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SPUP Sipup

Filed: 11 May 21, 9:14am

 

 

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 August 31, 2020

 

or

 

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

 

For the transition period from ___________ to _____________

 

Commission File Number: 333-185408

 

SIPUP CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

Nevada 99-0382107
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)
   
3 Kiryat Hamada, 3rd floor, Jerusalem, Israel 9777603
(Address of principal executive offices) (Zip Code)

 

1-305-999-5232

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading symbols(s) Name of each exchange on which registered
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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T 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, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filerAccelerated filer
Non-accelerated filerSmaller 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 new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☒ No ☐

 

As of May 11, 2021, the registrant had outstanding 24,044,000 shares of common stock, par value $0.001 per share.

 

 

 

 

 

 

TABLE OF CONTENTS

  

 Page
PART I - FINANCIAL INFORMATION1
  
Item 1. Condensed Consolidated Financial Statements1
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations9
Item 4. Controls and Procedures10
  
PART II - OTHER INFORMATION11
  
Item 1. Legal Proceedings11
Item 6. Exhibits11
   
SIGNATURES12
  
EXHIBIT INDEX13

  

 

 

 

PART I

FINANCIAL INFORMATION

 

Item 1.   Financial Statements

 

SIPUP CORPORATION INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in dollars)  

 

  

As of

August 31,

2020

  

As of

November 30,
2019

 
  (unaudited)    
ASSETS      
Current assets:      
Prepaid Expenses and Other Assets  28,800   93,600 
Total Current Assets  28,800   93,600 
         
Total assets $28,800  $93,600 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY)        
Current Liabilities and Accrued Expenses  125,752   113,352 
Loan from stockholder  169,377   161,515 
         
Total liabilities  295,129   274,867 
         
Stockholders’ equity:        
Common stock, $0.001 par value; 75,000,000 shares authorized; 24,044,000 shares issued and outstanding on August 31, 2020 and 18,000,000 shares issued and outstanding on November 30, 2019 respectively  24,044   24,044 
Additional paid-in capital  64,631   64,631 
Shareholder debt due to issuance of shares  (55,647)  (55,647)
Accumulated deficit  (299,357)  (214,295)
         
Total stockholders’ equity  (266,329)  (181,267)
         
Total liabilities and stockholders’ equity $28,800  $93,600 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

1

 

  

SIPUP CORPORATION INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

($ in dollars, except share and per share data)

 

  

Three Months Ended 

August 31,

  

Nine Months Ended 

August 31,

 
  2020  2019  2020  2019 
Revenues $-  $-  $-  $- 
                 
Operating expenses:                
                 
General and administrative expenses  26,400   24,400   77,200   24,400 
                 
Total operating expenses  26,400   24,400   77,200   24,400 
                 
Interest on shareholder’s loan  7,126   907   7,862   2,721 
Net loss $(33,526) $(25,307) $(85,062) $(27,121)
                 
Net loss per share – basic and diluted attributable to common stockholders $(0.00) $(0.00) $(0.00) $(0.00)
                 
Basic and diluted weighted average number of shares outstanding  24,044,000   24,044,000   24,044,000   20,037,052 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

2

 

 

SIPUP CORPORATION INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

($ in dollars)

  

  

Nine Months Ended

August 31,

 
  2020  2019 
Cash flows from operating activities:      
Net loss for the period $(85,062) $(2,721)
         
Adjustments to reconcile net loss to net cash used in operating activities:        
         
Interest on shareholder’s loan  7,862   2,721 
Stock based compensation  64,800   - 
Changes in operating assets and liabilities:        
Increase in accounts payable and accrued expenses  12,400   - 
Net cash provided by operating activities  -   - 
         
Increase in cash and cash equivalents  -   - 
Cash and cash equivalents at beginning of period  -   - 
Cash and cash equivalents at end of period $-  $- 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

3

 

  

SIPUP CORPORATION INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’DEFICIENCY

