Item 1. Financial Statements
NANOVATION MICROTECH, INC.
Consolidated Balance Sheets
As of May 31, 2021 and August 31, 2020
(Unaudited)
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May 31,
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August 31,
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2021
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|
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2020
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|
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ASSETS
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|
|
|
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Current Assets
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Total Current Assets
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$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
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|
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TOTAL ASSETS
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$
|
-
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|
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$
|
-
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|
|
|
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|
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LIABILITIES AND STOCKHOLDERS’ DEFICIT
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Current Liabilities
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Accounts payable and accrued liabilities
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$
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13,800
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|
|
$
|
12,100
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|
Accrued Interest
|
|
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29,742
|
|
|
|
13,413
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|
Convertible notes
|
|
|
88,660
|
|
|
|
80,086
|
|
Due to related party
|
|
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18,884
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|
|
|
-
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|
TOTAL LIABILITIES
|
|
|
151,086
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|
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|
105,599
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|
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STOCKHOLDERS’ DEFICIT
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Common stock, par value $0.001 per share, 75,000,000 shares authorized, 80,616 shares issued and outstanding
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81
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|
|
|
81
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|
Additional paid-in capital
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|
119,516
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|
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110,942
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|
Retained earnings from discontinued operations
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29,190
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|
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|
29,190
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|
Accumulated deficit
|
|
|
(299,873
|
)
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|
|
(245,812
|
)
|
Total Stockholders’ Deficit
|
|
|
(151,086
|
)
|
|
|
(105,599
|
)
|
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT
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$
|
-
|
|
|
$
|
-
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|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
NANOVATION MICROTECH, INC.
Consolidated Statements of Operations
For the nine months and three months ended May 31, 2021 and May 31, 2020
(Unaudited)
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For the Three Months Ended
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For the Nine Months Ended
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May 31,
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May 31,
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May 31,
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May 31,
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2021
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2020
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2021
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2020
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REVENUES, NET OF FEES
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$
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-
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$
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-
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$
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-
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$
|
794
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OPERATING EXPENSES
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General and administrative
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$
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7,730
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$
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7,492
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|
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$
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29,158
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|
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$
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30,665
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Total Operating Expenses
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7,730
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7,492
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29,158
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30,665
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|
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OTHER EXPENSES
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Interest expense
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5,664
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8,626
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24,903
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81,788
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|
|
|
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5,664
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|
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8,626
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24,903
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81,788
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|
|
|
|
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Loss Before Income Taxes
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(13,394
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)
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(16,118
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)
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(54,061
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)
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(111,659
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)
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Provision for Income Taxes
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-
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-
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-
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-
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NET LOSS
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$
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(13,394
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)
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$
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(16,118
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)
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$
|
(54,061
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)
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$
|
(111,659
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)
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|
|
|
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|
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|
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Net loss per share: Basic and Diluted
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$
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(0.17
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)
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$
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(0.20
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)
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$
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(0.67
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)
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(1.39
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)
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Weighted Average Common Shares Outstanding - Basic and Diluted
|
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80,616
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|
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|
80,616
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|
|
|
80,616
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|
|
|
80,616
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|
The accompanying notes are an integral part of these unaudited financial statements
NANOVATION MICROTECH, INC.
