Document and Entity Information
Document and Entity Information | 6 Months Ended |
Sep. 30, 2015USD ($)shares | |
Document and Entity Information: | |
Entity Registrant Name | ADDENTAX GROUP CORP. |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2015 |
Trading Symbol | adnx |
Amendment Flag | false |
Entity Central Index Key | 1,650,101 |
Current Fiscal Year End Date | --03-31 |
Entity Common Stock, Shares Outstanding | shares | 3,000,000 |
Entity Public Float | $ 30,000 |
Entity Filer Category | Smaller Reporting Company |
Entity Current Reporting Status | No |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q2 |
Balance Sheets
Balance Sheets - USD ($) | Sep. 30, 2015 | Mar. 31, 2015 |
Assets, Current | ||
Cash and Cash Equivalents, at Carrying Value | $ 659 | $ 6,990 |
Inventory, Net | 1,065 | 0 |
Prepaid Expense, Current | 0 | 950 |
Assets, Current | 1,724 | 7,940 |
Assets, Noncurrent | ||
Other Assets, Noncurrent | 2,815 | 3,349 |
Assets, Noncurrent | 2,815 | 3,349 |
Assets | 4,539 | 11,289 |
Liabilities, Current | ||
Accounts Payable, Current | 190 | 0 |
Taxes Payable, Current | 0 | 28 |
Advances from director | 8,100 | 8,100 |
Liabilities, Current | 8,290 | 8,128 |
Liabilities, Noncurrent | ||
Liabilities | 8,290 | 8,128 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | ||
Common Stock, Value, Issued | 3,000 | 3,000 |
Additional Paid in Capital, Common Stock | 0 | 0 |
Deficit accumulated during the development stage (Accumulated Deficit) | (6,751) | 161 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (3,751) | $ 3,161 |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures | ||
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock, Shares Issued | 3,000,000 | 3,000,000 |
Common Stock, Shares Outstanding | 3,000,000 | 3,000,000 |
Liabilities and Equity | $ 4,539 | $ 11,289 |
Statement of Income
Statement of Income - USD ($) | 3 Months Ended | 6 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Revenues | ||
Sales Revenue, Goods, Net | $ 3,000 | $ 3,000 |
Sales Revenue, Services, Net | 0 | 0 |
Revenues | 3,000 | 3,000 |
Cost of Revenue | ||
Cost of Goods Sold | (325) | (325) |
Gross Profit | 2,675 | 2,675 |
Amortization of Deferred Charges | ||
General and Administrative Expense | 4,668 | 9,615 |
Operating Expenses | 4,668 | 9,615 |
Operating Income (Loss) | (1,993) | (6,940) |
Investment Income, Nonoperating | ||
Other Nonoperating Income (Expense) | 0 | 28 |
Nonoperating Income (Expense) | 0 | 28 |
Interest and Debt Expense | ||
Net Income (Loss) | $ (1,993) | $ (6,912) |
Earnings Per Share | ||
Earnings Per Share, Diluted | $ 0 | $ 0 |
Statement of Cash Flows
Statement of Cash Flows | 6 Months Ended |
Sep. 30, 2015USD ($) | |
Net Cash Provided by (Used in) Operating Activities | |
Net Income (Loss) | $ (6,912) |
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | |
Depreciation | 534 |
Increase (Decrease) in Operating Assets | |
Increase (Decrease) in Inventories | (1,065) |
Increase (Decrease) in Prepaid Expense and Other Assets | 950 |
Increase (Decrease) in Operating Liabilities | |
Increase (Decrease) in Accounts Payable | 190 |
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable | (28) |
Net Cash Provided by (Used in) Operating Activities | (6,331) |
Net Cash Provided by (Used in) Financing Activities | |
Proceeds from director loan | 0 |
Proceeds from Issuance of Common Stock | 0 |
Net Cash Provided by (Used in) Financing Activities | 0 |
Cash and Cash Equivalents, Period Increase (Decrease) | (6,331) |
Cash and Cash Equivalents, at Carrying Value | 6,990 |
Cash and Cash Equivalents, at Carrying Value | $ 659 |
Note 1. Organization and Nature
Note 1. Organization and Nature of Business | 6 Months Ended |
Sep. 30, 2015 | |
Notes | |
Note 1. Organization and Nature of Business | Note 1. ORGANIZATION AND NATURE OF BUSINESS Addentax Group Corp. (the Company, we, us or our) was incorporated in Nevada on October 28, 2014, and the Company is working in the field of producing images on multiple surfaces using heat transfer technology. |
Note 2. Going Concern
Note 2. Going Concern | 6 Months Ended |
Sep. 30, 2015 | |
Notes | |
