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CWNOF Chineseworldnet Com

 

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 20-F

 

CHINESEWORLDNET.COM INC.

 

¨REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934

 

OR

 

xANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2019

 

OR

 

¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

OR

 

¨SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report                                                  

 

Commission file number000-33051

 

CHINESEWORLDNET.COM INC.

(Exact name of Registrant as specified in its charter)

 

CAYMAN ISLANDS

(Jurisdiction of incorporation or organization)

 

Appleby, Clifton House 75 Fort Street, PO Box 190, Grand Cayman E9 KY1-1104

(Address of principal executive offices)

 

Mr. Chi Cheong Liu
President, Chief Executive Officer, Chief Financial Officer, Secretary and Treasurer
Tel: +1 (345) 814-2743 Email: info@chineseworldnet.com
Appleby, Clifton House 75 Fort Street, PO Box 190, Grand Cayman E9 KY1-1104

(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)

 

 

Securities registered or to be registered pursuant to Section 12(b) of the Act.
Title of each classTrading SymbolsName of each exchange on which registered
Common SharesCWNOFOTC Markets Group
 
Securities registered or to be registered pursuant to Section 12(g) of the Act.

Common Shares, Par Value of US$0.001 Per Share

 

(Title of Class)
  
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
Not Applicable
(Title of Class)
  
  
Securities registered or to be registered pursuant to Section 12(g) of the Act.

Common Shares, Par Value of US$0.001 Per Share

 

(Title of Class)
  
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
Not Applicable
(Title of Class)

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report: 10,950,000 common shares

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

¨YesxNo

 

If this report is an annual or transaction report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

¨YesxNo

 

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.

xYes¨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 fi les).

xYes¨No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of “large accelerated filer”, "accelerated filer,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

¨Large accelerated filer ¨Accelerated filer 

xNon-accelerated filer

¨Emerging growth company

 

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financialaccounting standards† provided pursuant to Section 13(a) of the Exchange Act.¨

 

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

 

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

xU.S. GAAP ¨International Financial Reporting Standards as issued by the International Accounting Standards Board ¨Other

 

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

¨Item 17¨Item 18

 

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

xYes¨No

 

 

 

 

 

 

TABLE OF CONTENTS

PART I 4
ITEM 1.IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS4
ITEM 2.OFFER STATISTICS AND EXPECTED TIMETABLE4
ITEM 3.KEY INFORMATION4
 A.Selected Financial Data4
 B.Capitalization and Indebtedness5
 C.Reasons for the Offer and Use of Proceeds5
 D.Risk Factors5
ITEM 4.INFORMATION ON THE COMPANY6
 A.History and Development of the Company6
 B.Business Overview7
 C.Organizational Structure8
 D.Property, Plants and Equipment8
ITEM 5.OPERATING AND FINANCIAL REVIEW AND PROSPECTS8
 A.Results of Operations8
 B.Liquidity and Capital Resources10
 C.Research and Development, Patents and Licenses10
 D.Trend Information10
 E.Off-Balance Sheet Arrangements11
ITEM 6.DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES11
 A.Directors and Senior Management11
 B.Compensation11
 C.Board Practices12
 D.Employees12
 E.Share Ownership of Directors and Senior Management12
ITEM 7.MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS13
 A.Major Shareholders13
 B.Related Party Transactions13
 C.Interests of Experts and Counsel13
ITEM 8.FINANCIAL INFORMATION13
 A.Financial Statements13
 B.Significant Changes14
ITEM 9.THE OFFER AND LISTING14
 A.Offer and Listing Details14
 B.Plan of Distribution15
 C.Markets15
 D.Selling Shareholders15
 E.Dilution15
 F.Expenses of the Issue15
ITEM 10.ADDITIONAL INFORMATION16
 A.Share Capital16
 B.Memorandum and Articles of Association16
 C.Material Contracts16
 D.Exchange Controls17
 E.Taxation17
 F.Dividends and Paying Agents17
 G.Statement by Experts17
 H.Documents on Display17
 I.Subsidiary Information17
ITEM 11.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK17
ITEM 12.DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES18

 

 

 

PART II  18
ITEM 13.DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES18
ITEM 14.MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS18
ITEM 15.CONTROLS AND PROCEDURES 18
ITEM 16.[RESERVED]19
ITEM 16A.AUDIT COMMITTEE FINANCIAL EXPERT19
ITEM 16B.CODE OF ETHICS19
ITEM 16C.PRINCIPAL ACCOUNTANT FEES AND SERVICES19
ITEM 16D.EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES20
ITEM 16E.PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILAITED PURCHASERS20
ITEM 16F.CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT20
ITEM 16G.CORPORATE GOVERNANCE20
ITEM 16H.MINE SAFETY DISCLOSURE20
   
PART III 20
ITEM 17.FINANCIAL STATEMENTS20
ITEM 18.FINANCIAL STATEMENTS20
ITEM 19.EXHIBITS21

  

ii 

 

 

INTRODUCTION AND USE OF CERTAIN TERMS

 

ChineseWorldNet.Com Inc. is a corporation incorporated under theCompany Law (1998 revision) of the Cayman Islands on January 12, 2000.  Except as the context otherwise requires, all references in this annual report (the “Report”) on Form 20-F to“we,” “us,” “our,” “CWN,” and the“Company” are to ChineseWorldNet.Com Inc. and, where applicable, our former subsidiaries, including NAI Interactive Ltd. (“NAI”), a company incorporated under the laws of British Columbia, ChineseWorldNet.com (Hong Kong) Ltd. (“CWN HK”), a company incorporated under the laws of Hong Kong, 85% owned interest in ChineseWorldNet.com (Shanghai) Ltd. (“CWN China”), a company incorporated under the laws of People’s Republic of China, and 85% owned interest in Weihai Consulting Investment Ltd. (“Weihai”), a company incorporated under the laws of People’s Republic of China.

 

Our financial statements are prepared in accordance with the United States generally accepted accounting principles (“US GAAP”) and are presented in United States dollars (“US dollars”).  All monetary amounts contained in this Report are in US dollars unless otherwise indicated.  References to “Fiscal 2019” are to our fiscal year ended December 31, 2019, and other fiscal years of the Company are referred to in a corresponding manner.  References to “Common Shares” are to our Common Shares, par value of US$0.001 per share.

 

Our registered office and principal executive office is located at Appleby, Clifton House, 75 Fort Street, P.O. Box 190, Grand Cayman, Cayman Islands KY1-1104. 

 

CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS

 

This Report contains forward-looking statements that reflect the management’s current expectations and assumptions with respect to the general economic and business conditions, our operation and business strategies, products, services and competition, future financial position and results, and various other factors, both referenced and not referenced in this Report.  All statements made in this Report other than statements of historical fact, including, among others, statements that address operating performance, events, circumstances, or developments that the management expects or anticipates will or may occur in the future, statements related to revenue and volume growth, profitability, new sales and marketing channels, adequacy of and ability to raise additional funding for operations, and statements expressing general optimism about future operating results and non-historical information, are forward-looking statements.  In particular, the words“believe,” “expect,” “intend,” “anticipate,” “estimate,” “plan,” “target,” “may,” variations of such words, and similar expressions identify forward-looking statements, but are not the exclusive means of identifying such statements and their absence does not mean that statements are not forward-looking.

 

These forward-looking statements are subject to risks and uncertainties that could cause our actual financial position and results to differ materially from those expressed in, anticipated or implied by these forward-looking statements for many reasons, including the risks and statements described in more detail under “Item 3. Key Information – D. Risk Factors” and“Item 5.Operating and Financial Review and Prospects” included elsewhere in this Report.  We do not undertake any obligation to revise or update these forward-looking statements to reflect new information, future events or circumstances unless required by applicable legislation or regulation.  These forward-looking statements contained in this Report are expressly qualified by this cautionary statement.

