Cover
Cover - USD ($) | 12 Months Ended | ||
Aug. 31, 2021 | Dec. 13, 2021 | Feb. 28, 2021 | |
Cover [Abstract] | |||
Entity Registrant Name | FELLAZO CORP. | ||
Entity Central Index Key | 0001659207 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Document Period End Date | Aug. 31, 2021 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Entity Common Stock Shares Outstanding | 86,264,000 | ||
Entity Public Float | $ 24,710,000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 333-208237 | ||
Entity Incorporation State Country Code | NV | ||
Entity Tax Identification Number | 30-0840869 | ||
Entity Address Address Line 1 | T2-L8-3, Level 8 | ||
Entity Address Address Line 2 | IOI City Tower Two, Lebuh | ||
Entity Address Address Line 3 | IRC, IOI Resort City | ||
Entity Address City Or Town | 62502 Putrajaya | ||
Entity Address Country | MY | ||
Entity Address Postal Zip Code | 43300 | ||
City Area Code | 6017 | ||
Local Phone Number | 998 9889 | ||
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Aug. 31, 2021 | Aug. 31, 2020 |
Current Assets | ||
Cash | $ 7,361 | $ 6,665 |
Prepaid expense and deposit | 0 | 7,728 |
Total Current Assets | 7,361 | 14,393 |
TOTAL ASSETS | 7,361 | 14,393 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 13,721 | 30,137 |
Due to related party | 1,409,229 | 1,073,252 |
Total Current Liabilities | 1,422,950 | 1,103,389 |
TOTAL LIABILITIES | 1,422,950 | 1,103,389 |
Commitments and contingencies | 0 | 0 |
Stockholders' Deficit | ||
Common stock, $0.001 par value, 1,000,000,000 shares authorized; 86,264,000 shares issued and outstanding | 86,264 | 86,264 |
Additional paid-in capital | 36,122 | 36,122 |
Accumulated deficit | (1,403,624) | (1,143,619) |
Accumulated other comprehensive loss | (981) | (1,094) |
Total Fellazo Corp. Stockholders' Deficit | (1,282,219) | (1,022,327) |
Non-controlling interest | (133,370) | (66,669) |
Total Stockholders' Deficit | (1,415,589) | (1,088,996) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 7,361 | $ 14,393 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2021 | Aug. 31, 2020 |
Consolidated Balance Sheets | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 86,264,000 | 86,264,000 |
Common stock, shares outstanding | 86,264,000 | 86,264,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
Consolidated Statements of Operations and Comprehensive Loss | ||
Revenues | $ 196,916 | $ 65,848 |
Revenues from related parties | 49,945 | 0 |
Revenues total | 246,861 | 65,848 |
Cost of Goods Sold | 148,323 | 49,511 |
Cost of Goods Sold from related party | 33,983 | 0 |
Cost of Goods Sold total | 182,306 | 49,511 |
Gross profit | 64,555 | 16,337 |
Operating Expenses | ||
General and administrative expenses | 391,378 | 325,399 |
Total operating expenses | 391,378 | 325,399 |
Loss from operations | (326,823) | (309,062) |
Loss before taxes | (326,823) | (309,062) |
Provision for income tax | 0 | 0 |
Net loss | (326,823) | (309,062) |
Net loss attributable to the non-controlling interest | (66,818) | (55,313) |
Net Loss Attributable to The Shareholders of Fellazo Corp. | (260,005) | (253,749) |
Other comprehensive loss | ||
Foreign currency translation gain (loss) | 230 | (1,807) |
Total comprehensive loss | (326,593) | (310,869) |
Comprehensive Loss attributable to the non-controlling interest | (66,701) | (56,235) |
Comprehensive Loss Attributable to The Shareholders of Fellazo Corp. | $ (259,892) | $ (254,634) |
Basic and dilutive net loss per common share | $ 0 | $ 0 |
Weighted average number of common shares outstanding - basic and diluted | 86,264,000 | 86,264,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders Deficit - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated other comprehensive loss [Member] | Non controlling Interest [Member] |
Balance, shares at Aug. 31, 2019 | 86,264,000 | |||||
Balance, amount at Aug. 31, 2019 | $ (778,127) | $ 86,264 | $ 36,122 | $ (889,870) | $ (209) | $ (10,434) |
Net loss for the year | (309,062) | 0 | 0 | (253,749) | 0 | (55,313) |
Foreign currency translation loss | (1,807) | $ 0 | 0 | 0 | (885) | (922) |
Balance, shares at Aug. 31, 2020 | 86,264,000 | |||||
Balance, amount at Aug. 31, 2020 | (1,088,996) | $ 86,264 | 36,122 | (1,143,619) | (1,094) | (66,669) |
Net loss for the year | (326,823) | 0 | 0 | (260,005) | 0 | (66,818) |
Foreign currency translation loss | 230 | $ 0 | 0 | 0 | 113 | 117 |
Balance, shares at Aug. 31, 2021 | 86,264,000 | |||||