Note 2. Going Concern | Note 2. GOING CONCERN The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which assume the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. However, the Company has generated only limited revenues and has a working capital deficit since Inception (October 28, 2014) through September 30, 2015. The Company has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time and currently does not have the funding to fully implement its business-plan. Therefore there is substantial doubt about the Companys ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon the Company generating sustainable profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due and finance the implementation of its business plan. Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it will be able to raise additional funds through the capital markets. In light of managements efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern. |
Note 3. Summary of Signifcant A
Note 3. Summary of Signifcant Accounting Policies | 6 Months Ended |
Sep. 30, 2015 | |
Notes | |
Note 3. Summary of Signifcant Accounting Policies | Note 3. SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES Basis of presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America. The Companys yearend is March 31. Development Stage Company The Company is a development stage company as defined by section 915-10-20 of the FASB Accounting Standards Codification and among the additional disclosures required as a development stage company are that its financial statements were identified as those of a development stage company, and that the statements of operations, stockholders' deficit and cash flows disclosed activity since the date of its inception (October 28, 2014) as a development stage company. All losses accumulated since Inception (October 28, 2014) have been considered as part of the Company's development stage activities. Effective June 10, 2014 FASB changed its regulations with respect to Development Stage Entities and these additional disclosures are no longer required for annual reporting periods beginning after December 15, 2014 with the option for entities to early adopt these new provisions. Consequently these additional disclosures are not included in these financial statements. Unaudited Interim Financial Statements Our accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary to make the financial statements not misleading. Operating results for the three and six months ended September 2015 are not necessarily indicative of the results that may be expected for the year ended March 31, 2016. For more complete financial information, these unaudited condensed financial statements should be read in conjunction with the audited financial statements for the period from Inception (October 28, 2014) through March 31, 2015 included in our registration statement filed with the SEC on Form S-1. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash E ui v lents T e C m a c nsi ers all i ly li i inves m e ts wit t e ori i a m ritie o thre m t les to s e q i a le t Inventory Inventory is recorded at lower of cost or market; cost is computed on a first-in first-out basis. As of September 30, 2015 the Company had $1, 065 of raw material inventory. Fixed Assets Property and equipment are stated at cost and depreciated on the straight-line method over the estimated life of the asset, which is 5 years. Expenditures for maintenance and repairs are charged to expense as incurred. Additions, major renewals and replacements that increase the property's useful life are capitalized. Property sold or retired, together with the related accumulated depreciation is removed from the appropriated accounts and the resultant gain or loss is included in net income. Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification No. 605, Revenue Recognition ("ASC-605"), ASC-605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. Since Inception, the Company has generated limited revenues from producing images on multiple surfaces using heat transfer technology. Advertising Costs The Companys policy regarding advertising is to expense advertising when incurred. The Company did not incur any advertising expenses during the three and six months period ended September 30, 1015. Stock-Based Compensation Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. Basic Income (Loss) Per Share The Company computes income (loss) per share in accordance with FASB ASC 260 Earnings per Share. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. During the three and six months periods ended September 30, 2015 there were no potentially dilutive debt or equity instruments issued or outstanding. Comprehensive Income Comprehensive income is defined as all changes in stockholders' equity (deficit), exclusive of transactions with owners, such as capital investments. Comprehensive income includes net income or loss, changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. During the three and six months period ended September 30, 2015 were no differences between our comprehensive loss and net loss. Recent Accounting Pronouncements We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these will have a material impact on the Company. |
