The accompanying interim financial statements
of Yijia Group Corp. (“the Company”, “we”, “us” or “our”), have been prepared without
audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with United States generally accepted principles have been condensed or omitted
pursuant to such rules and regulations.
The interim financial statements are condensed
and should be read in conjunction with the company’s latest annual financial statements.
In the opinion of management, the financial statements
contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition,
results of operations, and cash flows of the Company for the interim periods presented.
(Currency expressed in United States Dollars (“US$”),
except for number of shares)
See accompanying notes, which are an integral part
of these condensed financial statements
See accompanying notes, which are an integral part
of these condensed financial statements
(Currency expressed in United States Dollars (“US$”),
except for number of shares)
See accompanying notes, which are an integral part
of these condensed financial statements
See accompanying notes, which are an integral part
of these condensed financial statements
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31, 2021
(UNAUDITED)
Note 1 – BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated
financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States
(“GAAP”), and the instructions to Form 10–Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures
normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed
or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information
not misleading.
In the opinion of management, the consolidated
balance sheet as of April 30, 2021 which has been derived from audited financial statements and these unaudited condensed financial statements
reflect all normal and considered necessary to state fairly the results for the periods presented. The results for the period ended July
31, 2021 are not necessarily indicative of the results to be expected for the entire fiscal year ending April 30, 2021 or for any future
period.
These unaudited condensed consolidated financial
statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements
and notes thereto included in the Annual Report on Form 10-K for the year ended April 30, 2021.
Note 2 – ORGANIZATION AND NATURE OF BUSINESS
Yijia Group Corp. (“the Company”,
“we”, “us” or “our”) was incorporated as Soldino Group Corp. on January 25, 2017 under the laws of
the State of Nevada, United States of America. The Company has ceased its operations as of October 2018. As such, the Company accounted
for all of its assets, liabilities and results of operations up to October 31, 2018 as discontinued operations. As of November 1, 2018,
the Company is a shell company. On November 15, 2018, the Company changed its name to Yijia Group Corp.
On October 31, 2018, Aurora Fiorin resigned as
the President, Treasurer, Secretary and Director of the Company. Ms. Fiorin’s resignation as President, Treasurer and Secretary
was effective immediately. Ms. Fiorin’s resignation as a Director was effective ten (10) days following the filing by the Company
of the Information Statement on Schedule 14f-1 with the United States Securities and Exchange Commission (the “SEC”). Prior
to Ms. Fiorin’s, resignation, she appointed Ms. Shaoyin Wu as the new President and Chief Executive Officer of the Company and Mr.
Kim Lee Poh as the Company’s new Chief Financial Officer and Secretary. Ms. Wu and Mr. Poh were appointed as new board members of
the Company, along with Mr. Jian Yang.
On July 28, 2021, Barry Sytner, a non-affiliate
of the registrant, purchased an aggregate of 5,066,250 common shares from Kim Lee Poh, Jian Yang and Shaoyin Wu, officers and directors
of the registrant and from Jiang Bo, Chen Bo Bo and Zheng Lixing, other majority shareholders of the registrant. The purchase price
for the common shares was paid from Mr. Sytner’s personal funds resulting in a change of control of the registrant. The common shares
were transferred to Barry Sytner effective August 4, 2021. The 5,066,250 common shares represent 86.3% of the currently issued and outstanding
common of the Company.
Also, on July 28, 2021, Shaoyin Wu, Kim Lee Poh
and Jian Yang resigned as officers and directors of the Company.
Concurrently, on July 28, 2021, Barry Sytner,
was appointed as Chief Executive Officer and Director of the Company.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31, 2021
(UNAUDITED)
Starting from July 30, 2021, the Company commenced
its operation in the rendering of business consulting service to domestic and international customers. On July 30, 2021, the Company entered
into two consulting agreements with non-affiliates to provide business consulting services. Under the consulting agreements, the Company
will receive consulting fees of $5,000 and $10,000 per month, respectively. The term of the consulting agreements is for an initial three
month period. Unless terminated in writing prior to the end of the period, the consulting agreement are renewable for successive three
month periods.
Note 3 – GOING CONCERN
The accompanying condensed financial statements
have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going
concern. The Company suffered from a working capital deficit of $32,107 and an accumulated deficit of $96,802 at July 31, 2021.
