The accompanying interim financial statements
of Yijia Group Corp. (“the Company”, “we”, “us” or “our”), have been prepared without
audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with United States generally accepted principles have been condensed or omitted
pursuant to such rules and regulations.
The interim financial statements are condensed
and should be read in conjunction with the company’s latest annual financial statements.
In the opinion of management, the financial statements
contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition,
results of operations, and cash flows of the Company for the interim periods presented.
(Currency expressed in United States Dollars
(“US$”), except for number of shares)
See accompanying notes, which are an integral part
of these condensed financial statements
See accompanying notes, which are an integral part
of these condensed financial statements
See accompanying notes, which are an integral part
of these condensed financial statements
See accompanying notes, which are an integral part
of these condensed financial statements
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED JANUARY 31, 2021
(UNAUDITED)
Note 1 – BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated
financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States
(“GAAP”), and the instructions to Form 10Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures
normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed
or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information
not misleading.
In the opinion of management, the consolidated
balance sheet as of April 30, 2020 which has been derived from audited financial statements and these unaudited condensed financial statements
reflect all normal and considered necessary to state fairly the results for the periods presented. The results for the period ended January
31, 2021 are not necessarily indicative of the results to be expected for the entire fiscal year ending April 30, 2021 or for any future
period.
These unaudited condensed consolidated financial
statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements
and notes thereto included in the Annual Report on Form 10-K for the year ended April 30, 2020.
Note 2 – ORGANIZATION AND NATURE OF
BUSINESS
Yijia Group Corp. (formerly, Soldino Group Corp.)
(“the Company”, “we”, “us” or “our”) was incorporated on January 25, 2017 under the laws
of the State of Nevada, United States of America. The Company has ceased its operations in October 2018. As such, the Company accounted
for all of its assets, liabilities and results of operations up to October 31, 2018 as discontinued operations. From November 1, 2018,
the Company is a shell company.
On October 31, 2018, Aurora Fiorin resigned as
the President, Treasurer, Secretary and Director of the Company. Ms. Fiorin’s resignation as President, Treasurer and Secretary
was effective immediately. Ms. Fiorin’s resignation as a Director was effective ten (10) days following the filing by the Company
of the Information Statement on Schedule 14f-1 with the United States Securities and Exchange Commission (the “SEC”). Prior
to Ms. Fiorin’s resignation, she appointed Ms. Shaoyin Wu as the new President and Chief Executive Officer of the Company and Mr.
Kim Lee Poh as the Company’s new Chief Financial Officer and Secretary. Messrs. Wu and Poh were appointed as the new board members
of the Company together with Mr. Jian Yang.
On November 15, 2018, the Company filed a Certificate
of Amendment to the Articles of Incorporation with Nevada’s Secretary of State to change its name to Yijia Group Corp.
Note 3 – GOING CONCERN
The accompanying unaudited condensed financial
statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company
as a going concern. The Company incurred net loss of $26,531 for the nine months ended January 31, 2021 and an accumulated deficit of
$213,802.
Therefore, there is substantial doubt about the
Company’s ability to continue as a going concern without future profitability. Management anticipates that the Company will be dependent,
in the near future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it will
be able to raise additional funds through the capital markets.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED JANUARY 31, 2021
(UNAUDITED)
In light of management’s efforts, there
are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going
concern. The accompanying financial statements have been prepared on a going concern basis which contemplates the realization of assets
and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to
the recoverability and classification of assets or the amounts and classifications of liabilities that might be necessary should the Company
be unable to continue as a going concern.
Note 4 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Use of Estimates
The preparation of the unaudited condensed financial
statements in conformity with accounting principles generally accepted in the U.S. 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.
Fair Value of Financial Instruments
Accounting Standard Codification (“ASC”)
topic 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;
|
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 and the Company’s
amount due to a related party approximates its fair value due to their short-term maturity.
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.