Note 4. Fixed Assets
Note 4. Fixed Assets | 6 Months Ended |
Sep. 30, 2015 | |
Notes | |
Note 4. Fixed Assets | Note 4. FIXED ASSETS Equipment Website Totals Cost As at October 31, 2014 $ - $ - $ - Additions 2,916 700 3,616 Disposals - - - As at September 30, 2015 2,916 700 3,616 Depreciation As at October 31, 2014 - - - Change for the period 801 - 801 As at September 30, 2015 801 - 801 Net book value $ 2,115 $ 700 $ 2,815 We recognized depreciation expense of $267, and $534 in respect of equipment during the three and six months period ended September 30, 2015. No depreciation was recognized in respect of the website during the three and six months period ended September 30, 2015, as the website was not yet operational during the period. |
Note 5. Loan From Director
Note 5. Loan From Director | 6 Months Ended |
Sep. 30, 2015 | |
Notes | |
Note 5. Loan From Director | Note 5. LOAN FROM DIRECTOR In support of the Companys efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note. The balance due to the director, as of September 30, 2015, was $8,100. This loan is unsecured, non-interest bearing and due on demand. Effective March 2, 2015, the Company entered into a Loan Agreement with Otmane Tajmouati, the Companys sole officer and director. Under the terms of the Loan Agreement, Mr. Tajmouati has agreed to loan up to $30,000 to the Company to fund ongoing expenses and operational needs. No funds under this Loan Agreement were advanced to the Company during the period October 28, 2014 (inception) to September 30, 2015. The balance of $8,100 that had been loaned to the Company by Mr. Tajmouati as of September 30, 2015 was not advanced under the terms of this loan agreement. |
Note 6. Shareholder's Deficit
Note 6. Shareholder's Deficit | 6 Months Ended |
Sep. 30, 2015 | |
Notes | |
Note 6. Shareholder's Deficit | Note 6. SHAREHOLDERS DEFICIT The Company has 75,000,000, $0.001 par value shares of common stock authorized. On December 26, 2014, the Company issued 3,000,000 shares of common stock to a director for cash proceeds of $3,000 at $0.001 per share. There were 3,000,000 shares of common stock issued and outstanding as of September 30, 2015. |
Note 7. Commitments and Conting
Note 7. Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2015 | |
Notes | |
Note 7. Commitments and Contingencies | Note 7. COMMITMENTS AND CONTINGENCIES Lease agreement Company has extended its six months rental agreement, signed on December 15, 2014 for additional six months. The lease expires in February 28, 2016. The Company is renting 30 square meters of office space for $190 per month. Litigation We were not subject to any legal proceedings during the three and six months period ended September 30, 2015, and we know of no material, existing or pending legal proceedings against our Company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest. |
Note 8. Income Taxes
Note 8. Income Taxes | 6 Months Ended |
Sep. 30, 2015 | |
Notes | |
Note 8. Income Taxes | Note 8. INCOME TAXES As of September 30, 2015, the Company had net operating loss carry forwards of approximately $6,751 that may be available to reduce future years taxable income in varying amounts through 2031. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. The provision for Federal income tax consists of the following: As of September 30 5 For the period ended March 31, 2015 Federal income tax benefit (expense) Current Operations $ 1,037 (28) Less: tax refund (2 8 Valuation allowance (1,009) Net provision for Federal income taxes $ - (28) The cumulative tax effect at the expected rate of 15 September 30, 2015 Deferred tax asset attributable to: Net operating loss carryover $ 1,013 Valuation allowance ( 1,013 Net deferred tax asset $ - Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $6,751 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years. |
Note 9. Subsequent Events
Note 9. Subsequent Events | 6 Months Ended |
Sep. 30, 2015 | |
Notes | |
Note 9. Subsequent Events | Note 9. SUBSEQUENT EVENTS In accordance with SFAS 165 (ASC 855-10) the Company has analyzed its operations subsequent to September 30, 2015 to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements. |