||||||
| Other payable and accruals | $ | 32,107 | $ | 28,563 | ||||
| Amount due to a related party | 0 | 146,107 | ||||||
| Total Current Liabilities | 32,107 | 174,670 | ||||||
| Total Liabilities | 32,107 | 174,670 | ||||||
| Commitments and Contingencies | – | – | ||||||
| Stockholders’ Deficit | ||||||||
| Common stock, par value $; shares authorized, and shares issued and outstanding, respectively | 5,871 | 5,871 | ||||||
| Additional paid in capital | 58,824 | 58,824 | ||||||
| Accumulated deficit | (96,802 | ) | (239,365 | ) | ||||
| Total Stockholders’ Deficit | (32,107 | ) | (174,670 | ) | ||||
| Total Liabilities and Stockholders’ Deficit | $ | 0 | $ | 0 | ||||
See accompanying notes, which are an integral part of these condensed financial statements
| 4 |
YIJIA GROUP CORP.
CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JULY 31, 2021 AND 2020
(Currency expressed in United States Dollars (“US$”))
(Unaudited)
| Three months ended July 31, 2021 | Three months ended July 31, 2020 | |||||||
| Revenues | $ | 0 | $ | 0 | ||||
| OPERATING EXPENSES | ||||||||
| General and Administrative Expenses | 10,486 | 11,247 | ||||||
| TOTAL OPERATING EXPENSES | (10,486 | ) | (11,247 | ) | ||||
| Other income | ||||||||
| Gain from forgiveness of debts | 153,049 | 0 | ||||||
| INCOME (LOSS) BEFORE INCOME TAX | 142,563 | (11,247 | ) | |||||
| PROVISION FOR INCOME TAXES | 0 | 0 | ||||||
| NET INCOME (LOSS) | $ | 142,563 | $ | (11,247 | ) | |||
| NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED | $ | 0.02 | $ | (0.00 | ) | |||
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED | 5,871,250 | 5,871,250 | ||||||
See accompanying notes, which are an integral part of these condensed financial statements
| 5 |
YIJIA GROUP CORP.
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT
FOR THE THREE AND NINE MONTHS ENDED JANUARYJULY 31, 2021 AND 2020
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)(Unaudited)
For the three and nine months ended January 31, 2021
| Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | |||||||||||||||||
| Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||
| Balance, April 30, 2020 (Audited) | 5,871,250 | $ | 5,871 | $ | 58,824 | $ | (187,271 | ) | $ | (122,576 | ) | |||||||||
| Net loss for the period | – | – | – | (11,247 | ) | (11,247 | ) | |||||||||||||
| Balance, July 31, 2020 | 5,871,250 | $ | 5,871 | $ | 58,824 | $ | (198,518 | ) | $ | (133,823 | ) | |||||||||
| Net loss for the period | – | – | – | (12,385 | ) | (12,385 | ) | |||||||||||||
| Balance, October 31, 2020 | 5,871,250 | $ | 5,871 | $ | 58,824 | $ | (210,903 | ) | $ | (146,208 | ) | |||||||||
| Net loss for the period | – | – | – | (2,899 | ) | (2,899 | ) | |||||||||||||
| Balance, January 31, 2021 | 5,871,250 | $ | 5,871 | $ | 58,824 | $ | (213,802 | ) | $ | (149,107 | ) | |||||||||
For the three and nine months ended January 31, 2020
| Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | |||||||||||||||||
| Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||
| Balance, April 30, 2019 (Audited) | 5,871,250 | $ | 5,871 | $ | 58,824 | $ | (114,937 | ) | $ | (50,242 | ) | |||||||||
| Net loss for the period | – | – | – | (19,884 | ) | (19,884 | ) | |||||||||||||
| Balance, July 31, 2019 | 5,871,250 | $ | 5,871 | $ | 58,824 | $ | (134,821 | ) | $ | (70,126 | ) | |||||||||
| Net loss for the period | – | – | – | (19,519 | ) | (19,519 | ) | |||||||||||||
| Balance, October 31, 2019 | 5,871,250 | $ | 5,871 | $ | 58,824 | $ | (154,340 | ) | $ | (89,645 | ) | |||||||||
| Net loss for the period | – | – | – | (6,594 | ) | (6,594 | ) | |||||||||||||
| Balance, January 31, 2020 | 5,871,250 | $ | 5,871 | $ | 58,824 | $ | (160,934 | ) | $ | (96,239 | ) | |||||||||
| Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | |||||||||||||||||
| Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||
| Balance, May 1, 2021 (Audited) | 5,871,250 | $ | 5,871 | $ | 58,824 | $ | (239,365 | ) | $ | (174,670 | ) | |||||||||