Balance, amount at Aug. 31, 2021 | $ (1,415,589) | $ 86,264 | $ 36,122 | $ (1,403,624) | $ (981) | $ (133,370) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (326,823) | $ (309,062) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Expenses paid by related party | 404,400 | 303,380 |
Changes in operating assets and liabilities: | ||
Prepaid | 1,133 | 17,958 |
Deposit | 6,663 | (6,578) |
Accounts payable and accrued liabilities | (16,438) | 3,106 |
Net Cash Provided by Operating Activities | 68,935 | 8,804 |
Cash Flows from Financing Activities: | ||
Expenses paid on behalf of related party | 0 | (362,099) |
Advances from related party | 15,555 | 309,249 |
Repayment to related party | (83,718) | (4,368) |
Net Cash Used in Financing Activities | (68,163) | (57,218) |
Effects on changes in foreign exchange rate | (76) | 612 |
Net change in cash | 696 | (47,802) |
Cash, beginning of period | 6,665 | 54,467 |
Cash, end of period | 7,361 | 6,665 |
Supplemental cash flow information | ||
Interest paid | 0 | 0 |
Income taxes paid | $ 0 | $ 0 |
ORGANIZATION DESCRIPTION OF BUS
ORGANIZATION DESCRIPTION OF BUSINESS AND GOING CONCERN | 12 Months Ended |
Aug. 31, 2021 | |
ORGANIZATION DESCRIPTION OF BUSINESS AND GOING CONCERN | |
NOTE 1 - ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN | NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN Fellazo Corp. (“the Company”, “we”, “us” or “our”) was incorporated in the State of Nevada on May 28, 2014. During the year ended August 31, 2021, the Company had continued its transformation process into an IT based company specialized in Mobile Application Developments with worldwide clientele and a portfolio investment company in primary industries such as healthcare, energy, development and capital market. The Company had commenced to be engaged in the industry of “Healthcare and Personal Wellness” products and related products. Activities include but not limited to sourcing raw materials or partly or fully finished products, manufacturing, wholesale and trading of these products. Our office is located at 8 th Going Concern Uncertainties The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. As of August 31, 2021, the Company had an accumulated deficit of $1,403,624, and net loss of $326,823 for the year ended August 31, 2021. Losses have principally occurred as a result of the substantial resources required for general and administrative expenses associated with our operations. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders or external financing. Management believes the existing stockholders will provide the additional cash to meet with the Company’s obligations as they become due. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Aug. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Principles of Consolidation The accompanying consolidated financial statements include the financial statements of the Company and its 49% owned subsidiary Fellazo Berhad, an entity under common control. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. Variable Interest Entities The Company holds both the power to direct the most significant activities of FB, as well as an economic interest in FB and, as such, is deemed to be the primary beneficiary or consolidator of FB. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. Use of Estimates In preparing these financial statements, in conformity with GAAP requires management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the years reported. Actual results may differ from these estimates. Making estimates requires management to exercise significant judgement. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. Foreign Currency Translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations. The reporting currency of the Company is the United States Dollar (“USD”). The Company’s subsidiary in Malaysia maintains their books and records in their local currency, the Malaysia Ringgit (“RM”), which is the functional currency as being the primary currency of the economic environment in which these entities operate. In general, for consolidation purposes, assets and liabilities of its subsidiary whose functional currency is not the USD are translated into USD, in accordance with ASC 830, “Translation of Financial Statements”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income within the statement of stockholders’ equity. Exchange Rates August 31, 2021 August 31, 2020 Spot rate RM : USD exchange rate 0.2406 0.2401 Average period RM : USD exchange rate 0.2389 0.2357 Cash and Cash Equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. As of August 31, 2021 and 2020, the Company had $7,361 and $6,665 in cash and cash equivalents, respectively. Fair value of financial instruments The carrying value of the Company’s financial instruments (excluding short-term bank borrowing and note payable): cash and cash equivalents, accounts payable and accrued liabilities and amount due to a related party at their fair values because of the short-term nature of these financial instruments. The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: · Level 1 : Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets; · Level 2 : Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. Black-Scholes Option-Pricing model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs; and · Level 3 : Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Revenue recognition The Company commenced its operation in mid-October 2019. At this initial stage revenue is earned from the trading of raw bird-nest only. During the year ended August 31, 2021, the Company began selling durian paste to its customers. The Company’s revenue recognition procedures consist of the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations pursuant to each of its sales transactions: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. The Company believes it is still in the initial stage of its operations which started with the trading of raw bird-nest and with the recent addition of the product, durian past, the management is using this initial stage as exposure of the management to the bird-nest business in order to learn and gain experience with our suppliers whom are bird-nest farmers or their agents, determination of quality of the raw materials, the process of raw bird-nest cleaning of the different class of the raw material and market for these clean bird-nest, and handling of durian paste as a food product. Thus at this initial stage we have not entered into any formal contract with our suppliers and purchasers, most of the suppliers and purchasers are known to our management or introduced to the management by closed business friends. Cost of Goods Sold At the current stage of stage of business operations which the management considered as exposure, gaining of knowledge and experience of the overall bird-nest and durian paste business, our Cost of goods sold only include the actual cost of the raw bird-nest and durian paste purchased from suppliers. Commitments and contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. Concentrations The Company had a concentration in demand for its products as three customers comprised 66.2% of the Company’s sales where for one customer was 32.0%, a second customer was 21.9%, and a third customer was 12.3%. The Company had a concentration in supply of its products as one supplier provided 19.0% and second supplier provided 42% of the Company’s purchases totaling 61.0% The Company had a concentration in its products portfolio as two products comprised 100% of which 32.0% was durian past and 68.0% was bird’s nest the Company’s sales. Income taxes The Company complies with the accounting and reporting requirements of ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company’s management determined that the Hong Kong is the Company’s major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if any, as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of August 31, 2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company conducts businesses in Malaysia and is subject to tax in this jurisdiction. As a result of its business activities, the Company will file tax returns that are subject to examination by the foreign tax authority. Net loss per share The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive. As of August 31, 2021 and 2020, the Company has no dilutive securities. Related Parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Recent Accounting Pronouncements Management has considered all recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Aug. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
