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 OCTOBER 31, 2020

 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission File No. 000 30432

 

Evergreen International Corp.
(Exact name of registrant as specified in its charter)

 

State of Delaware   22-2335094

(State or other jurisdiction of
Incorporation or organization)

 

(I.R.S. Employer
Identification No.)

 

No.99 Yaoguchengzhai Village

Gaotai Town, Suizhong County, Huludao City, Liaoning Province, China

(Address of principal executive offices)

(Zip Code)

 

+86-13842986966

(Registrant’s telephone number, including area code)

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
N/A        

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities 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 every Interactive Data File required to be submitted 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 such files).

Yes  ☒  No  ☐

 

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

 

Large accelerated filer ☐ Accelerated filer ☐
Non-accelerated filer ☒ 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) or the Exchange Act.  ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes ☒   No  ☐

 

As of January 14, 2021, there were 7,350,540 shares of Common Stock issued and outstanding.

 

 

 

 

 

 

FORWARD-LOOKING STATEMENTS

 

This report may contain “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended (including any statements regarding the Company’s outlook for fiscal 2021 and beyond). Any forward-looking statements are subject to a number of risks and uncertainties. These include, among other risks and uncertainties, without limitation, the lack of any current business operation, the possible failure to identify a suitable acquisition candidate, and specific risks which may be associated with any new business or acquisition that we may acquire.

 

In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “predicts,” “potential” and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, these forward-looking statements represent our estimates and assumptions only as of the date of this report. Except as otherwise required by law, we expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained in this report to reflect any change in our expectations or any change in events, conditions or circumstances on which any of our forward-looking statements are based. We qualify all of our forward-looking statements by these cautionary statements.

 

 

 

 

EVERGREEN INTERNATIONAL CORP.

INDEX

 

        Page
Number 
PART I.   Financial Information    
         
Item 1.   Unaudited Condensed Financial Statements    
         
    Condensed Balance Sheets (Unaudited) – October 31, 2020 and April 30, 2020   1
    Condensed Statements of Operations (Unaudited) - Three and Six Months Ended October 31, 2020 and 2019   2
    Condensed Statements of Stockholders’ Deficit (Unaudited) - Three Months Ended October 31, 2020 and 2019   3
    Condensed Statements of Stockholders’ Deficit (Unaudited) - Six Months Ended October 31, 2020 and 2019   4
    Condensed Statements of Cash Flows (Unaudited) - Six Months Ended October 31, 2020 and 2019   5
    Notes to Unaudited Condensed Financial Statements   6
         
Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations   8
         
Item 3.   Quantitative and Qualitative Disclosures About Market Risk   10
         
Item 4.   Controls and Procedures   11
         
PART II.   Other Information  
         
Item 1.   Legal Proceedings   12
         
Item 1A.   Risk Factors   12
         
Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds   12
         
Item 3.   Defaults Upon Senior Securities   12
         
Item 4.   Mine Safety Disclosures   12
         
Item 5.   Other Information   12
         
Item 6.   Exhibits   13

 

i

 

 

EVERGREEN INTERNATIONAL CORP.

CONDENSED BALANCE SHEETS

(Unaudited)

 

    October 31,
2020 		    April 30,
2020 		 
             
ASSET            
Current Asset:            
Cash   $ 785     $ 785  
Total Current Asset     785       785  
                 
Total Asset   $ 785     $ 785  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
                 
Current Liabilities:                
Accounts Payable and Accrued Expenses   $ 37,716     $ 17,696  
Accounts Payable and Accrued Expenses – related party     61,839       61,839  
                 
Total Current Liabilities     99,555       79,535  
                 
Commitments and Contingencies                
                 
Stockholders’ Deficit:                
Preferred Stock, $.001 par value; 1,000,000 shares authorized; None issued and outstanding     -       -  
Common Stock, $.001 par value; 100,000,000 shares authorized; 7,350,540 shares issued and outstanding     7,350       7,350  
Additional Paid-In Capital     2,190,644       2,190,644  
Accumulated Deficit     (2,296,764 )     (2,276,744 )
                 
Total Stockholders’ Deficit     (98,770 )     (78,750 )
                 
Total Liabilities and Stockholders’ Deficit   $ 785     $ 785  

 

The accompanying notes are an integral part of the unaudited condensed financial statements.