(In dollars)

 

  Common Stock        Shareholder    
  

Number of

Outstanding

Shares

  Amount  

Additional

Paid-in

Capital

  

Accumulated

Deficit

  debt due to issuance of shares  

Total

Stockholders’

Deficiency

 
Balance at November 30, 2017  18,000,000   18,000   -   (152,473)      (134,473)
Loss for the year              (6,932)      (6,932)
Balance at November 30, 2018 (audited)  18,000,000   18,000   -   (159,405)  -   (141,405)
Effect of Reverse Capitalization  6,044,000   6,044   64,631           70,675 
Shareholder debt due to issuance of shares                  (55,647)  (55,647)
Loss for the period              (54,890)      (54,890)
Balance at November 30, 2019 (audited)  24,044,000   24,044   64,631   (214,295)  (55,647)  (181,267)
Loss for the period (unaudited)          -   (85,062)      (85,062)
Balance at August 31, 2020 (unaudited)  24,044,000   24,044   64,631   (299,357)  (55,647)  (266,329)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

4

 

  

SIPUP CORPORATION INC.

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

NOTE 1 – GENERAL 

 

Sipup Corporation (the "Company") is a Nevada Corporation incorporated on October 31, 2012. For additional information see below and note 5 - subsequent events.

 

share Exchange Transaction

 

On June 2, 2019, the Company completed the acquisition of Enlightened Capital Ltd., an Israeli company with offices at Bnei-Brak, Israel (“Enlightened”) whereby Enlightened became a direct and wholly owned subsidiary of the Company. As consideration, the Company issued to Enlightened’s shareholders 18,000,000 common Stock, par value $0.001 per share.

 

Enlightened is engaged, in the field of green energy and is licensed to internationally trade in Certified Emission Reductions, also known as carbon credits (“CERs”), as issued by the UN until 2040.

 

The transaction was accounted for as a reverse asset acquisition in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Under this method of accounting, Enlightened was deemed to be the accounting acquirer for financial reporting purposes. This determination was primarily based on the facts that, immediately following the Merger: (i) Enlightened’s stockholders owned a substantial majority of the voting rights in the combined company. As a result of the Recapitalization Transaction, the shareholders of Enlightened received the largest ownership interest in the Company, and Enlightened was determined to be the “accounting acquirer” in the Recapitalization Transaction. As a result, the historical financial statements of the Company were replaced with the historical financial statements of Enlightened. The number of shares prior to the reverse capitalization have been retroactively adjusted based on the equivalent number of shares received by the accounting acquirer in the Recapitalization Transaction.

 

Going concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As of August 31, 2020, the Company has an accumulated deficit of $299,357 from operations. The Company has earned no revenues to cover its operating costs. The Company intends to fund future operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending November 30, 2020.

 

The ability of the Company to emerge from the development stage is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan. In response to these problems, management intends to raise additional funds through public or private placement offerings.

 

These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

5

 

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION

 

Unaudited Interim Financial Statements

 

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiary, prepared in accordance with accounting principles generally accepted in the GAAP and with the instructions to Form 10-Q. In the opinion of management, the financial statements presented herein have not been audited by an independent registered public accounting firm but include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the financial condition, results of operations and cash flows for the for three-months ended August 31, 2020. However, these results are not necessarily indicative of results for any other interim period or for the year ended November 30, 2020. The preparation of financial statements in conformity with GAAP requires the Company to make certain estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Actual amounts could differ from these estimates.

 

Certain information and footnote disclosures normally included in financial statements in accordance with generally accepted accounting principles have been omitted pursuant to the rules of the U.S. Securities and Exchange Commission (“SEC”). These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report published on the SEC’s website, for the year ended November 30, 2019.

 

Use of Estimates

 

The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, certain revenues and expenses, and disclosure of contingent assets and liabilities as of the date of the financial statements. Actual results could differ from those estimates. As applicable to these financial statements, the most significant estimates and assumptions relate to the going concern assumptions.