Consolidated Statements of Stockholders’ Equity (Deficit)
For the nine months and three months ended May 31, 2021 and May 31, 2020
(Unaudited)
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Common Stock
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Additional
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Retained Earnings
from
|
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Total
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Number of Shares
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Amount
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Paid-in
Capital
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Discontinued
Operations
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Accumulated
Deficit
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Stockholders’
Deficit
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|
|
|
|
|
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|
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Balance - August 31, 2020
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80,616
|
|
|
$
|
81
|
|
|
$
|
110,942
|
|
|
$
|
29,190
|
|
|
$
|
(245,812
|
)
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$
|
(105,599
|
)
|
Note Beneficial Conversion Feature
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-
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-
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8,574
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-
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-
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8,574
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Net loss
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|
-
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|
|
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-
|
|
|
|
-
|
|
|
|
-
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|
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(30,890
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)
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|
|
(30,890
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)
|
Balance - November 30, 2020
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80,616
|
|
|
$
|
81
|
|
|
$
|
119,516
|
|
|
$
|
29,190
|
|
|
$
|
(276,702
|
)
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|
$
|
(127,915
|
)
|
Net loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(9,777
|
)
|
|
|
(9,777
|
)
|
Balance - February 28, 2021
|
|
|
80,616
|
|
|
$
|
81
|
|
|
$
|
119,516
|
|
|
$
|
29,190
|
|
|
$
|
(286,479
|
)
|
|
$
|
(137,692
|
)
|
Net loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(13,394
|
)
|
|
|
(13,394
|
)
|
Balance - May 31, 2021
|
|
|
80,616
|
|
|
$
|
81
|
|
|
$
|
119,516
|
|
|
$
|
29,190
|
|
|
$
|
(299,873
|
)
|
|
$
|
(151,086
|
)
|
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|
Common Stock
|
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|
Additional
|
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|
Retained Earnings
from
|
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|
|
|
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Total
|
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|
Number of Shares
|
|
|
Amount
|
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|
Paid-in
Capital
|
|
|
Discontinued
Operations
|
|
|
Accumulated
Deficit
|
|
|
Stockholders’
Deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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*Balance - August 31, 2019
|
|
|
80,616
|
|
|
$
|
81
|
|
|
$
|
30,856
|
|
|
$
|
29,190
|
|
|
$
|
(112,691
|
)
|
|
$
|
(52,564
|
)
|
Net loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(15,856
|
)
|
|
|
(15,856
|
)
|
Balance - November 30, 2019
|
|
|
80,616
|
|
|
$
|
81
|
|
|
$
|
30,856
|
|
|
$
|
29,190
|
|
|
$
|
(128,547
|
)
|
|
$
|
(68,420
|
)
|
Note Beneficial Conversion Feature
|
|
|
-
|
|
|
|
-
|
|
|
|
68,813
|
|
|
|
-
|
|
|
|
-
|
|
|
|
68,813
|
|
Net loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(79,685
|
)
|
|
|
(79,685
|
)
|
Balance - February 29, 2020
|
|
|
80,616
|
|
|
$
|
81
|
|
|
$
|
99,669
|
|
|
$
|
29,190
|
|
|
$
|
(208,232
|
)
|
|
$
|
(79,292
|
)
|
Note Beneficial Conversion Feature
|
|
|
-
|
|
|
|
-
|
|
|
|
4,230
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,230
|
|
Net loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(16,118
|
)
|
|
|
(16,118
|
)
|
Balance - May 31, 2020
|
|
|
80,616
|
|
|
$
|
81
|
|
|
$
|
103,899
|
|
|
$
|
29,190
|
|
|
$
|
(224,350
|
)
|
|
$
|
(91,180
|
)
|
* retroactively reflect 60:1 reverse stock split
The accompanying notes are an integral part of these unaudited financial statements
NANOVATION MICROTECH, INC.