 

1

 

 

EVERGREEN INTERNATIONAL CORP.

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

 

             
    Three Months Ended
October 31, 		   

Six Months Ended

October 31,

 
    2020     2019     2020     2019  
                         
Net Sales   $ -     $ -     $ -     $ -  
                                 
Costs and Expenses:                                
Selling, General and Administrative Expenses     1,815       5,625       20,020       29,596  
                                 
Loss from operations     (1,815 )     (5,625 )     (20,020 )     (29,596 )
                                 
Net Loss   $ (1,815 )   $ (5,625 )   $ (20,020 )   $ (29,596 )
                                 
Loss Per Common Share – Basic and Diluted   $ (0.00 )   $ (0.00 )   $ (0.00 )   $ (0.00 )
                                 
Weighted Average Shares Outstanding     7,350,540       7,350,540       7,350,540       7,350,540  

 

The accompanying notes are an integral part of the unaudited condensed financial statements.

 

2

 

 

EVERGREEN INTERNATIONAL CORP.

CONDENSED STATEMENTS OF STOCKHOLDERS’ DEFICIT

THREE MONTHS ENDED OCTOBER 31, 2020 AND 2019

(Unaudited)

 

                Additional              
    Common Stock     Paid-In     Accumulated        
    Shares     Amount     Capital     Deficit     Total  
Balance – July 31, 2019     7,350,540     $ 7,350     $ 2,190,644     $ (2,252,751 )   $ (54,757 )
Net Loss     -       -       -       (5,625 )     (5,625 )
Balance – October 31, 2019     7,350,540     $ 7,350     $ 2,190,644     $ (2,258,376 )   $ (60,382 )
                                         
Balance – July 31, 2020     7,350,540     $ 7,350     $ 2,190,644     $ (2,294,949 )   $ (96,955 )
Net Loss     -       -       -       (1,815 )     (1,815 )
Balance – October 31, 2020     7,350,540     $ 7,350     $ 2,190,644     $ (2,296,764 )   $ (98,770 )

 

The accompanying notes are an integral part of the unaudited condensed financial statements.

 

3

 

 

EVERGREEN INTERNATIONAL CORP.

CONDENSED STATEMENTS OF STOCKHOLDERS’ DEFICIT

SIX MONTHS ENDED OCTOBER 31, 2020 AND 2019

(Unaudited)

 

                Additional              
    Common Stock     Paid-In     Accumulated        
    Shares     Amount     Capital     Deficit     Total  
Balance – April 30, 2019     7,350,540     $ 7,350     $ 2,190,644     $ (2,228,780 )   $ (30,786 )
Net Loss     -       -       -       (29,596 )     (29,596 )
Balance – October 31, 2019     7,350,540     $ 7,350     $ 2,190,644     $ (2,258,376 )   $ (60,382 )
                                         
Balance – April 30, 2020     7,350,540     $ 7,350     $ 2,190,644     $ (2,276,744 )   $ (78,750 )
Net Loss     -       -       -       (20,020 )     (20,020 )
Balance – October 31, 2020     7,350,540     $ 7,350     $ 2,190,644     $ (2,296,764 )   $ (98,770 )

 

The accompanying notes are an integral part of the unaudited condensed financial statements.

