NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JULY 31, 2020
NOTE 1 – ORGANIZATION
AND NATURE OF BUSINESS
Clancy Corp. was incorporated on March 22,
2016 under the laws of the State of Nevada, USA. Clancy Corp. initially was formed for the purpose of producing and selling handcrafted
soaps. Clancy Corp. and its wholly owned subsidiaries are collectively, except where content requires, referred to as the “Company”
Effective June 28, 2019 (“Effective Date”),
a change of control occurred with respect to the Company. Pursuant to the terms of Stock Purchase Agreement, Gaoyang Liu purchased
2,000,000 shares of the Company’s issued and outstanding common stock from Iryna Kologrim, the then sole officer, director,
and majority shareholder of the Company. The 2,000,000 shares represented 64.4% of the shares of outstanding common stock of the
Company. In connection with the transaction, Mr. Liu became the sole officer and director of the Company and Ms. Kologrim resigned
in all capacities with respect to the Company. In connection with the change of control, the Company ceased its business operations
and is now a “shell company” as defined under Rule 405 promulgated under the Securities Act of 1933, as amended. It
also assigned all assets to Iryna Kologrim, the then sole officer, director, and majority shareholder of the Company in exchange
for a waiver of all labilities owed to her by the Company.
On January 15, 2020, the Company filed a Certificate
of Amendment to Articles of Incorporation with the Nevada Secretary of State which effectuated the following corporate actions:
●
|
the forward split of the Company’s issued and outstanding common stock, $0.001 par value, on thirty (30) post-split shares for a one (1) pre-split share basis applicable to stockholders of record as of January 2, 2020, and
|
●
|
The increase of the Company’s authorized
shares of common stock, $0.001 par value, from 75,000,000 to 345,000,000.
|
The above corporate actions were adopted by
written consent of our sole Director on January 2, 2020, and the sole Director recommended the Corporate Actions be presented to
our shareholders for approval. On January 3, 2020, our majority stockholder, holding 64.4% of our outstanding voting securities
executed written consent approving the stated corporate actions. For purposes of the forward stock split described above, the sole
Director also set January 2, 2020 as the record date of such action.
CLANCY CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JULY 31, 2020
NOTE 1 – ORGANIZATION
AND NATURE OF BUSINESS (CONTINUED)
On March 31, 2020, a change of control occurred
with respect to the Company. Pursuant to a Stock Purchase Agreement entered into by and among the Clancy Corp., Gaoyang Liu (“Seller”),
and Xiangying Meng (“Buyer”), Seller assigned, transferred and conveyed to Buyer 60,000,000 shares
of common stock of Company (“Common Stock”), which represents 64.4% of the total issued and outstanding shares
of the Company, for the sum of $285,000. In addition, Seller assigned his rights and interest to outstanding loans made by Seller
to the Company in the amount of $55,609 for the face value of such loans. Mr. Meng now owns 67,500,000 shares of common
stock of the Company. In connection with the transaction, Mr. Liu, the then sole officer and director of the Company resigned in
all officer and director capacities from the Company and Mr. Meng was appointed Chief Executive Officer and Chief Financial Officer
of the Company. In addition, Mr. Meng was appointed the sole director of the Company.
Clancy Corp. has registered
a wholly foreign-owned entity in Shanghai, China on April 13, 2020. Its name is Shanghai Clancy Enterprise Management Co., Ltd.
(Shanghai Clancy). Shanghai Clancy had no business activity from inception through July 31, 2020. The main business scope is business
management consulting, business information consulting, marketing planning, cultural and art exchange planning consulting (except
performance brokers, business performances), corporate image planning, conference services and exhibition and display services.
Shanghai
Clancy registered a wholly-owned subsidiary in Beijing on April 24, 2020. Its name is Beijing Clancy Information Technology Co.,
Ltd. (Beijing Clancy). The main business scope is technology development, transfer, consultation, services and promotion.
On July 6, 2020, the Nevada Secretary of State
approved the Company’s Certificate of Amendment to Articles of Incorporation with which effectuated the following corporate
action:
|
●
|
the reverse split of the Company’s issued and outstanding common stock, $0.001 par value, on thirty (30) pre-split shares to one (1) post-split share basis. Fractional shares resulting from the action will be rounded up to the nearest whole share.
|
The above corporate action was adopted by
written consent of our sole Director on June 11, 2020, and the sole Director recommended the corporate action be presented to
our shareholders for approval. For purposes of the reverse stock split described above, the sole Director also set June 12,
2020 as the record date of such action. On June 12, 2020, our majority stockholder, holding 91.88% of our outstanding voting
securities, executed written consent in lieu of a shareholder meeting approving the corporate action. All shares disclosed in
the consolidated financial statements and notes to the consolidated financial statements have been retroactively adjusted for
the 30 for 1 reverse split.
