See accompanying notes
to condensed consolidated financial statements.
See accompanying notes
to condensed consolidated financial statements.
See accompanying notes
to condensed consolidated financial statements.
See accompanying notes to condensed consolidated
financial statements.
Notes to Condensed Consolidated Financial
Statements
September 30, 2022 and 2021
1. Organization and principal activities
QDM International Inc. (“QDM,” and collectively with its subsidiaries, the “Company”) 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 of 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.
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 September 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 the U.S. GAAP requires the Company 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
United States Dollar (“US$” or “$”). The Company’s operations are principally conducted in Hong Kong
where Hong Kong dollar is the functional currency. The functional currency of the Company’s two subsidiaries, Lutter Global
Limited and QDMI Software Group Limited, is the Euro.
Transactions denominated in other than the
functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction
dates. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated
into the functional currency at the prevailing rates of exchange at the balance sheet date. The resulting exchange differences
are reported in the statements of operations and comprehensive loss.
The exchanges rates used for translation from
Hong Kong dollar to US$ 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 and six months
ended September 30, 2022 and 2021.
The exchanges rates used for translation from
Euro to US$ are as follows:
Schedule of exchange rates |
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
Period-end spot rate |
|
|
EUR 1 = US$0.9783 |
|
|
EUR 1 = US$1.1577 |
|
|
Average rate |
|
|
EUR 1 = US$1.0353 |
|
|
EUR 1 = US$1.1917 |
|
|
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 September 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 loss. 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 and six months ended September 30, 2022 and 2021
and there was no provision for doubtful accounts as of September 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, lease
liabilities and due to related party. The carrying amounts of these financial instruments approximate their fair values due to the
short-term nature of these instruments.
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 September 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 loss.
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 and six months ended September 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
The Company recognizes 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 $64,003 and $30,000 as of September
30, 2022 and March 31, 2022, respectively, represented prepaid professional fees and filing 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 and six months ended September 30, 2022 and 2021.
Additional paid-in-capital
On July 22, 2022, Huihe Zheng invested additional
share capital of $150,000 (HKD$1,170,000) into Company’s subsidiary, YeeTah. The additional contribution was recorded into
additional paid-in-capital.
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 |
Ouya Properties Group Ltd. (“OPG”) |
|
A company controlled by Huihe Zheng |
Related Party Transactions
|
(i) |
During the three and six months ended September 30, 2022, YeeTah Financial charged YeeTah US$12,993 and US$22,683 (2021: US$18,608 and US$30,218) commission expenses in relation to insurance referral services rendered by YeeTah Financial. |
|
|
|
|
(ii) |
During the three and six months
ended September 30, 2022, Huihe Zheng advanced US$95,628
and US$165,097
(2021: US$91,186
and US$210,991)
to the Company to support its operations. |
|
|
|
|
(ii) |
During
the three and six months ended September 30, 2022, OPG advanced US$1,817
and US$1,817
(2021: US$ nil and US$ nil) to the Company to support its operations. |
Due to Related Party Balance
The Company’s due to related party balance
as of September 30 and March 31, 2022 is as follows:
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
March 31, 2022 |
|
|
US$ |
|
US$ |
Huihe Zheng |
|
|
976,357 |
|
|
|
814,748 |
|
OPG |
|
|
1,717 |
|
|
|
- |
|
YeeTah Financial |
|
|
7,705 |
|
|
|
3,937 |
|
Total |
|
|
985,779 |
|
|
|
818,685 |
|
The due to related party balance is unsecured,
interest-free and due on demand.
Subscription Receivable Due from a Stockholder
The Company’s subscription receivable
due from a stockholder balance as of September 30 and March 31, 2022 are as follows:
|
|
September 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 and six months ended September 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 September 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 September 30, 2022.
Operating lease
The weighted average remaining lease term
of the operating lease is 3 years and discount rate used for the operating lease is 4.9%.
Schedule of Future Minimum Rental Payments for Operating Leases |
|
|
|
|
2023 |
|
$ |
21,086 |
|
2024 |
|
|
42,172 |
|
2025 |
|
|
35,143 |
|
Total future minimum lease payments |
|
$ |
98,400 |
|
Less: imputed interest |
|
|
(5,596 |
) |
Total operating lease liability |
|
$ |
92,805 |
|
Less: operating lease liability - current |
|
|
38,481 |
|
Total operating lease liability – non current |
|
$ |
54,324 |
|
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 September 30, 2022, the Company is
not a party to any material legal or administrative proceedings.
8. Subsequent Events
In accordance with ASC 855-10, the Company
has analyzed its operations subsequent to September 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.