See accompanying notes to
condensed consolidated financial statements.
Notes
to Condensed Consolidated Financial Statements
June 30, 2022 and 2021
1. Organization and principal activities
QDM International Inc. (“we,” the “Company”
or “QDM”) was incorporated in Florida in March 2020 and is the successor to 24/7 Kid Doc, Inc. (“24/7 Kid”), which
was incorporated in Florida in November 1998. The Company conducts its business through an indirectly wholly owned subsidiary, YeeTah
Insurance Consultant Limited (“YeeTah”), a licensed insurance brokerage company located in Hong Kong, China. YeeTah sells
a wide range of insurance products, consisting of two major categories: (1) life and medical insurance, such as individual life insurance;
and (2) general insurance, such as automobile insurance, commercial property insurance, liability insurance, homeowner insurance. In addition,
as a Mandatory Provident Fund (“MPF”) Intermediary, YeeTah also assists its customers with their investment through the MPF
and the Occupational Retirement Schemes Ordinance schemes (“ORSO”) in Hong Kong, both of which are retirement protection schemes
set up for employees.
On October 21, 2020, the Company entered into a
share exchange agreement (the “Share Exchange Agreement”) with QDM Holdings Limited, a BVI company (“QDM
BVI”), and Huihe Zheng, the sole shareholder of QDM BVI (the “QDM BVI Shareholder”), who is also the
Company’s principal stockholder, Chairman and Chief Executive Officer, to acquire all the issued and outstanding capital stock
of QDM BVI in exchange for the issuance to the QDM BVI Shareholder 30,000 shares (900,000
shares before the Reverse Split (as defined below)) of a newly designated Series C Convertible Preferred Stock, par value $0.0001
per share (the “Series C Preferred Stock”), with each Series C Preferred Stock initially being convertible into 11
shares of the Company’s common stock, par value $0.0001
per share, subject to certain adjustments and limitations (the “Share Exchange”). The Share Exchange closed on October
21, 2020.
As a result of the consummation of the Share Exchange,
the Company acquired all the issued and outstanding capital stock of QDM BVI and its subsidiaries, QDM Group Limited, a Hong Kong corporation
and wholly owned subsidiary of QDM BVI (“QDM HK”) and YeeTah.
The Company was a shell company prior to the reverse
acquisition which occurred as a result of the consummation of the transaction contemplated by the Share Exchange Agreement, and QDM BVI
was a private operating company. The reverse acquisition by a non-operating public shell company by a private operating company typically
results in the owners and management of the private company having actual or effective voting and operating control of the combined company.
Therefore, the reverse acquisition is considered a capital transaction in substance. In other words, the transaction is a reverse recapitalization,
equivalent to the issuance of stock by the private company for the net monetary assets of the shell company accompanied by a recapitalization.
Therefore, the acquisition was accounted for as a recapitalization and QDM BVI is considered the acquirer for accounting and financial
reporting purposes. The assets and liabilities of QDM BVI have been brought forward at their book value and no goodwill has been recognized.
Accordingly, the reverse acquisition has been treated
as a corporate restructuring (reorganization) of entities under common control and thus the current capital structures of QDM BVI and
its wholly-owned subsidiary QDM HK and its wholly-owned subsidiary, YeeTah, have been retrospectively presented in prior periods as if
such structures existed at that time and in accordance with ASC 805-50-45-5.
As a result of the Share Exchange, the Company ceased
to be a shell company.
On November 3, 2021, the Company acquired 100% of
the issued and outstanding shares of QDMI Software Group Limited (“QDMS”), a company incorporated on February 6, 2020 in Cyprus.