CLANCY CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JULY 31, 2020
NOTE 2 – MANAGEMENT PLANS
The accompanying consolidated financial
statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred
significant losses, an accumulated deficit and experienced negative cash flow from operations since inception. These
conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated
financial statements do not include any adjustments that might result from the outcome of this uncertainty.
The Company’s principal business objective
for the next twelve months and beyond such time will be to achieve long-term growth potential through the development of its business
which commenced in July 2020, or alternatively a combination with another business. In connection with any business combination,
the Company will not restrict its potential candidate target companies to any specific business, industry or geographical location
and, thus, may acquire any type of business. The Company believes that its existing cash resources will not be sufficient to sustain
operations during the next twelve months. The Company’s management plans to engage in very limited activities without incurring
any significant liabilities that must be satisfied in cash until a source of funding is secured. Mr. Meng, the major stockholder,
CEO and director of the Company, verbally has agreed to provide continued financial support to the Company. The Company currently
needs to generate revenue in order to sustain its operations. In the event that the Company cannot generate sufficient revenue
to sustain its operations, the Company will need to reduce expenses or obtain financing through the sale of debt and/or equity
securities. The issuance of additional equity would result in dilution to existing shareholders. If the Company is unable to obtain
additional funds when they are needed or if such funds cannot be obtained on terms acceptable to the Company, the Company would
be unable to execute upon the business plan or pay costs and expenses as they are incurred, which would have a material, adverse
effect on the business, financial condition and results of operations.
On March
11, 2020, the World Health Organization (WHO) officially declared COVID-19 a pandemic. The duration and intensity of the impact
of the COVID-19 and resulting disruption to the Company’s operations is uncertain.
NOTE 3 – SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION.
The consolidated financial statements and related
notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“US
GAAP”) and include the accounts of Clancy Corp. and its wholly owned subsidiary. All material intercompany balances and
transactions have been eliminated in consolidation.
Fiscal year end
The Company’s year end is July 31st.
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.
CLANCY CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JULY 31, 2020
NOTE 3 – SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 ASC 606, Revenue from Contracts. The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer
of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled
in exchange for those goods or services. An entity recognizes revenue in accordance with that core principle by applying the following
steps: Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine
the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue
when (or as) the entity satisfies a performance obligation.
Cash and Cash Equivalents
Cash and cash equivalents consist of all cash
balances and highly liquid investments with original maturities of three months or less. Because of short maturity of these investments,
the carrying amounts approximate their fair values.
Concentration of Credit Risk
The Company is exposed to credit risk in the
normal course of business, primarily related to cash and cash equivalents. A portion of the Company’s cash and cash equivalents
are deposited with Industrial and Commercial Bank of China Limited in the PRC, which is not insured or otherwise protected. The
Company had deposits of $17,836, as of July 31, 2020. The Company has not experienced any losses in such accounts in
the PRC.
Leases
The Company determines if an arrangement is
a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease
liabilities in the consolidated balance sheets. Finance leases are included in finance lease ROU assets and finance lease liabilities
in the consolidated balance sheets.
ROU assets represent the Company’s right
to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments
arising from the lease. Operating lease and finance lease ROU assets and liabilities recognized at July 31, 2020 based on the present
value of lease payments over the lease term discounted using the rate implicit in the lease. In cases where the implicit rate is
not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date
in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over
the lease term.
The Company has elected not to recognize operating
lease ROU assets and liabilities arising from short-term leases.
CLANCY CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JULY 31, 2020
NOTE 3 – SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Reporting Currency and Translation
The financial statements of the Company’s
foreign subsidiaries are measured using the local currency, Renminbi (“RMB”), as the functional currency; whereas the
functional currency of Clancy Corp. and reporting currency of the Company is the United States dollar (“USD” or “$”).