| Net income for the period | – | 0 | 0 | 142,563 | 142,563 | |||||||||||||||
| Balance, July 31, 2021 | 5,871,250 | $ | 5,871 | $ | 58,824 | $ | (96,802 | ) | $ | (32,107 | ) | |||||||||
| Balance, May 1, 2020 (Audited) | 5,871,250 | $ | 5,871 | $ | 58,824 | $ | (187,271 | ) | $ | (122,576 | ) | |||||||||
| Net loss for the period | – | 0 | 0 | (11,247 | ) | (11,247 | ) | |||||||||||||
| Balance, July 31, 2020 | 5,871,250 | $ | 5,871 | $ | 58,824 | $ | (198,518 | ) | $ | (133,823 | ) | |||||||||
See accompanying notes, which are an integral part of these condensed financial statements
| 6 |
YIJIA GROUP CORP.
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE NINETHREE MONTHS ENDED JANUARYJULY 31, 2021 AND 2020
(Currency expressed in United States Dollars (“US$”))
(UNAUDITED)(Unaudited)
| Three months ended July 31, 2021 | Three months ended July 31, 2020 | |||||||||||||||
| Nine months ended January 31, 2021 | Nine months ended January 31, 2020 | |||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||
| Net loss | $ | (26,531 | ) | $ | (45,997 | ) | ||||||||||
| Net income (loss) | $ | 142,563 | $ | (11,247 | ) | |||||||||||
| Adjustment for non-cash income and expenses: | ||||||||||||||||
| Gain from forgiveness of related party debt | (153,049 | ) | 0 | |||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Other payable and accruals | (15,755 | ) | 7,215 | |||||||||||||
| Increase in other payable and accruals | 3,544 | 11,247 | ||||||||||||||
| NET CASH USED IN OPERATING ACTIVITIES | (42,286 | ) | (38,782 | ) | (6,942 | ) | 0 | |||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||
| Proceeds from a related party | 42,286 | 38,782 | ||||||||||||||
| Proceed from a related party | 6,942 | 0 | ||||||||||||||
| NET CASH PROVIDED BY FINANCING ACTIVITIES | 42,286 | 38,782 | 6,942 | 0 | ||||||||||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | – | – | ||||||||||||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS FOR THE PERIOD | 0 | 0 | ||||||||||||||
| Cash and cash equivalents, beginning of period | – | – | 0 | 0 | ||||||||||||
| Cash and cash equivalents, end of period | $ | – | $ | – | $ | 0 | $ | 0 | ||||||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||||||||||
| Interest paid | $ | – | $ | – | $ | 0 | $ | 0 | ||||||||
| Income taxes paid | $ | – | $ | – | $ | 0 | $ | 0 | ||||||||
See accompanying notes, which are an integral part of these condensed financial statements
| 7 |
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINETHREE MONTHS ENDED JANUARYJULY 31, 2021
(UNAUDITED)
Note 1 – BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (“GAAP”), and the instructions to Form 10Q10–Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading.
In the opinion of management, the consolidated balance sheet as of April 30, 20202021 which has been derived from audited financial statements and these unaudited condensed financial statements reflect all normal and considered necessary to state fairly the results for the periods presented. The results for the period ended JanuaryJuly 31, 2021 are not necessarily indicative of the results to be expected for the entire fiscal year ending April 30, 2021 or for any future period.
These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended April 30, 2020.2021.
Note 2 – ORGANIZATION AND NATURE OF BUSINESS
Yijia Group Corp. (formerly, Soldino Group Corp.) (“the Company”, “we”, “us” or “our”) was incorporated as Soldino Group Corp. on January 25, 2017 under the laws of the State of Nevada, United States of America. The Company has ceased its operations inas of October 2018. As such, the Company accounted for all of its assets, liabilities and results of operations up to October 31, 2018 as discontinued operations. FromAs of November 1, 2018, the Company is a shell company. On November 15, 2018, the Company changed its name to Yijia Group Corp.