The Company acquired QDMS through an intermediary holding company, Lutter Global Limited (“LGL”), which was incorporated on
July 29, 2021 in the BVI. Before the acquisition, Huihe Zheng was the sole shareholder of QDMS. As part of the acquisition, Mr. Zheng
sold all the shares of QDMS to LGL for a consideration of EUR5,000 in November 2021 and at the same time the sole shareholder of LGL,
Mengting Xu, transferred all her shares in LGL to the Company for a consideration of USD$1.00. As a result, the Company acquired a 100%
ownership of LGL, which, in turn, owns 100% of QDMS. Accordingly, the acquisition has been treated as a corporate restructuring (reorganization)
of entities under common control and thus the current capital structures of QDMS and LGL have been retrospectively presented in prior
periods as if such structures existed at that time and in accordance with ASC 805-50-45-5.
Unless the context specifically requires otherwise,
the term “Company” used herein means QDM International Inc. together with its direct and indirect subsidiaries described above.
Going Concern
The consolidated financial statements have been prepared
on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course
of business for the foreseeable future. The Company has incurred a loss since inception resulting in an accumulated deficit as of June
30, 2022. Accordingly, there is substantial doubt about the Company’s ability to continue as a going concern.
The ability to continue as a going concern is dependent
upon the Company generating revenue and profit in the future and/or to obtain necessary financing to meet its obligations and repay its
liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve
months primarily through financings from the Company’s major stockholder, although the Company may seek other sources of funding,
including public and private offerings of securities.
These consolidated financial statements do not reflect
adjustments that would be necessary if the Company were unable to continue as a “going concern.” While management believes
that the actions already taken or planned, including adjusting its operating expenditures and obtaining financial supports from its principal
stockholder, will mitigate the adverse conditions and events which raise doubt about the validity of the “going concern” assumption
used in preparing these financial statements, there can be no assurance that these actions will be successful. If the Company were unable
to continue as a “going concern,” then substantial adjustments would be necessary to the reported amounts of its liabilities,
the reported expenses and the consolidated balance sheet classifications used.
2. Summary of significant accounting policies
Basis of Presentation
The Company’s unaudited condensed financial
statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S.
GAAP”). The accompanying unaudited condensed financial statements reflect all adjustments, consisting of only normal recurring items,
which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown and are not
necessarily indicative of the results to be expected for the fiscal year ending March 31, 2023. These unaudited condensed financial statements
should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K
for the year ended March 31, 2022, which was filed with the Securities and Exchange Commission on June 29, 2022.
Use of Estimates
The preparation of the Company’s consolidated
financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make certain
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements. The reported amounts of revenues and expenses may be affected by the estimates that management
is required to make. Actual results could differ from those estimates.
Foreign Currency and Foreign Currency Translation
The Company’s reporting currency is the US$.
The Company’s operations are principally conducted in Hong Kong where Hong Kong dollar is the functional currency. The functional
currency of the Company’s two subsidiaries, Lutter Global Limited and QDMI Software Group Limited, is the Euro.
Transactions denominated in other than the
functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction
dates. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into
the functional currency at the prevailing rates of exchange at the balance sheet date. The resulting exchange differences are
reported in the statements of operations and comprehensive income.
The exchanges rates used for translation from
Hong Kong dollar to US$ was 7.8000,
a pegged rate determined by the linked exchange rate system in Hong Kong. This pegged rate was used to translate Company’s
balance sheets, income statement items and cash flow items for both the three months ended June 30, 2022 and 2021.
The exchanges rates used for translation from Euro to US$ are as follows:
Schedule of exchange rates |
|
|
June 30,
2022 |
|
|
|
June 30,
2021 |
|
|
|
|
|
|
|
|
|
|
Period-end spot rate |
|
|
EUR1= US$1.0469 |
|
|
|
EUR1= US$1.1848 |
|
Average rate |
|
|
EUR1= US$1.0646 |
|
|
|
EUR1= US$1.2050 |
|
Certain Risks and Concentration
The Company’s financial instruments that potentially
subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and receivables, and other
assets. As of June 30, 2022, substantially all of the Company’s cash and cash equivalents were held in major financial institutions
located in Hong Kong, which management considers to being of high credit quality.
Cash and Cash Equivalents
Cash and cash equivalents consist of petty cash on
hand and cash held in banks, which are highly liquid and have original maturities of three months or less and are unrestricted as to withdrawal
or use.