Consolidated Statements of Cash Flows
For the nine months ended May 31 2021 and May 31, 2020
(Unaudited)
|
|
For the Nine Months Ended
|
|
|
|
May 31,
|
|
|
May 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net loss
|
|
$
|
(54,061
|
)
|
|
$
|
(111,659
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
Note Discount Amortization
|
|
|
8,574
|
|
|
|
73,043
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
-
|
|
|
|
149
|
|
Accounts payable and accrued liabilities
|
|
|
1,701
|
|
|
|
3,861
|
|
Accrued interest
|
|
|
16,328
|
|
|
|
8,745
|
|
Net cash used in operating activities
|
|
|
(27,458
|
)
|
|
|
(25,861
|
)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Advancement from director
|
|
|
18,884
|
|
|
|
-
|
|
Proceeds from issuance of convertible note
|
|
|
8,574
|
|
|
|
26,803
|
|
Net cash provided by financing activities
|
|
|
27,458
|
|
|
|
26,803
|
|
|
|
|
|
|
|
|
|
|
Net changes in cash and cash equivalents
|
|
|
-
|
|
|
|
942
|
|
Cash and cash equivalents - beginning of period
|
|
|
-
|
|
|
|
1,848
|
|
Cash and cash equivalents - end of period
|
|
$
|
-
|
|
|
$
|
2,790
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow Disclosures
|
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
$
|
-
|
|
|
$
|
-
|
|
Cash paid for income taxes
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
Non-Cash Investing and Financing Activity:
|
|
|
|
|
|
|
|
|
Note Beneficial Conversion Feature
|
|
$
|
8,574
|
|
|
$
|
73,043
|
|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
NANOVATION MICROTECH, INC.
Notes to the Unaudited Consolidated Financial Statements
May 31, 2021
NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS
Nanovation Microtech, Inc. (“the Company”) was incorporated on July 20, 2016 in the State of Nevada.
On May 4, 2018, as a result of a private transaction, the control block of voting stock of the Company, represented by 4,000,000 shares of common stock, was transferred from Jose Maria Galarza Gaona to Greenfields International Limited, and a change of control of Kalmin Corp. has occurred.
Upon the change of control of the Company, the existing directors and officers resigned immediately. Accordingly, Jose Maria Galarza Gaona, serving as director and President and Karel Astride Oulai, serving as Treasurer and Secretary, ceased to be the Company’s officers and directors. At the effective date of the transfer, Xie Qi Kang, age 36, assumed the role of director and Chief Executive Officer, President, Secretary and Treasurer of the Company.
Previous Business
From inception until May 4, 2018, the Company manufactured and sold the necessary equipment for drinking mate – kalabas and bombilla. With the change of control on May 4, 2018, management determined it was in the best interest of the Company to seek new business opportunities.
Acquisition
On December 1, 2018, the Company entered into a Share Sale and Purchase Agreement (the “Agreement”) with No Tie LLC (“No Tie”). Under the terms of the Agreement, the Company have agreed to purchase all of the issued and outstanding shares of No Tie and its mobile application assets for a purchase price of $37,500 (the “Acquisition”).
In connection with the Agreement, the Company assumed certain ongoing responsibilities of No Tie, including maintaining Apple developer licenses and domain name registration and hosting.
The Acquisition closed on January 25, 2019. At closing, No Tie became a subsidiary of our company.
On June 15, 2020, the Company approved the name change and a 60:1 reverse stock split which was approved by FINRA and effective July 15, 2020.
Current Business
Upon closing of the Acquisition, the Company is now an App business with 120+ Apps primarily for iPhone, iPad and Apple.
NOTE 2 – GOING CONCERN
The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”), which contemplate continuation of the Company as a going concern. The Company incurred an operating loss of $54,061 during the nine months ended May 31, 2021 and has accumulated deficit of $299,873 from continued operations and retained earnings of $29,190 from discontinued operations as of May 31, 2021. The Company has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time. Therefore, there is substantial doubt about the Company’s ability to continue as a going concern. Management anticipates that the Company will be dependent, for 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 to become financially viable and continue as a going concern. These financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with GAAP for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended May 31, 2021 are not necessarily indicative of the results that may be expected for the year ending August 31, 2021. Notes to the unaudited interim financial statements that would substantially duplicate the disclosures contained in the audited financial statements for fiscal year 2020 have been omitted. These interim financial statements are condensed and should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended August 31, 2020 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on December 10, 2020.
Principles of Consolidation
The accompanying consolidated financial statements include all of the accounts of the Company and its wholly owned subsidiary, No Tie, LLC. All significant intercompany accounts and transactions have been eliminated.