 

 

 

 

PART I

 

   ITEM 1.IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS

 

This Report on Form 20-F is being filed as an annual report under the Securities Exchange Act of 1934 (the “Exchange Act”) and, as such, there is no requirement to provide any information under this item.

 

   ITEM 2.OFFER STATISTICS AND EXPECTED TIMETABLE

 

This Report on Form 20-F is being filed as an annual report under the Exchange Act and, as such, there is no requirement to provide any information under this item.

 

   ITEM 3.KEY INFORMATION

 

   A.Selected Financial Data

 

The following table sets forth selected financial information from our financial statements prepared in accordance with US GAAP for our two most recently completed fiscal periods consisting of the years ended December 31, 2019, 2018 and 2017. The information have been extracted from our audited financial statements and the related notes included herein and should be read in conjunction with such in “Item 5 – Operating and Financial Review and Prospects”

 

  Year Ended December 31 
  2019  2018  2017 
Statements of Operations:            
Net income (loss) for the year  34,894   (5,603)  (231,953)
Income (loss) per share – basic  0.00   (0.00)  (0.02)
Income (loss) per share – diluted  0.00   (0.00)  (0.02)
Weighted average common shares outstanding – basic  10,950,000   10,950,000   10,950,000 
Weighted average common shares outstanding – diluted  10,950,000   10,950,000   10,950,000 
             
Balance Sheets:            
Total assets $491,921  $403,093  $409,045 
Total current liabilities  103,497   49,563   49,912 
Total stockholders’ equity  388,424   353,530   359,133 

 

No dividends have been declared or paid in Fiscal 2019, Fiscal 2018, and Fiscal 2017.

 

- 4 -

 

 

    B.Capitalization and Indebtedness

 

This Report on Form 20-F is being filed as an annual report under the Exchange Act and, as such, there is no requirement to provide any information under this item.

 

    C.Reasons for the Offer and Use of Proceeds

 

This Report on Form 20-F is being filed as an annual report under the Exchange Act and, as such, there is no requirement to provide any information under this item.

 

     D.Risk Factors

 

The following discussion in this Report on Form 20-F contains forward-looking statements regarding our business, prospects and results of operations that involve risks and uncertainties.  Our actual results may differ materially from the results that may be anticipated by such forward-looking statements and discussed elsewhere in this Report. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below, as well as those discussed under the heading “Item 4 Information on the Company” and “Item 5 Operating and Financial Review and Prospects” and those discussed elsewhere in this Report.  In evaluating our business, prospects and results of operations, readers should carefully consider the following factors in addition to other information presented in this Report and in our other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business, prospects and results of operations.  See “Cautionary Notice Regarding Forward Looking Statements” above.

 

Trading of our common shares may be restricted by the Securities and Exchange Commission’s penny stock regulations which may limit a shareholder’s ability to buy and sell our common shares

 

The Securities and Exchange Commission has adopted Rule 15g-9 which generally defines “penny stock” to be any equity security that has a market price (as defined) of less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. Our common shares are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and “accredited investors”. The term “accredited investor” refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the Securities and Exchange Commission which provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer’s account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer’s confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities. We believe that the penny stock rules discourage investor interest in and limit the marketability of our common shares.

 

Our shareholders may face difficulties in protecting their interests because we are incorporated under Cayman Islands law.

 

Our corporate affairs are governed by our memorandum and articles of association, by theCompany Law (1998 Revision) and the common law of the Cayman Islands. The rights of shareholders to take action against our directors, actions by minority shareholders and the fiduciary responsibilities of our directors under Cayman Islands law are to a large extent governed by the common law of the Cayman Islands.

 

Under the common law of the Cayman Islands, the fiduciary relationship of a director is to the Company and a director, therefore, does not usually owe a fiduciary duty to individual shareholders.  As a result, it may be difficult for a shareholder to take action against the directors for breach of fiduciary duty.

 

- 5 -

 

 

The common law in the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands and from English common law, the decisions of whose courts are of persuasive authority but are not binding on a court in the Cayman Islands.  Cayman Islands law in this area may conflict with jurisdictions in the United States and/or other jurisdictions.  As a result, our public shareholders may face more difficulties in protecting their interests in the face of actions against the management, directors or our controlling shareholders than would shareholders of a corporation incorporated in a jurisdiction in the United States.

 

There is uncertainty as to our shareholders’ ability to enforce civil liabilities in the Cayman Islands.

 

We are a Cayman Islands company and have no assets located in the United States.  All of our directors and officers are nationals and/or residents of countries other than the United States.  All or a substantial portion of the assets of these persons are located outside the United States.  As a result, it may be difficult to effect service of process within the United States upon these persons.  In addition, there is uncertainty as to whether the courts of the Cayman Islands and other jurisdictions would recognize or enforce judgments of United States courts obtained against us or such persons predicated upon the civil liability provisions of the securities laws of the United States or any state thereof, or be competent to hear original actions brought in the Cayman Islands or other jurisdictions against us or such persons predicated upon the securities laws of the United States or any of our state.

 

    ITEM 4.INFORMATION ON THE COMPANY

 

   A.History and Development of the Company

 

ChineseWorldNet.Com Inc. was incorporated on January 12, 2000 under theCompany Law (1998 revision) of the Cayman Islands. The address of our registered and principle executive office is that of our agent, Appleby, being: Clifton House, 75 Fort Street, P.O. Box 190, Grand Cayman, Cayman Islands KY1-1104, telephone number is (345) 949-4900. 

 

In August 2009, we incorporated CWN Capital Inc. (“CWN Capital ”) under the BVI Business Companies Act, with a registered address at Morgan & Morgan Building, Pasea Estate, Road Town, Tortola, British Virgin Islands, focusing on capital markets businesses.  CWN Capital provided a vehicle for expanding the scope of our businesses into the capital markets.  On October 1, 2010, CWN Capital completed a non-brokered private placement and issued 25,000 of its common shares at a subscription price of $0.01 per share to Silver Lake Investment Partners, Ltd., resulted in CWN diluted down to a 50% ownership in CWN Capital.  On December 18, 2010, CWN Capital completed another non-brokered private placement and issued 55,000 of its common shares at a subscription price of $1.00 per share to Goldpac Investments Partners Ltd., resulted in CWN a diluted down to 23.8% ownership in CWN Capital. As a result, we deconsolidated CWN Capital on December 18, 2010 and recorded our interest in CWN Capital as an equity interest. Silver Lake Investment Partners, Ltd. and Goldpac Investments Partners Ltd. were companies controlled by two directors of our company.

 

On September 8, 2009, CWN China funded and incorporated Weihai as a local entity for the purpose of carrying out certain business operations in the Greater China. Weihai has the same address as CWN China.  Through CWN China, we had a 85% controlling interest in Weihai.

 

On February 1, 2008, CWN HK and Shanghai Compass Venture Capital Investment Company Limited (“Shanghai Compass”) signed an Agreement to Establish CWN China Co., Ltd., a Chinese-Foreign Joint Venture Limited Liability Company.  In April 2008, the two parties incorporated CWN China with CWN HK having a 70% controlling interest in CWN China. In March 2011, we completed substantially all of the regulatory procedures and processes with Shanghai Compass, the other shareholder of CWN China and invested further 5,000,000 Renminbi to CWN China. CWN HK is required to contribute the additional registered capital of 5,000,000 Renminbi by paying cash within two years from August 19, 2011. During the year ended December 31, 2011, CWN HK paid cash of $400,000 which result of our financial interest increased from 70% to 80%. During the year ended December 31, 2012, CWN HK further paid cash of $200,000 which resulted in our financial interest increasing from 80% to 83.67%. During the fiscal year 2013, CWN HK further invested an amount of $187,200 to CWN China and the Company’s effective ownership of equity interest increased from 83.67% to 85% in CWN China. During Fiscal 2017, Fiscal 2018 and Fiscal 2019, we made no purchases of property and equipment. There are currently no major capital projects or divestitures in progress.