Accounts Receivable
Accounts receivable represents trade receivable and
are recognized initially at fair value and subsequently adjusted for any allowance for doubtful accounts and impairment.
The Company makes impairment loss for bad and doubtful
debts based on assessments of the recoverability of the trade and other receivables based on individual account analysis, including the
current creditworthiness and the past collection history of each debtor. Impairments arise when there is an objective evidence indicate
that the balances may not be collectible. The identification of bad and doubtful debts, in particular of a loss event, requires the use
of judgment and estimates, which involve the estimates of specific losses on individual exposures, as well as a provision on historical
trends of collections. Based on management of customers’ credit and ongoing relationship, management makes conclusions whether any
balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on aging analysis basis. The provision
is recorded against accounts receivables balances, with a corresponding charge recorded in the statements of operations and comprehensive
income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the
likelihood of collection is not probable.
The Company historically did not have material bad
debts in accounts receivable. There were no bad debt expenses for the three months ended June 30, 2022 and 2021 and there was no provision
for doubtful accounts as of June 30 and March 31, 2022.
Revenue Recognition
The Company generates revenue primarily by providing
insurance brokerage services in Hong Kong. The Company sells insurance products underwritten by insurance companies operating in Hong
Kong to its individual customers and is compensated for its services by commissions paid by insurance companies, typically based on a
percentage of the premium paid by the insured.
ASC 606 provides for a five-step model for recognizing
revenue from contracts with customers. These five steps include:
|
(i) |
Identify the contract |
|
(ii) |
Identify performance obligations |
|
(iii) |
Determine transaction price |
|
(iv) |
Allocate transaction price |
The Company enters into insurance brokerage contracts
with customers (insurance companies). Performance obligation for these insurance brokerage contracts is to help insurance company customers
to promote, coordinate and complete subscriptions of insurance policies offered by customers.
Under ASC 606, revenue is recognized when the customer
obtains control of a good or service. A customer obtains control of a good or service if it has the ability to direct the use of and obtain
substantially all of the remaining benefits from that good or service. The transfer of control of the Company’s brokerage services
generally occurs at a point in time on the effective date of the associated insurance contract when the policy transfers to the customer.
The insurance policy entered between the insurance company and the insured customer generally contains a cool-off period of one to two
months. When the cool-off period elapses and the insured customer does not withdraw from the insurance policy, the policy becomes effective.
Once the transfer of control of a service occurs, the Company has satisfied its insurance brokerage performance obligation and recognizes
revenue.
Fair Value Measurement
Fair value is the price that would be received from
selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining
the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal
or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the
asset or liability.
The established fair value hierarchy requires an entity
to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s
categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
The three levels of inputs that may be used to measure fair value as follows:
Level 1: |
|
Quoted prices
(unadjusted) in active markets for identical assets or liabilities. |
|
|
Level 2: |
|
Observable,
market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. |
|
|
Level 3: |
|
Unobservable
inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |
The Company’s financial instruments
include cash and cash equivalents, accounts receivable, due from related parties, accounts payable and accrued liabilities, due to
related party and lease liabilities. The carrying amounts of cash and cash equivalents, accounts receivable, due from related
parties, accounts payable and accrued liabilities and due to related party approximate their fair values due to the short-term
nature of these instruments. For lease liabilities, fair value approximates their carrying value at the year end as the interest
rates used to discount the lease contract approximate market rates.
The Company noted no transfers between levels during
any of the periods presented. The Company did not have any instruments that were measured at fair value on a recurring nor non-recurring
basis as of June 30, 2022.
Property and Equipment
Property and equipment are recorded at cost, less
accumulated depreciation and impairment. Depreciation of property and equipment is calculated on a straight-line basis, after consideration
of expected useful lives and estimated residual values. The estimated annual deprecation rate of these assets are generally as follows:
Schedule of estimated annual deprecation rate |
|
|
|
|
|
|
Category |
|
Depreciation
rate |
|
Estimated residual value |
Office equipment |
|
3 years |
|
|
Nil |
|
Leasehold improvements |
|
Shorter
of lease term or 3 years |
|
|
Nil |
|
Expenditures for maintenance and repairs are expensed
as incurred. Gains and losses on disposals are the differences between net sales proceeds and carrying amount of the relevant assets and
are recognized in the statements of operations and comprehensive income.