Cash and Cash Equivalents
The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.
Use of Estimates
The preparation of financial statements in conformity with GAAP 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 of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition
The Company recognizes revenue from the sale of products and services in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, using the following five-step procedure:
Step 1: Identify the contract(s) with customers
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to performance obligations
Step 5: Recognize revenue when the entity satisfies a performance obligation
The Company’s sales are completed through an online platforms by third parties. The Company receives collection on payments either at the time of sale, or 30 or 60 days subsequent to the sale.
For products and services where collection is immediate, the Company recognizes revenue at the time of sale.
Accounts Receivable
The Company records accounts receivable in accordance with ASC 310, “Receivables.” Receivables consist of mobile application sales that have been made, but cash has not yet been received. The terms of receivables are typically 60 days after sale.
Basic and Diluted Net Loss Per Share
Net loss per share is calculated in accordance with Codification topic 260, “Earnings Per Share” for the periods presented. Basic net loss per share is computed using the weighted average number of common shares outstanding. Diluted loss per share has not been presented because there are no dilutive items. Diluted net loss per share is based on the assumption that all dilutive stock options, warrants, and convertible debt are converted or exercised by applying the treasury stock method. Under this method, options and warrants are assumed exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Options, warrants and/or convertible debt will have a dilutive effect, during periods of net profit, only when the average market price of the common stock during the period exceeds the exercise or conversion price of the items. The Company has not issued any options or warrants or similar securities since inception.
For the nine months ended May 31, 2021 and May 31, 2020, respectively, the following convertible notes were excluded from the computation of diluted net loss per shares as the result of the computation was anti-dilutive:
|
|
May 31,
|
|
|
May 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
(Shares)
|
|
|
(Shares)
|
|
Convertible notes payable
|
|
|
88,659,730
|
|
|
|
73,043,000
|
|
Recent Accounting Pronouncements
In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with Conversion and Other Options”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on its financial statements.
NOTE 4 – CONVERTIBLE NOTES
|
|
May 31,
|
|
|
August 31,
|
|
|
|
2021
|
|
|
2020
|
|
Convertible Notes - December 2019
|
|
$
|
68,813
|
|
|
$
|
68,813
|
|
Convertible Notes - May 2020
|
|
|
4,230
|
|
|
|
4,230
|
|
Convertible Notes - August 2020
|
|
|
7,043
|
|
|
|
7,043
|
|
Convertible Notes - November 2020
|
|
|
8,574
|
|
|
|
-
|
|
|
|
|
88,660
|
|
|
|
80,086
|
|
less: current convertible note payable
|
|
|
(88,660
|
)
|
|
|
(80,086
|
)
|
Long-term convertible notes payable
|
|
$
|
-
|
|
|
$
|
-
|
|
On December 1, 2019, the Company issued a convertible note to an un-affiliated party of $68,813 to replace the full amount of related party advances that had been provided to the Company. The convertible notes are due on demand, bear interest at 25% per annum and are convertible at $0.001 per share for the Company common stock. The discount on convertible notes from beneficial conversion feature of $68,813 was fully amortized during the nine ended May 31, 2020.
On May 31, 2020, the Company issued a convertible note to an un-affiliated party of $4,230 for paying operating expenses on behalf of the Company. The convertible notes are due on demand, bear interest at 25% per annum and are convertible at $0.001 per share for the Company common stock. The discount on convertible notes from beneficial conversion feature of $4,230 was fully amortized during the year ended August 31, 2020.
On August 31, 2020, the Company issued a convertible note to an un-affiliated party of $7,043 for paying operating expenses on behalf of the Company. The convertible notes are due on demand, bear interest at 25% per annum and are convertible at $0.001 per share for the Company common stock. The discount on convertible notes from beneficial conversion feature of $7,043 was fully amortized during the year ended August 31, 2020.