NOTE 3 - RELATED PARTY TRANSACTIONS | NOTE 3 – RELATED PARTY TRANSACTIONS Our Management Agent, Swipypay Berhad (a company established in Malaysia) is 80% owned by our Director – Mr Yap Kit Chuan. Total outstanding amount due to our Management Agent was $1,409,229 and $1,073,252 as of August 31, 2021 and 2020 respectively. The additional amount of $335,977 incurred in the year ended August 31, 2021 consisted of operating expenses paid on behalf of the Company of $404,400 and advances from a related party of $15,555, and repayment to related party of $83,718. The difference of amount was a result of change of exchange rate. During the years ended August 31, 2021 and 2020, we had purchased $33,983 and $9,290 (RM38,790.51) worth of raw bird-nest from Swipypay Berhad (also an agent for bird-nest farmers), respectively. Our Company does not own or lease any real property, and our registered office in Malaysia is provided by our Management Agent. |
PREPAID EXPENSES AND DEPOSIT
PREPAID EXPENSES AND DEPOSIT | 12 Months Ended |
Aug. 31, 2021 | |
PREPAID EXPENSES AND DEPOSIT | |
NOTE 4 - PREPAID EXPENSES AND DEPOSIT | NOTE 4 – PREPAID EXPENSES AND DEPOSIT Prepaid expense and deposit consist of the following: August 31, August 31, 2021 2020 Prepaid expenses $ - $ 1,133 Deposit - 6,595 $ - $ 7,728 During the year ended August 31, 2020, the Company recorded deposit of $6,595 (RM 27,467), which is an initial deposit for OEM personal cleansing and nourishing facial products, these initial batches of the products would generally be used for marketing purpose ie. as trial samples for potential customers. |
STOCKHOLDERS DEFICIT
STOCKHOLDERS DEFICIT | 12 Months Ended |
Aug. 31, 2021 | |
STOCKHOLDERS DEFICIT | |
NOTE 5 - STOCKHOLDERS DEFICIT | NOTE 5 - STOCKHOLDERS’ DEFICIT The Company is authorized to issue 1,000,000,000 shares of common stock at a par value $0.001. During the years ended August 31, 2021 and 2020, there were no issuances of common stock. As of August 31, 2021 and 2020, 86,264,000 shares of common stock were issued and outstanding, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Aug. 31, 2021 | |
INCOME TAXES | |
NOTE 6 - INCOME TAXES | NOTE 6 – INCOME TAXES Fellazo Corp. was formed in 2014. Prior to the acquisition of FB in January 2019, the Company only had operations in the United States. In January 2019, the Company became the parent of FB, a Malaysia subsidiary, which files tax returns in Malaysia. For the years ended August 31, 2021 and 2020, the local (“United States of America”) and foreign components of loss before income taxes were comprised of the following: Years Ended August 31, 2021 2020 Tax jurisdiction from: - Local $ (195,807 ) $ (200,605 ) - Foreign (131,016 ) (108,456 ) Loss before income taxes $ (326,823 ) $ (309,061 ) United States of America Fellazo Corp operates in the United States and files tax returns in these jurisdictions. The reconciliation of income tax rate to the effective income tax rate for the year ended August 31, 2021 and 2020 is as follows: Years Ended August 31, 2021 2020 Loss before income taxes from US operation $ (195,807 ) $ (200,605 ) Statutory income tax rate 21.00 % 21.00 % Income tax expense at statutory rate (41,119 ) (42,127 ) Tax losses carryforward 41,119 42,127 Income tax expense $ - $ - As of August 31, 2021, the operations in the United States recognized a deferred tax assets in the amount of $265,689 as a result of accumulated net operating losses. This asset is available to be carried forward to offset future income taxes payable. Management assessed the likelihood of realizing these deferred tax assets, and determined that at August 31, 2021, it was not able to reliably estimate future taxable profits, accordingly, Management has provided for a full valuation allowance against the deferred tax assets of $265,689. Malaysia The Company’s subsidiary FB operating in Malaysia is subject to the Malaysia Profits Tax at a standard income tax rate range of 24% on the assessable income arising in Malaysia during its tax year. The reconciliation of income tax rate to the effective income tax rate for the year ended August 31, 2021 and 2020 is as follows: Years Ended August 31, 2021 2020 Loss before income taxes from Malaysia operation $ (131,016 ) $ (108,456 ) Statutory income tax rate 24.00 % 24.00 % Income tax expense at statutory rate (31,444 ) (26,029 ) Tax losses carryforward 31,444 26,029 Income tax expense $ - $ - As of August 31, 2021, the operations in Malaysia recognized a deferred tax assets in the amount of $67,801 as a result of accumulated net operating losses. This asset is available to be carried forward to offset future income taxes payable. Management assessed the likelihood of realizing these deferred tax assets, and determined that at August 31, 2021, it was not able to reliably estimate future taxable profits, accordingly, Management has provided for a full valuation