Notes to Financial Statements
For the Three Months Ended October 31, 2020
(Unaudited)
NOTE 1 - ORGANIZATION AND OPERATIONS:
Peregrine Industries, Inc. (the "Company")
was formed on October 1, 1995 for the purpose of manufacturing residential pool heaters. The Company was formerly located in Deerfield
Beach, Florida. Products were primarily sold throughout the United States, Canada, and Brazil. In June 2002, the Registrant and
its subsidiaries filed a petition for bankruptcy in the U.S. Bankruptcy Court for the Southern District of Florida. At present,
the Company has no business operations and is deemed to be a shell company. The Company had a change in control on July 8, 2013
as a result of the sale by our former principal shareholders, Richard Rubin, Thomas J. Craft, Jr. and Ivo Heiden, of their 324,000
shares of common stock, representing approximately 61.8% of the Company's outstanding common stock, to Dolomite Industries Ltd
("Dolomite"). In connection with the private sale of their shares of common stock to Dolomite on July 2, 2013, Messrs.
Rubin and Heiden agreed to waive a total of $224,196 in liabilities owed to them at June 30, 2013. In connection with the change
of control transaction, two former principal shareholders transferred and assigned all $195,000 of their two convertible notes
to three unaffiliated third parties and one affiliated party. See also note 3. On June 12, 2017, the Board of Directors of the
Registrant appointed Mr. Zohar Shpitz as Chief Financial Officer (CFO) of the Registrant. Mr. Shpitz was appointed as CFO in connection
with the resignation of Mr. Ofer Naveh as the Registrant's CFO, effective June 19, 2017. On July 21, 2017, new management acquired,
22,477,843 or 97.7% of the issued common restricted shares. The new management is developing a business plan which they anticipate
implementing within the current fiscal year.
NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT
ACCOUNTING POLICIES:
Basis of Presentation
The accompanying
unaudited interim financial statements of Peregrine Industries, Inc. have been prepared in accordance with accounting principles
generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read
in conjunction with the audited financial statements and notes thereto for the period ended July 31, 2020 contained in the Company’s
Form 10K originally filed with the Securities and Exchange Commission on October 29, 2020. In the opinion of management,
all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results
of operations for the interim period presented have been reflected herein. The results of operations for the interim period
are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would
substantially duplicate the disclosure contained in the audited financial statements for the period ended July 31, 2020, as reported
in the Company’s Form 10K, have been omitted.
Use of Estimates:
The preparation of financial statements in
conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from the estimates.
PEREGRINE INDUSTRIES, INC
Notes to Financial Statements
For the Three Months Ended October 31, 2020
Recently Adopted Accounting Pronouncements
The Company has implemented all new accounting
pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new
pronouncements that have been issued that might have a material impact on its financial position or results of operations.
NOTE 3 – GOING CONCERN:
The Company's condensed financial
statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of
liabilities and commitments in the normal course of business for the foreseeable future. The Company has accumulated losses
aggregating $660,510 and $644,040 as of October 31, 2020 and 2019 and has insufficient working capital to meet operating
needs for the next twelve months, all of which raise substantial doubt about the Company's ability to continue as a going
concern.
The financial statements do not include any
adjustment relating to the recoverability and classification of liabilities that might be necessary should the Company be unable
to continue as a going concern.
The Company is taking appropriate action to
provide the necessary capital to continue its operations. These steps include, but are not limited to: 1) implementation of new
business plan 2)focus on sales to minimize the need for capital at this stage; 3) raising equity financing; 4) continuous focus
on reductions in cost where possible.
NOTE 4 – RELATED PARTY TRANSACTIONS:
During the three months ended October 31,
2020 Mace Corporation paid $7,650 directly to service providers compared to $5,277 for the three months October 31, 2019. The
advances are unsecured, non-interest bearing and do not have stated repayment terms. Total advances though October 31, 2020
were $61,826 compared to $45,356 for the three months ended October 31, 2019.
On October 31, 2019 Lili Fan was elected to
fill the position of CFO, recently vacated by the resignation of John Hanson, who resigned from all officer and director positions
he had held. At the same meeting Jeff Rorick and Daniel Slater were elected to the Board of Directors.
PEREGRINE INDUSTRIES, INC
Notes to Financial Statements
For the Three Months Ended October 31, 2020
NOTE 5 – STOCKHOLDERS’ DEFICIT:
Common Stock
The articles of incorporation authorize the
issuance of 100,000,000 shares of common stock, par value $0.0001. All issued shares of common stock are entitled to one vote per
share of common stock. None have been issued since July 21, 2017.
Preferred Stock
The articles of incorporation authorize the
issuance of 5,000,000 shares of preferred stock with a par value of $0.0001 per share. None are issued.
NOTE 6 – SUBSEQUENT EVENTS:
Subsequent to October 31, 2020 and through
the date when this report was completed, the Company has evaluated subsequent events through the date the financial statements
were issued and has not identified any reportable events.