Quarterly Report (10-q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

EXCHANGE ACT

Commission File Number: 333-100046

CHUN CAN CAPITAL GROUP

(Exact name of registrant as specified in its charter)

Nevada		52-2360156
(State or other jurisdiction of incorporation or organization)		(IR.S. Employer Identification No.)

Grosvenor Business Tower Sheikh Zayed Road, 9^th Floor Office 901 P.O. Box 410550
Dubai, United Arab Emirates		n/a
(Address of principal executive offices)		(Zip Code)

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files) ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

	Large accelerated filer ☐		Accelerated filer ☐
	Non-accelerated filer ☐ (Do not check if a smaller reporting company)		Smaller reporting company ☒
	Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 220,033,011 shares of common stock as of November 17, 2020.

TABLE OF CONTENTS


PART I

Item 1	Financial Statements	4
Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3	Quantitative and Qualitative Disclosures About Market Risks	13
Item 4	Controls and Procedures	13

PART II

Item 1	Legal Proceedings	16
Item 1A.	Risk Factors	16
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	16
Item 3	Default Upon Senior Securities	16
Item 4	Mine Safety Disclosure	16
Item 5	Other Information	16
Item 6	Exhibits	17

SIGNATURES		18

PART 1FINANCIAL STATEMENTS

CHUN CAN CAPITAL GROUP

FINANCIAL STATEMENTS

FOR THE FISCAL QUARTER ENDED SEPTEMBER 30, 2020

C O N T E N T S

Consolidated Balance Sheets (Unaudited)			5

Consolidated Statements of Operations (Unaudited)			6

Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited)			7

Consolidated Statements of Cash Flows (Unaudited)			8

Notes to the Financial Statements (Unaudited)			9

CHUN CAN CAPITAL GROUP
(formerly CINTEL CORP. AND SUBSIDIARY)
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2020 AND DECEMBER 31, 2019

			September 30,	December 31,
			2020	2019
			(Unaudited)
ASSETS
Current assets:
	Cash and cash equivalents		$ -	$ -
		Total current assets	-	-

Total assets			$ -	$ -

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current liabilities:
	Accounts payable		28,456	-
	Accounts payable- related		9,660	-
	Total current liabilities		38,116	-

	Total liabilities		38,116	-

Commitments			-	-

Stockholders' deficit:
	Preferred stock: par value $0.001 per share, 30,000,000
		shares authorized, none issued and outstanding	-	-
	Common stock: par value $0.001 per share, 270,000,000
		shares authorized, 220,033,011 and 33,011 shares issued
		and outstanding	220,033	33
	Additional paid-in capital		20,458,967	20,668,967
	Accumulated deficit		(20,717,116)	(20,669,000)
		Total stockholders' deficit	(38,116)	-

Total liabilities and stockholders' deficit			$ -	$ -


See accompanying notes to unaudited financial statements.

CHUN CAN CAPITAL GROUP
(formerly CINTEL CORP. AND SUBSIDIARY)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
(Unaudited)

		For the Three Months Ended		For the Nine Months Ended
		September 30,		September 30,
		2020	2019	2020	2019

Net revenues		$ -	$ -	$ -	$ -

Operating expenses:
	General and administrative expenses	18,482	-	48,116	-
	Total operating expenses	18,482	-	48,116	-

Loss from operations		(18,482)	-	(48,116)	-

Other expenses:
	Interest expense	-	-	-	-
	Total other expenses	-	-	-	-

Income (loss) before income taxes		(18,482)	-	(48,116)	-

Income tax expense		-	-	-	-

Net loss		$ (18,482)	$ -	$ (48,116)	$ -

Income (loss) per share – basic and diluted:		$ (0.00)	$ -	$ (0.00)	$ -

Weighted average number of
	common shares outstanding - basic and diluted	220,033,011	33,011	180,545,832	33,011


See accompanying notes to unaudited financial statements.