On October 31, 2018, Aurora Fiorin resigned as the President, Treasurer, Secretary and Director of the Company. Ms. Fiorin’s resignation as President, Treasurer and Secretary was effective immediately. Ms. Fiorin’s resignation as a Director was effective ten (10) days following the filing by the Company of the Information Statement on Schedule 14f-1 with the United States Securities and Exchange Commission (the “SEC”). Prior to Ms. Fiorin’s, resignation, she appointed Ms. Shaoyin Wu as the new President and Chief Executive Officer of the Company and Mr. Kim Lee Poh as the Company’s new Chief Financial Officer and Secretary. Messrs.Ms. Wu and Mr. Poh were appointed as the new board members of the Company, togetheralong with Mr. Jian Yang.
On November 15, 2018,July 28, 2021, Barry Sytner, a non-affiliate of the registrant, purchased an aggregate of 5,066,250 common shares from Kim Lee Poh, Jian Yang and Shaoyin Wu, officers and directors of the registrant and from Jiang Bo, Chen Bo Bo and Zheng Lixing, other majority shareholders of the registrant. The purchase price for the common shares was paid from Mr. Sytner’s personal funds resulting in a change of control of the registrant. The common shares were transferred to Barry Sytner effective August 4, 2021. The 5,066,250 common shares represent 86.3% of the currently issued and outstanding common of the Company.
Also, on July 28, 2021, Shaoyin Wu, Kim Lee Poh and Jian Yang resigned as officers and directors of the Company.
Concurrently, on July 28, 2021, Barry Sytner, was appointed as Chief Executive Officer and Director of the Company.
| 8 |
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31, 2021
(UNAUDITED)
Starting from July 30, 2021, the Company filed a Certificatecommenced its operation in the rendering of Amendmentbusiness consulting service to domestic and international customers. On July 30, 2021, the Company entered into two consulting agreements with non-affiliates to provide business consulting services. Under the consulting agreements, the Company will receive consulting fees of $5,000 and $10,000 per month, respectively. The term of the consulting agreements is for an initial three month period. Unless terminated in writing prior to the Articlesend of Incorporation with Nevada’s Secretary of State to change its name to Yijia Group Corp.the period, the consulting agreement are renewable for successive three month periods.
Note 3 – GOING CONCERN
The accompanying unaudited condensed financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. The Company incurred net losssuffered from a working capital deficit of $26,531 for the nine months ended January 31, 2021$32,107 and an accumulated deficit of $213,802.$96,802 at July 31, 2021.
Therefore, there is substantial doubt about the Company’s ability to continue as a going concern without future profitability. Management anticipates that the Company will be dependent, in the near future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it will beto able to raise additional funds through the capital markets.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED JANUARY 31, 2021
(UNAUDITED)
In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern. The accompanying financial statements have been prepared on a going concern basis which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability and classification of assets or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.
Note 4 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of the unaudited condensed financial statements in conformity with accounting principles generally accepted in the U.S.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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments
Accounting StandardStandards Codification (“ASC”) topic 820 "Fair Value Measurements and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizesorganizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
These tiers include:
| Level 1: | defined as observable inputs such as quoted prices in active markets; |
| Level 2: | defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; |
| Level 3: | defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
The carrying value of cash and the Company’s amount due to a related partyloan from shareholders approximates its fair value due to their short-term maturity.
| 9 |
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31, 2021
(UNAUDITED)
Income Taxes
Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.
Uncertain tax positions
The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the ASC 740 provisions of Section 740-10-25 for the ninethree months ended JanuaryJuly 31, 2021 and 2020.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED JANUARY 31, 2021
(UNAUDITED)
Revenue Recognition
The Company recognizes revenue in accordance with “ASC”Accounting Standards Codification No. 605, “Revenue Recognition”. (“ASC-605”), ASC-605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. No revenue was generated for the three and nine months ended JanuaryJuly 31, 2021 and 2020.
The Company computes net loss per share in accordance with FASB ASC 260 “Earnings per Share”. Basic net loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. As of JanuaryJuly 31, 2021, there were no potentially dilutive debt or equity instruments issued or outstanding.
