UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For The Quarterly Period Ended May 31, 2020

 

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 Number 333-223712

 

LEADER HILL CORPORATION

(Exact name of registrant issuer as specified in its charter)

 

Nevada   37-1867536

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

Flat 1204 Block B, Mei Li Yuan, Hong Ling Middle Road, Luohu,

Shenzhen 518000 China.

 

(Address of principal executive offices, including zip code)

 

(+86) 18665342668

(Registrant’s phone 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 on each exchange on which registered
N/A   N/A   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 [X] 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 [X] 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 [X]
      Emerging growth company [X]

 

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) of the Exchange Act. [  ]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule12b-2 of the Exchange Act).

 

Yes [  ] No [X]

 

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.

 

N/A

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

Class   Outstanding at June 25, 2020
Common Stock, $0.001 par value   4,825,000

 

 

 

 

 

 

TABLE OF CONTENTS

 

    Page
PART I FINANCIAL INFORMATION  
     
ITEM 1. FINANCIAL STATEMENTS: 3
  Condensed Balance Sheets as of May 31, 2020 (unaudited) and November 30, 2019 3
  Condensed Statements of Operations and Comprehensive Loss for the Three and Six Months Ended May 31, 2019 and 2020 (unaudited) 4
 

Condensed Consolidated Statements of Shareholders’ Equity (unaudited)

5
  Condensed Statements of Cash Flows for the Six Months Ended May 31, 2019 and 2020 (unaudited) 6
  Notes to the Unaudited Condensed Financial Statements 7
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 14
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 16
ITEM 4. CONTROLS AND PROCEDURES 16
     
PART II OTHER INFORMATION  
     
ITEM 1 LEGAL PROCEEDINGS 17
ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 17
ITEM 3 DEFAULTS UPON SENIOR SECURITIES 17
ITEM 4 MINE SAFETY DISCLOSURES 17
ITEM 5 OTHER INFORMATION 17
ITEM 6 EXHIBITS 17
SIGNATURES 18

 

2

 

 

PART I — FINANCIAL INFORMATION

 

Item 1. Financial statements

 

LEADER HILL CORPORATION

CONDENSED BALANCE SHEETS

 

    As of  
    May 31, 2020     November 30, 2019  
    (Unaudited)     (Audited)  
ASSETS                
Current assets:                
Cash and cash equivalents   $ 499       525  
Prepayment     441       2,268  
Total current assets     940       2,793  
                 
Non-current assets                
Plant and equipment, net     1,453       1,724  
Total non-current assets     1,453       1,724  
                 
TOTAL ASSETS   $ 2,393     $ 4,517  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current liabilities                
Loan from director     56,710       25,065  
Accrued expenses     3,298       12,950  
Total current liabilities   $ 60,008     $ 38,015  
                 
TOTAL LIABILITIES   $ 60,008     $ 38,015  
                 
STOCKHOLDERS’ DEFICIT                
Preferred stock, $0.001 par value; 0 shares authorized; None issued and outstanding     -       -  
Common stock, $ 0.001 par value; 75,000,000 shares authorized; 4,825,000 shares issued and outstanding as of May 31, 2020 and November 30, 2019, respectively     4,825       4,825  
Additional paid-in capital     32,175       32,175  
Accumulated other comprehensive loss     (1,505 )     (1,493 )
Accumulated deficit     (93,110 )     (69,005 )
                 
TOTAL STOCKHOLDERS’ DEFICIT   $ (57,615 )   $ (33,498 )
                 
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT   $ 2,393     $ 4,517  

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

3

 

 

LEADER HILL CORPORATION

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

 

    Six months ended May 31,     Three months ended May 31,  
    2020     2019     2020     2019  
REVENUE   $ -     $ 2,800     $ -     $ 2,800  
                                 
COST OF REVENUE     -       -       -       -  
                                 
GROSS PROFIT     -       2,800       -       2,800  
                                 
OTHER INCOME     -       -       -       -  
                                 
GENERAL AND ADMINISTRATIVE EXPENSES     (24,105 )     (8,633 )     (18,275 )     (3,689 )
                                 