CHUN CAN CAPITAL GROUP
(formerly CINTEL CORP. AND SUBSIDIARY)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
(Unaudited)

			For the Nine Months Ended
			September 30,
			2020	2019
Cash flows from operating activities:
Net income (loss)			$ (48,116)	$ -
Adjustments to reconcile net loss to net cash
	provided by (used in) operating activities:
	Increase (decrease) in liabilities:
		Accounts payable	28,456	-
		Accounts payable- related	19,660	-
		Cash provided by (used in) operating activities	-	-

Cash flows from investing activities:
		Cash provided by investing activities	-	-

Cash flows from financing activities:
	Proceeds from notes payable		-	-
	Principal payments of notes payable		-	-
	Cash used in financing activities		-	-

	Net decrease in cash and cash equivalent		-	-
	Cash and cash equivalent - beginning of period		-	-

	Cash and cash equivalent - end of period		$ -	$ -

Supplemental Disclosure of Cash Flows Information:
Cash paid during the year for:
	Interest		$ -	$ -
	Income taxes		$ -	$ -

Non-cash financing activities:
	Conversion of payables to common stock		$ 10,000	$ -


See accompanying notes to unaudited financial statements.

CHUN CAN CAPITAL GROUP
(formerly CINTEL CORP. AND SUBSIDIARY)
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
(Unaudited)


			Additional
	Common stock		Paid-in	Accumulated
	Shares	Amount	Capital	Deficit	Total
Balance, December 31, 2019	33,011	$ 33	$ 20,668,967	$ (20,669,000)	$ -

Shares issued to convert payables	220,000,000	220,000	(210,000)	-	10,000
Net loss	-	-	-	(29,134)	(29,134)

Balance, March 31, 2020	220,033,011	220,033	20,458,967	(20,698,134)	(19,134)

Net loss	-	-	-	(500)	(500)

Balance, June 30, 2020	220,033,011	220,033	20,458,967	(20,698,634)	(19,634)

Net loss	-	-	-	(18,482)	(18,482)

Balance, September 30, 2020	220,033,011	$ 220,033	$ 20,458,967	$ (20,717,116)	$ (38,116)


Balance, December 31, 2018	33,011	$ 33	$ 20,668,967	$ (20,669,000)	$ -

Net loss	-	-	-	-	-

Balance, March 31, 2019	33,011	33	20,668,967	(20,669,000)	-

Net loss	-	-	-	-	-

Balance, June 30, 2019	33,011	33	20,668,967	(20,669,000)	-

Net loss	-	-	-	-	-

Balance, September 30, 2019	33,011	$ 33	$ 20,668,967	$ (20,669,000)	$ -


See accompanying notes to unaudited financial statements.

CHUN CAN CAPITAL GROUP

(formerly CINTEL CORP. AND SUBSIDIARY)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Chun Can Capital Group (formerly Cintel Corp.) (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In management’s opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments), necessary to state fairly the financial information included herein.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make judgments, estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ materially from these estimates. In addition, any changes in these estimates or their related assumptions could have a materially adverse effect on the Company's operating results.

These unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. While the Company believes that the disclosures are adequate to make the information not misleading, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

Going Concern

The Company’s financial statements are presented on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company is a non-operating shell company which has experienced recurring operating losses and has.an accumulated deficit. These conditions raise uncertainty about the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements.

The Company’s ability to continue as a going concern is contingent upon its ability to secure additional financing, increase sales of its product and attain profitable operations. It is the intent of management to continue to raise additional funds to sustain operations and to pursue acquisitions of operating companies in order to generate future profits for the Company. Although the Company plans to pursue additional equity financing, there can be no assurance that the Company will be able to secure financing when needed or obtain such on terms satisfactory to the Company, if at all.

The accompanying financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.

Note 2 - Income Taxes

The corporate tax rates is 21%. The Company provided a valuation allowance equal to the deferred tax amounts resulting from the tax losses in the United States, as it is not likely that they will be realized.