 

4

 

 

EVERGREEN INTERNATIONAL CORP.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

 

   

Six Months Ended

October 31,

 
    2020     2019  
Cash Flows from Operating Activities:            
Net Loss   $ (20,020 )   $ (29,596 )
Changes in Operating Assets and Liabilities:                
Increase in Accounts Payable and Accrued Liabilities     20,020       295  
Increase in Accounts Payable and Accrued Liabilities-related parties     -       29,301  
                 
Net Cash Used in Operating Activities     -       -  
                 
Decrease in Cash     -       -  
                 
Cash - Beginning of Period     785       785  
                 
Cash - End of Period   $ 785     $ 785  
                 
Supplemental Disclosure of Cash Flow Information:                
Cash Paid for Interest   $ -     $ -  
Cash Paid for Income Taxes   $ -     $ -  

 

The accompanying notes are an integral part of the unaudited condensed financial statements.

 

5

 

 

EVERGREEN INTERNATIONAL CORP.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

 

NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Organization and Description of Business

 

Evergreen International Corp. (“Evergreen”, “we”, “our” or “the Company”) started as a wood products company that had been in business since 1980. Our business fluctuated over the years. We were almost wholly dependent on sales to The Home Depot, Inc. On September 2, 2003, we terminated our business relationship with Home Depot due to increased difficulties in transacting business with such company on a profitable basis. These difficulties included Home Depot’s prohibition against price increases, despite increases in our costs of production, a diminution in the Home Depot territories to which we were allowed to sell our products, and Home Depot’s demands regarding returns of ordered products that we were unwilling to accede to for economic reasons.

 

On June 22, 2018, the Company entered into a Stock Purchase Agreement (the “SPA”) with a third party (the “Purchaser”) and certain selling stockholders, including the Company’s controlling stockholders (all of the selling stockholders, collectively, the “Sellers”). Pursuant to the SPA, the Purchaser agreed to acquire approximately 98.75% of the Company’s issued and outstanding common stock (the “Shares”). The transaction contemplated by the SPA was subject to various conditions, including payment of a cash dividend to the Company’s stockholders and the Company’s changing its name and ticker symbol as per the direction of the Purchaser.

 

On July 6, 2018, the Board of Directors of the Company (i) declared a cash dividend in an aggregate amount of $181,996, or an average of $0.024760 per share, payable to stockholders of record on July 16, 2018, and (ii) approved an amendment to the Company’s Certificate of Incorporation to change the Company’s name to Evergreen International, Corp., which amendment was filed with the Secretary of State of the State of Delaware on July 13, 2018 and became effective on July 20, 2018.

 

On July 27, 2018, the transaction contemplated by the SPA closed and the Purchaser acquired the Shares for a cash consideration of $325,000. The consummation of the transactions contemplated by the SPA resulted in a change of control of the Company.

 

Currently, the Company only possesses minimal assets and liabilities with no substantial business operations. There were no significant revenues or positive cash flows for the six months ended October 31, 2020. The Company’s management efforts are focused on seeking out a new and profitable operating business with strong growth potential. Unless and until the Company’s successful acquisition of an operating business, we expect our expenses to consist of legal fees, accounting fees, and administrative costs related to maintaining a public company.

 

On October 20, 2020, Jianguo Wei, our Chief Executive Officer, President, Treasurer and Director, entered into an Acquisition Agreement with Shanghai Yuyue Enterprise Management Consulting Co., Ltd. (“SYEM”) pursuant to which Mr. Wei agreed to sell all 7,258,750 shares held by Tan Ying Lok, constituting approximately 98.75% of the Company, to SYEM for aggregate cash consideration of $200,000. Mr. Wei was authorized to enter into the Acquisition Agreement on behalf of Mr. Lok pursuant to an Authorization Letter dated October 20, 2020. The acquisition consummated October 20, 2020, and the parties are the in process of transferring the shares to SYEM.

 

In connection with the sale of securities to SYEM, Mr. Jianguo Wei resigned as President, Chief Executive Officer and Chief Financial officer, and Mr. He Baobing and Mr. Cui Weinming were appointed as the Company’s Chief Executive Officer and Chief Financial Officer, respectively, effective October 20, 2020.