Currencies
The Company’s reporting and functional currencies are both the U.S. dollar. Foreign currency transaction gains and losses are included in other income (expense) but are negligible.
Comprehensive Income
Comprehensive income is defined as all changes in stockholders’ deficit, exclusive of transactions with owners, such as capital investments. Comprehensive income includes net income or loss, changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. As of JanuaryJuly 31, 2021 and April 30, 2020,2021, there were no differences between our comprehensive loss and net loss.
Related parties
Parties, which can be a corporation or individual, are considered to be related if the entities haveCompany has the ability, directly or indirectly, to control the other party or exercise significant influence over the party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence.
Reclassification
Certain reclassifications have been made to the financial statements for the prior periods to present that information on a basis consistent with the current period.
Recent Accounting Pronouncements
From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.
| 10 |
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED JANUARY 31, 2021
(UNAUDITED)
Simplifying the Accounting for Debt with Conversion and Other Options.
In June 2020, the FASB issued ASU 2020-06 to simplify the accounting in ASC 470, “Debt with Conversion and Other Options” and ASC 815, “Contracts in Equity’s Own Entity”. The guidance simplifies the current guidance for convertible instruments and the derivatives scope exception for contracts in an entity’s own equity. Additionally, the amendments affect the diluted EPS calculation for instruments that may be settled in cash or shares and for convertible instruments. This ASU will be effective beginning in the first quarter of the Company’s fiscal year 2022. Early adoption is permitted. The amendments in this update must be applied on either full retrospective basis or modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption. The Company is currently evaluating the impact of ASU 2020-06 on its consolidated financial statements and related disclosures, as well as the timing of adoption.
Financial Instruments
In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which modifies the measurement of expected credit losses of certain financial instruments. In February 2020, the FASB issued ASU 2020-02 and delayed the effective date of ASU 2016-13 until fiscal year beginning after December 15, 2022. The Company is currently evaluating the impact of adopting ASU 2016-13 on its consolidated financial statements.
Simplifying the Accounting for Income Taxes
In December 2019, the FASB issued ASU 2019-12 to simplify the accounting in ASC 740, “Income Taxes.” This guidance removes certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This ASU will be effective beginning in the first quarter of the Company’s fiscal year 2021. Early adoption is permitted. Certain amendments in this update must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments must be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption. The adoption of ASU 2019-12 does not have a significant impact on the Company’s consolidated financial statements as of and for the nine-month period ended January 31, 2021.
Earnings Per Share
In April 2021, the FASB issued ASU 2021-04, which included Topic 260 “Earnings Per Share”. This guidance clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options due to a lack of explicit guidance in the FASB Codification. The ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2021-04 on its consolidated financial statements.
Note 5 – AMOUNT DUE TO A RELATED PARTY
Amount due to a related party represents temporary advance by the director of the Company. The amount is unsecured, interest-free and has no fixed terms of repayment.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINETHREE MONTHS ENDED JANUARYJULY 31, 2021
(UNAUDITED)
Reclassification
Certain reclassifications have been made to the financial statements for the prior year periods to present that information on a basis consistent with the current period.
Recent Accounting Pronouncements
We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) which replaces the incurred loss impairment methodology in current generally accepted accounting principles U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance is effective for fiscal years beginning after December 15, 2022. The Company is evaluating the effect, if any, the update will have on its financial statements when adopted in Fiscal 2023.
In December 2020, the FASB issued ASU No. 2020-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes (“ASU 2020-12”). ASU 2020-12, among other things, (a) eliminates the exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income (or a gain) from other items, (b) eliminates the exception to the general methodology for calculating income taxes in an interim period when the year-to-date loss exceeds the anticipated loss for the year, (c) requires than an entity recognize a franchise tax (or a similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, and (d) requires than an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation for the interim period that includes the enactment date. For public companies, these amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption is permitted but must involve the adoption of all amendments contained in ASU 2020-12 concurrently. The Company has not adopted ASU 2020-12 and is evaluating the potential impact of adoption on its financial statements.
Note 5 – AMOUNT DUE TO A RELATED PARTY
For the three months ended July 31, 2021, the amount of $153,049 was forgiven by a related party of the Company.
