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 subsidiary 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.
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 financial statements and notes to the financial statements have been retroactively adjusted for the 30 for 1
reverse split.
From
August 1, 2020 to April 30, 2021, the Company business centered on providing IT services to a small number of clients. Beginning in May
2021, the Company terminated its IT services and re-focused its business operations to business consulting services to small and median
sized businesses. Management believes their prior business experience will enable them to assist small and medium sized companies improve
their operating efficiencies. The Company will charge its clients based on their performance. Management believes the new business model
will reduce internal overhead costs and potentially provide a larger market for its services.
NOTE
2 – GOING CONCERN
The
accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. Although
Beijing Clancy started business operation and had generated revenue for the YEAR ended July 31, 2021, the Company incurred loss, an accumulated
deficit and experienced negative cash flow from operations. 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.
Mr.
Meng, the major stockholder, Chief Executive Officer and sole director of Company, verbally has agreed to provide continued financial
support to the Company.
The
Company’s business objective for the next twelve month and beyond such time will be to expand business operations and increase
revenue. The Company will focus on product management, digital marketing, refined user operations, performance optimization, after-sales
service, etc. to provide customers with more convenient and high- quality service experience.
The
Covid-19 pandemic presents novel challenges and a chaotic business environment globally. The duration and intensity of the impact of
the Covid-19 to business entities differ geographically. Covid-19 has a limited impact on the Company’s activities since Shanghai
Clancy has no activities and Beijing Clancy operations are limited to Beijing, PRC. The impact on the Company’s result of operation
and the financial statements was immaterial as of July 31, 2021.
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 subsidiaries. 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.
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 and Pingan Bank in the PRC,
which is not insured or otherwise protected. The Company had deposits of $51,486 as of July 31, 2021. The Company has not
experienced any losses in such accounts in the PRC.
Leases
The
Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”)
assets and operating lease liabilities in the consolidated balance sheets. Finance leases are included in finance lease ROU assets and
finance lease liabilities in the consolidated balance sheets.
ROU
assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s
obligation to make lease payments arising from the lease. Operating lease and finance lease ROU assets and liabilities recognized at
July 31, 2021 and 2020 based on the present value of lease payments over the lease term discounted using the rate implicit in the lease.
In cases where the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information
available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on
a straight-line basis over the lease term.
The
Company has elected not to recognize operating lease ROU assets and liabilities arising from short-term leases.
Reporting
Currency and Translation
The
financial statements of the Company’s foreign subsidiaries are measured using the local currency, Renminbi (“RMB”),
as the functional currency; whereas the functional currency of Clancy Corp. and reporting currency of the Company is the United States
dollar (“USD” or “$”).
The
Company has operations in China where the local currency of RMB is used to prepare the 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, July 31, 2021
and 2020 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:
Schedule of exchange rates | |
| | | |
| | |
| |
July 31, 2021 | | |
July 31, 2020 | |
Period end USD: RMB exchange rate | |
| 6.46 | | |
| 7.00 | |
Average USD: RMB exchange rate | |
| 6.56 | | |
| 7.04 | |
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 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. For the year ended July 31, 2021, the
company recognized revenue of $45,248. Including revenues of $20,567 from related parties. There were no revenues for the year ended
July 31, 2020.
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.
The
Company recently determined to re-focus is business strategy and direction. As a result, the Company has ceased its IT service maintenance
agreements with its customers effective April 30, 2021 and re-focused its business operations to business consulting services to small
and median sized businesses. Management believes their prior business experience will enable them to assist small and medium sized companies
improve their operating efficiencies.
The
Company will charge its clients based on their performance. Management believes the new business model will reduce internal overhead
costs and potentially provide a larger market for its services.
Basic
Income (Loss) Per Share
The
Company computes income (loss) per share in accordance with FASB ASC 260 ”Earnings per Share”. Basic (loss) per share
is computed by dividing net income (loss) available to common 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, 2021, and 2020, there
were no potentially dilutive equity instruments issued or outstanding.
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, the translation adjustment was immaterial
for the years ending July 31, 2021 and 2020.
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
standard had a material impact on the balance sheet (see Note 4)
As
of July 31, 2021, 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, 2021 and 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.
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, 2021 are:
Schedule of Future Minimum Lease Payment | |
| | |
2022 | |
$ | 78,881 | |
2023 | |
| 1,620 | |
2024 | |
| - | |
Total Lease payments | |
| 80,501 | |
Less Imputed Interest | |
| (4,560 | ) |
Net Lease liability | |
$ | 75,940 | |
Total
lease expense under operating leases for the year ended July 31, 2021 and 2020 were 65,921 and $8,947, respectively.