 

On October 22, 2020, the Board and the Majority Stockholder took action by written consent to approve an amendment to the Company’s Articles of Incorporation to change its corporate name to Liaoning Shuiyun Qinghe Rice Industry Co., Ltd. and to change the ticker symbol of the Common Stock to SYQH. These changes are currently pending awaiting regulatory approval.

 

Basis of Presentation

 

The accompanying unaudited condensed financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

The interim unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission from the accounts of the Company without audit. The condensed balance sheet at April 30, 2020 was derived from audited financial statements but may not include all disclosures required by accounting principles generally accepted in the United States of America. The other information in these condensed financial statements is unaudited; however, in the opinion of management, the information presented reflects all adjustments of a normal recurring nature which are necessary to present fairly the Company’s financial position and results of operations and cash flows for the period presented. It is recommended that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the Company’s fiscal year 2020 Annual Report on Form 10-K filed on July 29, 2020 and other financial reports filed by the Company from time to time.

 

6

 

  

Cash

 

The Company considers all highly liquid short-term investments with a maturity of three months or less at time of purchase to be cash equivalents. There were no cash equivalents as of October 31, 2020 and April 30, 2020.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Income Taxes

 

Income taxes are provided in accordance with ASC 740 Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

 

Loss Per Share

 

The basic computation of loss per share is based on the weighted average number of shares outstanding during the period presented in accordance with ASC 260, “Earnings Per Share”. Since the Company has no common stock equivalents, diluted loss per share is the same as basic loss per share.

 

Fair Value of Financial Instruments

 

The fair value of the Company’s financial instruments, which consist primarily of cash, accounts payable and accrued expenses, and accounts payable and accrued expenses – related party, approximate their carrying amounts reported due to their short-term nature.

 

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to concentration of credit risk consist of cash accounts in a financial institution which, at times, may exceed the Federal depository insurance coverage of $250,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

 

Going Concern Risk

 

As of October 31, 2020, the Company has accumulated losses of $2,296,764 and a working capital deficit of $98,770. The Company has no current operating activities. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management intends to fund the ongoing operations of the Company while seeking potential business acquisition opportunities.

 

NOTE 4 – RELATED PARTY TRANSACTIONS

 

Historically, the Company’s former CEO, Jianguo Wei, paid certain expenses on behalf of the Company. As of October 31, 2020, the Company had a payable amount to this related party of $61,839.

 

NOTE 5 – RECENT ACCOUNTING PRONOUNCEMENTS

 

Management does not believe there would have been a material effect on the accompanying financial statements had any recently issued, but not yet effective, accounting standards been adopted in the current period.

 

7

 

 

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

 

The following discussion and analysis of financial condition and results of operations relates to the operations and financial condition reported in the unaudited condensed financial statements of the Company for the Three and Six Months ended October 31, 2020 and 2019 and should be read in conjunction with such financial statements and related notes included in this report. Except for the historical information contained herein, the following discussion, as well as other information in this report, contain “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the “safe harbor” created by those sections. Actual results and the timing of the events may differ materially from those contained in these forward-looking statements due to a number of factors, including those discussed in the “Forward-Looking Statements” set forth elsewhere in this Quarterly Report on Form 10-Q.

 

Overview

 

Evergreen International Corp. (“Evergreen”, “we”, “our” or “the Company”) started as a wood products company that had been in business since 1980. Our business fluctuated over the years. We were almost wholly dependent on sales to The Home Depot, Inc. On September 2, 2003, we terminated our business relationship with Home Depot due to increased difficulties in transacting business with such company on a profitable basis. These difficulties included Home Depot’s prohibition against price increases, despite increases in our costs of production, a diminution in the Home Depot territories to which we were allowed to sell our products, and Home Depot’s demands regarding returns of ordered products that we were unwilling to accede to for economic reasons.