 

SALE OF SUBSIDIARIES

 

On April 28, 2014, the Company completed the sale of all shares that the Company owned in the capital of its subsidiaries to Ningbo International Limited (the“Purchaser”) in exchange for a cash payment of CDN$263,969 and a non-interest bearing promissory note in the principal amount of CDN$831,031 with a maturity date of one year with the option to extend upon mutual agreement (the“Transaction”), pursuant to a share purchase agreement dated March 19, 2014 (the“Share Purchase Agreement”). The Transaction amounted to the sale of substantially all of the assets of the Company.

 

- 6 -

 

 

Pursuant to the Share Purchase Agreement, the Company sold its right, title and interest in and to all shares that the Company owned in the capital of its subsidiaries as follows:

 

   1.100 shares in the capital of NAI Interactive Ltd. (“NAI”), which shares represent all of the issued and outstanding shares in the capital of NAI;

 

   2.990 shares in the capital of ChineseWorldNet.com (Hong Kong) Ltd. (“CWN HK”) and 10 shares in the capital of CWN HK owned by Chi Cheong Liu, a director and major shareholder of the Company, on the Company’s behalf, which shares, together, represent all of the issued and outstanding shares in the capital of CWN HK; and

 

    3.25,000 shares in the capital of CWN Capital Inc. (“CWN Capital”), which shares represent 23.8% of the issued and outstanding shares in the capital of CWN Capital.

 

The shareholders of the Company approved the Share Purchase Agreement at the extraordinary general meeting of the shareholders of the Company held on April 18, 2014.

 

CHANGE OF DIRECTORS AND OFFICERS

 

In connection with the closing of the Share Purchase Agreement, on April 28, 2014, Chi Cheong Liu was appointed as President, Chief Executive Officer, Chief Financial Officer and Secretary of the Company and Fong Szeto was appointed as a director.

 

   B.Business Overview

 

Prior to April 28, 2014, we had four principal businesses operated by NAI, CWN HK and CWN China: (1) the financial web portal (“Portal”) business, conducted under the ChineseWorldNet.com brand via the “www.chineseworldnet.com” website; (2) the investor relations and public relations (“IR/PR”) business, conducted under the NAI500 brand via a number of media channels including the “www.nai500.com” and “en.nai500.com” websites, as well as certain other promotional services; (3) the North America and Greater China cross-border business partnering conferences (“Conference”) business, conducted via the brand of Global Chinese Financial Forum and its “www.gcff.ca” website; and (4) the financial content and information distribution business.

 

As of April 28, 2014, we had no principal businesses. The Company is currently seeking opportunities to acquire or invest in other business opportunities.

 

- 7 -

 

 

CORPORATE STRATEGY AND STRATEGIC BUSINESS PLAN

 

As at December 31, 2019, ChineseWorldNet.com Inc. does not have any operating businesses. The Company is now looking for opportunities to acquire or invest in other business opportunities.

 

    C.Organizational Structure

 

ChineseWorldNet.Com Inc. (“CWN”) was incorporated under theCompany Law (1998 revision) of the Cayman Islands on January 12, 2000. Our registered and principal executive office is located at Appleby, Clifton House, 75 Fort Street, P.O. Box 190, Grand Cayman, Cayman Islands KY1-1104. 

 

As a result of the sale of its subsidiaries to Ningbo International Limited on April 28, 2014, CWN has no subsidiaries   .

 

   D.Property, Plants and Equipment

 

We do not own any real property. 

 

    ITEM 4A.UNRESOLVED STAFF COMMENTS

 

Not applicable.

 

   ITEM 5.OPERATING AND FINANCIAL REVIEW AND PROSPECTS

 

This discussion and analysis is of our operating results and our financial position for the fiscal years ended December 31, 2019 and 2018 should be read in conjunction with the financial statements and the related notes thereto provided at “Item 18 – Financial Statements”.

 

    A.Results of Operations

 

The Company is inactive since April 28, 2014. Prior to the sale of our subsidiaries on April 28, 2014, we generated revenue from our Portal, IR/PR and Conference businesses.  Our annual and quarterly operating results were primarily affected by the level of our sales and costs of operations over these three businesses. 

 

- 8 -

 

 

YEARS ENDED DECEMBER 31, 2019, 2018 and 2017

 

For the year ended December 31, 2019 (“Fiscal 2019”), we recorded a net income of $34,894 attributable to common stockholders ($0.00 income per common share), compared to a net loss of $5,603 for the year ended December 31, 2018 (“Fiscal 2018”) attributable to common stockholders ($0.00 loss per common share).  The increase of net income of $40,497 was mainly due to imputed interest income of $68,869 (2018: $79,655) and foreign exchange gain of $18,781 (2018: loss of $27,812).

 

For the year ended December 31, 2018 (“Fiscal 2018”), we recorded a net loss of $5,603 attributable to common stockholders ($0.00 loss per common share), compared to a net loss of $231,953 for the year ended December 31, 2017 (“Fiscal 2017”) attributable to common stockholders ($0.02 loss per common share).  The decrease of net loss of $226,350 was mainly due to imputed interest income of $79,655 (2017: $42,042 ) and no loss on loan receivables (2017: loss of $249,110).

  

YEAR ENDED DECEMBER 31, 2019 COMPARED TO YEAR ENDED DECEMBER 31, 2018

 

Revenues

 

There were no revenues recorded in Fiscal 2019 and Fiscal 2018.

 

Expenses

 

For Fiscal 2019, we recorded operating expenses of $53,955 compared to operating expenses of $57,446 for Fiscal 2018. 

  

Audit and Legal

 

Audit and legal expenses were $17,213 in Fiscal 2019, compared to $16,733 in Fiscal 2018. 

  

Directors’ Remuneration

 

Directors’ remuneration expenses were $36,000 in Fiscal 2019, compared to $36,000 in Fiscal 2018.

  

Office and Miscellaneous

 

Office and miscellaneous expenses were $742 in Fiscal 2019, compared to $4,713 in Fiscal 2018. 

  

Other Income (Loss)

 

We recorded other income of $88,849 in Fiscal 2019, compared to $51,843 in Fiscal 2018.  The increase of other income of $37,006 was primarily due to imputed interest income of $68,869 (2018: $79,655) and foreign exchange gain of $18,781 (2018: loss of $27,812).

 

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CURRENCY

 

We maintain our accounting records in US dollars.  

 

Foreign currency fluctuations may have an impact on our financial condition.  However, we do not engage in any foreign currency hedge transactions.

 

INFLATION

 

We do not believe that inflation will have a material adverse effect on our financial condition.  

 

   B.Liquidity and Capital Resources

 

As of December 31, 2019, we had cash and cash equivalents of $225,971 (2018: $216,506). We had a working capital of $388,424 at December 31, 2019, compared to working capital of $175,157 at December 31, 2018. 

 

   C.Research and Development, Patents and Licenses

 

We have not engaged in research and development activities for the last three fiscal years, and have no patents and licenses.

 

   D.Trend Information

 

As a result of the sale of our subsidiaries on April 28, 2014, we do not currently know of any trends that would be material to our operations.

 

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   E.Off-Balance Sheet Arrangements

 

We do not have any off-balance sheet arrangements.

 

    ITEM 6.DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

 

   A.Directors and Senior Management

 

The following table sets forth all directors and executive officers of CWN.  Each director’s term of office expires at the next annual general meeting of shareholders.

 

Name Age  Office Held Since Offices and Positions Held in CWN
Chi Cheong Liu (1)  60  January 12, 2000 Director, President, Chief Executive Officer, Chief Financial Officer, Secretary and Treasurer
Chi Kong Liu (1)  59  January 12, 2000 Director
Fong Szeto  72  April 28, 2014 Director

 

   (1)Chi Cheong Liu and Chi Kong Liu are related parties.