allowance against the deferred tax assets of $67,801. The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of August 31, 2021 and 2020: August 31, August 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards United States $ 265,689 $ 224,570 Malaysia 67,801 36,357 Total 333,490 260,927 Less: valuation allowance (333,490 ) (260,927 ) Net deferred tax asset $ - $ - Management believes that it is more likely than not that the deferred tax assets will not be fully realizable in the future. Accordingly, the Company provided for a full valuation allowance against its deferred tax assets of $333,490 as of August 31, 2021. In the period, the valuation allowance increased by $72,563. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Aug. 31, 2021 | |
SUBSEQUENT EVENTS | |
NOTE 7 - SUBSEQUENT EVENTS | NOTE 7 - SUBSEQUENT EVENTS The Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. There are two types of subsequent events: (i) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (ii) non-recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. Management has assessed any material events that may have occurred subsequent August 31, 2021 through the date of this report December 15, 2021, and has determined that there are no material subsequent events that require disclosure. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Aug. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | These accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). |
Principles of Consolidation | The accompanying consolidated financial statements include the financial statements of the Company and its 49% owned subsidiary Fellazo Berhad, an entity under common control. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. |
Variable Interest Entities | The Company holds both the power to direct the most significant activities of FB, as well as an economic interest in FB and, as such, is deemed to be the primary beneficiary or consolidator of FB. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. |
Use of Estimates | In preparing these financial statements, in conformity with GAAP requires management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the years reported. Actual results may differ from these estimates. Making estimates requires management to exercise significant judgement. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. |
Foreign Currency Translation | Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations. The reporting currency of the Company is the United States Dollar (“USD”). The Company’s subsidiary in Malaysia maintains their books and records in their local currency, the Malaysia Ringgit (“RM”), which is the functional currency as being the primary currency of the economic environment in which these entities operate. In general, for consolidation purposes, assets and liabilities of its subsidiary whose functional currency is not the USD are translated into USD, in accordance with ASC 830, “Translation of Financial Statements”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income within the statement of stockholders’ equity. Exchange Rates August 31, 2021 August 31, 2020 Spot rate RM : USD exchange rate 0.2406 0.2401 Average period RM : USD exchange rate 0.2389 0.2357 |
Cash and Cash Equivalents | Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. As of August 31, 2021 and 2020, the Company had $7,361 and $6,665 in cash and cash equivalents, respectively. |
Fair value of financial instruments | The carrying value of the Company’s financial instruments (excluding short-term bank borrowing and note payable): cash and cash equivalents, accounts payable and accrued liabilities and amount due to a related party at their fair values because of the short-term nature of these financial instruments. The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: · Level 1 : Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets; · Level 2 : Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. Black-Scholes Option-Pricing model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs; and · Level 3 : Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