 

On June 22, 2018, the Company (f/k/a Arbor EnTech Corporation) entered into a Stock Purchase Agreement (the “SPA”) with Tan Ying Lok (the “Purchaser”) and certain selling stockholders including Airmont Trust and Brad Houtkin, the Company’s two controlling stockholders (collectively, the “Sellers”), pursuant to which the Purchaser agreed to acquire 7,258,750 shares of common stock representing approximately 98.75% of the company’s issued and outstanding common stock (the “Shares”) for $325,000. The acquisition consummated July 27, 2018, resulting in a change of control of the Company.

 

In connection with the acquisition, Mr. Brad Houtkin resigned from his positions as President, CEO, Treasurer and Director of the Company, Mr. Michael Houtkin resigned from his positions as the Secretary and Director of the Company, and Ms. Sherry Houtkin resigned as the Director of the Company. Their resignations were not due to any dispute or disagreement with the Company on any matter relating to the Company's operations, policies or practices. Effective August 6, 2018, the Board of Directors of the Company appointed Jiangou Wei to serve as the sole Director, CEO, President and Treasurer of the Company, and Ge Gao as the Corporate Secretary of the Company.

 

Mr. Jiangou Wei and Tan Ying Lok are also parties to that certain Call Option Agreement, dated June 22, 2018, pursuant to which Mr. Lok granted Mr. Wei the option to purchase all shares of common stock of the Company held by Mr. Lok at a purchase price of RMB 200,000. The option to purchase expires June 21, 2023. The foregoing description of the Call Option Agreement is qualified in its entirety by reference to the Call Option Agreement, which is filed as Exhibit 10.1 to this Quarterly Report and incorporated herein by reference.

 

On July 6, 2018, the Board of Directors of the Company (i) declared a cash dividend in an aggregate amount of $181,996, or an average of $0.024760 per share, payable to stockholders of record on July 16, 2018, and (ii) approved an amendment to the Company’s Certificate of Incorporation to change the Company’s name to Evergreen International, Corp, which amendment was filed with the Secretary of State of the State of Delaware on July 13, 2018 and became effective July 20, 2018.

 

On October 20, 2020, Jianguo Wei, our Chief Executive Officer, President, Treasurer and Director, entered into an Acquisition Agreement with Shanghai Yuyue Enterprise Management Consulting Co., Ltd. (“SYEM”) pursuant to which Mr. Wei agreed to sell all 7,258,750 shares held by Tan Ying Lok, constituting approximately 98.75% of the Company, to SYEM for aggregate cash consideration of $200,000. Mr. Wei was authorized to enter into the Acquisition Agreement on behalf of Mr. Lok pursuant to an Authorization Letter dated October 20, 2020. The acquisition consummated October 20, 2020, and the parties are the in process of transferring the shares to SYEM. The foregoing description of the Acquisition Agreement and Authorization Letter are qualified in their entirety by reference to the such agreement and letter, which are filed as Exhibits 10.2 and 10.3 to this Quarterly Report and incorporated herein by reference.

 

8

 

 

In connection with the sale of securities to SYEM, Mr. Jianguo Wei resigned as President, Chief Executive Officer and Chief Financial officer, and Mr He Baobing and Mr. Cui Weinming were appointed as the Company’s Chief Executive Officer and Chief Financial Officer, respectively, effective October 20, 2020. Mr. Wei continues to serve as our sole director.

 

Currently, the Company only possesses minimal assets and liabilities with no substantial business operations. There were no significant revenues or positive cash flows for the six months ended October 31, 2020. The Company’s management efforts are focused on seeking out a new and profitable operating business with strong growth potential. Unless and until the Company’s successful acquisition of an operating business, we expect our expenses to consist of legal fees, accounting fees, and administrative costs related to maintaining a public company.

 

On October 22, 2020, the Board and the Majority Stockholder took action by written consent to approve an amendment to the Company’s Articles of Incorporation to change its corporate name to Liaoning Shuiyun Qinghe Rice Industry Co., Ltd. and to change the ticker symbol of the Common Stock to SYQH. These changes are currently pending and awaiting regulatory approval.

