UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
10-Q
(MARK
ONE)
[X]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
the quarterly period ended September 30, 2019
OR
[ ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
the transition period from __________ to __________
Commission
File No. 333-209497
INBIT
CORP.
(Exact
name of registrant as specified in its charter)
Nevada
|
|
35-2517466
|
(State
or other jurisdiction of
incorporation or organization)
|
|
(I.R.S.
Employer
Identification No.)
|
L9-02,
Level 9, Brem Mall,
Jalan
Jambu Mawar Off Jalan Kepong,
52000
Kuala Lumpur, Malaysia
(Address
of principal executive offices, zip code)
Tel:
(603) 6257 0088
Fax:
(603) 6242 7088
(Registrant’s
telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: None.
Indicate
by check mark whether the issuer (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 [X]
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 [X] No [ ]
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act. (check one):
Large
accelerated filer
|
[ ]
|
|
Accelerated
filer
|
[ ]
|
|
|
|
|
|
Non-accelerated
filer
|
[ ]
|
(Do
not check if a smaller reporting company)
|
Smaller
reporting company
|
[X]
|
Indicate
by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2 of the Exchange Act): Yes [X] No [ ]
APPLICABLE
ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Indicate
by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the
Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes [X] No [ ]
As
of September 30, 2019, there were 126,000,000 shares of common stock, $0.001 par value per share, outstanding.
Explanatory
Note
The
Company is not subject to the Securities Exchange Act of 1934, as amended but makes filings on a voluntary basis.
INBIT
CORP.
QUARTERLY
REPORT ON FORM 10-Q
FOR
THE PERIOD ENDED SEPTEMBER 30, 2019
INDEX
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This
Quarterly Report on Form 10-Q of INBIT CORP., a Nevada corporation (the “Company”), contains “forward-looking
statements,” as defined in the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify
forward-looking statements by terminology such as “may”, “will”, “should”, “could”,
“expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”,
“predicts”, “potential” or “continue” or the negative of such terms and other comparable terminology.
These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition,
expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although
we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these
forward-looking statements. The economic environment within which we operate could materially affect our actual results. Additional
factors that could materially affect these forward-looking statements and/or predictions include, among other things: the Company’s
need for and ability to obtain additional financing, other factors over which we have little or no control; and other factors
discussed in the Company’s filings with the Securities and Exchange Commission (“SEC”).
Our
management has included projections and estimates in this Form 10-Q, which are based primarily on management’s experience
in the industry, assessments of our results of operations, discussions and negotiations with third parties and a review of information
filed by our competitors with the SEC or otherwise publicly available. We caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made. We disclaim any obligation subsequently to revise any forward-
looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated
or unanticipated events.
PART
I. FINANCIAL INFORMATION
ITEM
1. FINANCIAL STATEMENTS.
INBIT
CORP.
FINANCIAL
STATEMENTS
SEPTEMBER
30, 2019
INBIT
CORP.
BALANCE
SHEETS
(Unaudited)
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|
September 30, 2019
(Unaudited)
– $ -
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December 31, 2018
(Audited)
– $ -
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ASSETS
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Cash and bank balances
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540
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554
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Trade receivables
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334
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334
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Other receivables
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40,000
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40,000
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Total assets
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40,874
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40,888
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|
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LIABILITIES
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Current liabilities
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Other payables
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266
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-
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Accrued liabilities
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7,007
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10,232
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Amount owing to related party
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157,533
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110,791
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Amount owing to director
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46,192
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46,192
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Total liabilities
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210,998
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167,215
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STOCKHOLDERS’ EQUITY (DEFICIT)
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Authorized:
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1,000,000,000 (2018: 75,000,000) common shares with a par value of $0.001
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Issued and Outstanding:
|
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126,000,000 (2018: 6,300,000) common shares
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6,300
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6,300
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Additional paid in capital
|
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24,700
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24,700
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Deficit accumulated
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(201,124
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)
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(157,327
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)
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Total stockholders’ deficit
|
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(170,124
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)
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|
(126,327
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)
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Total liabilities and stockholders’ deficit
|
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40,874
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|
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40,888
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|
See
Accompanying Notes
INBIT
CORP.