Uncertain tax positions
The Company did not take any uncertain tax positions
and had no adjustments to its income tax liabilities or benefits pursuant to the ASC 740 provisions of Section 740-10-25 for the nine
months ended January 31, 2021 and 2020.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED JANUARY 31, 2021
(UNAUDITED)
Revenue Recognition
The Company recognizes revenue in accordance with
“ASC” No. 605, “Revenue Recognition”. ASC-605 requires that four basic criteria must be met before revenue can
be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable;
and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the
fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates
to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded.
The Company will defer any revenue for which the product has not been delivered or is subject to refund until such time that the Company
and the customer jointly determine that the product has been delivered or no refund will be required. No revenue was generated for the
three and nine months ended January 31, 2021 and 2020.
Net Loss Per Share
The Company computes net loss per share in accordance
with FASB ASC 260 “Earnings per Share”. Basic net loss per share is computed by dividing net loss available to common shareholders
by the weighted average number of outstanding common shares during the period. Diluted 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.
As of January 31, 2021, there were no potentially dilutive debt or equity instruments issued or outstanding.
Currencies
The Company’s reporting and functional currencies
are both the U.S. dollar. Foreign currency transaction gains and losses are included in other income (expense) but are negligible.
Comprehensive Income
Comprehensive income is defined as all changes
in stockholders’ deficit, exclusive of transactions with owners, such as capital investments. Comprehensive income includes net
income or loss, changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments
in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. As of January 31, 2021 and April 30, 2020, there
were no differences between our comprehensive loss and net loss.
Related parties
Parties, which can be a corporation or individual,
are considered to be related if the entities have the ability, directly or indirectly, to control the other party or exercise significant
influence over the party in making financial and operational decisions. Companies are also considered to be related if they are subject
to common control or common significant influence.
Reclassification
Certain reclassifications have been made to the
financial statements for the prior periods to present that information on a basis consistent with the current period.
Recent Accounting Pronouncements
From time to time, new accounting pronouncements
are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies and adopted by the Company
as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that
are not yet effective will not have a material impact on its financial position or results of operations upon adoption.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED JANUARY 31, 2021
(UNAUDITED)
Simplifying the Accounting
for Debt with Conversion and Other Options.
In June 2020, the FASB
issued ASU 2020-06 to simplify the accounting in ASC 470, “Debt with Conversion and Other Options” and ASC 815, “Contracts
in Equity’s Own Entity”. The guidance simplifies the current guidance for convertible instruments and the derivatives
scope exception for contracts in an entity’s own equity. Additionally, the amendments affect the diluted EPS calculation for instruments
that may be settled in cash or shares and for convertible instruments. This ASU will be effective beginning in the first quarter of the
Company’s fiscal year 2022. Early adoption is permitted. The amendments in this update must be applied on either full retrospective
basis or modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption.
The Company is currently evaluating the impact of ASU 2020-06 on its consolidated financial statements and related disclosures, as well
as the timing of adoption.
Financial Instruments
In June 2016, the FASB
issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”
(“ASU 2016-13”), which modifies the measurement of expected credit losses of certain financial instruments. In February
2020, the FASB issued ASU 2020-02 and delayed the effective date of ASU 2016-13 until fiscal year beginning after December 15, 2022. The
Company is currently evaluating the impact of adopting ASU 2016-13 on its consolidated financial statements.
Simplifying the Accounting
for Income Taxes
In December 2019, the
FASB issued ASU 2019-12 to simplify the accounting in ASC 740, “Income Taxes.” This guidance removes certain exceptions
related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition
of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This ASU
will be effective beginning in the first quarter of the Company’s fiscal year 2021. Early adoption is permitted. Certain amendments
in this update must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments
must be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period
of adoption. The adoption of ASU 2019-12 does not have a significant impact on the Company’s consolidated financial statements as
of and for the nine-month period ended January 31, 2021.