As
of July 31, 2021 and 2020, the total operating lease Right of Use assets were $112,515 and $155,602, respectively.
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
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. Since the ownership change, Mr. Meng, the new officer and director, has been funding the Company’s operations.
As of July 31, 2021 and 2020, the Company owed Mr. Meng $222,738 and $263,037, respectively. This loan is unsecured, non-interest bearing
and due on demand.
NOTE
7 - RESEARCH AND DEVELOPMENT EXPENSE
As
of July 31, 2021, the Company fully expensed the cost of development of software prepaid to a third party in the amount of $41,135 due
to termination of the service. The Company also incurred research and development costs internally. The total research and development
expense was $213,535 and 0 for the years ended July 31, 2021 and 2020, respectively.
NOTE
8 – GENERAL AND ADMINISTRATIVE EXPENSES (G&A)
The
general and administrative expenses contain the following:
Schedule of General and Administrative Expenses | |
| | | |
| | |
| |
For the year ended
July 31, | |
Description | |
2021 | | |
2020 | |
| |
| | |
| |
Payroll and payroll tax expenses | |
$ | 54,278 | | |
| | |
Professional fees | |
| 32,859 | | |
| 61,044 | |
Lease expenses | |
| 65,921 | | |
| 5,670 | |
Other G&A | |
| 10,551 | | |
| 12,803 | |
| |
| | | |
| | |
Total | |
$ | 163,608 | | |
$ | 79,517 | |
NOTE
9 – 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, 2021, the US entity had net operating loss carry forwards for income tax purpose of $106,708. 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, 2021.
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 ($152,000), 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 ($152,000) and RMB 3 million ($456,000), 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, 2021. Tax losses of the operating subsidiaries of the Company may be carried forward for five years in China.
As
of July 31, 2021, Beijing Clancy has $12,803 and $276,505 of NOL that expire in five years through 2025 and 2026, respectively. 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, 2021.
The
following table reconciles the U.S. statutory rates to the Company’s effective tax rate for the years ended July 31, 2021 and 2020:
Schedule of Effective Income Tax Rates | |
| | | |
| | |
| |
Fiscal Years Ended July 31, | |
| |
2021 | | |
2020 | |
US federal statutory rates | |
| (21.0 | )% | |
| (21.0 | )% |
Tax rate difference – current provision | |
| (0.6 | )% | |
| (0.6 | )% |
Effect of PRC tax holiday | |
| 3.2 | % | |
| 3.2 | % |
Valuation allowance | |
| 18.4 | % | |
| 18.4 | % |
Effective tax rate | |
| — | % | |
| — | % |
Income
tax expense was $0 for the years ended July 31, 2021 and 2020. The provision for income tax expense (benefit) for the years ended July
31, 2021 and 2020 consisted of the following:
Schedule of Components of Income tax expense | |
| | | |
| | |
| |
2021 | | |
2020 | |
Income tax expense – current | |
$ | — | | |
$ | — | |
Income tax expense (benefit) – deferred | |
| (24,567 | ) | |
| (13,460 | ) |
Increase (decrease) in valuation allowance | |
| 24,567 | | |
| 13,460 | |
Total income tax expense | |
$ | — | | |
$ | — | |
The
Company’s net deferred tax asset as of July 31, 2020 and 2019 is as follows:
Schedule of Deferred Tax Assets | |
| | | |
| | |
| |
July 31, 2021 | | |
July 31, 2020 | |
Deferred tax asset | |
| | | |
| | |
Net operating loss | |
$ | 38,268 | | |
$ | 13,701 | |
Total | |
| 38,268 | | |
| 13,701 | |
Less: valuation allowance | |
| (38,268 | ) | |
| (13,701 | ) |
Net deferred tax asset | |
$ | — | | |
$ | — | |
NOTE
10 - SHARES ISSUED FOR EQUITY FINANCING
In
December 2020, the Company issued 150,000,000 shares of common stock of the Company to five individuals including the Company’s
CEO, at $0.002 per share. The Company received proceeds of $300,000 from this private placement. As of July 31, 2021 and July 31, 2020,
the shares out issued and outstanding were 153,105,464 and 3,105,250, respectively.
NOTE
11 - SUBSEQUENT EVENTS
Management
has evaluated subsequent events through the date of filing the financial statements with the Securities and Exchange Commission, the
date the financial statements were available to be issued. Management is not aware of any reportable events that occurred subsequent
to the balance sheet date up to the date of filing this report.