See accompanying notes, which are an integral part of these condensed financial statements
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
NINE MONTHS ENDED JANUARY 31, 2019
(UNAUDITED)
Note 1
BASIC OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (
GAAP
), and the instructions to Form
Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading.
In the opinion of management, the consolidated balance sheet as of April 30, 2018 which has been derived from audited financial statements and these unaudited condensed financial statements reflect all normal and considered necessary to state fairly the results for the periods presented. The results for the period ended January 31, 2019 are not necessarily indicative of the results to be expected for the entire fiscal year ending April 30, 2019 or for anu future period.
These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management
s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended April 30, 2018.
Note 2
ORGANIZATION AND NATURE OF BUSINESS
Yijia Group Corp. (formerly, Soldino Group Corp.) (
the Company
,
we
,
us
or
our
) was incorporated on January 25, 2017 under the laws of the State of Nevada, United States of America. The Company has ceased its operations in October 2018. As such, the Company accounted for all of its assets, liabilities and results of operations up to October 31, 2018 as discontinued operations. From November 1, 2018, the Company is considered as a shell company.
On October 31, 2018, Aurora Fiorin resigned as the President, Treasurer, Secretary and Director of the Company. Ms. Fiorin
s resignation as President, Treasurer and Secretary was effective immediately. Ms Fiorin
s resignation as a Director was effective ten (10) days following the filing by the Company of the Information Statement on Schedule 14f-1 with the United States Securities and Exchange Commission. Prior to Ms. Fiorin
s, resignation, she appointed Ms. Shaoyin Wu as the new President and Chief Executive Officer of the Company and Mr. Kim Lee Poh as the Company
s new Chief Financial Officer and Secretary. Messrs. Wu and Poh were appointed as the new board members of the Company together with Mr. Jian Yang.
On November 15, 2018, the Company filed a Certificate of Amendment to the Articles of Incorporation with Nevada
s Secretary of State to change
its
name to
Yijia
Group Corp.
Note 3
GOING CONCERN
The accompanying unaudited condensed financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. The Company has incurred recurring net losses and an accumulated deficit of $101,341 as at January 31, 2019. Therefore, there is substantial doubt about the Company
s ability to continue as a going concern without future profitability. Management anticipates that the Company will be dependent, in the near future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it will be able to raise additional funds through the capital markets. In light of management
s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern. The accompanying financial statements have been prepared on a going concern basis which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability and classification of assets or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.
7
Note 4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America. The Company
s yearend is April 30.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The Company had $50 of cash as of January 31, 2019 and $4,421 of cash as of April 30, 2018.
Inventories
Inventories are stated at the lower of cost or net realizable value. Cost is principally determined using the first-in, first out (FIFO) method. There were no raw material inventory from discontinued operations as of January 31, 2019 and April 30, 2018.
8
YIJIA GROUP CORP.
(Formerly Soldino Group Corp)
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
NINE MONTHS ENDED JANUARY 31, 2019
(UNAUDITED)
Depreciation, Amortization, and Capitalization
The Company records depreciation and amortization when appropriate using straight-line method over the estimated useful life of the assets. We estimate that the useful life of equipment is 5 years and the useful life of leasehold improvements is 3 years. Expenditures for maintenance and repairs are charged to expense as incurred. Additions, major renewals and replacements that increase the property's useful life are capitalized. Property sold or retired, together with the related accumulated depreciation is removed from the appropriate accounts and the resultant gain or loss is included in net income. The Company had $0 and $1,230 of depreciation expense for the three months ended January 31, 2019 and 2018. The Company had $4,734 and $2,848 of depreciation expense for the nine months ended January 31, 2019 and 2018. During the nine months ended January 31, 2019, all of the Company
s fixed assets were fully written off in the discontinued operations.
Fair Value of Financial Instruments
ASC topic 820 "Fair Value Measurements and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
These tiers include:
| |
|
|
Level 1:
|
defined as observable inputs such as quoted prices in active markets;
|
Level 2:
|
defined as inputs other than quoted prices in active markets that are either directly or indirectly observable;
|
Level 3:
|
defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
|
The carrying value of cash and cash equivalents and the Company
s loan from shareholders approximates its fair value due to their short-term maturity.