On November 30, 2020, the Company issued a convertible note to an un-affiliated party of $8,574 for paying operating expenses on behalf of the Company. The convertible notes are due on demand, bear interest at 25% per annum and are convertible at $0.001 per share for the Company common stock. The discount on convertible notes from beneficial conversion feature of $8,574 was fully amortized during the six months ended February 28, 2021.
As of May 31, 2021 and August 31, 2020, the Company owed convertible note payable of $88,660 and $80,086, and accrued interest of $29,742 and $13,413, respectively. During the nine months ended May 31, 2021 and May 31, 2020, the Company incurred interest expense of $16,328 and $8,745, and amortization of note discount of $8,574 and $73,043, respectively.
NOTE 4- RELATED PARTY TRANSACTIONS
The amount due to related party consists of advances from the Company’s director. The amounts are non-interest bearing, have no set repayment terms and are not secured.
During the nine months ended May 31, 2021 and May 31, 2020, the Director of the Company advanced $13,884 and $0 to the Company for operation expenses, respectively.
As of May 31, 2021 and August 31, 2020, amount due to the related party was $18,884 and $0, respectively.
NOTE 5 – COMMON STOCK
The Company has authorized seventy-five million (75,000,000) shares of common stock with a par value of $0.001.
On June 15, 2020, a majority of our stockholders and our board of directors approved a reverse stock split of our issued and outstanding shares of common stock on a sixty (60) old for one (1) new basis. The reverse stock split became effective on July 15, 2020. The reverse stock split has been retrospectively reflected in the financial statements for the year ended August 31, 2020.
As of May 31, 2021 and August 31, 2020, 80,616 shares of common stock were issued and outstanding.
NOTE 6 – RISKS AND UNCERTAINTIES
In early 2020, the World Health Organization declared the rapidly spreading coronavirus disease (COVID-19) outbreak a pandemic. This pandemic has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there were no material adverse impacts on the Company’s results of operations and financial position at May 31, 2021. The full extent of the future impacts of COVID-19 on the Company’s operations is uncertain. A prolonged outbreak could have a material adverse impact on financial results and business operations of the Company in the future. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date of issuance of this financial statements. These estimates may change, as new events occur and additional information is obtained.
NOTE 7 – SUBSEQUENT EVENTS
Management has evaluated subsequent events through the date these financial statements were available to be issued. Based on our evaluation no material events have occurred that require disclosure.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
FORWARD-LOOKING STATEMENTS
This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. 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. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.
Our unaudited financial statements are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.
In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock.
As used in this quarterly report, the terms “we”, “us”, “our” and “our company” mean Nanovation Microtech, Inc. and our wholly-owned subsidiary, No Tie LLC, a New York limited liability corporation, unless otherwise indicated.
General Overview
We were incorporated under the laws of the State of Nevada on July 20, 2017, for the purpose of manufacturing and selling the necessary equipment for drinking mate - kalabas and bombilla.
On May 4, 2018, as a result of a private transaction, the control block of voting stock of our company, represented by 4,000,000 shares of common stock, was transferred from Jose Maria Galarza Gaona to Greenfields International Limited, resulting in a change of control.
Upon the change of control of our company, the existing directors and officers resigned immediately. Accordingly, Jose Maria Galarza Gaona, serving as director and President and Karel Astride Oulai, serving as Treasurer and Secretary, ceased to be officers and directors of our company. At the effective date of the transfer, Teddy Chen An, assumed the role of director and Chief Executive Officer, President, Secretary and Treasurer of our company.
With the change of control on May 4, 2018, management determined it was in the best interest of our company to seek new business opportunities.
On December 1, 2018, we entered into a Share Sale and Purchase Agreement (the “Agreement”) with No Tie LLC (“No Tie”). Under the terms of the Agreement, we have agreed to purchase all of the issued and outstanding shares of No Tie and its mobile application assets for a purchase price of $37,500 (the “Acquisition”). In connection with the Agreement, our company assumed certain ongoing responsibilities of No Tie, including maintaining Apple developer licenses and domain name registration and hosting.