LOSS BEFORE INCOME TAX     (24,105 )     (5,833 )     (18,275 )     (889 )
                                 
INCOME TAX PROVISION     -       -       -       -  
                                 
NET LOSS     (24,105 )     (5,833 )   (18,275 )     (889 )
Non Controlling Interest                                
Other (loss)/income:                                
- Foreign currency translation adjustment     (12 )     136       (10 )     (11 )
                                 
Comprehensive loss     (24,117 )     (5,697 )     (18,285 )     (900 )
                                 
Net loss per share- Basic and diluted     (0.00 )     (0.00 )     (0.00 )     (0.00 )
                                 
Weighted average number of common shares outstanding – Basic and diluted     4,825,000       4,825,000       4,825,000       4,825,000  

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

4

 

 

LEADER HILL CORPORATION

CONDENSED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

    Common Stock                          
    NUMBER
OF
Shares
    Amount     Additional Paid-in Capital     Accumulated (DEFICIT)/ PROFIT     Accumulated comprehensive loss     Total
STOCKHOLDERS
EQUITY
 
Balance as of December 1, 2019     4,825,000     $ 4,825     $ 32,175     $ (69,005 )   $ (1,493 )   $ (33,498 )
Net loss for the period     -       -       -       (5,830 )     -       (5,830 )
Foreign currency translation     -       -       -       -       (2 )     (2 )
Balance as of February 29, 2020     4,825,000     $ 4,825     $ 32,175     $ (74,835 )   $ (1,495 )   $ (39,330 )
Net loss for the period     -       -       -       (18,275 )     -       (18,275 )
Foreign currency translation     -       -       -       -       (10 )     (10 )
Balance as of May 31, 2020     4,825,000     $ 4,825     $ 32,175     $ (93,110 )   $ (1,505 )   $ (57,615 )

 

    Common Stock                          
    NUMBER
OF
Shares
    Amount     Additional Paid-in Capital     Accumulated (DEFICIT)/ PROFIT     Accumulated comprehensive loss     Total
STOCKHOLDERS
EQUITY
 
Balance as of December 1, 2018     4,825,000     $ 4,825     $ 32,175     $ (47,082 )   $ (1,629 )   $ (11,711 )
Net loss for the period     -       -       -       (4,944 )     -       (4,944 )
Foreign currency translation     -       -       -       -       147       147  
Balance as of February 28, 2019     4,825,000     $ 4,825     $ 32,175     $ (52,026 )   $ (1,482 )   $ (16,508 )
Net loss for the period     -       -       -       (889 )     -       (889 )
Foreign currency translation     -       -       -       -       (11 )     (11 )
Balance as of May 31, 2019     4,825,000     $ 4,825     $ 32,175     $ (52,915 )   $ (1,493 )   $ (17,408 )

 

See accompanying notes to consolidated financial statements

 

  5  

 

 

LEADER HILL CORPORATION

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

 

    Six months ended May 31,  
    2020     2019  
             
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net loss   $ (24,105 )   $ (5,833 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation     271       271  
Changes in operating assets and liabilities:                
Accounts receivables     1,827       -  
Accrued expenses     (9,652 )     (5,425 )
Loan from Director     31,645       (10,579 )
Deferred Revenue     -       (2,800 )
                 
Net cash used in operating activities   $ (14 )   $ (24,366 )
                 
Effect of exchange rate changes on cash and cash equivalents   $ (12 )   $ 136  
                 
Net decrease in cash and cash equivalents   $ (26 )   $ (24,230 )
Cash and cash equivalents, beginning of period     525       24,761  
                 
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 499     $ 531  
                 
SUPPLEMENTAL CASH FLOWS INFORMATION                
Cash paid for income taxes   $ -     $ -  
Cash paid for interest paid   $ -     $ -  

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

  6  

 

 

LEADER HILL CORPORATION

NOTES TO FINANCIAL STATEMENTS

For the SIX MONTHS ended MAY 31, 2019 AND 2020 (UNaudited)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

1. ORGANIZATION AND BUSINESS BACKGROUND

 

Leader Hill Corporation, a Nevada corporation (“the Company”) was incorporated under the laws of the State of Nevada on August 21, 2017.