Impairment of Long-Lived Assets
The Company evaluates its long-lived assets for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured
by comparison of the carrying amounts to the expected future undiscounted cash flows attributable to these assets. If it is determined
that an asset is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the assets exceeds the
expected discounted cash flows arising from those assets.
There were no impairment losses for the three months
ended June 30, 2022 and 2021.
Leases
Arrangements meeting the
definition of a lease are classified as operating or finance leases, and are recorded on the consolidated balance sheet as both a right
of use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease
or the Company’s incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and
the right of use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of
the right of use asset result in straight-line rent expense over the lease term.
In calculating the right
of use asset and lease liability, the Company elects to combine lease and non-lease components as permitted under ASC 842. The Company
excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election and recognizes
rent expense on a straight-line basis over the lease term.
Taxation
Current income taxes are provided on the basis of
net profit for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax
purposes, in accordance with the regulations of the relevant tax jurisdictions.
Deferred income taxes are recognized for temporary
differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, net operating loss
carryforwards and credits. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely
than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided in accordance with
the laws of the relevant taxing authorities. Deferred tax assets and liabilities are measured using enacted rates expected to apply to
taxable income in which temporary differences are expected to be reversed or settled. The effect on deferred tax assets and liabilities
of changes in tax rates is recognized in the statement of operations and comprehensive income in the period of the enactment of the change.
The Company considers positive and negative evidence
when determining whether a portion or all of its deferred tax assets will more likely than not be realized. This assessment considers,
among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration
of statutory carry-forward periods, its experience with tax attributes expiring unused, and its tax planning strategies. The ultimate
realization of deferred tax assets is dependent upon its ability to generate sufficient future taxable income within the carry-forward
periods provided for in the tax law and during the periods in which the temporary differences become deductible. When assessing the realization
of deferred tax assets, the Company has considered possible sources of taxable income including (i) future reversals of existing
taxable temporary differences, (ii) future taxable income exclusive of reversing temporary differences and carry-forwards, (iii) future
taxable income arising from implementing tax planning strategies, and (iv) specific known trend of profits expected to be reflected
within the industry.
The Company recognizes a tax benefit associated with
an uncertain tax position when, in its judgment, it is more likely than not that the position will be sustained upon examination by a
taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, the Company initially and subsequently
measures the tax benefit as the largest amount that the Company judges to have a greater than 50% likelihood of being realized upon ultimate
settlement with a taxing authority. The Company’s liability associated with unrecognized tax benefits is adjusted periodically due
to changing circumstances, such as the progress of tax audits, case law developments and new or emerging legislation. Such adjustments
are recognized entirely in the period in which they are identified. The Company’s effective tax rate includes the net impact of
changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by management. The Company
classifies interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense.
Stock-Based Compensation
We recognize stock-based compensation in accordance
with FASB ASC 718, Stock Compensation. ASC 718 requires that the cost resulting from all share-based transactions be recorded in the financial
statements. It establishes fair value as the measurement objective in accounting for share-based payment arrangements and requires all
entities to apply a fair-value-based measurement in accounting for share-based payment transactions with employees. ASC 718 also establishes
fair value as the measurement objective for transactions in which an entity acquires goods or services from non-employees in share-based
payment transactions.
Earnings per share
Basic earnings per share is computed by dividing net
income attributable to holders of common stock by the weighted average number of shares of common stock outstanding during the period
using the two-class method. Under the two-class method, net income is allocated between shares of common stock and other participating
securities based on their participating rights. Net loss is not allocated to other participating securities if based on their contractual
terms they are not obligated to share in the losses. Diluted earnings per share is calculated by dividing net income attributable to holders
of common stock by the weighted average number of common and dilutive common equivalent shares outstanding during the period. Common equivalent
shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive.