The assets acquired by our company consist of a significant portion of the assets used in the operation of the No Tie business, with the exception of, accounts receivable for sales made prior to the closing date for the developer accounts, cash on hand and all computers, printers and related accessories and technology equipment.
On December 2, 2018, we entered into a First Amendment to the Agreement, wherein the closing date of the Acquisition was extended from December 1, 2018 to on or before January 31, 2019. The Acquisition closed on January 25, 2019. At closing, No Tie became a subsidiary of our company.
Our principal executive offices are located at Osterbrogade 226 st. tv, Copenhagen, Denmark 2100. Our telephone number is (302)782-4171. We do not have a corporate website.
Other than as set out herein, we have not been involved in any bankruptcy, receivership or similar proceedings, nor have we been a party to any material reclassification, merger, consolidation or purchase or sale of a significant amount of assets not in the ordinary course of our business.
Our Current Business
Upon closing of the Acquisition, we are now an App business with 120+ Apps primarily for iPhone, iPad and Apple Watch with over six million downloads and awards from AARP, About.com, BestAppEver and more. Several of our Apps have consistently been ranked in the Top Ten in their categories, including #1 iPad Medical app.
Our Apps are available for download through the Apple App Store.
iOS Apps and Games
Our iPhone iOS portfolio includes 97 Apps, primarily consisting of ring tones. Our apps also include talking video greeting cards, games, Autism Speaking Soundboards and more.
Our iPad iOS portfolio includes 90 Apps, primarily consisting of ring tones. Our apps also include games, Autism Speaking Soundboards, iFAQs and more.
We currently have 1 apple TV App, Name That Candidate.
Our Mac Apps portfolio includes 2 ring tone Apps and 1 game.
Results of Operations
Three Months Ended May 31, 2021 Compared to May 31, 2020
Our operating results for the three months ended May 31, 2021 and May 31, 2020, and the changes between those periods for the respective items are summarized as follows:
|
|
Three Months
|
|
|
Three Months
|
|
|
|
|
|
|
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
|
|
|
|
|
May 31,
|
|
|
May 31,
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
2020
|
|
|
Changes $
|
|
|
Change %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
0
|
%
|
Operating Expenses
|
|
$
|
7,730
|
|
|
$
|
7,492
|
|
|
$
|
238
|
|
|
|
3
|
%
|
Other Expenses
|
|
$
|
5,664
|
|
|
$
|
8,626
|
|
|
$
|
(2,962
|
)
|
|
|
-34
|
%
|
Net loss
|
|
$
|
(13,394
|
)
|
|
$
|
(16,118
|
)
|
|
$
|
2,724
|
|
|
|
-17
|
%
|
During the three months ended May 31, 2021 and May 31, 2020, we incurred total net loss of $13,394 and $16,118, respectively.
We had no sales for the three months ended May 31, 2021 and May 31, 2020.
Operating expenses were $7,730 for the three months ended May 31, 2021, compared to $7,492 for the three months ended May 31, 2020.
Other expenses incurred during the three months ended May 31, 2021 were $5,664, compared to $8,626 for the three months ended May 31, 2020 due to note discount amortization of $4,230 incurred during the three months ended May 31, 2020.
Nine Months Ended May 31, 2021 Compared to May 31, 2020
We had no sales for the nine months ended May 31, 2021 and May 31, 2020.