 

The business background and principal occupations of each of CWNs director and executive officer for the preceding five years are as follows:

 

Chi Cheong Liu 

 

Mr. Liu has been a director and treasurer of CWN since January 2000.  Mr. Liu has been President of Chigo Engineering Company, a security engineering firm, for the last 18 years.  Mr. Liu is a venture capitalist specializing in biotechnology and technology investments.

 

Chi Kong Liu 

 

Mr. Liu has been a director of CWN since January 2000.  Mr. Liu is President and owner of S & B Trading Company Limited, a diamond and jewelry wholesaler.  Mr. Liu is a venture capitalist specializing in biotechnology and technology investments.

 

Fong Szeto

 

Mr. Szeto has been a director of CWN since April 28, 2014. Mr. Szeto is an experienced international businessman with expertise in the People’s Republic of China and Hong Kong SAR.

 

   B.Compensation

 

The following table provides information regarding direct and indirect remuneration to the directors and executive officers of the Company during Fiscal 2019.

 

  Annual Compensation in Fiscal 2019 
Name and Respective Office and Position Held 

Salary

($)

  

Bonus

($)

  

Other Annual

Compensation

($)

 
Chi Cheong Liu (1)
Director, President and Chief Executive Officer, Chief Financial Officer, Secretary and Treasurer
  Nil   Nil   12,000 
Chi Kong Liu (2)
Director
  Nil   Nil   12,000 
Fong Szeto (3)
Director
  Nil   Nil   12,000 

 

- 11 -

 

 

   (1)Mr. Liu is a shareholder and does not receive salary.  Mr. Liu incurred director fee of $12,000 in 2019 and $12,000 in 2018.

 

   (2)Mr. Liu is a shareholder and does not receive salary.  Mr. Liu incurred director fee of $12,000 in 2019 and $12,000 in 2018.

 

   (3)Mr. Szeto is a shareholder and does not receive salary. Mr. Szeto incurred director fee of $12,000 in 2019 and $12,000 in 2018.

 

PENSION PLANS

 

We do not provide pension, retirement or similar benefits for directors, senior management or employees.

 

   C.Board Practices

 

Directors hold office for a term of one year or until the next annual general meeting of shareholders at which directors are elected.  Two of the current directors have served our company since January 12, 2000 and a third was appointed on April 28, 2014.  Our officers are appointed by the board and serve at the board’s discretion.

 

We have not entered into service contracts with any of our directors.  

 

We do not have an audit committee or remuneration committee, but our entire board of directors acts in such capacities.

 

   D.Employees

 

As of December 31, 2019, there were no employees of the Company.

 

   E.Share Ownership of Directors and Senior Management

 

The following table sets forth certain information regarding the ownership of our Common Shares by each of the persons who were directors and members of senior management during Fiscal 2019.  The percentage owned is based on 10,950,000 shares outstanding as at April 29, 2020.

 

Name and Respective Office and Position Held Share Ownership  % Share Ownership 
Chi Cheong Liu (1)  1,730,000   15.80%
Chi Kong Liu  580,000   5.30%
Fong Szeto  30,000   0.27%
Total  2,340,000   21.37%

 

   (1)Goldpac Investment Partners Ltd., for which Mr. Liu is principal, owned 1,166,667 Common Shares of our company.  Goldpac Investments Ltd., for which Mr. Liu is principal, owned 200,000 Common Shares of our company. Total direct and indirect share ownership was 3,096,667 Common Shares or 28.28% of the total Common Shares of our company.

 

Stock Options

 

Our board of directors (the “Board”) adopted the 2007 Stock Option Plan (the “2007 Plan”) on October 11, 2007, under which we issued incentive stocks options with the right to purchase up to 550,000 Common Shares to our directors, officers, and employees.  All of these options granted on October 11, 2007 have an exercise price of $1.08 per share and a vesting period of 1 to 5 years, and a term of 5 years expiring on October 11, 2012.  We had not grant options to individual consultants or advisors.

 

- 12 -

 

 

The Board further adopted the 2010 Stock Option Plan (the “2010 Plan”) on June 10, 2010, under which we issued incentive stocks options with the right to purchase up to 1,090,000 Common Shares to our directors, officers, and employees.  All of these options granted on June 10, 2010 have an exercise price of $0.60 per share and a vesting period of 1 to 5 years, and a term of 5 years expiring on June 10, 2015.  We had not grant options to individual consultants or advisors.

 

As at December 31, 2019, we had no options issued or outstanding.

 

   ITEM 7.MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

 

   A.Major Shareholders

 

To the knowledge of our directors and senior officers, the following table sets forth the persons or companies who beneficially own, directly or indirectly, or exercise control or direction over shares carrying 5% or more of the voting rights attached to the total outstanding Common Shares as at April 29, 2020. The percentage owned is based on 10,950,000 shares outstanding as at April 29, 2020.  

 

Name of Shareholder 

Number of

Common Shares

  

Percentage of Shares

Beneficially Owned

 
Chi Cheong Liu (1)  3,096,667   28.28%
CEDE & Co  1,827,000   16.68%
Vcanland China Holdings Ltd.  1,500,000   13.70%
Datacom Venture Limited  600,000   5.48%
Chi Kong Liu  580,000   5.30%
Monica Law  570,000   5.21%
Total  6,346,667   94.65 

 

   (1)Mr. Liu owns 1,730,000 Common Shares.  Goldpac Investment Partners Ltd., for which Mr. Liu is principal, owns 1,166,667 Common Shares. Goldpac Investments Ltd., for which Mr. Liu is a principal, owns 200,000 Common Shares.

 

Unless otherwise indicated by footnote, we believe that the beneficial owners of the Common Shares listed above, based on information furnished by such owners, have sole investment and voting power with respect to such Common Shares, subject to community property laws where applicable.  Beneficial ownership is determined in accordance with the rules of the United States Securities and Exchange Commission and generally includes voting or investment power with respect to securities.  As far as it is known to us, except as disclosed herein, we are not directly or indirectly owned or controlled by another corporation, by any foreign government or any other person or entity.  The shareholders, who own five percent or more of our Common Shares, do not have voting rights which are different than our other shareholders who own our Common Shares.

 

   B.Related Party Transactions

 

As at December 31, 2019, the Company has non-interest bearing loan from the stockholders and directors in the amount of $92,562 [2018 - $38,628].

 

As at December 31, 2019, the Company accrued director fees in the amount of $72,000 [2018 - $36,000].

 

All related party transactions were entered into in the normal course of business and are recorded at the exchange amount established and agreed to between the related parties.

 

   C.Interests of Experts and Counsel

 

This Report on Form 20-F is being filed as an annual report under the Exchange Act and, as such, there is no requirement to provide any information under this item.

 

   ITEM 8.FINANCIAL  INFORMATION

 

   A.Financial Statements

 

This Report on Form 20-F includes our audited financial statements for the years ended December 31, 2019 and 2018, including our balance sheets as of December 31, 2019 and 2018, and the statements of shareholders’ equity, operations and cash flows for the years ended December 31, 2019 and 2018, and the related notes to those statements and the auditor’s reports thereon.  Reference is made to these documents commencing at Page 25 of this Report.

 

- 13 -

��

 

   B.Significant Changes

 

As of April 28, 2014, we have sold all subsidiaries and business units. The core business activities and operations remain discontinued as at December 31, 2019.

 

   ITEM 9.THE OFFER AND LISTING

 

   A.Offer and Listing Details

 

Our common shares are currently quoted on the OTC Pink under the symbolCWNOF.  For the periods indicated, the following table sets forth the high and low market prices of our common shares, as reported by the OTC Bulletin Board.  These prices represent inter-dealer quotations without retail markup, markdown, or commission and may not necessarily represent actual transactions. 