Note 6 – COMMON STOCK
The Company has , $ par value shares of common stock authorized. There were shares of common stock issued and outstanding as of July 31, 2021 and April 30, 2021.
Note 7 – COMMITMENTS AND CONTINGENCIES
As of July 31, 2021, the Company has no material commitments or contingencies.
| 11 |
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31, 2021
(UNAUDITED)
Note 6 – COMMON STOCK
The Company has authorized 75,000,000 shares of common stock with a par value of $0.001 per share.
As of January 31, 2021 and April 30, 2020, the Company had 5,871,250 and 5,871,250 shares of common stock issued and outstanding, respectively.
Note 7 – COMMITMENTS AND CONTINGENCIES
As of January 31, 2021, the Company has no material commitments and contingencies.
Note 8 – INTEREST AND PENALTIES
The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of JanuaryJuly 31, 2021 and April 30, 2020,2021, the Company had no accrued interest or penalties related to uncertain tax positions.
Note 9 – INCOME TAXES
The Company adopted the provisions of uncertain tax positions as addressed in ASC 740-10-65-1. As a result of the implementation of ASC 740-10-65-1, the Company recognized no increase in the liability for unrecognized tax benefits.
The Company has no tax position at Januaryon July 31, 2021, for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The Company does not recognize interest accrued related to unrecognized tax benefits in interest expenseexpenses and penalties in operating expenses. No such interest or penalties were recognized during the period presented. The Company had no accruals for interest and penalties at Januaryon July 31, 2021. The Company’s utilization of any net operating loss carry forward may be unlikely as a result of its intended activities.
The valuation allowance at Januaryon July 31, 2021 was $44,898.$20,328. The net change in valuation allowance during the ninethree months ended JanuaryJuly 31, 2021 was $5,571.$29,939. In assessing the realizabilityrealization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of JanuaryJuly 31, 2021 and 2020. All tax years since inception remainsremain open for examination only by taxing authorities of US FederalUnited States and stateState of Nevada.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED JANUARY 31, 2021
(UNAUDITED)
The Company has a net operating loss carryforward for tax purposes totaling $213,802 at January$96,802 as of July 31, 2021, expiring through 2041.in 2041. There is a limitation on the amount of taxable income that can be offset by carryforwards after a change in control (generally greater than a 50% change in ownership). Temporary differences, which give rise to a net deferred tax asset, are as follows:
Schedule of deferred taxes
| As of January 31, 2021 (Unaudited) | As of April 30, 2020 (Audited) | As of July 31, 2021 (Unaudited) | As of April 30, 2021 (Audited) | |||||||||||||
| Non-current deferred tax assets: | ||||||||||||||||
| Net operating loss carryforward | $ | (213,802 | ) | $ | (187,271 | ) | ||||||||||
| Net operating loss carryforwards | $ | (96,802 | ) | $ | (239,365 | ) | ||||||||||
| Total deferred tax assets | (44,898 | ) | (39,327 | ) | (20,328 | ) | (50,267 | ) | ||||||||
| Valuation allowance | 44,898 | 39,327 | 20,328 | 50,267 | ||||||||||||
| Net deferred tax assets | $ | – | $ | – | $ | – | $ | – | ||||||||
| 12 |
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31, 2021
(UNAUDITED)
The actual tax benefit at the expected rate of 21% differs from the expected tax benefit for the ninethree months ended JanuaryJuly 31, 2021 as follows:
Schedule of actual tax benefit
| Nine months ended January 31, 2021 (Unaudited) | Nine months ended January 31, 2020 (Unaudited) | Three months ended July 31, 2021 (Unaudited) | Three months ended July 31, 2020 (Unaudited) | |||||||||||||
| Computed "expected" tax benefit | $ | (44,898 | ) | $ | (33,796 | ) | $ | (20,328 | ) | $ | (50,267 | ) | ||||
| Change in valuation allowance | 44,898 | 33,796 | 20,328 | 50,267 | ||||||||||||
| Actual tax benefit | $ | – | $ | – | $ | 0 | $ | 0 | ||||||||
Note 10 – SUBSEQUENT EVENTS
In accordance with ASC Topic 855, “Subsequent Events” the Company has analyzed its operations subsequent to JanuaryJuly 31, 2021 to the date these condensed financial statements were available to be issued, June 18,August 20, 2021, and has determined that it does not have any material subsequent events to disclose in these financial statements.