Recently Issued Accounting Standards
The Company has reviewed all the recent accounting
pronouncements issued to date of the issuance of these financial statements, and does not believe any of these pronouncements will have
a material impact on the Company.
3. Deferred Asset
Deferred assets of $30,000 as of June 30, 2022 and
March 31, 2022 represented prepaid legal fees. The amounts will be charged against share capital when the respective equity financing
is completed.
4. Equity
Reverse Stock Split
On August 10, 2021, the Company effected a reverse
stock split of its common stock, without changing the par value per share, whereby each 30 issued and outstanding shares of common stock
were consolidated into one share of common stock (the “Reverse Split”). The Company has retrospectively accounted
for the change in the current and prior period financial statements that are presented in the condensed interim financial statements.
Common Stock
On April 29, 2021, the Company consummated a closing
of a “best efforts” self-underwritten public offering of its common stock, par value $0.0001 per share (the “Offering”),
in which the Company issued and sold an aggregate of 16,708 shares (501,250 shares before the Reverse Split) of its common
stock at a price of $12 per share ($0.40 before the Reverse Split) to certain investors, generating gross proceeds to the Company
of $200,307. Share offering costs of $94,173 were offset against the share capital in relation to the Offering.
On November 11, 2020, the Company’s board approved
to issue an aggregate of 667 shares (20,000 shares before the Reverse Split) of common stock to its directors and officers
as equity compensation for services they provided in 2020.
There were no treasury stock transactions during the
three months ended June 30, 2021 and 2022.
Preferred Stock
On May 17, 2021, upon receipt of a conversion notice
from Huihe Zheng, the Company issued 134,976 shares (4,049,254 shares before the Reverse Split) of the Company’s common
stock upon conversion of an aggregate of 368,114 shares of Series C Preferred Stock, par value $0.0001 per share, at a conversion
ratio of 30 for 11 (1-for-11 before the Reverse Split), pursuant to the terms of the Certification of Designation for the Series
C Preferred Stock.
5. Related Party Transaction
Related Parties
Name
of related parties |
|
Relationship
with the Company |
Siu Ping Lo |
|
Responsible officer of YeeTah |
Huihe Zheng |
|
Principal Stockholder, Chief
Executive Officer and Chairman of the Company |
YeeTah
Financial Group Co., Ltd. (“YeeTah Financial”) |
|
A company controlled by Siu Ping Lo |
Tim Shannon |
|
Chief Financial Officer of the Company |
Related Party Transactions
|
(i) |
During the three months
ended June 30, 2022, YeeTah Financial charged YeeTah US$9,690 (2021: US$11,610) commission expenses in relation to insurance
referral services rendered by YeeTah Financial. |
|
(iii) |
During the three months
ended June 30, 2022, Huihe Zheng advanced US$59,804
(2021: US$119,805)
to the Company to support its operations. |
Due to
Related Party Balance
The
Company’s due to related party balance is as follows:
Schedule of Related Party Transactions |
|
|
|
|
|
|
|
|
|
|
June 30,
2022 |
|
March 31,
2022 |
|
|
US$ |
|
US$ |
Huihe
Zheng |
|
|
873,182 |
|
|
|
814,748 |
|
YeeTah
Financial |
|
|
2,529 |
|
|
|
3,937 |
|
Total |
|
|
875,711 |
|
|
|
818,685 |
|
The due to related party balances were unsecured,
interest-free and due on demand.
Subscription Receivable Due from a Stockholder
The Company’s subscription receivable due from
a stockholder balances are as follows:
|
|
June
30, 2022 |
|
March 31,
2022 |
|
|
US$ |
|
US$ |
Huihe
Zheng |
|
|
48,718 |
|
|
|
48,718 |
|
The due from stockholder balances represent the purchase
price for shares of QDM BVI to be paid by Mr. Huihe Zheng. These due from stockholder balances at of the balance sheet dates were unsecured,
interest-free and due on demand.