Income Taxes
Income taxes are computed using the asset and liability method in accordance with the provisions of ASC740,
Income Taxes
. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.
Revenue Recognition
The Company recognizes revenue in accordance with Accounting Standards Codification No. 605,
Revenue Recognition
("ASC-605"). As an Emerging Growth Company, the Company has elected to defer implementing ASC 606 for one year. ASC-605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. For the nine months ended January 31, 2019 and 2018, the Company has generated $11,210 and $72,480 revenue from the discontinued operations. No revenue was generated in the three months ended January 31, 2019 from the continuing operation.
Net Income (Loss) Per Share
The Company computes net 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 shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. As of January 31, 2019 there were no potentially dilutive debt or equity instruments issued or outstanding.
9
YIJIA GROUP CORP.
(Formerly Soldino Group Corp)
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
NINE MONTHS ENDED JANUARY 31, 2019
(UNAUDITED)
Currencies
The Company
s reporting and functional currencies are both the U.S. dollar. Foreign currency transaction gains and losses are included in other income (expense) but are negligible.
Comprehensive Income
Comprehensive income is defined as all changes in stockholders
equity (deficit), exclusive of transactions with owners, such as capital investments. Comprehensive income includes net income or loss, changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. For the three and nine months ended January 31, 2019 and 2018, there were no differences between our comprehensive loss and net income (loss).
Stock-Based Compensation
Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. The amendments in Update expand the scope of Topic 718 to include share based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor
s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. To date, the Company has not adopted a stock option plan and has not granted any stock options.
Related parties
Parties, which can be a corporation or individual, are considered to be if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the 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.
Reclassification
Certain reclassifications have been made to the financial statements for the prior year periods to present that information on a basis consistent with the current period.
Recent Accounting Pronouncements
We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which issued new guidance related to leases that outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements.
The new guidance must be adopted using the modified retrospective approach and will be effective for the public entities for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of this guidance, if any, on its financial statements and related disclosures.
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (
ASU 2014-09
), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles when it becomes effective. In July 2015, the FASB deferred the effective date of the standard by an additional year; however, it provided companies the option to adopt one year earlier, commensurate with the original effective date. The amendment is effective for public entities for fiscal years beginning after December 15, 2017. The Company is currently evaluating this standard and has not yet selected a transition method or the effective date on which it plans to adopt the standard, nor has it determined the effect of the standard on its financial statements and related disclosures.
As an Emerging Growth Company, the Company has elected to defer implementing ASC 606 for one year.
10
YIJIA GROUP CORP.
(Formerly Soldino Group Corp)
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
NINE MONTHS ENDED JANUARY 31, 2019
(UNAUDITED)
In June 2018 was issued the Accounting Standards Update of Compensation
Stock Compensation (Topic 718).
The amendments in Update expand the scope of Topic 718 to include share based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor
s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than an entity
s adoption date of Topic 606. The amendments should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption.
Note 5
DISCONTINUED OPERATION
In October 2018, the Company ceased and discontinued the operations in the distribution and sewing of work wear. The Company
s operations through October 31, 2018 became discontinued operations. From November 1, 2018, the Company became a shell company. As such, the Company accounted for all of its assets, liabilities and results of operations up to October 31, 2018 as discontinued operations.