Revenue recognition | The Company commenced its operation in mid-October 2019. At this initial stage revenue is earned from the trading of raw bird-nest only. During the year ended August 31, 2021, the Company began selling durian paste to its customers. The Company’s revenue recognition procedures consist of the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations pursuant to each of its sales transactions: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. The Company believes it is still in the initial stage of its operations which started with the trading of raw bird-nest and with the recent addition of the product, durian past, the management is using this initial stage as exposure of the management to the bird-nest business in order to learn and gain experience with our suppliers whom are bird-nest farmers or their agents, determination of quality of the raw materials, the process of raw bird-nest cleaning of the different class of the raw material and market for these clean bird-nest, and handling of durian paste as a food product. Thus at this initial stage we have not entered into any formal contract with our suppliers and purchasers, most of the suppliers and purchasers are known to our management or introduced to the management by closed business friends. |
Cost of Goods Sold - Trading of Raw Bird-Nest | At the current stage of stage of business operations which the management considered as exposure, gaining of knowledge and experience of the overall bird-nest and durian paste business, our Cost of goods sold only include the actual cost of the raw bird-nest and durian paste purchased from suppliers. |
Commitments and contingencies | The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
Concentrations | The Company had a concentration in demand for its products as three customers comprised 66.2% of the Company’s sales where for one customer was 32.0%, a second customer was 21.9%, and a third customer was 12.3%. The Company had a concentration in supply of its products as one supplier provided 19.0% and second supplier provided 42% of the Company’s purchases totaling 61.0% The Company had a concentration in its products portfolio as two products comprised 100% of which 32.0% was durian past and 68.0% was bird’s nest the Company’s sales. |
Income taxes | The Company complies with the accounting and reporting requirements of ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company’s management determined that the Hong Kong is the Company’s major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if any, as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of August 31, 2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company conducts businesses in Malaysia and is subject to tax in this jurisdiction. As a result of its business activities, the Company will file tax returns that are subject to examination by the foreign tax authority. |
Net loss per share | The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive. As of August 31, 2021 and 2020, the Company has no dilutive securities. |
Related Parties | Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence. |
Recent Accounting Pronouncements | Management has considered all recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Accumulated other comprehensive income | Exchange Rates August 31, 2021 August 31, 2020 Spot rate RM : USD exchange rate 0.2406 0.2401 Average period RM : USD exchange rate 0.2389 0.2357 |
PREPAID EXPENSES AND DEPOSIT (T
PREPAID EXPENSES AND DEPOSIT (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
PREPAID EXPENSES AND DEPOSIT | |
Schedule of prepaid expense and deposit |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
INCOME TAXES | |
Schedule of loss before income taxes | Years Ended August 31, 2021 2020 Tax jurisdiction from: - Local $ (195,807 ) $ (200,605 ) - Foreign (131,016 ) (108,456 ) Loss before income taxes $ (326,823 ) $ (309,061 ) |
Schedule of reconciliation of income tax rate | Years Ended August 31, 2021 2020 Loss before income taxes from US operation $ (195,807 ) $ (200,605 ) Statutory income tax rate 21.00 % 21.00 % Income tax expense at statutory rate (41,119 ) (42,127 ) Tax losses carryforward 41,119 42,127 Income tax expense $ - $ - Years Ended August 31, 2021 2020 Loss before income taxes from Malaysia operation $ (131,016 ) $ (108,456 ) Statutory income tax rate 24.00 % 24.00 % Income tax expense at statutory rate (31,444 ) (26,029 ) Tax losses carryforward 31,444 26,029 Income tax expense $ - $ - |
Schedule of deferred tax assets | August 31, August 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards United States $ 265,689 $ 224,570 Malaysia 67,801 36,357 Total 333,490 260,927 Less: valuation allowance (333,490 ) (260,927 ) Net deferred tax asset $ - $ - |
ORGANIZATION DESCRIPTION OF B_2