 

We, Leader Hill Corporation (“the Company”), are an early stage business consulting company that intends to assist start-up to midsize companies in the East Asia region, with a focus on mainland China and Hong Kong, to operate their businesses more cost effectively through our multifaceted consulting services.

 

The Company’s executive office is located at Flat 1204 Block B, Mei Li Yuan, Hong Ling Middle Road, Luohu, Shenzhen 518000 China.

 

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, for the six months ended and as at May 31, 2020, the Company incurred a net loss of $24,105 which arrives at accumulated deficit of $93,110. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

The financial statements for Leader Hill Corporation are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The Company has adopted November 30 as its fiscal year end.

 

Use of estimates

 

Management uses estimates and assumptions in preparing these financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheets, and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates.

 

Revenue from services

 

The Company adopted Accounting Standards Codification (“ASC”) 606. ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.

 

The Company has assessed the impact of the guidance by performing the following five steps analysis:

 

Step 1: Identify the contract

Step 2: Identify the performance obligations

Step 3: Determine the transaction price

Step 4: Allocate the transaction price

Step 5: Recognize revenue

 

Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there were no material changes to the Company’s consolidated financial statements upon adoption of ASC 606.

 

Revenue is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue.

 

Revenue from supplies of consulting services 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 services 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.

 

The Company derives its revenue from direct sales to individuals and business companies. Generally, the Company recognizes revenue when services are sold and accepted by the customers and there are no continuing obligations to the customer.

 

For the six months ended May 31, 2020, the Company has no revenue through providing accounting and advisory related services to customers.

 

  7  

 

 

General and administrative expenses

 

For the three and six months ended May 31, 2020, the company has incurred general and administrative expenses of $18,275 and $24,105 respectively, which consist of mainly financial statement review, transfer agent fee and legal fees.

 

For the three and six months ended May 31, 2019, the company has incurred general and administrative expenses of $3,689 and $8,633 respectively, which consist of mainly company incorporation fee, audit fee and professional fees.

 

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.

 

The company has a cash and cash equivalents of $499 and $525 as of May 31, 2020 and November 30, 2019 respectively.

 

Deferred Revenue

 

For service contracts where the performance obligation is not completed, deferred revenue is recorded for any payments received in advance of the performance obligation.

 

For the three and six months ended May 31, 2020, the Company has no revenue.

 

  8  

 

 

Accounts receivable

 

Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due on demand. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

 

Plant and equipment

 

Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational:

 

Categories   Estimated useful life
Office equipment   5 years

 

Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the statement of operations.

 

The company has incurred depreciation expenses of $135 and $271 for the three months and six months ended May 31, 2020 respectively.

 

For the three and six months ended May 31, 2019, the company has incurred $135 and $271 of depreciation expenses respectively.

 

Going Concern

 

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, for the six months ended May 31, 2020, the Company incurred a net loss of $24,105 which arrives at accumulated deficit of $93,110 and no revenue has been generated. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

The Company’s ability to continue as a going concern is dependent upon improving its profitability and the continuing financial support from its shareholders. Management believes the existing shareholders or external financing will provide the additional cash to meet the Company’s obligations as they become due. No assurance can be given that any future financing, if needed, 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, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stockholders, in the case of equity financing.

 

  9  

 

 

Net income/(loss) per share

 

The Company calculates net income/(loss) per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income/(loss) per share is computed by dividing the net income/(loss) by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income/(loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

 

Related parties

 

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

 

Fair value of financial instruments:

 

The carrying value of the Company’s financial instruments: receivables and amount due to a director approximate at their fair values because of the short-term nature of these financial instruments.