The following table presents the assets and liabilities of the discontinued business, as Assets classified from discontinued operations and Liabilities classified from discontinued operations in the Balance Sheets:
|
|
|
|
|
|
| |
ASSETS
|
|
|
|
|
|
|
|
Current Assets
|
|
January 31, 2019 (Unaudited)
|
|
|
|
April 30, 2018
(Audited)
|
|
|
|
|
|
|
|
|
|
Prepaid expenses
|
$
|
-
|
|
|
$
|
5,440
|
|
Inventory
|
|
-
|
|
|
|
6,833
|
|
|
|
|
|
|
|
|
|
Total Current Assets
|
|
-
|
|
|
|
12,273
|
|
|
|
|
|
|
|
|
|
Fixed Assets
plant and equipment
|
|
|
|
|
|
|
|
Total Fixed Assets
|
|
-
|
|
|
|
31,061
|
|
Assets of Discontinued Operation
|
$
|
-
|
|
|
$
|
43,334
|
|
|
|
|
|
|
|
|
|
The following table presents the Discontinued Operations in the Statement of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended January 31, 2019
(Unaudited)
|
|
|
Three months ended January 31, 2018
(Unaudited)
|
|
|
Nine months ended January 31, 2019
(Unaudited)
|
|
|
|
Nine months ended January 31, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
-
|
|
|
$
|
5,750
|
|
|
$
|
11,210
|
|
|
$
|
72,480
|
|
|
Cost of goods
|
|
-
|
|
|
|
(2,404
|
)
|
|
|
(320
|
)
|
|
|
(33,704
|
)
|
|
GROSS PROFIT
|
|
-
|
|
|
|
3,346
|
|
|
|
10,890
|
|
|
|
38,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and Administrative Expenses
|
|
-
|
|
|
|
1,230
|
|
|
|
45,246
|
|
|
|
2,848
|
|
|
TOTAL OPERATING EXPENSES
|
|
-
|
|
|
|
1,230
|
|
|
|
(45,246
|
)
|
|
|
2,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM OPERATIONS
|
|
-
|
|
|
|
2,116
|
|
|
|
(34,356
|
)
|
|
|
35,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
The following table presents the discontinued business in the Statement of Cash Flows:
|
|
|
|
|
|
| |
|
|
Nine months ended
January 31, 2019
(Unaudited)
|
|
|
|
Nine months ended
January 31, 2018
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Net income for the period
|
$
|
-
|
|
|
$
|
2,600
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
-
|
|
|
|
2,848
|
|
Forgiveness of related party loan
|
|
13,770
|
|
|
|
-
|
|
Write-off of fixed assets
|
|
31,061
|
|
|
|
-
|
|
Write-off of inventories
|
|
6,833
|
|
|
|
-
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
|
Decrease (increase) in prepaid expenses
|
|
5,440
|
|
|
|
(7,210
|
)
|
Decrease (increase) in inventories
|
|
-
|
|
|
|
(5,467
|
)
|
Increase (decrease) in customer deposits
|
|
-
|
|
|
|
(6,000
|
)
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
discontinued operations
|
$
|
57,104
|
|
|
$
|
(13,229
|
)
|
|
|
|
|
|
|
|
|
Note 6
RELATED-PARTY TRANSACTIONS
In October 2018, the former officer and director of the Company opted to forgive these related party loans and waive its right for repayment. The total amount forgiven was $13,770.
Also, in October 2018, the Company terminated the service agreement with Antonio Bini. No shares were issued for his services of Marketing Campaign Improvement and Empowerment for the Company.
As of January 31, 2019, the related party advance of $36,696 represents temporary advances by the director of the Company, which is unsecured, interest-free and has no fixed terms of repayment.
Note 7
INTEREST AND PENALTIES
The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of January 31, 2019 and April 30, 2018, the Company had no accrued interest or penalties related to uncertain tax positions.
Note 8
COMMON STOCK
The Company has 75,000,000, $0.001 par value shares of common stock authorized.
On February 21, 2017, the Company issued 3,500,000 shares of common stock to a director for cash proceeds of $3,500 at $0.001 per share.
In September 2017, the Company issued 497,500 shares of common stock for cash proceeds of $9,950 at $0.02 per share.
In October 2017, the Company issued 1,873,750 shares of common stock for cash proceeds of $37,475 at $0.02 per share.
There were 5,871,250 shares of common stock issued and outstanding as of January 31, 2019.
12
YIJIA GROUP CORP.
(Formerly Soldino Group Corp)
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
NINE MONTHS ENDED JANUARY 31, 2019
(UNAUDITED)
Note 9
COMMITMENTS AND CONTINGENCIES
The Company has entered into a two years rental agreement for a $290 monthly fee, starting on March 1, 2017. Minimum lease payments under this agreement are $1,450 for fiscal year 2019. On September 28, 2017 the Company entered into an additional five year rental agreement for a $590 monthly fee, starting on November 1, 2017. In October 2018, the rental agreements were terminated.
As of January 31, 2019, there were no minimum lease payments under these agreements.
Note 10
SUBSEQUENT EVENTS
In accordance with SFAS 165 (ASC 855-10) the Company has analyzed its operations subsequent to January 31, 2019 to the date these financial statements were available to be issued on March 15, 2019, and has determined that it does not have any material subsequent events to disclose in these financial statements.