  

Periods High  Low 
Fiscal 2019 $0.03  $0.02 
Fiscal 2018 $0.03  $0.03 
Fiscal 2017 $0.04  $0.03 
Fiscal 2016 $0.13  $0.01 
Fiscal 2015 $0.08  $0.02 
Fiscal 2014 $0.07  $0.05 
Fiscal 2013 $0.55  $0.05 
Fiscal 2012 $1.34  $0.12 
Fiscal 2011 $1.40  $0.12 
Fiscal 2010 $0.75  $0.25 
         
Fiscal 2020        
1Q-2020 $0.02  $0.002 
         
Fiscal 2019        
1Q-2019 $0.03  $0.02 
2Q-2019 $0.02  $0.02 
3Q-2019(1) $0.02  $0.02 
4Q-2019(1) $0.02  $0.02 
         
Fiscal 2018        
1Q-2018(1) $0.03  $0.03 
2Q-2018(1) $0.03  $0.03 
3Q-2018(1) $0.03  $0.03 
4Q-2018(1) $0.03  $0.03 
         
Fiscal 2017        
1Q-2017(1) $0.04  $0.03 
2Q-2017 $0.03  $0.03 
3Q-2017 $0.03  $0.03 
4Q-2017 $0.03  $0.03 
         
Most Recent 6 months from October 2019 through March 2020        
March 2020(1) $0.002  $0.002 
February 2020(1) $0.002  $0.002 
January 2020(1) $0.02  $0.002 
December 2019(1) $0.02  $0.02 
November 2019(1) $0.02  $0.02 
October 2019(1) $0.02  $0.02 

 

   (1)There were no trades of our common shares during this period.

  

- 14 -

 

 

   B.Plan of Distribution

 

This Report on Form 20-F is being filed as an annual report under the Exchange Act and, as such, there is no requirement to provide any information under this item.

 

   C.Markets

 

Our common shares are quoted on the OTC Pink operated by the Financial Industry Regulatory Authority under the symbolCWNOF

 

   D.Selling Shareholders

 

This Report on Form 20-F is being filed as an annual report under the Exchange Act and, as such, there is no requirement to provide any information under this item.

 

   E.Dilution

 

This Report on Form 20-F is being filed as an annual report under the Exchange Act and, as such, there is no requirement to provide any information under this item.

 

   F.Expenses of the Issue

 

This Report on Form 20-F is being filed as an annual report under the Exchange Act and, as such, there is no requirement to provide any information under this item.

 

- 15 -

 

 

   ITEM 10.ADDITIONAL INFORMATION

 

   A.Share Capital

 

This Report on Form 20-F is being filed as an annual report under the Exchange Act and, as such, there is no requirement to provide any information under this item.

 

   B.Memorandum and Articles of Association

 

There have been no changes to the Memorandum, Articles of Association, or Cayman Islands Law with respect to rights and powers of directors and shareholders since our20-F Registration Statement (SEC file no. 000-33051) filed on July 3, 2002.  Such discussion is hereby incorporated by reference into this Report.

 

   C.Material Contracts

 

There were no material contracts entered into by us during the last two years. 

 

- 16 -

 

 

   D.Exchange Controls

 

CAYMAN ISLANDS

 

We are organized under the laws of the Cayman Islands. We do not believe there are any decrees or regulations under the laws of the Cayman Islands applicable to us restricting the import or export of capital or affecting the remittance of dividends or other payments to non-resident holders of our common stock.  There are no restrictions under CWN’s Articles of Association or Memorandum of Association or under Cayman Islands law as dividends thereon.  There is uncertainty as to whether the Courts of Cayman Island would (i) enforce judgments of United States Courts obtained against us or our directors and officers predicated upon the civil liability provisions of the federal securities laws of the United States or (ii) entertain original actions brought in Cayman Island Courts against us or such persons predicated upon the federal securities laws of the United States.  There is no treaty in effect between the United States and Cayman Island providing for such enforcement.

 

   E.Taxation

 

CAYMAN ISLAND INCOME TAX CONSEQUENCES

 

CWN is organized under the laws of Cayman Islands.  At present, there is no Cayman Islands profit tax, withholding tax, capital gains tax, capital transfer tax, estate duty or inheritance tax payable by our United States shareholders, except shareholders ordinarily resident in the Cayman Islands.  There is currently no reciprocal tax treaty between Cayman Islands and the United States regarding withholding taxes.

 

   F.Dividends and Paying Agents

 

This Report on Form 20-F is being filed as an annual report under the Exchange Act and, as such, there is no requirement to provide any information under this item.

 

   G.Statement by Experts

 

This Report on Form 20-F is being filed as an annual report under the Exchange Act and, as such, there is no requirement to provide any information under this item.

 

   H.Documents on Display

 

Any documents referred to in this Report on Form 20-F may be inspected at our principal office located at Appleby, Clifton House, 75 Fort Street, P.O. Box 190, Grand Cayman, Cayman Islands KY1-1104 during normal business hours.

 

Our filings with the Securities and Exchange Commission, and the exhibits thereto, are available for inspection and copying at the public reference facilities maintained by the Securities and Exchange Commission in 100 F. St., NE, Washington, D.C., 20549.  Copies of these filings may be obtained from these offices after the payment of prescribed fees.  Please call the Securities and Exchange Commission at 1-800-SEC-0330 for further information on the public reference rooms. These filings are also available on the Securities and Exchange Commission's website at www.sec.gov.

 

   I.Subsidiary Information

 

As of December 31, 2019 and 2018, we do not have any subsidiaries.

 

   ITEM 11.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

We are a small business issuer as defined in Section 230.405 of the Securities Act of 1933 and Section 240.12b-2 of the Exchange Act and, as such, there is no requirement to provide any information under this item.

 

- 17 -

 

 

   ITEM 12.DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

 

This Report on Form 20-F is being filed as an annual report under the Exchange Act and, as such, there is no requirement to provide any information under this item.

 

PART II

 

   ITEM 13.DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

 

There has not been a material default in the payment of principal, interest, a sinking or purchase fund installment, or any other material default not cured within 30 days, relating to any indebtedness of us or any of our significant subsidiaries.  No payment of dividends is in arrears.

 

   ITEM 14.MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

 

There has been no modification of the instruments defining the rights of holders of any class of our registered securities.  There has been no modification or qualification of the rights evidenced by any class of our registered securities by issuing or modifying any other class of securities.  There are no assets securing any class of our registered securities.  There has been no change in the last financial year to the trustee of our registered securities.

 

   ITEM 15.CONTROLS AND PROCEDURES

 

DISCLOSURE CONTROLS AND PROCEDURES

 

As required by Rule 13a-15 under the Securities Exchange Act of 1934, our management, with the participation of our principal executive officer and principal financial officer, evaluated our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934) as of the end of the period covered by this annual report.

 

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934 is accumulated and communicated to our principal executive officer and principal financial officer to allow timely decisions regarding required disclosure.

 

MANAGEMENT’S REPORT ON INTERNAL CONTROLS OVER FINANCIAL REPORTING

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) under the Exchange Act.  Our management evaluated the effectiveness of our internal control over financial reporting as of December 31, 2013 based on criteria for effective internal control over financial reporting described inInternal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.  Based on its evaluation, our management concluded that our internal control over financial reporting was not effective as of December 31, 2019, as per the five components of the Framework: Control Environment, Risk Assessment, Control Activities, Information and Communication and Monitoring.

 

During its assessment of internal control over financial reporting, management identified the following deficiencies.  Based on the context in which the deficiencies occur, management believes that these deficiencies individually represent significant deficiencies:

 

   1.Inadequate segregation of duties over certain information system access controls.  Although there were no major error or incident noted during the evaluation, the control deficiency carries significant risk of management overrides and unauthorized and approved transactions.

 

- 18 -

 

 

   2.There was no human resources department in our company; the monthly salary calculations were conducted by the accounting department instead of human resources.  The lack of segregation of duties would not ensure the calculation of salary’s accuracy, and possibilities for staff receiving payment for work not attended.  There was also the potential risk of management override.

 

   3.Purchase requisitions and purchase orders were not prepared, only oral indication was given by management.  Purchases could be initiated and executed for other uses or purchased goods or services could be misappropriated for other uses.  There was also the potential risk of fraud for these purchases.