 

The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

 

Level 1: Observable inputs such as quoted prices in active markets;

 

Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

 

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

Recent accounting pronouncements

 

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08) which clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. The new standard further requires new disclosures about contracts with customers, including the significant judgments the company has made when applying the guidance. We will adopt the new standard effective December 1, 2018, using the modified retrospective transition method.

 

In June 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation,” (“ASU 2014-10”). ASU 2014-10 removes the definition of a development stage entity from the ASC, thereby removing the financial reporting distinction between development stage entities and other reporting entities from GAAP. In addition, ASU 2014-10 eliminates the requirements for development stage entities to (1) present inception-to-date information in the statements of operations, cash flows, and stockholders’ equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. ASU 2014-10 is effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. Early adoption is permitted. The Company has elected to adopt ASU 2014-10 effective with this registration statement on Form S-1 and its adoption resulted in the removal of previously required development stage disclosures.

 

In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers Other than Inventory (ASU 2016-16), which requires companies to recognize the income-tax consequences of an intra-entity transfer of an asset other than inventory. This guidance will be effective for us in the first quarter of 2018, with the option to adopt it in the first quarter of 2017. We currently anticipate adopting the new standard effective January 1, 2018, and do not expect the standard to have a material impact on our financial statements.

 

  10  

 

 

In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance will be effective for us in the first quarter of 2018 and early adoption is permitted. We are still evaluating the effect that this guidance will have on our financial statements and related disclosures.

 

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

 

3. GOING CONCERN UNCERTAINTIES

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The company having accumulated deficit of $93,110 and $69,005 as of May 31, 2020 and November 30, 2019 respectively.

 

For six months ended May 31, 2020 and 2019, the company has incurred a net loss of $24,105.

 

The Company’s cash position is not significant to support the Company’s daily operations. While the Company believes in the viability of its strategy and in its ability to raise additional funds, there can be no assurances to that effect. The Company’s ability to continue as a going concern is dependent upon its ability to improve profitability and the ability to acquire financial support from its shareholder.

 

These and other factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that financial statements are issued. These financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result in the Company not being able to continue as a going concern.

 

4. AMOUNT DUE TO A DIRECTOR

 

As of May 31, 2020, and November 30, 2019, the company has a loan from sole director of $56,710 and $25,065 respectively, which is unsecured and non-interest bearing with no fixed terms of repayment.

 

  11  

 

 

For the six months period ended May 31, 2020, director has further advance $441 for the settlement of audit fee for previous quarter and this quarter transfer agent fee.

 

Currently, our office is provided by our director, Seah Chia Yee, without charge.

 

Our director, Seah Chia Yee, has not been compensated for the services.

 

5. PREPAYMENT

 

As of May 31, 2020, and November 30, 2019, the company has a prepayment of $441 represented an outstanding prepaid service fee.

 

6. PROPERTY AND EQUIPMENT, NET

 

   

As of

May 31, 2020

   

As of

November 30, 2019

 
    (Unaudited)     (Audited)  
Office equipment   $ 2,709     $ 2,709  
      2,709       2,709  
                 
Less: Accumulated depreciation     (1,256 )     (985 )
Total   $ 1,453     $ 1,724  

 

The company has incurred depreciation expenses of $135 and $271 for the three months and six months ended May 31, 2020 respectively.

 

For the three and six months ended May 31, 2019, the company has incurred $135 and $271 of depreciation expenses respectively.

 

  12  

 

 

7. ACCRUED EXPENSES

 

As at May 31, 2020, the company has an outstanding accrued expense as following:

 

   

As of

May 31, 2020

   

As of

November 30, 2019

 
    (Unaudited)     (Audited)  
Accrued audit fee     -       9,500  
Accrued transfer agent fee     298       3,150  
Accrued review fee     3,000       -  
                 
Total   $ 3,000     $ 12,950  

 

8. CONCENTRATION OF RISK

 

For the three months ended May 31, 2020, the Company has realized no revenue from customers.

 

9. COMMON STOCK

 

On August 21, 2017, the Company issued 4,000,000 shares of restricted common stock, each with a par value of $0.001 per share, to Mr. Seah for initial working capital of $4,000.