STATEMENTS
OF OPERATIONS
(Unaudited)
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Three months ended
Sep 30, 2019
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Three months ended
Sep 30, 2018
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Nine months ended
Sep 30, 2019
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Nine months ended
Sep 30, 2018
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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-$-
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-$-
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-$-
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-$-
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Revenue
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-
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1,815
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-
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17,166
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Cost of goods sold
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-
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(1,364
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)
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-
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(12,650
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)
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Gross profit
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-
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451
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-
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4,516
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|
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|
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General and administrative expenses
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(35,408
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)
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(18,644
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)
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(43,797
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)
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(37,831
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)
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Net loss
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(35,408
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)
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(18,193
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)
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(43,797
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)
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(33,315
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)
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Basic and diluted loss per share
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(0.00
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)
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(0.00
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)
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(0.00
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)
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|
(0.00
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)
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Weighted average number of common shares outstanding
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126,000,000
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126,000,000
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126,000,000
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126,000,000
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-See
Accompanying Notes-
INBIT
CORP.
STATEMENTS
OF CASH FLOWS
(Unaudited)
|
|
Nine months ended Sep 30, 2019 (Unaudited)
-$-
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Nine months ended Sep 30, 2018 (Unaudited)
-$-
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Cash Flows From Operating Activities
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Net loss
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(43,797
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)
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(33,315
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)
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Adjustments for :
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Trade receivables
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-
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(334
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)
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Other receivables
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-
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(40,000
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)
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Other payables and accrued liabilities
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(2,959
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)
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(1,305
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)
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Net cash used in operating activities
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(46,756
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)
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(74,954
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)
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Cash Flows From Financing Activities
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Advances from a related party
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46,742
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65,216
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Proceeds from loan from director
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-
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12,780
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Net cash provided by financing activities
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46,742
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|
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77,996
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|
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|
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Increase in Cash and Bank Balance
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(14
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)
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3,042
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Cash, beginning of period
|
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554
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-
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Cash, ending of period
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540
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3,042
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Supplementary Cash Flow Information
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Cash paid for:
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Interest expense
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-
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-
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Income taxes
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|
-
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|
-
|
|
-
See Accompanying Notes –
INBIT
CORP.
STATEMENTS
OF CHANGES IN STOCKHOLDERS’ DEFICIT
FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2019
(Unaudited)
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|
Common stock
|
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Additional paid in
|
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Accumulated
|
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Total stockholders’
|
|
|
|
No. of shares
|
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Amount
|
|
|
capital
|
|
|
deficit
|
|
|
deficit
|
|
|
|
|
|
|
|
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|
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|
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Balance as of December 31, 2018
|
|
|
126,000,000
|
|
|
$
|
6,300
|
|
|
$
|
24,700
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|
$
|
(157,327
|
)
|
|
$
|
(126,327
|
)
|
|
|
|
|
|
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|
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|
|
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Increase in number of shares due to stock split
|
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|
-
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|
|
|
-
|
|
|
|
-
|
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|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
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|
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Net loss for the period
|
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|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(43,797
|
)
|
|
|
(43,797
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Balance as of Sep 30, 2019
|
|
|
126,000,000
|
|
|
$
|
6,300
|
|
|
$
|
24,700
|
|
|
$
|
(201,124
|
)
|
|
$
|
(170,124
|
)
|
-
See Accompanying Notes –
INBIT
CORP.
NOTE
TO THE FINANCIAL STATEMENTS
SEPTEMBER
30, 2019
(Unaudited)
ITEM
1. BASIS OF PRESENTATION
Unaudited
Interim Financial Statements
These
unaudited interim financial statements may not include all information and footnotes required by US GAAP for complete financial
statement disclosures. However, except as disclosed herein, there have been no material changes in the information contained in
the notes to the audited financial statements for the year ended December 31, 2018, included in the Company’s Form 10-K
and filed with the Securities and Exchange Commission. These unaudited interim financial statements should be read in conjunction
with the audited financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary
for fair presentation and consisting solely of normal recurring adjustments have been made. Operating results for the nine months
ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.
