Notes
to the Financial Statements
For
the years ended July 31, 2016 and July 31, 2015
NOTE
1 – ORGANIZATION AND NATURE OF BUSINESS
NIMTECH
CORP. (“the Company”, “we”, “us” or “our”) was incorporated in the State of Nevada
on February 4, 2014.
NOTE
2 – GOING CONCERN
The
Company has generated no revenues and incurred a loss since Inception (February 4, 2014) resulting in an accumulated deficit
of $57,589 as of July 31, 2016 and further losses are anticipated in the development of its business. 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 profitable operations in the future and, or, obtaining
the 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 with loans from directors and, or, the private
placement of common stock.
Management
plans to fund operations of the Company through the proceeds from an offering pursuant to a Registration Statement on Form S-1
or private placements of restricted securities or the issuance of stock in lieu of cash for payment of services until such a time
as profitable operations are achieved. There are no written agreements in place for such funding or issuance of securities and
there can be no assurance that such will be available in the future.
Management
believes that this plan provides an opportunity for the Company to continue as a going concern. The failure to achieve the necessary
levels of profitability or obtain the additional funding would be detrimental to the Company. The financial statements do not
include any adjustments that might result from the outcome of this uncertainty.
NOTE
3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting
Basis
The
Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP”
accounting). The Company has adopted a July 31 fiscal year end.
Use
of Estimates
The
preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Cash
and Cash Equivalents
The
Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents.
Fair
Value of Financial Instruments
ASC
820 "Fair Value Measurements and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs
in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring
fair value are observable in the market.
These
tiers include:
Level
1: defined as observable inputs such as quoted prices in active markets;
Level
2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level
3: defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
The
carrying value of cash, prepaid expenses, accounts receivable, accounts payable and the Company’s loan from director approximates
its fair value due to their short-term maturity.
NIMTECH
CORP.
Notes
to the Audited Financial Statements
For
the years ended July 31, 2016 and July 31, 2015
NOTE
3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Income
Taxes
Income
taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and
liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and
are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax
assets that, based on available evidence, are not expected to be realized.
Stock-Based
Compensation
Stock-based
compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option
plan and has not granted any stock options.
Basic
Income (Loss) Per Share
The
Company computes income (loss) per share in accordance with FASB ASC 260, “Earnings per Share” which requires presentation
of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing
net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period.
Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss
per share excludes all potential common shares if their effect is anti-dilutive.
During
the years ended July 31, 2016 and July 31, 2015 there were no potentially dilutive debt or equity instruments issued or outstanding
and any such shares would have been excluded from the computation because they would have been anti-dilutive as the Company incurred
losses in these periods.
Recent
Accounting Pronouncements
We
have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements
will have a material impact on the Company’s results of operations, financial position or cash flow.
NOTE
4 – COMMON STOCK
The
Company has 75,000,000, $0.001 par value shares of common stock authorized.
On
June 5, 2014, the Company issued 3,500,000 shares of common stock to a director for cash proceeds of $3,500 at $0.001 per share.
During
the year ended July 31, 2015 Company has issued 2,540,000 shares of common stock for cash proceeds of $25,400 at $0.001 per share.
There were 6,040,000 shares of common stock issued and outstanding as of July 31, 2016 and 2015.
On
February 22, 2016, Tianjin Commodity Exchange Company Limited and TJCOMEX Hong Kong Company Limited respectively entered into
Common Stock Purchase Agreement (the “Purchase Agreement”) with the Company’s largest shareholder, Mr. Zaixian
Wang and Mr. Jianhong Wang, who together hold 99.97% of the equity capital of the Company. Pursuant to the terms of the Purchase
Agreement, Mr. Zaixian Wang and Mr. Jianhong Wang transferred to Tianjin Commodity Exchange Company Limited and TJCOMEX Hong Kong
Company Limited 6,038,000 shares of common stock of the Company, par value $0.001 per share (“Common Stock”) (such
transaction, the “Share Purchase”). The Share Purchase was closed on February 29, 2016.
Effective
April 8, 2016, Mr. Badria Alhussin, who served as our Chief Executive Officer, Chief Financial Officer, Chief Operating Officer
and the sole director, resigned from his officer and director position. Effective April 8, 2016, Our Board appointed (a) Mr. Chuanliu
Ni to serve as our chairman of the Board, director and Chief Executive Officer, (b) Ms. Xiaoyan Shen to serve as our Chief Financial
Officer and director, (c) Ms. Yang Yang to serve as our director and secretary.
NOTE
5 – RELATED TRANSACTIONS
As
of July 31, 2015, a previous director had loaned $17,387 to the Company to provide working capital for its business operations.
The loan is unsecured, non-interest bearing and due on demand.
As
of July 31, 2016, the unrelated assets and liabilities of $22,689 had been written off after the purchase agreement and change
in control.
NIMTECH
CORP.
Notes
to the Audited Financial Statements
For
the years ended July 31, 2016 and July 31, 2015
NOTE
6 – COMMITMENTS AND CONTINGENCIES
Contractual
commitments
The
Company has no contractual commitments.
Litigation
We
were not subject to any legal proceedings during the years ended July 31, 2016 and July 31, 2015 and we know of no material, existing
or pending legal proceedings against our Company, nor are we involved as a plaintiff in any material proceeding or pending litigation.
There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is
an adverse party or has a material interest adverse to our interest.
NOTE
7 – INCOME TAXES
As
of July 31, 2016, the Company had net operating loss carry forwards of approximately $57,589 that may be available to reduce future
years’ taxable income in varying amounts through 2036. Future tax benefits which arise as a result of these losses have
not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the
Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.
The
provision for Federal income tax consists of the following:
|
|
July 31, 2016
|
|
Federal income tax benefit attributable to:
|
|
|
|
Losses incurred in current operations
|
|
$
|
57,589
|
|
Less: valuation allowance
|
|
|
(57,589
|
)
|
Net provision for Federal income taxes
|
|
$
|
-
|
|
The
cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:
|
|
July 31, 2016
|
|
Deferred tax asset attributable to:
|
|
|
|
Net operating loss carryover
|
|
$
|
19,580
|
|
Less: valuation allowance
|
|
|
(19,580
|
)
|
Net deferred tax asset
|
|
$
|
-
|
|
Due
to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $57,589
for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating
loss carry forwards may be limited as to use in future years.
NOTE
8. SUBSEQUENT EVENTS
In
accordance with ASC 855-10 the Company has analyzed its operations from July 31, 2016 to the date these financial statements were
issued and has determined that it does not have any material subsequent events to disclose in these financial statements other
than as disclosed above.