Our operating results for the nine months ended May 31, 2021 and May 31, 2020, and the changes between those periods for the respective items are summarized as follows:
|
|
Nine Months
|
|
|
Nine Months
|
|
|
|
|
|
|
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
|
|
|
|
|
May 31,
|
|
|
May 31,
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
2020
|
|
|
Changes $
|
|
|
Change %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
-
|
|
|
$
|
794
|
|
|
$
|
(794
|
)
|
|
|
-100
|
%
|
Operating Expenses
|
|
$
|
29,158
|
|
|
$
|
30,665
|
|
|
$
|
(1,507
|
)
|
|
|
-5
|
%
|
Other Expenses
|
|
$
|
24,903
|
|
|
$
|
81,788
|
|
|
$
|
(56,885
|
)
|
|
|
-70
|
%
|
Net loss
|
|
$
|
(54,061
|
)
|
|
$
|
(111,659
|
)
|
|
$
|
57,598
|
|
|
|
-52
|
%
|
During the nine months ended May 31, 2021 and May 31, 2020, we incurred total net loss of $54,061 and $111,659, respectively.
We had no sales for the nine months ended May 31, 2021 as compared to $794 revenue from mobile application sales during the nine months ended May 31, 2020.
Operating expenses were $29,158 for the nine months ended May 31, 2021, compared to $30,665 for the nine months ended May 31 2020.
Other expenses incurred during the nine months ended May 31, 2021 were $24,903, compared to $81,788 for the nine months ended May 31, 2020 due to the decrease in note discount amortization of $8,574 incurred during the nine months ended May 31, 2021 from $73,043 incurred during the nine months ended May 31, 2020
Liquidity and Capital Resources
Working Capital
|
|
As of
|
|
|
As of
|
|
|
|
|
|
|
|
|
|
May 31,
|
|
|
August 31,
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
2020
|
|
|
Changes $
|
|
|
Change %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
-
|
|
Current Liabilities
|
|
$
|
151,086
|
|
|
$
|
105,599
|
|
|
$
|
45,487
|
|
|
|
43
|
%
|
Working Capital (Deficiency)
|
|
$
|
(151,086
|
)
|
|
$
|
(105,599
|
)
|
|
$
|
(45,487
|
)
|
|
|
43
|
%
|
As of May 31 2021, we had a working capital deficit of $151,086 compared to a working capital deficit of $105,599 as of August 31, 2020. The increase in working capital deficiency was mainly due to the increase in convertible notes issued for payment made for operation expense on behalf of the Company, accrued interest from the convertible notes and advancement made from the Director for operation expenses on behalf of the Company.
Cash Flows
|
|
Nine Months
|
|
|
Nine Months
|
|
|
|
|
|
|
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
|
|
|
|
|
May 31,
|
|
|
May 31,
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
2020
|
|
|
Changes
|
|
|
Change %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
$
|
(27,458
|
)
|
|
$
|
(25,861
|
)
|
|
$
|
(1,597
|
)
|
|
|
6
|
%
|
Net cash provided by financing activities
|
|
$
|
27,458
|
|
|
$
|
26,803
|
|
|
$
|
655
|
|
|
|
2
|
%
|
Net increase(decrease) in cash and cash equivalents
|
|
$
|
-
|
|
|
$
|
942
|
|
|
$
|
(942
|
)
|
|
|
-100
|
%
|
Cash Flow from Operating Activities
During the nine months ended May 31, 2021, net cash used in operating activities was $27,458, related to our net loss of $54,061, decreased by note discount amortization of $8,574 and net changes in operating assets and liabilities of $18,029.
During the nine months ended May 31, 2020, net cash used in operating activities was $25,861, related to our net loss of $111,659, decreased by note discount amortization of $73,043 and net changes in operating assets and liabilities of $12,755.
Cash Flow from Investing Activities
During the nine months ended May 31, 2021 and May 31, 2020, we had no investing activities.
Cash Flow from Financing Activities
During the nine months ended May 31, 2021 and May 31, 2020, net cash provided by financing activities was $27,458 and $26,803, respectively.
Net cash provided by financing activities of $27,458 during the nine months ended May 31, 2021 consists of advancement from the Director of $18,884 and proceeds from issuance of convertible note of $8,574.
During the nine months ended May 31, 2020, the Company received advancement from the Director of $26,803.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.