CHUN CAN CAPITAL GROUP

(formerly CINTEL CORP. AND SUBSIDIARY)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2 - Income Taxes (Continued)

The U.S. tax losses can be carried forward for 15 to 20 years to offset future taxable income and expire beginning in years 2020. The Company had net operating losses of approximately $20,669,000 at September 30, 2020.

The provision for income taxes for the nine months ended September 30, 2020 and 2019 are summarized as follows:

	2020			2019

Income tax – current	$	(10,104	)	$	-
Income tax – deferred		10,104			-
	$	-		$	-

The Company has deferred tax assets (liabilities) at September 30, 2020 and December 31, 2019 as follows:

	2020			2019

Net operating loss carryforwards	$	4,350,594		$	4,340,490
Valuation allowance		(4,350,594	)		(4,340,490	)
	$	-		$	-

Note 3 – Capital Stock

On February 19, 2020, the Company issued 220,000,000 shares of common stock to a company controlled by the legal custodian of the Company to convert $10,000 in payables.

Note 4 – Acquisition of Mine

On August 12, 2020, the Company completed an agreement to acquire a Gold Mine in the Democratic Republic of the Congo (DRC), Africa, with 3,000,000 ounces of Inferred Gold Resources according to a JORC Report, and has appointed a new Senior Management Team with H.E Dr. Fahed Al Merhebi of Zurich Capital Funds Holdings Inc. as Chairman of the Board. Additionally, the Company appointed Ms. Zoli Macanda Simbodyal as the Chief Executive Officer, and Mr. James Mufaro as Chief Operating Officer.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward Looking Statements

This section and other parts of this Form 10-Q quarterly report includes "forward-looking statements", that involves risks and uncertainties. All statements other than statements of historical facts, included in this Form 10-Q that address activities, events, or developments that we expect or anticipate will or may occur in the future, including such things as future capital expenditures (including the amount and nature thereof), business strategy and measures to implement strategy, competitive strength, goals, expansion and growth of our business and operations, plans, references to future success, reference to intentions as to future matters, and other such matters are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments as well as other factors that we believe are appropriate in the circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks, uncertainties, and other factors, many of which are beyond our control.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Moreover, we do not assume responsibility for the accuracy and completeness of such forward-looking statements. We are under no duty to update any of the forward-looking statements after the date of this report to conform such statements to actual results.

Overview

Chun Can Capital Group (the "Company", "we", or "us") was incorporated under the laws of the State of Nevada on August 16, 1996.

Certain statements contained below are forward-looking statements (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

Our auditors have issued a going concern opinion in the financial statements for the year ended December 31, 2019.

RESULTS OF OPERATIOMS

Working Capital

	September 30,				September 30,
	2020				2019

Current Assets		$	-			$	-
Current Liabilities			38,116				-
Working Capital (Deficit)		$	(38,116	)		$	-

Cash Flows

	September 30,			September 30,
	2020			2019

Cash Flows from (used in) Operating Activities		$	-		$	-
Cash Flows from (used in) Financing Activities			-			-
Net Increase (decrease) in Cash During Period		$	-		$	-

Operating Revenues

We have generated revenues of $0 for the three months and nine ended September 30, 2020 and $0 for the three months and nine months ended September 30, 2019.

Operating Expenses and Net Loss

Operating expenses for the three months ended September 30, 2020 were $18,482.00 compared with $0 for the three months ended September 30, 2019. Operating expenses for the three months ended September 30, 2020 consisted of general and administrative expenses of $18,482.00 compared to $0 for the three months ended September 30, 2019.

Operating expenses for the nine months ended September 30, 2020 were $48,116.00 compared with $0 for the nine months ended September 30, 2019. Operating expenses for the nine months ended September 30, 2020 consisted of general and administrative expenses of $48,116.00 compared to $0 for the nine months ended September 30, 2019.

During the three months ended September 30, 2020, the Company recorded a net loss of ($18,482.00) compared with net loss of $0 for the three months ended September 30, 2019.