The Company has operations in China
where the local currency of RMB is used to prepare the consolidated financial statements which are translated into the
Company’s reporting currency, U.S. dollars. The local currency of RMB is the functional currency for the operations
outside the United States. Changes in the exchange rates between this currency and the Company’s reporting currency,
are partially responsible for some of the periodic changes in the consolidated financial statements. Assets and liabilities
of the Company’s foreign operations are translated into U.S. dollars at the spot rate in effect at the applicable
reporting date. Revenues and expenses of the Company’s foreign operations are translated at the average exchange rate
during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of
accumulated other comprehensive income (loss) in stockholders’ deficit. Realized and unrealized transaction gains and
losses generated by transactions denominated in a currency different from the functional currency of the applicable entity
are recorded in general and administrative expense in the period in which they occur. For the years ended July 31, 2020 and
2019 there were no realized or unrealized transaction gains and losses generated by transactions denominated in a currency
different from the functional currency of the applicable entities.
The exchange rates used to translate amounts
in RMB to USD for the purposes of preparing the consolidated financial statements were as follows:
|
July 31, 2020
|
July 31, 2019
|
Period end USD: RMB exchange rate
|
7.00
|
6.88
|
Average USD: RMB exchange rate
|
7.04
|
6.84
|
Foreign Operations
All of the Company’s operations and assets
are located in Beijing China. The Company may be adversely affected by possible political or economic events in this country. The
effect of these factors cannot be accurately predicted.
Contract Liabilities
On July 29, 2020, the Company entered into
three-year service maintenance agreements with three customers. The three service maintenance agreements total 1,188,000 RMB to
be received over the three-year period. The contracts require three months of upfront payments each quarter, totaling $14,143 (99,000
RMB) per quarter. The Company's performance obligation will be satisfied on a monthly basis and the upfront payments will be recognized
as revenue, pro rata on a monthly basis, over each fiscal quarter.
One of the service maintenance agreements is
with a company that is controlled by a supervising officer of Beijing Clancy and thus is deemed to be a related party. The total
value of this service maintenance agreement is 540,000 RMB, payable quarterly with upfront quarterly payments of 45,000 RMB.
Basic Income (Loss) Per Share
The Company computes income (loss) per
share in accordance with FASB ASC 260 “Earnings per Share”. Basic income (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 anti-dilutive. As of July
31, 2020, and 2019, there were no potentially dilutive equity instruments issued or outstanding.
CLANCY CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JULY 31, 2020
NOTE 3 – SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Comprehensive Income
The Company follows
Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 220, “Comprehensive Income,”
in reporting comprehensive income. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure
of certain financial information that historically has not been recognized in the calculation of net income. The Company has one
item of other comprehensive income, consisting of a foreign translation adjustment, however, since the translation adjustment was
immaterial for the years ending July 31, 2020 and 2019, the comprehensive loss is equal to the net loss.
Financial Instruments
The carrying value of the Company’s short-term
financial instruments, such as accounts payable and advances, approximates their fair values because of their short maturities.
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.
Recently Adopted Accounting Pronouncements
In February 2016, the FASB issued ASU NO.
2016-02 “Leases (Topic 842)” and subsequent related updates. The core principle of Topic 842 is that the
lessee should recognize the assets and liabilities that arise from the leases. The Company adopted the standard effective
August 1, 2019 under the optional transition method which allows the entity to apply the new lease standard at the adoption
date and recognize a cumulative effect adjustment, if any, to the opening balance of retained earnings in the period of
adoption. The adoption of the standard had a material impact on the balance sheet (see Note 4)
Recently Issued Accounting Pronouncements
Not Yet Adopted
As of July 31, 2020, there are no
recently issued accounting standards not yet adopted which would have a material effect on the Company’s consolidated
financial statements.
NOTE 4 – COMMITMENTS
AND CONTINGENCIES
The Company had entered into a one-year rental
agreement for a $300 monthly fee, starting on September 1, 2016. Leased Premise with the area of 40 square meters is located at
str. Vizantiou 28, Strovolos, Lefkosia, Cyprus, 2006. This premise is used as a manufacturing area. The Company extended the
lease agreement until September 1, 2019. The Company paid $0 for rent for the year ended July 31, 2020. The lease terminated as
of September 1, 2019.
On October 19, 2017 the Company entered into
a five-year rental agreement for a $540 monthly fee, starting on November 1, 2017. Leased Premise with the area of 74 square meters
is located at 8 Stasinou Ave, Lefkosia 1060, Nicosia, Cyprus. The Company paid $0 for rent for the year ended July 31, 2020.