OVERVIEW
INBIT
CORP. (the “Company” or “we”) was incorporated in the State of Nevada on September 30, 2014 and has a
fiscal year end of December 31.
Going
Concern
These
financial statements have been prepared on a going concern basis. The Company has incurred losses since inception resulting in
an accumulated deficit of $201,124 at September 30, 2019 and further losses are anticipated in the development of its business
raising substantial doubt about the Company’s ability to continue as a going concern. Its ability to continue as a going
concern is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary
financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.
Management
has plans to seek additional capital through a private placement of its common stock or further director loans as needed. These
financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the
amounts of and classification of liabilities that might be necessary in the event the Company cannot continue. No assurance can
be given that any future financing will be available, or, if available, that it will be terms that are satisfactory to the Company.
Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations, in the case of
debt financing, or cause substantial dilution for our stockholders, in the case of equity financing.
Use
of estimates
The
preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets,
liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate
our estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances,
the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We have
identified the policies below as critical to our business operations and to the understanding of our financial results:
Basis
of Presentation
The
Company reports revenues and expenses using the accrual method of accounting in accordance with accounting principles generally
accepted in the United States (“US GAAP”) for financial and tax reporting purposes.
Cash
and Cash Equivalents
The
Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Revenue
recognition
In
accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)
Topic 605, “Revenue Recognition”-, the Company recognizes revenue from sales of goods when the following four
revenue criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) selling price is fixed
or determinable; and (4) collectability is reasonably assured.
Revenue
from supplies of IT products is recognized when title and risk of loss are transferred and there are no continuing obligations
to the customer. Title and the risks and rewards of ownership transfer to and accepted by the customer when the products are collected
by the customer at the Company’s office. Revenue is recorded net of sales discounts, returns, allowances, and other adjustments
that are based upon management’s best estimates and historical experience and are provided for in the same period as the
related revenues are recorded. Based on limited operating history, management estimates that there was no sales return for the
period reported.
Cost
of revenue
Cost
of revenue includes the purchase cost of retail goods for re-sale to customers. It excludes purchasing and receiving costs in
cost of revenues.
Income
tax
Income
taxes are determined in accordance with the provisions of ASC Topic 740, “-Income Taxes-” (“ASC Topic
740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable
to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis.
Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods
in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities
of a change in tax rates is recognized in income in the period that includes the enactment date.
ASC
740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements
uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized
in the financial statements when it is more likely than not that the position will be sustained upon examination by the tax authorities.
Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50%
likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant
facts.
The
Company conducts major businesses in Malaysia. The Company is subject to tax in these jurisdictions. As a result of its business
activities, the Company will file tax returns that are subject to examination by the foreign tax authority.
Foreign
Currency Translation
The
financial statements are presented in United States dollars. In accordance with Accounting Standards Codification “ASC 830”,
“Foreign Currency Translation”, foreign denominated monetary assets and liabilities are translated to their United
States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date. Non-monetary assets and liabilities
are translated at exchange rates prevailing at the transaction date. Revenue and expenses are translated at average rates of exchange
during the periods presented. Related translation adjustments are reported as a separate component of stockholders’ equity
(deficit), whereas gains or losses resulting from foreign currency transactions are included in results of operations.
Basic
and Diluted Net Loss Per Share
Basic
loss per share includes no dilution and is computed by dividing loss available to common stockholders by the weighted average
number of common shares outstanding for the period. Dilutive loss per share reflects the potential dilution of securities that
could share in the losses of the Company.
Because
the Company does not have any potentially dilutive securities, the accompanying presentation is only of basic loss per share.
PLAN
OF OPERATION
We
do not currently have any substantial business operations and do not know when or if any material business operations
will develop, either through acquisition or otherwise.