During the nine months ended September 30, 2020, the Company recorded a net loss of ($48,116.00) compared with net loss of $0 for the nine months ended September 30, 2019.

Liquidity and Capital Resources

As of September 30, 2020, the Company's cash balance was $0 compared to cash balance of $0 at September 30, 2019. As of September 30, 2020, the Company's total assets were $0 compared to total assets of $0 as at September 30, 2019.

As of September 30, 2020, the Company had total liabilities of $38,116.00 compared with total liabilities of $0 as of year-end December 31, 2019. Liabilities for the nine months ended September 30, 2020 consisted of accounts payable of $28,456.00 compared to $0 for the year-end December 31, 2019; and accounts payable – related of $9,660.00 compared to $0 for the year-end December 31, 2019.

Cashflow from Operating Activities

During the nine months ended September 30, 2020 the Company used $0 of cash for operating activities compared to the use of $0 of cash for operating activities during the nine months ended September 30, 2019.

Cashflow from Financing Activities

During the nine months ended September 30, 2020 the Company received cash from financing activities of $0 as compared to $0 for the nine months ended September 30, 2019.

Subsequent Developments

None.

Going Concern

We have not attained profitable operations and are dependent upon the continued financial support from our shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from our future business. These factors raise substantial doubt regarding our ability to continue as a going concern.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

Future Financing

The Company will consider selling securities in the future to fund operations. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund our operations and other activities.

Critical Accounting Policies

Our consolidated financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods.

We regularly evaluate the accounting policies and estimates that we use to prepare our consolidated financial statements. A complete summary of these policies is included in the notes to our consolidated financial statements. In general, management's estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

Recently Issued Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the risk of loss from adverse changes in market prices and rates. The Company's market risk arises primarily from the fact that the area in which we do business is highly competitive and constantly evolving. The market in which we do business is highly competitive and constantly evolving. We face competition from the larger and more established companies, from companies that have greater resources, including but not limited to, more money, and greater ability to expand their markets also cut into our potential customers. Many of our competitors have longer operating histories, significantly greater financial strength, nationwide advertising coverage and other resources that we do not have.

ITEM 4.

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Based on their evaluation of our disclosure controls and procedures(as defined in Rule 13a-15e under the Securities Exchange Act of 1934 the "Exchange Act"), our principal executive officer and principal financial officer have concluded that as of the end of the period covered by this quarterly report on Form 10-Q such disclosure controls and procedures were not effective due to the lack of segregation of duties and lack of a formal review process that includes multiple levels of review to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms because of the identification of a material weakness in our internal control over financial reporting which we view as an integral part of our disclosure controls and procedures. The material weakness relates to the lack of segregation of duties in financial reporting, as our financial reporting and all accounting functions are performed by an external consultant with no oversight by a professional with accounting expertise. Our CEO/CFO does not possess accounting expertise and our company does not have an audit committee. This weakness is due to the company's lack of working capital to hire additional staff. To remedy this material weakness, we intend to engage another accountant to assist with financial reporting as soon as our finances will allow.

Changes in Internal Control over Financial Reporting

Except as noted above, there have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our first quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS

None

ITEM 1A.

RISK FACTORS

Not Applicable

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4.

MINE SAFETY DISCLOSURE.

Not Applicable

ITEM 5.

OTHER INFORMATION

None

Item 6. EXHIBITS

Exhibit 31.1	Certification of the Principal Executive Officer Pursuant to Rule 13A-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit 31.2	Certification of the Principal Financial Officer Pursuant to Rule 13A-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.1	Certification of the Principal Executive Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.2	Certification of the Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: November 17, 2020		Chun Can Capital Group

		By: /s/Clara I. Gomez
		Clara I. Gomez, President


Dated: November 17, 2020		Chun Can Capital Group
		By: /s/Clara I. Gomez
		Clara I. Gomez, Chief Financial Officer

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