 

Derivative Liabilities and Fair Value of Financial Instruments

 

Fair value accounting requires bifurcation of embedded derivative instruments such as conversion features in convertible debt or equity instruments and measurement of their fair value for accounting purposes. In assessing the convertible debt instruments, management determines if the convertible debt host instrument is conventional convertible debt and further if there is a beneficial conversion feature requiring measurement. If the instrument is not considered conventional convertible debt under Accounting Standards Codification (“ASC”) 470, the Company will continue its evaluation process of these instruments as derivative financial instruments under ASC 815, “Derivatives and Hedging”.

 

Once determined, derivative liabilities are adjusted to reflect fair value at each reporting period end, with any increase or decrease in the fair value being recorded in results of operations as an adjustment to fair value of derivatives.

 

Fair value of certain of the Company’s financial instruments including cash, accounts receivable, account payable, accrued expenses, notes payables, and other accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, “Fair Value Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments.

 

Fair value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of non performance, which includes, among other things, the Company’s credit risk.

 

Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows:

 

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities.

 

Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities; and

 

Level 3: Unobservable inputs for the asset or liability that are supported by little or no market activity, and that are significant to the fair values.

 

6

 

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (continue)

 

Recent Accounting Pronouncements

 

In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. In November 2018, FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”, which amends the scope and transition requirements of ASU 2016-13. Topic 326 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. Topic 326 will originally become effective for the Company beginning January 1, 2020, with early adoption permitted, on a modified retrospective approach. As a smaller reporting company, the effective date for the Company has been delayed until fiscal years beginning after December 15, 2022, in accordance with ASU 2019-10, although early adoption is still permitted. This standard is not expected to have a material impact to the Company’s consolidated financial statements after evaluation.

 

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): “Simplifying the Accounting for Income Taxes.” The amendments in this ASU simplify the accounting for income taxes, eliminates certain exceptions to the general principles in Topic 740 and clarifies certain aspects of the current guidance to improve consistent application among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021 and interim periods within annual periods beginning after December 15, 2022, though early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. This standard is not expected to have a material impact to the Company’s consolidated financial statements after evaluation.

 

The Company has implemented all new accounting pronouncements that are in effect and that could impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued, but are not yet effective, that might have a material impact on the consolidated financial statements of the Company.

 

NOTE 3 – LOAN FROM STOCKHOLDER

 

  As of, 
  August 31,
2020
  November 30,
2019
 
Loan from shareholder (*) $155,357  $147,495 
Loan from related party (**)  14,020   14,020 
  $169,377  $161,515 

 

(*)The loan is unsecured, bears annual 2.56% interest and has no repayment term. This loan is repayable on demand
(**)The loan is unsecured, bears no interest and has no repayment term. This loan is repayable on demand

 

NOTE 4 – RELATED PARTY TRANSACTION

 

The following transactions were carried out with related parties:

 

  

Three Months Ended 

August 31,

  

Nine Months Ended 

August 31,

 
  2020  2019  2020  2019 
General and administrative expenses  21,600   -   64,800   - 
Interest on shareholder’s loan  7,126   907   7,862   1,814 

 

For additional information please refer to Note 3.

 

7

 

 

NOTE 5 – SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, Company management reviewed all material events through the date of this report and determined that there are no additional material subsequent events to report.

 

(i) During November 2020 the Company, in consideration of the advance of $50,000 for purposes of paying outstanding Company obligation to third parties, the Company issued to Adi Zim and Rosario Capital Ltd. its unsecured convertible promissory note in the principal amount of $50,000 (the “Note”), which note shall be convertible into shares of the Company’s common stock at a rate equal to $0.1 per share.