 

Based only on these facts, management has determined that the combination of these significant deficiencies represents a material weakness.  Individually, these deficiencies were evaluated as representing a more than remote likelihood that a misstatement that was more than inconsequential, but less than material, could occur. However, each of these significant deficiencies affects the same set of accounts. Taken together, these significant deficiencies represent a more than remote likelihood that a material misstatement could occur and not be prevented or detected.  Therefore, in combination, these significant deficiencies represent a material weakness. 

 

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

 

There were no changes to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) during the year ended December 31, 2019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

   ITEM 16.[RESERVE]

 

   ITEM 16AAUDIT COMMITTEE FINANCIAL EXPERT

 

Our board of directors serves as our audit committee.  The board has determined that it does not have an audit committee financial expert.  We believe that retaining an independent director who would qualify as an “audit committee financial expert” would be overly costly and burdensome and is not warranted given that we sold all of our subsidiaries.

 

   ITEM 16B.CODE OF ETHICS

 

On October 29, 2004, we adopted a Code of Ethics (the“Code of Ethics”).  A copy of our Code of Ethics was filed as an exhibit to the Report on Form 20-F filed with the Securities Exchange Commission on December 3, 2004.  Our Code of Ethics will be made available in print, free of charge, to any person requesting a copy in writing from our secretary at Appleby, Clifton House 75 Fort Street, PO Box 190, Grand Cayman E9 KY1-1104.

 

   ITEM 16C.PRINCIPAL ACCOUNTANT FEES AND SERVICES

 

The following table sets forth the aggregate fees billed by our auditors, MNP LLP, in Fiscal 2019 and Fiscal 2018.  Our board of directors has considered these fees and professional services rendered compatible with maintaining the independence of that firm.

 

  For year ending December 31, 
  2019  2018 
Audit Fees(1)   $10,000  $9,000 
Audit-Related Fees(2)      
Tax Fees(3)      
All Other Fees      
Total $10,000    $9,000 

 

   (1)Audit Fees consist of fees for the audit of our annual financial statements and review in connection with our statutory and regulatory filings.

 

   (2)Audit-Related Fees consist of fees related to assurance and related services that are reasonably related to the performance of the audit or review of our financial statements and are not reported under “Audit Fees”.

 

   (3)Tax Fees consist of fees related to tax compliance, tax advice and tax planning.

 

- 19 -

 

 

   ITEM 16D.EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

 

There are no applicable disclosures required by Exchange Act Rule 10a-3(d) regarding an exemption from the listings standards for audit committees.

 

   ITEM 16E.PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

 

Neither our Company, nor any affiliated purchaser of our Company, has purchased any of our securities during Fiscal 2019.

 

   ITEM 16F.CHANGES IN REGISTRANT’S CERTIFYING ACCOUNTANT

 

None.

 

   ITEM 16G.CORPORATE GOVERNANCE

 

We are not listed on a national securities exchange and, as such, there is no requirement to provide any information under this item.

 

   ITEM 16H.MINE SAFETY DISCLOSURE

 

Not applicable.

 

PART III

 

    ITEM 17.FINANCIAL STATEMENTS

 

Not applicable.

 

   ITEM 18.FINANCIAL STATEMENTS

 

The following Financial Statements and the related Notes thereto are filed as part of this Report, commencing at Page 25 to 33 of this Report:

 

Report of Independent Registered Public Accounting Firm24
Balance Sheets as at December 31, 2019 and 201825
Statements of Stockholders’ Equity for the years ended December 31, 2019 and 201826
Statements of Operations for the years ended December 31, 2019 and 201827
Statements of Cash Flows for the years ended December 31, 2019 and 201828
Notes to Financial Statements29 to 33

 

- 20 -

 

 

   ITEM 19.EXHIBITS 

 

Exhibit
No.
 Document Description
   
1(1)Articles of Association, Memorandum of Association and Certificate of Incorporation of CWN
   
2.1(2)Form of Convertible Debenture dated May 31, 2004
   
4.1(4)Stock Option Plan Agreement dated October 1, 2007
   
4.2(6)Stock Option Plan Agreement dated June 10, 2010
   
4.3(5)Agreement to Establish [CWN China Co., Ltd.], a Chinese – Foreign Joint Venture Ltd. Liability Company
   
4.4(6)Consulting Agreement between Chineseworldnet.Com Inc. and Goldpac Investments Ltd. dated January 1, 2010
   
4.5(6)Consulting Agreement between Chineseworldnet.Com Inc. and Silver Lake Investment Partners, Ltd. dated January 1, 2010
   
4.6(7)Consulting Agreement between Chineseworldnet.Com Inc. and Goldpac Investments Ltd. dated January 1, 2011
   
4.7(7)Consulting Agreement between Chineseworldnet.Com Inc. and Silver Lake Investment Partners, Ltd. dated January 1, 2011
   
4.8(8)Consulting Agreement between Chineseworldnet.Com Inc. and Goldpac Investments Ltd. dated January 1, 2012
   
4.9(9)Share purchase agreement dated March 19, 2014 with Ningbo International Limited
   
11(3)Code of Ethics
   
12.1*Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
   
13.1*Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
   
101.INS*XBRL Instance Document
   
101.SCH*XBRL Taxonomy Extension Schema Document
   
101.CAL*XBRL Taxonomy Extension Calculation Linkbase Document
   
101.DEF*XBRL Taxonomy Extension Definition Linkbase Document
   
101.LAB*XBRL Taxonomy Extension Label Linkbase Document
   
101.PRE*XBRL Taxonomy Extension Presentation Linkbase Document

 

*Filed herewith

 

- 21 -

 

 

(1)Incorporated by reference to Exhibits of Registrant’s Registration Statement on Form 20-F (file no. 000-33051) filed on July 3, 2002.
  
(2)Incorporated by reference to Exhibits of Registrant’s Annual Report on Form 20-F (file no. 000-33051) filed on December 3, 2004.
  
(3)Incorporated by reference to Exhibits of Registrant’s Annual Report on Form 20-F (file no. 000-33051) filed on June 30, 2005.
  
(4)Incorporated by reference to Exhibits of Registrant’s Annual Report on Form 20-F (file no. 000-33051) filed on June 30, 2008.
  
(5)Incorporated by reference to Exhibits of Registrant’s Annual Report on Form 20-F (file no. 000-33051) filed on June 30, 2009.
  
(6)Incorporated by reference to Exhibits of Registrant’s Annual Report on Form 20-F (file no. 000-33051) filed on May 13, 2011.
  
(7)Incorporated by reference to Exhibits of Registrant’s Annual Report on Form 20-F (file no. 000-33051) filed on April 30, 2012.
  
(8)Incorporated by reference to Exhibits of Registrant’s Annual Report on Form 20-F (file no. 000-33051) filed on April 30, 2013.
  
(9)Incorporated by reference to Schedule “A” to Exhibit 99.4 of Registrant’s Form 6-K (file no. 000-33051) filed on March 24, 2014. 

 

- 22 -

 

 

SIGNATURES

��

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F, and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

        

Dated: April 29, 2020

 

ChineseWorldNet.com Inc.,
a Cayman Islands Corporation
 
/s/ CHI CHEONG LIU
CHI CHEONG LIU
Director, President, Chief Executive Officer, Chief Financial Officer, Secretary and Treasurer

 

- 23 -

 

 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and Stockholders of Chineseworldnet.com Inc.:

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheets of Chineseworldnet.com Inc. (the Company) as of December 31, 2019 and 2018, and the related statements of stockholders’ equity, operations and comprehensive income (loss), and cash flows for each of the years in the three-year period ended December 31, 2019 and the related notes (collectively referred to as the financial statements).

 

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.

 

Material Uncertainty Related to Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has suffered recurring losses from operations, has not attained profitable operations and is dependent upon obtaining adequate financing to fulfill its operating activities. These factors raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

  
  
We have served as the Company’s auditor since 2006. 
  