| 13 |
Item 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
| Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
The following discussion and analysis of our results of operations and financial condition should be read together with our unaudited condensedconsolidated financial statements and the notes thereto, which are included elsewhere in this report and our Annual Report on Form 10-K for the fiscal year ended April 30, 20202021 (the “Annual Report”) filed with SEC. Our financial statements have been prepared in accordance with U.S. GAAP. In addition, our financial statements and the financial information included in this report reflect our organizational transactions and have been prepared as if our current corporate structure had been in place throughout the relevant periods.
Forward looking statement notice
Statements made in this Form 10-Q10-K that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.
Financial information contained in this report and in our financial statements is stated in United States dollars and are prepared in accordance with United States generally accepted accounting principles.
Corporate Overview
Yijia Group Corp. was incorporated in the State of Nevada on January 25, 2017 and establishedhas a fiscal year end of April 30. We are a development-stage company formed to commence operations in the distribution and sewing of work wear. We ceased and discontinued our operations on October 31, 2018. At January 31, 2021, we are a shell company.
We do not have any subsidiaries.
We never have never declared bankruptcy, been in receivership, or been involved in any kind of legal proceedings.
Insurance
We do not maintain insurance and do not intend to maintain insurance in the future. Because we do not havemaintain insurance, if we arewere to be made a party to any action, we may not have sufficient funds to defend thefor litigation. If that occurs aA judgment could be rendered against us that could cause us to cease operations.
Employees
We are a development stage company and currently have no employees.
| 14 |
Offices
Our office was previously located Unit 304-307A, 3/F Houston Center, No. 63 Mody Road, Kowloon, Hong Kong. Our current office is located at Unit 1623, Tianxia International Center B, Taoyuan Road, Nanshan District, Shenzhen, Guangdong, People of Republic of China. Our current office is located at 30 N Gould St Suite 22545 Sheridan, WY 82801. Our telephone number is +86-0755 3397 5792.+1 310-266-3738.
Results of operations
We have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.operations.
We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.
On July 28, 2021, Barry Sytner, a non-affiliate of the registrant, purchased an aggregate of 5,066,250 common shares from Kim Lee Poh, Jian Yang and Shaoyin Wu, officers and directors of the registrant and from Jiang Bo, Chen Bo Bo and Zheng Lixing, other majority shareholders of the registrant. The purchase price for the common shares was paid from Mr. Sytner’s personal funds resulting in a change of control of the registrant. The common shares were transferred to Barry Sytner effective August 4, 2021. The 5,066,250 common shares 86.3% of the currently issued and outstanding common of the Company.
Starting on July 30, 2021, the Company commenced its operation in the rendering of business consulting service to domestic and international customers. On July 30, 2021, the Company entered into two consulting agreements with non-affiliates to provide business consulting services. Under the consulting agreements, the Company will receive consulting fees of $5,000 and $10,000 per month, respectively. The term of the consulting agreements is for an initial three month period. Unless terminated in writing prior to the end of the period, the consulting agreement are renewable for successive three month periods.
Results of operation for the three months ended JanuaryJuly 31, 2021 and July 31, 2020:
Revenue
During the three months ended July 31, 2021, the Company had no operations. Subsequently, the Company commenced its operation on July 30, 2021 and the Company is expected to bring the monthly income of $15,000.
There was no revenue and cost of sales for the three months ended JanuaryJuly 31, 2021 and 2020. Operating expenses for the three months ended JanuaryJuly 31, 2021 and 2020 was $2,899were $10,486 and $6,594.$52,094, respectively.
Net LossIncome
The net income for the three months ended July 31, 2021was $142,563, due to a gain from forgiveness of related party debt.
The net loss for the three months ended JanuaryJuly 31, 2021 and 2020 was $2,899 and $6,594 accordingly.
Results of operation for the nine months ended January 31, 2021 and 2020:
Revenue
There was no revenue and cost of sales for the nine months ended January 31, 2021 and 2020. Operating expenses for the nine months ended January 31, 2021 and 2020 was $26,531 and $45,997.