 

(ii) On April 25, 2021, the Company entered into a Stock Exchange Agreement with VeganNation Services Ltd., a company formed under the laws of the State of Israel (“VeganNation”) and the shareholders of VeganNation pursuant to which VeganNation would become a wholly owned subsidiary of the Company, and the shareholders of VeganNation would receive an aggregate of 23,562,240 shares of common stock of the Company. The transaction is subject to customary closing conditions.

 

VeganNation is, a leading global plant-based company building an all-encompassing conscious consumer ecosystem, connecting and empowering plant-based and sustainable businesses and individuals. Management of the Company believes that the growth of sustainable and plant-based consumer goods presents a unique opportunity to participate in the fastest growing lifestyle globally.

 

In connection with the proposed transaction, the VeganNation stockholders are expected to receive comon stock of Sipup that will be equal to approximately 50% of the issued and outstanding common stock of the Company at the closing of the proposed merger, on a fully diluted basis.

 

In additiona, on December 28, 2020, the Company disclosed on a current report on Form 8-K that VeganNation previously entered into a non-binding Letter of Intent (the “LOI”) to acquire a vegan industry company located in the United States (the “Target”) and that VeganNation had assigned the LOI to the Company. As disclosed by the Company in its Current Report on Form 8-K filed on April 26, 2021, the Company and Target have terminated all discussions relating to the acquisition of the Target.

 

8

 

 

Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations

 

This Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, should be read in conjunction with the Management's Discussion and Analysis of Financial Condition and Results of Operations and the Financial Statements and the Notes thereto included in our Annual Report on Form 10-K for the year ended November 30, 2019. 

 

Forward-Looking Statements

 

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  These forward-looking statements are based on current expectations, estimates, forecasts and projections about us, our future performance, the industries in which we operate our beliefs and our management’s assumptions.  In addition, other written or oral statements that constitute forward-looking statements may be made by us or on our behalf.  Words such as “may,” “expect,” “anticipate,” “forecast,” “intend,” “plan,” “believe,” “seek,” “estimate,” variations of such words and similar expressions are intended to identify such forward-looking statements.  These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to assess.  Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.  

 

Overview

 

Sipup Corporation was incorporated on October 31, 2012 under the laws of the State of Nevada for the purpose of producing, packing and selling flavored yogurts.  We currently have no revenue generating business.

 

The Company plans to enter into emerging technology businesses.

 

Our loss since inception is $299,357 related primarily to professional fees, officers' compensation, and the incorporation of the Company, bank charges and office supplies. We have not meaningfully commenced our proposed business operations and will not do so until after receiving sufficient financing.

  

Results of Operations - Three Months Ended August 31, 2020, Compared to Three Months Ended August 31, 2019

 

For the three months ended August 31, 2020, we had no revenue and had general and administrative expenses of $26,400 comprised of Professional fees and filings fees. In addition, we recorded interest expenses on loan of $7,126 resulting in a net loss of $33,526 as compared to general and administrative expenses of $24,400 interest expenses on loan of $907 for the three months ended August 31, 2019.

 

Results of Operations – Nine Months Ended August 31, 2020, Compared to Nine Months Ended August 31, 2019

 

For the nine months ended August 31, 2020, we had no revenue and had general and administrative expenses of $77,200 comprised of Professional fees and filings fees. In addition, we recorded interest expenses on loan of $7,862 resulting in a net loss of $85,062 as compared to general and administrative expenses of $24,400 interest expenses on loan of $2,721 for the three months ended August 31, 2019.

 

Liquidity and Capital Resources

 

As of August 31, 2020, the company had $Nil cash and our liabilities were $295,129, consisting primarily of Accounts payable and accrued expenses of $125,752 and Loans payable of $169,377. As of November 30, 2019, the company had $Nil cash and our liabilities were $274,867, consisting primarily of Accounts payable and accrued expenses of $113,352 and Loans payable of $161,515. The available capital reserves of the Company are not sufficient for the Company to remain operational.