6. Income Taxes
Hong Kong
Under the current Hong Kong Inland Revenue Ordinance,
the Company’s Hong Kong subsidiaries are subject to a 16.5% income tax on their taxable income generated from operations in Hong
Kong. On December 29, 2017, Hong Kong government announced a two-tiered profit tax rate regime. Under the two-tiered tax rate regime,
the first HK$2.0 million assessable profits will be subject to a lower tax rate of 8.25% and the excessive taxable income will continue
to be taxed at the existing 16.5% tax rate. The two-tiered tax regime becomes effective from the assessment year of 2018/2019, which was
on or after April 1, 2018. The application of the two-tiered rates is restricted to only one nominated enterprise among connected entities.
The Company did not have current income tax expenses
for the three months ended June 30, 2022 and 2021 since it did not have taxable incomes in these two periods.
BVI
Under the current laws of the BVI, the Company is
not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no BVI withholding tax will
be imposed.
Cyprus
Under the current laws of the Cyprus, the Company’s
Cyprus subsidiary is subject to a standard income tax rate of 12.5% on income accrued or derived from all sources in Cyprus and abroad.
US
Under the current Florida state and US federal income
tax, the Company does not need to pay income taxes as Florida state does not levy income tax. The federal income tax is based on a flat
rate of 21% for the calendar year of 2022 (2021: 21%).
Uncertain tax positions
The Company evaluates each uncertain tax position
(including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated
with the tax positions. As of June 30, 2022, the Company did not have any significant unrecognized uncertain tax positions.
7. Commitments and Contingencies
Other than an office lease with a lease term of 3
years that the Company entered into in February 2022 as below, the Company did not have significant commitments, long-term obligations,
or guarantees as of June 30, 2022.
Operating lease
The future aggregate minimum lease payments under
the non-cancellable office operating lease are as follows:
Schedule of Future Minimum Rental Payments for Operating Leases |
|
|
|
|
2023 |
|
$ |
31,629 |
|
2024 |
|
|
42,172 |
|
2025 |
|
|
35,143 |
|
Total
future minimum lease payments |
|
$ |
108,943 |
|
Less: imputed
interest |
|
|
(6,809 |
) |
Total
operating lease liability |
|
$ |
102,134 |
|
Less: operating
lease liability - current |
|
|
38,013 |
|
Total operating
lease liability – non current |
|
$ |
64,121 |
|
The weighted average remaining lease term of the operating
lease is 3 years and discount rate used for the operating lease is 4.9%.
Contingencies
The Company is subject to legal proceedings and regulatory
actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not
anticipate that the final outcome arising out of any such matter will have a material adverse effect on our business, financial position,
cash flows or results of operations taken as a whole. As of June 30, 2022, the Company is not a party to any material legal or administrative
proceedings.
8. Loss Per Share
Basic and diluted net loss per share for each of the
years presented are calculated as follows:
Basic loss per share is computed using the weighted
average number of common stocks outstanding during the period. Diluted earnings per share is computed using the weighted average number
of common stocks and dilutive common stock equivalents outstanding during the period.
Schedule of loss per share |
|
|
|
|
|
|
|
|
|
|
June 30,
2022 |
|
June 30,
2021 |
|
|
US$ |
|
US$ |
Numerator: |
|
|
|
|
|
|
|
|
Net
loss attributable to holders of common stock— basic and diluted |
|
|
(96,156 |
) |
|
|
(109,019 |
) |
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
Weighted average number of
common stock outstanding— basic and diluted |
|
|
209,520 |
|
|
|
133,294 |
|
|
|
|
|
|
|
|
|
|
Loss per share attributable to holders of common stock.—basic
and diluted |
|
|
(0.46 |
) |
|
|
(0.82 |
) |
9. Subsequent Events
In accordance with ASC 855-10, the Company has analyzed its operations subsequent
to June 30, 2022 through the date of issuance of the financial statements and has determined that it does not have any
other material subsequent events to disclose in these financial statements.