Net Loss
The net loss for the nine months ended January 31, 2021 and 2020 was $26,531 and $45,997 accordingly.
Liquidity and capital resources
As at January 31, 2021, our current liabilities were $149,107 ($122,576 as of April 30, 2020) and stockholders’ deficit was $149,107 (stockholders’ deficit of $122,576 as of April 30, 2020).
CASH FLOWS FROM OPERATING ACTIVITIES
For the nine months ended January 31, 2021, net cash flows used in operating activities was $42,286.$52,094.
| 15 |
Liquidity and capital resources
As of July 31, 2021, our current liabilities were $32,107 ($174,670 as of April 30, 2021) and stockholders’ deficit was $96,802 (stockholders’ deficit of $239,365 as of April 30, 2021).
CASH FLOWS FROM OPERATING ACTIVITIES
We have not generated positive cash flows from operating activities. For the ninethree months ended JanuaryJuly 31, 2020,2021, net cash flows used in operating activities was $38,782.$6,942.
We have not generated positive cash flows from operating activities. For the three months ended July 31, 2020, net cash used in operating activities was $0.
CASH FLOWS FROM FINANCING ACTIVITIES
For the ninethree months ended JanuaryJuly 31, 2021, net cash flows provided by financing activities was $42,286$6,942 from proceeds from aof related party.party loans.
For the ninethree months ended JanuaryJuly 31, 2020, net cash flows provided by financing activities was $38,782 from proceeds from a related party.$0.
Management’s discussion and analysis
We qualify as an “emerging growth company” under the JOBS Act. As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long as we are an emerging growth company, we will not be required to: have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act; provide an auditor attestation with respect to management’s report on the effectiveness of our internal controls over financial reporting; comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis); submit certain executive compensation matters to shareholders advisory votes, such as “say-on-pay” and “say-on-frequency;” and disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO ’ s compensation to median employee compensation. In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.
We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards. We will remain an “emerging growth company” for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1 billion, (ii) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, which would occur if the market value of our ordinary shares that is held by non- affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period. Even if we no longer qualify for the exemptions for an emerging growth company, we may still be, in certain circumstances, subject to scaled disclosure requirements as a smaller reporting company. For example, smaller reporting companies, like emerging growth companies, are not required to provide a compensation discussion and analysis under Item 402(b) of Regulation S-K or auditor attestation of internal controls over financial reporting.
Our cash balance is $0 as of JanuaryJuly 31, 2021. We believe our cash balance is insufficient to fund our operations for any period of time. Management anticipates that the Company will be dependent, in the near future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it will be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful.
| 16 |
Off-Balance Sheet Arrangements
We have no 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.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
None
ITEM 4. CONTROLS AND PROCEDURES
| ITEM 4. | CONTROLS AND PROCEDURES |
Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of JanuaryJuly 31, 2021. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.
The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our Board of Directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (2) inadequate segregation of duties consistent with control objectives; and (3) ineffective controls over period end financial disclosure and reporting processes. The aforementioned material weaknesses were identified by our Chief Executive Officer and Chief Financial Officer in connection with the review of our financial statements as of JanuaryJuly 31, 2021.
Management believes that the material weaknesses set forth in items (2) and (3) above did not have an effect on our financial results. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our Board of Directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.
Changes in Internal Controls over Financial Reporting
There was no change in our internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. We are aware that any system of controls, however well designed and operated, can only provide reasonable, and not absolute, assurance that the objectives of the system are met, and that maintenance of disclosure controls and procedures is an ongoing process that may change over time.
| 17 |
| ITEM 1. | LEGAL PROCEEDINGS |
We are not currently a party to any legal proceedings, and we are not aware of any pending or potential legal actions.
| ITEM 1A. | RISK FACTORS |
The information to be reported under this Item is not required for smaller reporting companies.
| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
None
| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
None
| ITEM 4. | MINE SAFETY DISCLOSURES |
None
| ITEM 5. | OTHER INFORMATION |
None
| ITEM 6. | EXHIBITS |
The following exhibits are included as part of this report by reference:
| 18 |
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized on June 21,August 20, 2021.
Yijia Group Corp.
By:
| /s/ | |
Chief Executive Officer, | |
Chief Financial Officer and Director (Principal Executive and Financial Officer) |
| 19 |