REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders
Bangfu Technology Group Co., Ltd.
Opinion on the Financial Statements
We have audited
the accompanying balance sheets of Bangfu Technology Group Co., Ltd. (the “Company”) as of June 30, 2022 and 2021, and
the related statements of operations, stockholders’ deficit, and cash flows for the years then ended, and the related notes (collectively
referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial
position of the Company as of June 30, 2022 and 2021, and the results of its operations and its cash flows for the years then ended, in
conformity with accounting principles generally accepted in the United States of America.
Consideration of the Company’s Ability
to Continue as a Going Concern
The accompanying financial
statements have been prepared assuming that the Company will continue as a going concern. The Company has suffered recurring losses and
has minimal operations which raise substantial doubt about its ability to continue as a going concern. Management’s plans
in regard to these matters are described in Note 2. The financial statements do not include any adjustments that might result from the
outcome of this uncertainty.
Basis for Opinion
These financial statements
are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s statements
based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in
accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance
about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to
have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required
to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness
of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ Pinnacle Accountancy
Group of Utah
We have served as the Company’s auditor since 2018.
Pinnacle Accountancy Group of Utah
(a dba of Heaton & Company, PLLC)
Farmington, Utah
October 6, 2022
6117
The accompanying notes are an integral part
of these financial statements.
The accompanying notes are an integral part
of these financial statements.
The accompanying notes are an integral part
of these financial statements.
The accompanying notes are an integral part
of these financial statements.
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEARS ENDED JUNE 30, 2022 AND 2021
NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS
Bangfu Technology Group Co., Ltd. (the “Company”)
was incorporated under the name “Kelinda” in the state of Nevada on December 18, 2017 to create health related applications.
The Company’s first project was to develop a mobile application (the “App”) for free test panels to identify general
health conditions and targeted diseases for both children and adults. The main purpose of the App was to remind users for doctor’s
appointments and examinations. The App synchronized with Google and Apple calendars and sent notifications regarding pills-taking time,
required tests or doctor appointments via the App and email. The Company expected to generate revenue from in-app subscriptions. Prior
to the Change of Control as defined below, the Company had developed terms of reference, design of the App, creation of an Apple store
account and was at the server and application development stage.
Pursuant to a Stock Purchase Agreement (the
“Agreement”), entered into as of March 16, 2020, by and between Fuming Yang (the “Purchaser”) and Petru Afanasenco,
Andrei Afanasenco and Yuriy Turchynskyy, as the representative of certain stockholders (collectively, the “Sellers”) of the
Company, the Sellers sold an aggregate of 7,948,000 shares of common stock, par value $0.001 per share, of the Company to the Purchaser
in consideration for an aggregate purchase price of $330,000 in cash from the Purchaser’s personal funds (the “Transaction”).
Following consummation of the Transaction, the Purchaser holds approximately 99% of the issued and outstanding shares of common stock
of the Company. The Transaction resulted in a change in control (“Change in Control”) of the Company from the Sellers to
the Purchaser.
On June 3, 2020, the Company filed a Certificate
of Amendment to the Company’s Articles of Incorporation with the Secretary of State of the State of Nevada to effect a change in
the name of the Company from “Kelinda” to “Bangfu Technology Group Co., Ltd.”, effective upon filing. In
connection with its name change, the Company’s ticker symbol on the OTC Pink Market changed from “KLDA” to “BFGX.”
Following this Change in Control, the Company
changed its business plan to engage in online business services in the People’s Republic of China. The Company plans to engage
in developments of personal daily life assistance mobile applications, online educational trainings, and employment recruitment services
in China. The Company plans to roll out the plan with a focus in the tier-3 and tie-4 cities in the provinces of Guangdong and Guangxi
first. The Company is presently evaluating the optimal corporate and legal structures in China necessary to establish and implement these
business plans. The Company aims to start implementing these business plans in the near future but its ability to execute on its business
plans and initiatives will depend upon the developments of the pandemic, including the duration and spread of the COVID-19 and lockdown
restrictions imposed by the respective various governments and oversight bodies in China.
NOTE 2 – GOING CONCERN
The accompanying financial statements have
been prepared in conformity with United States generally accepted accounting principles (the “U.S. GAAP”), which contemplate
continuation of the Company as a going concern. As a start-up, the Company has had no revenues and has accumulated losses through June
30, 2022. The Company currently has limited working capital and has not established a source of revenues sufficient to cover operating
costs over an extended period of time. These conditions raise substantial doubt about the Company’s ability to continue as a going
concern.
Management anticipates that the Company will
be dependent, for the near future, on additional investment capital from its principal stockholder to fund operating expenses. The Company
may also raise additional funds through equity and/or debt financing. However, there are no assurances that the Company will be successful
in any of its endeavors or become financially viable and continue as a going concern.
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Basis of Presentation
The Company’s financial statements have been
prepared in accordance with U.S. GAAP. The functional and reporting currency of the Company is the U.S. dollar.
Cash and Cash Equivalents
The Company considers all highly liquid
investments with the original maturities of three months or less to be cash equivalents. The Company had no
cash as of June 30, 2022 or 2021.