Due to the adoption of the new lease standard
under the optional transition method which allows the entity to apply the new lease standard at the adoption date, the Company
has capitalized the present value of the minimum lease payments commencing August 1, 2019, using an estimated incremental borrowing
rate of 6%. The minimum lease payments do not include common area annual expenses which are considered to be non-lease components.
CLANCY CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JULY 31, 2020
NOTE 4 – COMMITMENTS
AND CONTINGENCIES (CONTINUED)
As of August 1, 2019, the operating lease
right-of-use asset and operating lease liability amounted to $17,951 with no cumulative-effect adjustment to the opening balance
of accumulated deficit.
On May 26, 2020, the Company entered
into a three-year rental agreement for a 32,000 RMB per month. The office is located on the second floor of BYD 4S shop, No 56,
Dongsihuan South Road, Chaoyang District, Beijing. At inception, the Company pre-paid the first year along with a 3 month deposit.
Due to the adoption of the new
lease standard under the optional transition method which allows the entity to apply the new lease standard at the adoption date,
the Company has capitalized the present value of the minimum lease payments commencing August 1, 2019, using an estimated incremental
borrowing rate of 6%. The minimum lease payments do not include common area annual expenses which are considered to be non-lease
components.
There are no other material operating
leases. The Company has elected not to recognize right-of-use assets and lease liabilities arising from short-term leases.
Future minimum lease payments under the
operating lease as of July 31, 2020 are:
|
|
|
2021
|
|
$
|
34,404
|
|
2022
|
|
|
61,337
|
|
2023
|
|
|
47,335
|
|
Total Lease payments
|
|
|
143,076
|
|
Less Imputed Interest
|
|
|
15,216
|
|
Less prepaid Interest
|
|
|
6,249
|
|
Net Lease liability
|
|
$
|
121,611
|
|
Total lease expense under operating leases
for the year ended July 31, 2020 was $8,947 and 2019 was $-.
NOTE 5 – BUSINESS ADVANCES
During the three months ended July 31, 2020, the Company made business advances totaling $81,324 to two unaffiliated parties. All advances were repaid in the first quarter of fiscal year 2021
CLANCY CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JULY 31, 2020
NOTE 6 – ADVANCES
FROM RELATED PARTIES
Immediately prior to June 28, 2019, the Company’s
then sole officer and director had a loan outstanding to the Company in the amount of $23,334. This loan was unsecured, non-interest
bearing and due on demand. As part of change of control transaction which occurred on June 28, 2019, the outstanding balance was
forgiven and written off. As a result, the balance due to this former officer and director was $0 as of July 31, 2019. On that
same date (June 28, 2019), the Company also assigned all assets and liabilities to the former officer and director of the Company.
In connection with this change of control, the Company ceased its business operations and is now a “shell company”
as defined under Rule 405 promulgated under the Securities Act of 1933, as amended. On March 31, 2020, Mr. Meng purchased a controlling
interest in the Company and was assigned the rights and interest to the advances made to the company by the then former majority
stockholder, Mr. Gaoyang Liu. As of July 31, 2020, Mr. Meng, the new officer and director, has loaned the Company the sum of $263,037.
This loan is unsecured, non-interest bearing and due on demand.
NOTE 7– INCOME TAXES
The Company utilizes
the asset and liability method of accounting for income taxes in accordance with FASB ASC 740, “Income Taxes”. Under
this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current period and (ii)
deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial
statements or tax returns. Deferred tax assets also include the prior years’ net operating losses (“NOL”) carried
forward. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities
of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation
allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative
evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.
The Company is subject
to income taxes by entity on income arising in or derived from the tax jurisdiction in which each entity is domiciled. The
Company’s PRC subsidiaries file their income tax returns online with PRC tax authorities. The Company conducts all of its
businesses through its subsidiaries and affiliated entities, principally in the PRC.