 

Our auditors have issued a “going concern” opinion, meaning that there is substantial doubt if we can continue as an on-going business for the next twelve months unless we obtain additional capital. No substantial revenues are anticipated until after receiving sufficient financing and implementing our plan of operations. We must raise cash to implement our strategy and stay in business. The Company anticipates over the next 12 months the cost of being a reporting public company will be approximately $25,000.

 

Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be inadequate to fund our operations over the next twelve months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. We intend to finance expenses we incur with further issuances of securities, and debt issuances, no assurance can be provided that we will be able to raise funds on commercially acceptable terms or at all.

 

9

 

 

We anticipate that our current cash and cash equivalents will be insufficient to satisfy our liquidity requirements for at least the next 12 months. We will require additional funds prior to such time and the Company will seek to obtain those funds by selling additional capital through private equity placements, debt or other sources of financing. If we are unable to obtain sufficient additional financing, we may be required to reduce the scope of our planned operations, which could harm our business, financial condition and operating results. Additional funding to meet our requirements may not be available on favorable terms, if at all.

 

If we are unable to raise the cash needed to support our operations, we will either suspend product development and marketing activities until we do raise the cash, or cease operations entirely. Because we have been unable to raise additional cash, Management may consider other business opportunities in order to maintain and increase shareholder value.

 

We are highly dependent upon the success of the private offerings of equity or debt securities, as described herein. Therefore, the failure thereof would result in the need to seek capital from other resources such as taking loans, which would likely not even be possible for the Company. At such time these funds are required, management would evaluate the terms of such debt financing. If the Company cannot raise additional proceeds via a private placement of its equity or debt securities, or secure a loan, the Company would be required to cease business operations. As a result, investors would lose all of their investment

 

Off-Balance Sheet Arrangements

 

None.

 

Contingencies

 

None.

 

Item 4.  Controls and Procedures.

 

(a) Evaluation of Disclosure Controls and Procedures.

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, the Company’s principal executive and principal financial officers and effected by the Company’s board of directors, management and other personnel to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America and includes those policies and procedures that:

 

-Pertains to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and disposition of assets;

 

-Provide reasonable assurance that transactions are recorded as necessary to permit preparation of our financial statements in accordance with accounting principles generally accepted in the United States of America and receipts and expenditures are being made in accordance with authorizations of management and directors; and

 

-Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of company assets that could have a material effect on our financial statements.

 

Under the supervision and with the participation of our management, including our principal executive officer and our financial officer, an evaluation was performed on the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, our and principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this report for the purpose of gathering, analyzing and disclosing of information that the Company is required to disclose in the reports it files under the Securities Exchange Act of 1934, within the time periods specified in the SEC’s rules and forms for the reasons set forth in our annual report on Form 10-K for the year ended November 30, 2019.

 

(b) Changes in Internal Controls.

 

There were no changes in our internal control over financial reporting during quarter ended August 31, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

10

 

 

PART II.  OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

None.

 

Item 6. Exhibits.

 

See the Exhibit Index immediately following the signature page hereto for a description of the documents that are filed as exhibits to this Quarterly Report on Form 10-Q or incorporated by reference herein.

 

11

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Quarterly Report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.

 

Date: May 11, 2021By:/s/ Isaac Thomas
  Name: Isaac Thomas
  Chief Executive Officer
(Principal Executive Officer)
   
Date: May 11, 2021By:/s/ Yochai Ozeri
  Yochai Ozeri
  Chief Financial Officer
(Principal Financial and Accounting Officer)

 

12

 

 

EXHIBIT INDEX

 

Exhibit

Number

 Description
31.1  Certification of the Chief Executive Officer (Principal Executive Officer) , as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *
   
31.2 Certification of the Chief Financial Officer (Principal Financial and Accounting Officer) , as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *
   
32.1  Certification of the Chief Executive Officer (Principal Executive Officer), furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *
   
32.2 Certification of the Chief Executive Officer (Principal Financial and Accounting Officer), furnished pursuant to 18 U.S.C. Section 1350, as adopted 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.*

 

*attached hereto

 

 

13