Vancouver, BC, Canada 
  
April 29, 2020 

 

 

- 24 -

 

 

Chineseworldnet.Com Inc.

 

BALANCE SHEETS

 

As at December 31

(Expressed in U.S. Dollars)

 

  2019  2018 
  $  $ 
ASSETS        
Current assets        
Cash and cash equivalents  225,971   216,506 
Prepaid expenses and deposits  8,236   8,214 
Note receivable[note 3]  257,714   - 
Total current assets  491,921   224,720 
         
Non-current assets        
Note receivable[note 3]  -   178,373 
Total assets  491,921   403,093 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities        
Accounts payable and accrued liabilities  10,935   10,935 
Due to related parties, non-interest bearing[note 5]  92,562   38,628 
Total current liabilities  103,497   49,563 
         
Stockholders’ equity[note 4]        
Common stock        
Authorized        
100,000,000 common shares with a par value of $0.001 per share Issued and outstanding 10,950,000 common shares  10,950   10,950 
Additional paid-in capital  4,183,129   4,183,129 
Deficit  (3,805,655)  (3,840,549)
Total stockholders’ equity  388,424   353,530 
Total liabilities and stockholders’ equity  491,921   403,093 

 

Nature of operation [note 1]

Going concern [note 1]

Subsequent event [note 7]

        

 

The accompanying notes are an integral part of these financial statements

 

- 25 -

 

 

Chineseworldnet.Com Inc.

 

STATEMENTS OF STOCKHOLDERS’ EQUITY

 

Years ended December 31

(Expressed in U.S. Dollars)

 

  Common stock  

Additional

paid-in

      
  Shares  Amount  capital  (Deficit) Total 
  #  $  $  $ $ 
Balance, January 1, 2017  10,950,000   10,950   4,183,129   (3,602,993) 591,086 
                    
Net loss for the year           (231,953) (231,953)
                    
Balance, December 31, 2017  10,950,000   10,950   4,183,129   (3,834,946) 359,133 
                    
Net loss for the year    —         (5,603) (5,603)
                    
Balance, December 31, 2018  10,950,000   10,950   4,183,129   (3,840,549) 353,530 
                    
Net income for the year           34,894  34,894 
Balance, December 31, 2019  10,950,000   10,950   4,183,129   (3,805,655) 388,424 

 

 

The accompanying notes are an integral part of these financial statements

 

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Chineseworldnet.Com Inc.

 

STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

 

Years ended December 31

(Expressed in U.S. Dollars)

 

  2019  2018  2017 
  $  $  $ 
Expenses            
Audit and legal  17,213   16,733   16,464 
Directors’ remuneration[note 5]  36,000   36,000   36,000 
Office and miscellaneous  742   4,713   4,472 
   53,955   57,446   56,936 
Other income (loss)            
Foreign exchange gain (loss)  18,781   (27,812)  32,051 
Interest income  1,199   -   - 
Accretion income[note 3]  68,869   79,655   42,042 
Loss on notes receivable[note 3]  -   -   (249,110)
   88,849   51,843   (175,017)
Net income (loss) and comprehensive income (loss) for the year  34,894   (5,603)  (231,953)
             
Basic and diluted net income (loss) per common share  0.00   (0.00)  (0.02)
Weighted average number of common shares outstanding            
- basic and diluted  10,950,000   10,950,000   10,950,000 

 

The accompanying notes are an integral part of these financial statements

 

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Chineseworldnet.Com Inc.

 

STATEMENTS OF CASH FLOWS

 

Years ended December 31

(Expressed in U.S. Dollars)

 

  2019  2018  2017 
  $  $  $ 
OPERATING ACTIVITIES            
Net income (loss) for the year  34,894   (5,603)  (231,953)
             
Adjustment to reconcile net income (loss) to net cash provided (used) by operating activities:            
Foreign exchange (gain) or loss  (10,472)  24,991   (30,642)
Loss on note receivable        249,110 
Imputed interest income  (68,869)  (79,339)  (42,044)
             
Changes in non-cash working capital items:            
Prepaid expenses and deposits  (22)  (885)  (2,939)
Accounts payable and accrued liabilities     351   (5,375)
Due to related parties, non-interest bearing [note 5]  53,934       
Net cash provided (used) by operating activities  9,465   (60,485)  (63,843)
             
INVESTING ACTIVITIES            
    Proceeds from note receivable     147,427   150,000 
Net cash provided by investing activities     147,427   150,000 
             
             
Increase in cash and cash equivalents  9,465   86,942   86,157 
Cash and cash equivalents, beginning of year  216,506   129,564   43,407 
Cash and cash equivalents, end of year  225,971   216,506   129,564 

 

The accompanying notes are an integral part of these financial statements

 

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1. NATURE OF OPERATIONS AND GOING CONCERN

 

The Company was incorporated under the laws of Cayman Islands on January 12, 2000. On January 15, 2000 the Company acquired 100% of the issued and outstanding shares of NAI Interactive Ltd. (“NAI”), a company incorporated under the laws of British Columbia, Canada. The Company also has a dormant wholly-owned subsidiary ChineseWorldNet.com HK Limited (“CWN HK”) incorporated under the laws of Hong Kong.  ChineseWorldNet.com (Shanghai) Ltd. (“CWN China”) was incorporated under the laws of People’s Republic of China in April 2008. In fiscal year 2012, the Company’s ownership interests in CWN China increased from 80% to 83% after CWN HK invested an amount of $200,000 to CWN China’s registered capital. During the fiscal year 2013, the Company’s ownership interests in CWN China further increased from 83% to 85% after CWN HK invested an amount of $187,200 to CWN China’s registered capital. CWN China has a wholly-owned subsidiary, Weihai Consulting Investment Ltd (“Weihai”), a company incorporated under the laws of People’s Republic of China in September 2009. In year 2014, the Company received shareholder approval and sold all issued and outstanding shares in NAI, all issued and outstanding shares of CWN HK and 23.8% of issued and outstanding shares of CWN Capital. For the consideration, the Company received an aggregate of CAD $263,968 in funds and one non-interest bearing promissory notes in the aggregate principal amount of CAD $831,031 with a maturity date of one year with the option to extend upon mutual agreement.

 

After disposal of all subsidiaries and long-term investment on April 28, 2014, the core business activities and operations were discontinued. The Company is currently inactive with limited operations and is in the process of seeking new business opportunities.

 

These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has accumulated losses since its inception and requires additional funds to maintain and expand its intended business operations. As at December 31, 2019, the Company has a working capital of $388,424 (2018: $175,157).

 

Management’s plans in this regard are to raise debt or equity financing as required which the Company has been able to finance the operations through a series of equity and debt financings and additional funds is still required to fund the Company’s anticipated business expansion. There can be no assurance that a viable business opportunity that can be adequately financed will be identified and available to the Company. Additional equity and/or debt financing is subject to the global financial markets and prevailing economic conditions, which have recently been volatile and distressed. These factors will likely make it more challenging to obtain financing for the Company going forward. These matters and conditions indicate the existence of a material uncertainty that causes substantial doubt about the Company’s ability to continue as going concern.

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

These financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“US GAAP”) and are expressed in United States dollars, unless otherwise noted. All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as at December 31, 2019 have been included. 

 

Use of estimates

 

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

 

Estimates and underlying assumptions are reviewed at each period end. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Significant areas requiring the use of management estimates relate to fair value of financial instruments, deferred income tax assets and liabilities and stock based compensation.

 

Cash and cash equivalents

 

Cash equivalents usually consist of highly liquid investments which are readily convertible into cash with maturity of three months or less when purchased. The Company had no cash equivalents as of December 31, 2019 (2018 - $Nil).

 

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2. SIGNIFICANT ACCOUNTING POLICIES (cont’d.)