ORGANIZATION DESCRIPTION OF BUSINESS AND GOING CONCERN (Details Narrative) - USD ($) | 12 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
ORGANIZATION DESCRIPTION OF BUSINESS AND GOING CONCERN | ||
Net loss | $ (326,823) | $ (309,062) |
Accumulated deficit | $ (1,403,624) | $ (1,143,619) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Aug. 31, 2021 | Aug. 31, 2020 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Spot rate RM : USD exchange rate | 0.2406 | 0.2401 |
Average period RM : USD exchange rate | 0.2389 | 0.2357 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
Cash and cash equivalents | $ 7,361 | $ 6,665 |
Ownership percentage | 49.00% | |
Concentration credit risk percentage description | The Company had a concentration in its products portfolio as two products comprised 100% of which 32.0% was durian past and 68.0% was bird’s nest the Company’s sales | |
Purchase [Member] | ||
Concentration credit risk percentage | 61.00% | |
One Supplier [Member] | Purchase [Member] | ||
Concentration credit risk percentage | 19.00% | |
Two Supplier [Member] | Purchase [Member] | ||
Concentration credit risk percentage | 42.00% | |
Sales [Member] | ||
Concentration credit risk percentage | 66.20% | |
Sales [Member] | Two customer [Member] | ||
Concentration credit risk percentage | 21.90% | |
Sales [Member] | Three customer [Member] | ||
Concentration credit risk percentage | 12.30% | |
One customer [Member] | Sales [Member] | ||
Concentration credit risk percentage | 32.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
Advance from a related party | $ 15,555 | $ 309,249 |
Repayment to related party | 83,718 | 4,368 |
Swipypay Berhad [Member] | ||
Purchased raw brid-nest | $ 33,983 | 9,290 |
Mr Yap Kit Chuan [Member] | ||
Ownership percentage hold by yap | 80.00% | |
Additional amount incurred | $ 335,977 | |
Advance from a related party | 15,555 | |
Due to related party | 1,409,229 | $ 1,073,252 |
Operating expenses paid by related party | 404,400 | |
Repayment to related party | $ 83,718 |
PREPAID EXPENSES AND DEPOSIT (D
PREPAID EXPENSES AND DEPOSIT (Details) - USD ($) | Aug. 31, 2021 | Aug. 31, 2020 |
PREPAID EXPENSES AND DEPOSIT (Details) | ||
Prepaid expenses | $ 0 | $ 1,133 |
Deposit | 0 | 6,595 |
Prepaid expense and deposit | $ 0 | $ 7,728 |
PREPAID EXPENSES AND DEPOSIT _2
PREPAID EXPENSES AND DEPOSIT (Details Narrative) | 12 Months Ended |
Aug. 31, 2020USD ($) | |
PREPAID EXPENSES AND DEPOSIT | |
Initial deposit | $ 6,595 |
STOCKHOLDERS DEFICIT (Details N
STOCKHOLDERS DEFICIT (Details Narrative) - $ / shares | Aug. 31, 2021 | Aug. 31, 2020 |
STOCKHOLDERS DEFICIT | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 86,264,000 | 86,264,000 |
Common stock, shares outstanding | 86,264,000 | 86,264,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
Tax jurisdiction from: | ||
Local | $ (195,807) | $ (200,605) |
Foreign | (131,016) | (108,456) |
Loss before income taxes | $ (326,823) | $ (309,062) |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
Loss before income taxes from Malaysia operation | $ (195,807) | $ (200,605) |
Income tax expense | 0 | 0 |
Malaysia [Member] | ||
Loss before income taxes from Malaysia operation | $ (131,016) | $ (108,456) |
Statutory income tax rate | 24.00% | 24.00% |
Income tax expense at statutory rate | $ (31,444) | $ (26,029) |
Valuation allowance | 31,444 | 26,029 |
Income tax expense | $ 0 | $ 0 |
United States [Member] | ||
Statutory income tax rate | 21.00% | 21.00% |
Income tax expense at statutory rate | $ (41,119) | $ (42,127) |
Valuation allowance | 41,119 | 42,127 |
Income tax expense | 0 | 0 |
Loss before income taxes from US operation | $ (195,807) | $ (200,605) |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | 12 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
Deferred tax assets: | ||
Total | $ 333,490 | $ 260,927 |
Less: valuation allowance | (333,490) | (260,927) |
Net deferred tax asset | 0 | 0 |
Malaysia [Member] | ||
Deferred tax assets: | ||
Less: valuation allowance | (67,801) | |
Deferred tax assets | 67,801 | 36,357 |
United States [Member] | ||
Deferred tax assets: | ||
Less: valuation allowance | (265,689) | |
Deferred tax assets | $ 265,689 | $ 224,570 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
Valuation allowance | $ (333,490) | $ (260,927) |
Increased in valuation allowance | 72,563 | |
Malaysia [Member] | ||
Valuation allowance | (67,801) | |
Deferred tax assets | 67,801 | 36,357 |
United States [Member] | ||
Valuation allowance | (265,689) | |
Deferred tax assets | $ 265,689 | $ 224,570 |