The Company’s US parent company was
incorporated in the US and is subject to U.S. income tax rate of 21% and files U.S. federal income tax return. As of July
31, 2020, the US entity had net operating loss carry forwards for income tax purpose of $62,196. The NOL arising in tax years
beginning after 2017 may reduce 80% of a taxpayer’s taxable income, and be carried forward indefinitely (under the Tax Cuts
and Jobs Act, effective for tax years beginning on or after January 1, 2018). However, the coronavirus Aid, Relief and Economic
Security Act (“the CARES Act”) issued in March 2020, provides tax relief to both corporate and noncorporate taxpayers
by adding a five-year carryback period and temporarily repealing the 80% limitation for NOLs arising in 2018, 2019 and 2020. The
timing and manner in which the Company can utilize operating loss carryforwards in any year may be limited by provisions of the
Internal Revenue Code Section 382 regarding changes in ownership of corporations. Such limitation may have an impact on
the ultimate realization of its carryforwards and future tax deductions. The ultimate realization of deferred tax assets
is dependent upon the Company’s future generation of taxable income during the periods in which temporary differences representing
net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected
future taxable income and tax planning strategies in making this assessment. After consideration of all the information available,
management believes that significant uncertainty exists with respect to future realization of the deferred tax assets due to the
Company’s US parent company’s limited operating history and continuous loss, and has therefore established a full
valuation allowance as of July 31, 2020.
CLANCY CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JULY 31, 2020
NOTE 7– INCOME TAXES (CONTINUED)
The Company’s wholly owned Chinese
subsidiary Shanghai Clancy is a wholly foreign-owned entity (“WFOE”). Shanghai Clancy had no business activity
from inception through July 31, 2020. The Company’s second tier WOFE subsidiary, Beijing Clancy, is
subject to the reduced PRC income tax rate as follows as per Caishui (2019) No. 13 issued by General Administration of
Taxation, Ministry of Finance of PRC in January 2019: if the annual taxable income of small enterprises does not exceed RMB 1
million ($143,000), only 25% of such taxable income is required for paying the income tax at an income tax rate of 20%
(equivalent to 5% of the total taxable income); if the annual taxable income of small enterprises is between RMB 1 million
(143,000) and RMB 3 million ($429,000), only 50% of such taxable income is required for paying the income tax at an income
tax rate of 20% (equivalent to 10% of the total taxable income). This tax-reduced policy is effective for the period from
January 1, 2019 through December 31, 2021. Beijing Clancy did not have taxable income for year ending July 31, 2020. Tax
losses of the operating subsidiaries of the Company may be carried forward for five years in China.
As of July 31, 2020, Beijing Clancy has $12,803
of NOL that expire in five years through 2025. In assessing the realization of deferred tax assets, management considers whether
it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of
deferred tax assets is dependent upon the Company’s future generation of taxable income during the periods in which temporary
differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred
tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of
all the information available, management believes that significant uncertainty exists with respect to future realization of the
deferred tax assets due to Beijing Clancy’s limited operating history and has therefore established a full valuation allowance
as of July 31, 2020.
The following table reconciles the U.S. statutory
rates to the Company’s effective tax rate for the years ended July 31, 2020 and 2019:
|
|
Fiscal
Years Ended July 31,
|
|
|
2020
|
|
2019
|
US federal statutory rates
|
|
|
(21.0
|
)%
|
|
|
(21.0
|
)%
|
Tax rate difference – current provision
|
|
|
(0.6
|
)%
|
|
|
—
|
%
|
Effect of PRC tax holiday
|
|
|
3.2
|
%
|
|
|
—
|
%
|
Valuation allowance
|
|
|
18.4
|
%
|
|
|
21.0
|
%
|
Effective tax rate
|
|
|
—
|
%
|
|
|
—
|
%
|
Income tax expense was
$0 for the years ended July 31, 2020 and 2019. The provision for income tax expense (benefit) for the years ended July 31, 2020
and 2019 consisted of the following:
|
|
2020
|
|
2019
|
Income tax expense – current
|
|
$
|
—
|
|
|
$
|
—
|
|
Income tax expense (benefit) – deferred
|
|
|
(13,460
|
)
|
|
|
10,148
|
|
Increase (decrease) in valuation allowance
|
|
|
13,460
|
|
|
|
(10,148
|
)
|
Total income tax expense
|
|
$
|
—
|
|
|
$
|
—
|
|
The Company’s net deferred tax asset
as of July 31, 2020 and 2019 is as follows:
|
|
July 31, 2020
|
|
July 31, 2019
|
Deferred tax asset
|
|
|
|
|
Net operating loss
|
|
$
|
13,701
|
|
|
$
|
241
|
|
Total
|
|
|
13,701
|
|
|
|
241
|
|
Less: valuation allowance
|
|
|
(13,701
|
)
|
|
|
(241
|
)
|
Net deferred tax asset
|
|
$
|
—
|
|
|
$
|
—
|
|
CLANCY CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JULY 31, 2020