 

From June 1, 2018 to August 31, 2018, the Company sold a total of 825,000 initial public offering shares to 33 shareholders, all of which reside in China, Hong Kong and Malaysia, at a price of $0.04 per share. The total proceeds to the Company amounted to a total of $33,000. The proceeds will be used as working capital.

 

As of May 31, 2020, we have authorized capital stock consisting of 75,000,000 shares of common stock, $0.001 par value per share of which 4,825,000 shares of common stock were issued and outstanding.

 

10. SUBSEQUENT EVENTS

 

In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after May 31, 2020 up through the date the Company issued the financial statements. No other events or transaction has occurred material to the knowledge of shareholders.

 

11. SIGNIFICANT EVENTS

 

Imposition of lockdown and other restrictive measures

 

On 23 January 2020, the Chinese government imposed a lockdown in Wuhan and other cities in the province of Hubei in an effort to quarantine the center of an outbreak of COVID-19. The lockdown in the city of Wuhan has set a precedent to other cities, where other cities within the country has implemented respective restrictive measures, including outdoor restrictions and closed management of communities. Shanghai, where the Company primarily operates the business in, was put under closed managed communities on 10 February 2020. The Chinese economy did fully restart until April 2020.

 

Before the financial statements were made out, the Board of Directors had considered the impact of COVID-19 outbreak in China, which would have affected the financial position, performance and cash flow of the Company as ended on the reporting date thereon.

 

The Management concluded that the impact of non-adjusting events from the COVID-19 outbreak has not significantly affected the fair value of the financial assets or liabilities and non-financial assets of the Company, including the classification of current and non-current items that were presented on the reporting date.

 

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

 

The information contained in this Form 10-Q is intended to update the information contained in our Annual Report on Form 10-K for the year ended November 30, 2019 and presumes that readers have access to, and will have read, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other information contained in such Form 10-K. The following discussion and analysis also should be read together with our financial statements and the notes to the financial statements included elsewhere in this Form 10-Q.

 

The following discussion contains certain statements that may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements appear in a number of places in this Report, including, without limitation, “Management’s Discussion and Analysis of Financial Condition and Results of Operations. “These statements are not guarantees of future performance and involve risks, uncertainties and requirements that are difficult to predict or are beyond our control. Forward-looking statements speak only as of the date of this quarterly report. You should not put undue reliance on any forward-looking statements. We strongly encourage investors to carefully read the factors described in our Form S-1 Amendment No.2, dated June 15, 2018, in the section entitled “Risk Factors” for a description of certain risks that could, among other things, cause actual results to differ from these forward-looking statements. We assume no responsibility to update the forward-looking statements contained in this transition report on Form10-Q. The following should also be read in conjunction with the unaudited Condensed Consolidated Financial Statements and notes thereto that appear elsewhere in this report.

 

Company Overview

 

We, Leader Hill Corporation, a Nevada corporation (“the Company”) was incorporated under the laws of the State of Nevada on August 21, 2017.

 

The Company’s executive office is located at Flat 1204 Block B, Mei Li Yuan, Hong Ling Middle Road, Luohu, Shenzhen 518000 China.

 

We, Leader Hill Corporation (“the Company”), are an early stage business consulting company that intends to assist start-up to midsize companies in the East Asia region, with a focus on mainland China and Hong Kong, to operate their businesses more cost effectively through our multifaceted consulting services. Additionally, it should be noted that the Company has not yet generated any revenue, and we currently operate at a net loss.

 

Going Concern Uncertainties

 

The accompanying financial statements have been prepared using the going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

 

For the six months ended and as of May 31, 2020, the Company suffered operating losses of $24,105 and had an accumulated deficit of $93,110. The continuation of the Company as a going concern through May 31, 2020 is dependent upon improving the profitability and the continuing financial support from its stockholders. Management believes the existing shareholders or external financing will provide the additional cash needed to meet the Company’s obligations as they become due.

 

These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements included herein do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result in the Company not being able to continue as a going concern.