 

Foreign currency translations

 

The Company’s functional currency is the U.S. dollar. Transactions in other currencies are recorded in U.S. dollars at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into U.S. dollars at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the Statements of Operations and Comprehensive Income (Loss).  

 

Income taxes

 

Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred tax liabilities and assets is recognized in income in the period in which the change occurs. Deferred tax assets are recognized to the extent that they are considered more likely than not to be realized.

 

Per FASB ASC 740 “Income taxes” under the liability method, it is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At December 31, 2019, the Company believes it has appropriately accounted for any unrecognized tax benefits. To the extent the Company prevails in matters for which a liability for an unrecognized benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. Interest and penalties associated with the Company’s tax positions are recorded as Interest Expense.

 

Comprehensive income (loss)

 

The Company accounts for comprehensive income (loss) under the provisions of ASC Topic 220-10, Comprehensive Income - Overall, which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statements of Operations and Comprehensive Income (Loss).

 

Financial instruments and concentration of risks

 

Fair value of financial instruments is made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair values.

 

The carrying value of cash and cash equivalents, due to related parties and accounts payable and accrued liabilities approximates their fair value because of the short-term nature of these instruments. The fair value of long term notes receivable is estimated using discounted cash flow model that utilizes a discount rate that reflects the Company’s current pricing for loans with similar characteristics and maturity, adjusted by liquidity premium and company specific premium at the balance sheet date (refer to Note 3).

 

The Company is exposed to interest rates risk on its cash and cash equivalents. Management does not believe that the impact of interest rate fluctuate will be significant.

 

The Company has cash and cash equivalents with various financial institutions, which may exceed insured limits throughout the year. The Company is exposed to credit loss for amounts in excess of insured limits in the event of non-performance by the institution. However, the Company does not anticipate non-performance.  

 

The Company is exposed to foreign currency risk on fluctuations related to cash and cash equivalent, accounts payable and accrued liabilities and note receivable which is denominated in Canadian dollars.

 

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2. SIGNIFICANT ACCOUNTING POLICIES (cont’d.)

 

Fair value of financial instruments

 

Fair Value of Financial Instruments – the Company adopted SFAS ASC 820-10-50, “Fair Value Measurements”. This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

 

·Level one – Quoted market prices in active markets for identical assets or liabilities; 

 

·Level two – Inputs other than level one inputs that are either directly or indirectly observable; and 

 

·Level three – Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use.

 

For the years ended December 31, 2019 and 2018, the Company's financial instruments include cash and cash equivalents, accounts payable, and amounts due to related parties. The carrying values of these financial instruments approximate their fair values due to their relatively short periods to maturity; and the fair value of notes receivable are recognized in the balance sheets as level three per the fair value hierarchy (refer to note 3).

 

Earning (Loss) per share

 

Basic earning (loss) per share is computed on the basis of the weighted average number of common shares outstanding during each period. 

 

Diluted earning (loss) per share is computed on the basis of the weighted average number of common shares and dilutive securities outstanding.

 

Stock-based compensation

 

The Company has adopted the fair value method of accounting for stock-based compensation as recommended by ASC 718Compensation –Stock Compensation. The Company has granted stock options to directors and certain employees for services provided to the Company under this method. The Company recognizes compensation expense for stock options awarded based on the fair value of the options at the grant date using the Black-Scholes option pricing model. The fair value of the options is amortized over the vesting period.

 

Recently Adopted Accounting Pronouncements

 

In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. These amendments expand the scope of Topic 718, Compensation—Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The ASU supersedes Subtopic 505-50, Equity—Equity-Based Payments to Non-Employees. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but no earlier than a company’s adoption date of Topic 606, Revenue from Contracts with Customers. The Company has adopted the methodologies prescribed by this ASU since January 1, 2019 and there is no material impact on the Company’s financial statements.

 

In March 2017, the FASB issued ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company has adopted the methodologies prescribed by this ASU since January 1, 2019 and there is no material impact on the Company’s financial statements.

 

Recently Issued Accounting Pronouncements

 

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. For all entities, amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU No. 2018-13 and delay adoption of the additional disclosures until their effective date. The Company is currently evaluating the potential impact this guidance will have on the financial statements, if any.

 

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3. NOTES RECEIVABLE

 

As at April 28, 2014, the Company received a promissory note of CAD $831,031 (US $618,952) from Ningbo International Limited, a non-related party, as result of the disposal all the issued and outstanding shares in NAI, all the issued and outstanding shares of CWN HK and 23.8% of the issued and outstanding shares of CWN Capital. The promissory note is non-interest bearing unsecured with a maturity date of one year and the option to extend upon mutual agreement. On April 28, 2015, the Company extended the payment date of the promissory note to April 28, 2016. On April 28, 2016, the Company further extended the payment date to April 28, 2018 and imposed an 8% per annum interest rate payable on the repayment date of the principal amount. On April 16, 2017, the Company amended the promissory note to a non-interest bearing and changed the payment schedule as follows:

 

·CDN $150,000 on or before April 30, 2017;
·CDN $100,000 on or before December 31, 2018;
·CDN $100,000 on or before December 31, 2019;
·The remaining principal amount of CDN$481,031 will be payable on or before December 31, 2020.

 

No repayment was received in 2019. During the year ended December 31, 2018, the Company received payment of CAD $200,000 (USD $147,000) from Ningbo International Limited. As at December 31, 2019, the note receivable balance is recorded at a fair value of $257,714 (2018: $178,373 and 2017: $271,452). The note is valued using a discounted cash flow model that utilizes a discount rate that reflects the Company’s current pricing for loans with similar characteristics and maturity, adjusted by liquidity premium and company specific premium at the balance sheet date.

 

The Company recognized $Nil loss on note receivable [2018 - $Nil and 2017 - $249,110], interest income on the note receivable of $Nil (2018: $Nil and 2017: $Nil) and accretion income of $68,869 [2018 - $79,655 and 2017 - $42,042]. The effective interest rate of the note receivable is 19.02%. During the year ended December 31, 2019, the Company recorded foreign exchange gain of $10,472 [2018 - foreign exchange loss: $24,991 and 2017 - foreign exchange gain: $30,642].

 

4. STOCKHOLDERS’ EQUITY

 

Share Capital

 

The Company has authorized 100,000,000 common shares at par value of $0.001 per share. As at December 31, 2019 and 2018, the Company has 10,950,000 common shares issued and outstanding.

 

5. RELATED PARTY TRANSACTIONS

 

As at December 31, 2019, the Company has amounts due to stockholders and directors of $92,562 [2018 - $38,628]. These amounts are non-interest bearing and are due on demand.

 

For the year ended December 31, 2019, the Company accrued director fees in the amount of $36,000 [2018 - $36,000 and 2017 - $36,000].

 

6. INCOME TAXES

  

The Company is subject to the tax laws of Cayman Islands and the tax rate is 0%. The Company’s former subsidiaries were subject to tax at various rates in the jurisdictions in which they operated. The reconciliation of the income tax expense is as follows:

 

  

2019

$

  

2018

$

  

2017

$

 
Net income (loss) for the year  34,894   (5,603)  (231,953)
Statutory Cayman Islands corporate tax rate  0%  0%  0%
Expected tax expense (recovery)         

 

As at December 31, 2019, the Company has $Nil unrecognized deductible temporary differences.

 

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7. SUBSEQUENT EVENT

 

Subsequent to year-end, there was a global outbreak of COVID-19 (coronavirus), which has had a significant impact on businesses through the restrictions put in place by the Canadian, provincial and municipal governments regarding travel, business operations and isolation/quarantine orders. At this time, it is unknown the extent of the impact the COVID-19 outbreak may have on the Company as this will depend on future developments that are highly uncertain and that cannot be predicted with confidence. These uncertainties arise from the inability to predict the ultimate geographic spread of the disease, and the duration of the outbreak, including the duration of travel restrictions, business closures or disruptions, and quarantine/isolation measures that are currently, or may be put, in place by Canada and other countries to fight the virus.

 

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