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, 2022
(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 –Q 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, 2021 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, 2022 are not necessarily indicative of the results to be expected for the entire fiscal year ending April 30, 2022 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, 2021.
Note 2 – ORGANIZATION AND NATURE OF
BUSINESS
Yijia Group Corp. (“the Company”,
“we”, “us” or “our”) was incorporated as Soldino Group Corp. on January 25, 2017 under the laws of
the State of Nevada, United States of America. The Company has ceased its operations as of 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. As of November 1, 2018,
the Company is a shell company. On November 15, 2018, the Company changed its name to Yijia Group Corp.
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. Ms. Wu and Mr. Poh were appointed as new board members of
the Company, along with Mr. Jian Yang.
On July 28, 2021, Barry Sytner, a non-affiliate
of the registrant, purchased an aggregate of 5,066,250 common shares from Kim Lee Poh, Jian Yang and Shaoyin Wu, officers and directors
of the registrant and from Jiang Bo, Chen Bo Bo and Zheng Lixing, other majority shareholders of the registrant. The purchase price for
the common shares was paid from Mr. Sytner’s personal funds resulting in a change of control of the registrant. The common shares
were transferred to Barry Sytner effective August 4, 2021. The 5,066,250 common shares represent 86.3% of the currently issued and outstanding
common of the Company.
Also, on July 28, 2021, Shaoyin Wu, Kim Lee Poh
and Jian Yang resigned as officers and directors of the Company.
Concurrently, on July 28, 2021, Barry Sytner,
was appointed as Chief Executive Officer and Director of the Company.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED JANUARY 31, 2022
(UNAUDITED)
Starting from July 30, 2021, the Company
commenced its operation in the rendering of business consulting service to domestic and international customers. On July 30, 2021, the
Company entered into two consulting agreements with non-affiliates to provide business consulting services. Under the consulting agreements,
the Company will receive consulting fees of $5,000 and $10,000 per month, respectively. The term of the consulting agreements is for an
initial three month period. Unless terminated in writing prior to the end of the period, the consulting agreements are renewable for successive
three month periods.
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 suffered from a working capital deficit of $8,181 and an accumulated deficit of $72,876.
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.
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 condensed 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.
Cash and cash equivalents
Cash and cash equivalents are carried at cost
and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an
original maturity of three months or less as of the purchase date of such investments.
Revenue Recognition
The Company adopted Accounting Standards Update
(“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) using the full retrospective
transition method. The Company's adoption of ASU 2014-09 did not have a material impact on the amount and timing of revenue recognized
in its condensed financial statements.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED JANUARY 31, 2022
(UNAUDITED)
Under ASU 2014-09, the Company recognizes revenue
when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects
to be entitled to in exchange for those goods or services.
The Company applies the following five steps in
order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:
| • |
identify the contract with a customer; |
| • |
identify the performance obligations in the contract; |
| • |
determine the transaction price; |
| • |
allocate the transaction price to performance obligations in the contract; and |
| • |
recognize revenue as the performance obligation is satisfied. |
Consulting income is recognized, when the service
is rendered and billed to the customer on a monthly basis, pursuant to the fulfillment of service terms in the agreement.
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, 2022 and 2021.
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, 2022 and 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.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED JANUARY 31, 2022
(UNAUDITED)
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, 2022 and April 30, 2021, 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.
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.
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
In September 2016, the FASB issued ASU No. 2016-13,
“Financial Instruments – Credit Losses (Topic 326)” (“ASU 2016-13”), which requires the immediate recognition
of management’s estimates of current and expected credit losses. In November 2018, the FASB issued ASU 2018-19, which makes certain
improvements to Topic 326. In April and May 2019, the FASB issued ASUs 2019-04 and 2019-05, respectively, which adds codification improvements
and transition relief for Topic 326. In November 2019, the FASB issued ASU 2019-10, which delays the effective date of Topic 326 for Smaller
Reporting Companies to interim and annual periods beginning after December 15, 2022, with early adoption permitted. In November 2019,
the FASB issued ASU 2019-11, which makes improvements to certain areas of Topic 326. In February 2020, the FASB issued ASU 2020-02, which
adds an SEC paragraph, pursuant to the issuance of SEC Staff Accounting Bulletin No. 119, to Topic 326. Topic 326 is effective for the
Company for fiscal years and interim reporting periods within those years beginning after December 15, 2022. Early adoption is permitted
for interim and annual periods beginning December 15, 2019. The Company is currently evaluating the potential impact of adopting this
guidance on the condensed financial statements.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED JANUARY 31, 2022
(UNAUDITED)
All new accounting pronouncements issued but
not yet effective are not expected to have a material impact on our results of operations, cash flows or financial position with the
exception of the updated previously disclosed above, there has been no new accounting pronouncements not yet effective that have significance
to the condensed 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.
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, 2022 and April 30, 2021, the
Company had 5,871,250 and 5,871,250 shares of common stock issued and outstanding, respectively.
Note 7 – 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,
2022 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, 2022. 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, 2022 was
$15,304. The net change in valuation allowance during the nine months ended January 31, 2022 was $34,963. 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, 2022 and April 30, 2021. 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, 2022
(UNAUDITED)
The Company has a net operating loss carryforward
for tax purposes totaling $72,876 at January 31, 2022, 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:
| Schedule of deferred taxes | |
| | |
| |
| | |
As of
January 31, 2022
(Unaudited) | | |
As of
April 30, 2021
(Audited) | |
| Non-current deferred tax assets: | |
| | | |
| | |
| Net operating loss carryforward | |
$ | (72,876 | ) | |
$ | (239,365 | ) |
| | |
| | | |
| | |
| Total deferred tax assets | |
| (15,304 | ) | |
| (50,267 | ) |
| Valuation allowance | |
| 15,304 | | |
| 50,267 | |
| 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, 2022 as follows:
| Schedule of actual tax benefit | |
| | |
| |
| | |
Nine months ended
January 31, 2022
(Unaudited) | | |
Nine months ended
January 31, 2021
(Unaudited) | |
| Computed "expected" tax benefit | |
$ | (15,304 | ) | |
$ | (44,898 | ) |
| Change in valuation allowance | |
| 15,304 | | |
| 44,898 | |
| Actual tax benefit | |
$ | – | | |
$ | – | |
Note 8 – COMMITMENTS AND CONTINGENCIES
As of January 31, 2022, the Company has no material
commitments and contingencies.
Note 9 – SUBSEQUENT EVENTS
In accordance with ASC Topic 855, “Subsequent
Events” the Company has analyzed its operations subsequent to January 31, 2022 to the date these condensed financial statements
were available to be issued, on February 17, 2022, and has determined that it does not have any material subsequent events to disclose
in these financial statements.