 

Results of Operation

 

For the three and six months period ended May 31, 2020 and 2019

 

Our cash and cash equivalents balance were $499 and $525 as of May 31, 2020 and November 30, 2019 respectively.

 

Revenues and cost of revenue

 

For the three and six months ended May 31, 2020, the Company has no revenue , no cost of revenue was incurred for both of mentioned period.

 

No revenue nor cost of revenue was generated nor incurred for the three and six months period ended May 31, 2019.

 

General and administrative expenses

 

For the three and six months ended May 31, 2020, the company has incurred general and administrative expenses of $18,275 and $24,105 respectively, which consist of mainly financial statement review, transfer agent fee, filing fee and application fee for DTC.

 

For the three and six months ended May 31, 2019, the company has incurred general and administrative expenses of $3,689 and $8,633 respectively, which consist of mainly company incorporation fee, audit fee and professional fees.

 

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Net Profit and net loss

 

The Company has incurred a net loss of $18,275 and $24,105 for the three and six months period ended May 31, 2020 respectively.

 

For the three and six months ended May 31, 2019, the Company has incurred a net loss of $889 and $5,833 respectively.

 

Liquidity and Capital Resources

 

Cash Used in Operating Activities

 

For the six months period ended May 31, 2020, the company has consumed $14 in operating activity, of which mainly consist of incurring an operating net loss , decrease in accrued expenses and realization contra by increase in prepayment and amount due to director.

 

For the six months period ended May 31, 2019, the company has consumed $24,366 in operating activity, of which mainly consist of incurring an operating net loss, increase in account receivable and decrease in other payable and accrued liabilities.

 

Cash Used in / Provided by Financing Activities

 

For the six months period ended May 31, 2019 and 2020, the company didn’t incur or generate any cash from financing activity.

 

Cash Used in / Provided by Investing Activities

 

For the six months period ended May 31, 2019 and 2020, the company didn’t incur or generate any cash from investing activity.

 

Off-balance Sheet Arrangements

 

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders as of May 31, 2020.

 

Contractual Obligations

 

As of May 31, 2020, the Company has no contractual obligations involved.

 

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ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

 

ITEM 4 CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures:

 

We carried out 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 May 31, 2020. 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 May 31, 2020, 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 May 31, 2020, our disclosure controls and procedures were not effective: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.

 

Changes in Internal Control Over Financial Reporting:

 

There were no changes in our internal control over financial reporting during the quarter ending May 31, 2020, 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 party to litigation or other legal proceedings that we consider to be a part of the ordinary course of our business. We are not currently involved in legal proceedings that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations. We may become involved in material legal proceedings in the future.

 

Item 1A. Risk Factors

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

(a) None.

 

(b) None.

 

(c) None.

 

Item 3. Defaults Upon Senior Securities

 

(a) None.

 

(b) None.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information.

 

  (a) On April 26, 2019 the Board of Directors of Leader Hill Corp. (the “Company”) approved the dismissal of TAAD, LLP (“TAAD”) as the independent registered public accounting firm of the Company, effective immediately. Form 8-K was filed with the Securities and Exchange Commission on April 29, 2019.
     
    On May 3, 2019, concurrent with the dismissal of TAAD, LLP (“TAAD”), the Company, upon the Board of Directors’ approval, engaged Total Asia Associates PLT (“Total Asia”) as the Company’s independent registered public accounting firm. Form 8-K was filed with the Securities and Exchange Commission on May 6, 2019.
     
  (b) None.

 

Item 6. Exhibits

 

31.1   Rule 13(a)-14(a) / 15(d)-14(a) Certification of principal executive officer and principal financial officer
     
32.1   Section 1350 Certification of principal executive officer and principal financial officer

 

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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.

 

  LEADER HILL CORPORATION
  (Name of Registrant)
     
Date: June 25, 2020    
     
  By: /s/ Seah Chia Yee
  Name: Seah Chia Yee
  Title: Chief Executive Officer, President, Director (Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer)

 

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