Earnings Per Share
In April 2021, the FASB
issued ASU 2021-04, which included Topic 260 “Earnings Per Share”. This guidance clarifies and reduces diversity in
an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options due to a lack of explicit
guidance in the FASB Codification. The ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021. Early
adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2021-04 on its consolidated financial statements.
Note 5 – AMOUNT DUE TO A RELATED PARTY
Amount due to a related party represents temporary
advance by the director of the Company. The amount is unsecured, interest-free and has no fixed terms of repayment.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED JANUARY 31, 2021
(UNAUDITED)
Note 6 – COMMON STOCK
The Company has authorized 75,000,000 shares of
common stock with a par value of $0.001 per share.
As of January 31, 2021 and April 30, 2020, the
Company had 5,871,250 and 5,871,250 shares of common stock issued and outstanding, respectively.
Note 7 – COMMITMENTS AND CONTINGENCIES
As of January 31, 2021, the Company has no material
commitments and contingencies.
Note 8 – INTEREST AND PENALTIES
The Company includes interest and penalties arising
from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of January 31, 2021 and April
30, 2020, the Company had no accrued interest or penalties related to uncertain tax positions.
Note 9 – INCOME TAXES
The Company adopted the provisions of uncertain
tax positions as addressed in ASC 740-10-65-1. As a result of the implementation of ASC 740-10-65-1, the Company recognized no increase
in the liability for unrecognized tax benefits.
The Company has no tax position at January 31,
2021 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.
The Company does not recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.
No such interest or penalties were recognized during the period presented. The Company had no accruals for interest and penalties at January
31, 2021. The Company’s utilization of any net operating loss carry forward may be unlikely as a result of its intended activities.
The valuation allowance at January 31, 2021 was
$44,898. The net change in valuation allowance during the nine months ended January 31, 2021 was $5,571. In assessing the realizability
of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets
will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income
during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred
income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration
of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset
balances to warrant the application of a full valuation allowance as of January 31, 2021 and 2020. All tax years since inception
remains open for examination only by taxing authorities of US Federal and state of Nevada.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED JANUARY 31, 2021
(UNAUDITED)
The Company has a net operating loss carryforward
for tax purposes totaling $213,802 at January 31, 2021, expiring through 2041. There is a limitation on the amount of taxable income that
can be offset by carryforwards after a change in control (generally greater than a 50% change in ownership). Temporary differences, which
give rise to a net deferred tax asset, are as follows:
|
|
As of
January 31, 2021
(Unaudited)
|
|
|
As of
April 30, 2020
(Audited)
|
|
Non-current deferred tax assets:
|
|
|
|
|
|
|
|
|
Net operating loss carryforward
|
|
$
|
(213,802
|
)
|
|
$
|
(187,271
|
)
|
|
|
|
|
|
|
|
|
|
Total deferred tax assets
|
|
|
(44,898
|
)
|
|
|
(39,327
|
)
|
Valuation allowance
|
|
|
44,898
|
|
|
|
39,327
|
|
Net deferred tax assets
|
|
$
|
–
|
|
|
$
|
–
|
|
The actual tax benefit at the expected rate of
21% differs from the expected tax benefit for the nine months ended January 31, 2021 as follows:
|
|
Nine months ended
January 31, 2021
(Unaudited)
|
|
|
Nine months ended
January 31, 2020
(Unaudited)
|
|
Computed "expected" tax benefit
|
|
$
|
(44,898
|
)
|
|
$
|
(33,796
|
)
|
Change in valuation allowance
|
|
|
44,898
|
|
|
|
33,796
|
|
Actual tax benefit
|
|
$
|
–
|
|
|
$
|
–
|
|
Note 10 – SUBSEQUENT EVENTS
In accordance with ASC Topic 855, “Subsequent
Events” the Company has analyzed its operations subsequent to January 31, 2021 to the date these condensed financial statements
were available to be issued, June 18, 2021, and has determined that it does not have any material subsequent events to disclose in these
financial statements.