Related
Party Transactions
Parties
are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant
influence over the other party in making financial and operational decisions. Parties are also considered to be related if they
are subject to common control or common significant influence. The amount due from/to related parties represented the advances
from or to the Company’s directors. Such advances are non-interest bearing and due upon demand.
Recent
Accounting Pronouncements
Recent
pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not
applicable or are not expected to be significant to the financial statements of the Company.
ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The
following information should be read in conjunction with (i) the financial statements of INBIT CORP., a Nevada corporation, and
the notes thereto appearing elsewhere in this Form 10-Q together with (ii) the more detailed business information and the December
31, 2018 audited financial statements and related notes included in the Company’s most recent Annual Report on Form 10-K
for the year ended December 31, 2018 (File No. 333-209497), as filed with the SEC on March 29, 2019. Statements in this section
and elsewhere in this Form 10-Q that are not statements of historical or current fact constitute “forward-looking”
statements.
Results
of Operations
Nine-Month
Periods Ended September 30, 2019 and 2018
We
recorded zero revenues for the nine months ended September 30, 2019.
For
the nine months ended September 30, 2019, total general and administrative expenses was $43,797 which comprise of professional
fee, consultation fee, audit fee and license fee.
Liquidity
and Capital Resources
As
of September 30, 2019, our bank account had a balance of $540. We do not have sufficient cash on hand to fund our ongoing
operational expenses beyond 12 months. We will need to raise funds to fund our ongoing operational expenses. Additional funding
will likely come from equity financing from the sale of our common stock. If we are successful in completing an equity financing,
existing shareholders will experience dilution of their interest in our Company. No assurance can be given that any future financing
will be available, or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able
to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing, or cause substantial
dilution for our stockholders, in the case of equity financing.
Subsequent
Events
None
through date of this filing.
ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
As
a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act), we are not required to provide the information called
for by this Item 3.
ITEM
4. CONTROLS AND PROCEDURES.
Evaluation
of Disclosure Controls and Procedures:
We
conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of September 30, 2019. This evaluation was carried out under the supervision
and with the participation of our Chief Executive Officer and our Chief Financial Officer. Based upon that evaluation, our Chief
Executive Officer and Chief Financial Officer concluded that, as of September 30, 2019, our disclosure controls and procedures
were not effective due to the presence of material weaknesses in internal control over financial reporting.
A
material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there
is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not
be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management
to conclude that, as of September 30, 2019, our disclosure controls and procedures were not effective: (i) lack of a functioning
audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our board
of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures;
(ii) inadequate segregation of duties consistent with control objectives; and (iii) ineffective controls over period end financial
disclosure and reporting processes.
PART
II. OTHER INFORMATION
ITEM
1. LEGAL PROCEEDINGS.
The
Company is not currently subject to any legal proceedings. From time to time, the Company may become subject to litigation or
proceedings in connection with its business, as either a plaintiff or defendant. There are no such pending legal proceedings to
which the Company is a party that, in the opinion of management, is likely to have a material adverse effect on the Company’s
business, financial condition or results of operations.
ITEM
1A. RISK FACTORS
As
a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act), we are not required to provide the information called
for by this Item 1A.
ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
None.
ITEM
3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM
4. MINE SAFETY DISCLOSURES.
None.
ITEM
5. OTHER INFORMATION.
None.
ITEM
6. EXHIBITS.
(a)
Exhibits required by Item 601 of Regulation SK.
*Filed
and incorporated by reference to the Company’s Registration Statement on Form S-1, as amended (File No. 333-209497), as
filed with the Securities and Exchange Commission on April 22, 2016.
**
XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or
prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section
18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
SIGNATURES
Pursuant
to the requirements 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.
|
INBIT
CORP.
|
|
(Name
of Registrant)
|
|
|
|
Date:
November 14, 2019
|
By:
|
/s/
CHEE HONG TAN
|
|
Name:
|
CHEE
HONG TAN
|
|
Title:
|
Chief
Executive Officer and Chairman
Principal
Executive Officer
|
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