Taxation
Current income taxes are provided on the basis
of net profit for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income
tax purposes, in accordance with the regulations of the relevant tax jurisdictions.
Deferred income taxes are recognized for temporary
differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements, net
operating loss carry forwards and credits. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management,
it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided
in accordance with the laws of the relevant taxing authorities. Deferred tax assets and liabilities are measured using enacted rates
expected to apply to taxable income in which temporary differences are expected to be reversed or settled. The effect on deferred tax
assets and liabilities of changes in tax rates is recognized in the statement of comprehensive income in the period of the enactment
of the change.
The Company considers positive and negative
evidence when determining whether a portion or all of its deferred tax assets will more likely than not be realized. This assessment
considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability,
the duration of statutory carry-forward periods, its experience with tax attributes expiring unused, and its tax planning strategies.
The ultimate realization of deferred tax assets is dependent upon its ability to generate sufficient future taxable income within the
carry-forward periods provided for in the tax law and during the periods in which the temporary differences become deductible. When assessing
the realization of deferred tax assets, the Company has considered possible sources of taxable income including (i) future reversals
of existing taxable temporary differences, (ii) future taxable income exclusive of reversing temporary differences and carry-forwards,
(iii) future taxable income arising from implementing tax planning strategies, and (iv) specific known trend of profits expected
to be reflected within the industry.
The Company recognizes a tax benefit associated
with an uncertain tax position when, in its judgment, it is more likely than not that the position will be sustained upon examination
by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, the Company initially and subsequently
measures the tax benefit as the largest amount that the Company judges to have a greater than 50% likelihood of being realized upon ultimate
settlement with a taxing authority. The Company’s liability associated with unrecognized tax benefits is adjusted periodically
due to changing circumstances, such as the progress of tax audits, case law developments and new or emerging legislation. Such adjustments
are recognized entirely in the period in which they are identified. The Company’s effective tax rate includes the net impact of
changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by management. The Company
classifies interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense.
There were no current and future income tax
provision recorded for the years ended June 30, 2022 and 2021 since the Company did not generate any revenues in these fiscal years.
Use of Estimates
The preparation of financial statements
in conformity with U.S. GAAP 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.
Basic Earnings (Loss) Per Share
The Company computes earnings (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 stockholders 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 antidilutive. There were no potentially dilutive debt or equity instruments issued or outstanding as of June
30, 2022 and June 30, 2021.
Recent Accounting Pronouncements
The Company has reviewed all the recently
issued, but not yet effective, accounting pronouncements and does not believe any of these pronouncements will have a material impact
on the Company.
NOTE 4 – STOCKHOLDERS’ EQUITY
The Company has 75,000,000 authorized shares
of common stock, $0.001 par value per share. There were 7,950,500 shares of common stock issued and outstanding as of June 30, 2022.
There were no issuances of common stock during
the years ended June 30, 2022 and 2021.
During the year ended June 30, 2021, the Company
current major shareholder, Fuming Yang, contributed a total of $45,686 in cash to support the Company’s working capital needs.
During the year ended June 30, 2022, the Company
current major shareholder, Fuming Yang, contributed a total of $50,057 in cash to support the Company’s working capital needs.
NOTE 5 – RELATED PARTY TRANSACTIONS
Other than the capital contributions as disclosed
in Note 4 above, there were no other related party transactions during the years ended June 30, 2022 and 2021.
NOTE 6 – COMMITMENTS AND CONTINGENCIES
The Company does not have no commitments and
contingencies as of June 30, 2022 or 2021.
NOTE
7 – INCOME TAXES
The
provision for federal income tax consists of the following:
Schedule of federal income tax | |
| | | |
| | |
| |
June 30, 2022 | |
June 30, 2021 |
| |
US$ | |
US$ |
Income tax rate | |
| 21 | % | |
| 21 | % |
Income tax benefit | |
| 10,080 | | |
| 10,310 | |
Change in valuation allowance | |
| (10,080 | ) | |
| (10,310 | ) |
Net provision for income taxes | |
| — | | |
| — | |
The
cumulative tax effect at the expected rate of 21% of significant items comprising our net deferred tax amount is as follows:
Schedule of deferred income tax assets | |
| | | |
| | |
| |
June 30, 2022 | |
June 30, 2021 |
| |
US$ | |
US$ |
Deferred income tax assets: | |
| | | |
| | |
Net operating loss carryover | |
| 51,895 | | |
| 41,815 | |
Less: valuation allowance | |
| (51,895 | ) | |
| (41,815 | ) |
Net deferred income tax assets | |
| — | | |
| — | |
The
related deferred tax benefit on the above unutilized tax losses has a full valuation allowance not recognized against it as there is
no certainty of its realization. Management has evaluated tax positions in accordance with ASC 740 and has not identified any significant
tax positions, other than those disclosed.
NOTE 8 – SUBSEQUENT EVENTS
In accordance with ASC 855,
“Subsequent Events,” the Company has analyzed its operations subsequent to June 30, 2022, through the date when these
financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these
financial statements.