 

Critical Accounting Policies and Significant Judgments and Estimates

 

The Securities and Exchange Commission (“SEC”) issued disclosure guidance for “critical accounting policies.” The SEC defines “critical accounting policies” as those that require the application of management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods.

 

Our significant accounting policies are described in the Notes to these unaudited condensed financial statements. Currently, based on the Company’s limited activity, we do not believe that there are any accounting policies that require the application of difficult, subjective or complex judgments.

 

Results of Operations

 

Since we discontinued our wood products business in 2003, we have had no sales revenue, including during the three and six months periods ended October 31, 2020 and 2019.

 

Three Months Ended October 31, 2020 Compared to the Three Months Ended October 31, 2019

 

Selling, general and administrative expenses (“operating expenses”) were $1,815 for the three months ended October 31, 2020, as compared to $5,625 for the same period in 2019. These expenses primarily consist of professional fees and public filing expenses.

 

For the three months ended October 31, 2020, we had a net loss of $1,815, as compared to a net loss of $5,625 for the same period ended October 31, 2019. The decrease in net loss during the three months ended October 31, 2020 is primarily due to a decrease in professional fees.

 

Six Months Ended October 31, 2020 Compared to the Six Months Ended October 31, 2019

 

Selling, general and administrative expenses (“operating expenses”) were $20,020 for the six months ended October 31, 2020, as compared to $29,596 for the same period in 2019. These expenses primarily consist of professional fees and public filing expenses.

 

For the six months ended October 31, 2020, we had a net loss of $20,020, as compared to a net loss of $29,596 for the same period ended October 31, 2019. The decrease in net loss during the six months ended October 31, 2020 is primarily due to a decrease in professional fees.

 

9

 

 

Liquidity and Capital Resources

 

As of October 31, 2020, we had a working capital deficit of $98,770, compared to a working capital deficit of $78,750 as of April 30, 2020. As of October 31, 2020 and April 30, 2020, we had $785 of cash.

 

The Company’s operating activities did not use any cash for the six months ended October 31, 2020 and 2019.

 

The Company did not engage in any investing activities for the six months ended October 31, 2020 and 2019.

 

The Company’s financing activities did not use any cash for the six months ended October 31, 2020 and 2019.

 

We are a shell company with no revenue generating activities. We anticipate that our operating activities will generate negative net cash flow during the remaining fiscal year of 2021. The success of our business plan is dependent upon the availability of additional capital resources on terms satisfactory to management as we are not generating sufficient revenues from our business operations. Our sources of capital in the past have included the sale of equity securities, which include common stock sold in private transactions and stockholder advances. There can be no assurance that we can raise such additional capital resources on satisfactory terms. We believe that our current cash and other sources of liquidity discussed above are adequate to support operations for at least the next 12 months. We anticipate continuing to rely on equity sales of our common shares and shareholder advances in order to continue to fund our business operations. Issuances of additional shares will result in dilution to our existing shareholders. There is no assurance that we will achieve any additional sales of our equity securities or arrange for debt or other financing to fund our plan of operations.

  

Off-Balance Sheet Arrangements

 

We do not have any transactions, agreements or other contractual arrangements that constitute off-balance sheet arrangements.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 

 

This Item is not applicable because we are a “smaller reporting company,” as defined by applicable SEC regulation.

 

10

 

 

ITEM 4. CONTROLS AND PROCEDURES 

 

Management’s Report on Disclosure Controls and Procedures.

 

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Securities Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our President/Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, we recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, as ours are designed to do, and we necessarily were required to apply our judgment in evaluating the cost-benefit relationship of possible changes or additions to our controls and procedures.

 

As of October 31, 2020, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934. Based upon that evaluation, our President/Chief Financial Officer concluded that our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, provide a reasonable level of assurance that they are effective in enabling us to record, process, summarize and report information required to be included in our periodic SEC filings within the required time period.

 

Changes in Internal Control Over Financial Reporting.

 

There have been no changes in our internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

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PART II. OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm business. We are currently not aware of any such legal proceedings or claims that will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results.

 

ITEM 1A. RISK FACTORS

 

This Item is not applicable because we are a “smaller reporting company,” as defined by applicable SEC regulations.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None

 

ITEM 3. DEFAULTS ON SENIOR SECURITIES

 

None

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not Applicable

 

ITEM 5. OTHER INFORMATION

 

On October 20, 2020, Mr. Jianguo Wei resigned as President, Chief Executive Officer and Chief Financial officer. His resignation was not due to any dispute or disagreement with the Company on any matter relating to the Company's operations, policies or practices. Mr. Wei continues to serve as our sole director.

 

Effective October 20, 2020, the following individuals were appointed to serve in the capacities set forth next to their names until his or her successor(s) shall be duly elected or appointed, unless he or she resigns, is removed from office or is otherwise disqualified from serving as an executive officer or director of the Company:

 

Name   Positions   Number of Shares Held     Percentage of Total Common Equity  
HE BaoBing   Chief Executive Officer, Director     0       0 %
CUI Weinming   Chief Financial Officer, and Director     0       0 %

 

Set forth below is a brief description of the background and business experience of our new executive officers and directors:

 

HE BaoBing, age 55, joined us as our Chief Executive Officer on October 20, 2020. Mr. He founded and has served as the Chief Executive Officer of Gongxian Coal Industry Co. Ltd. since 2012. From 2000 to 2012, Mr. He served on the Board of Directors of Gongxian Fourth Coal Mine. Mr. He received his undergraduate degree from Chengduu Arts and Sciences University in 1988. Mr. He brings to the Board his deep experience in business management and the mining industry.

 

CUI Weiming, age 47, joined us as our Chiief Financial Officer and Director on October 20, 2020. Mr. Cui has served as the Chief Financial Officer of Liaoning Shuiyun Qinghe Rice Industry Co., Ltd. since 2012, a business that he founded. From 2007 to 2011, Mr. Cui was a project manager of Datang Huachang Wind Energy Co., Ltd. Mr. Cui received his undergraduate degree from Liaoning Finance and Trade College in 1996. Mr. Cui brings to the Board his deep experience in agriculture and energy.

 

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ITEM 6. EXHIBITS

  

3.1   Articles of Incorporation, as amended 1
3.2   By-Laws 2
4.1   Form of Common Stock Certificate3
4.2   Description of Securities3
10.1   Call Option Agreement, dated June 22, 2018, by and between Tan Ying Lok and Jianguo Wei.3
10.2    Acquisition Agreement by and between Shanghai Yuyue Enterprise Management Consulting Co., Ltd. and Jianguo Wei, dated October 20, 20203
10.3   Authorization Letter of Tan Ying Lok, dated October 20, 20203
31.1   Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended. **
31.2   Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended. **
32.1   Certification of the Principal Executive Officer pursuant to U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. **
32.2   Certification of the Principal Financial Officer pursuant to U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. **
101.INS   XBRL Instance Document **
101.SCH   Document, XBRL Taxonomy Extension **
101.CAL   Calculation Linkbase, XBRL Taxonomy Extension Definition **
101.DEF   Linkbase,XBRL Taxonomy Extension Labels **
101.LAB   Linkbase, XBRL Taxonomy Extension **
101.PRE   Presentation Linkbase **

 

(1) Incorporated by reference to the Company’s Report on Form 10-K filed with the Securities and Exchange Commission on July 24, 2018
(2) Incorporated by reference to Amendment No. 1 to the Company’s Registration Statement on Form 10-SB (SEC File No. 01-15207) filed with the Securities and Exchange Commission on or about August 2, 1999
(3) Incorporated by reference to the Quarterly Report on Form 10Q filed with the Securities and Exchange Commission on January 28, 2021.
** Filed herewith.

 

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SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Evergreen International Corp.
   
  /s/ Cui Weiming
  Cui Weiming,
  Chief Financial Officer
   
Date: January 27, 2021  

 

 

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