Therefore, there is substantial doubt about the
Company’s ability to continue as a going concern without future profitability. Management anticipates that the Company will be dependent,
in the near future, on additional capital to fund operating expenses. The Company intends to position itself to able to raise additional
funds through the capital markets.
In light of management’s efforts, there
are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going
concern. The accompanying financial statements have been prepared on a going concern basis which contemplates the realization of assets
and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to
the recoverability and classification of assets or the amounts and classifications of liabilities that might be necessary should the Company
be unable to continue as a going concern.
Note 4 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Use of Estimates
The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount
of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments
Accounting Standards Codification (“ASC”)
topic 820 "Fair Value Measurements and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs
in measuring fair value. The hierarchy organizes the inputs into three levels based on the extent to which inputs used in measuring fair
value are observable in the market.
These tiers include:
Level 1:
|
defined as observable inputs such as quoted prices in active markets;
|
Level 2:
|
defined as inputs other than quoted prices in active markets that are either directly or indirectly observable;
|
Level 3:
|
defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
|
The carrying value of cash and the Company’s
loan from shareholders approximates its fair value due to their short-term maturity.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31, 2021
(UNAUDITED)
Income Taxes
Income taxes are computed using the asset and
liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences
between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.
A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.
Uncertain tax positions
The Company did not take any uncertain tax positions
and had no adjustments to its income tax liabilities or benefits pursuant to the ASC 740 provisions of Section 740-10-25 for the three
months ended July 31, 2021 and 2020.
Revenue Recognition
The Company recognizes revenue in accordance with
Accounting Standards Codification No. 605, “Revenue Recognition” (“ASC-605”), ASC-605 requires that four basic
criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3)
the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based
on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts.
Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same
period the related sales are recorded. The Company will defer any revenue for which the product has not been delivered or is subject to
refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required.
No revenue was generated for the three months ended July 31, 2021 and 2020.
Net Loss Per Share
The Company computes net loss per share in accordance
with FASB ASC 260 “Earnings per Share”. Basic loss per share is computed by dividing net loss available to common shareholders
by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential
common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.
As of July 31, 2021, there were no potentially dilutive debt or equity instruments issued or outstanding.
Currencies
The Company’s reporting and functional currencies
are both the U.S. dollar. Foreign currency transaction gains and losses are included in other income (expense) but are negligible.
Comprehensive Income
Comprehensive income is defined as all changes
in stockholders’ deficit, exclusive of transactions with owners, such as capital investments. Comprehensive income includes net
income or loss, changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments
in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. As of July 31, 2021 and April 30, 2021, there
were no differences between our comprehensive loss and net loss.
Related parties
Parties, which can be a corporation or individual,
are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant
influence over the party in making financial and operational decisions. Companies are also considered to be related if they are subject
to common control or common significant influence.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31, 2021
(UNAUDITED)
Reclassification
Certain reclassifications have been made to the
financial statements for the prior year periods to present that information on a basis consistent with the current period.
Recent Accounting Pronouncements
We have reviewed all the recently issued, but
not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.
In June 2016, the FASB
issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU
2016-13”) which replaces the incurred loss impairment methodology in current generally accepted accounting principles U.S. GAAP
with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information
to inform credit loss estimates. The new guidance is effective for fiscal years beginning after December 15, 2022. The Company is evaluating
the effect, if any, the update will have on its financial statements when adopted in Fiscal 2023.
In December 2020, the FASB issued ASU No. 2020-12,
Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes (“ASU 2020-12”). ASU 2020-12, among other things,
(a) eliminates the exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations
and income (or a gain) from other items, (b) eliminates the exception to the general methodology for calculating income taxes in an interim
period when the year-to-date loss exceeds the anticipated loss for the year, (c) requires than an entity recognize a franchise tax (or
a similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based
tax, and (d) requires than an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation
for the interim period that includes the enactment date. For public companies, these amendments are effective for fiscal years, and interim
periods within those fiscal years, beginning after December 15, 2021. Early adoption is permitted but must involve the adoption of all
amendments contained in ASU 2020-12 concurrently. The Company has not adopted ASU 2020-12 and is evaluating the potential impact of adoption
on its financial statements.
Note 5 – AMOUNT DUE TO A RELATED PARTY
For the three months ended July 31, 2021, the
amount of $153,049 was forgiven by a related party of the Company.
Note 6 – COMMON STOCK
The Company has 75,000,000, $0.001 par value shares
of common stock authorized. There were 5,871,250 shares of common stock issued and outstanding as of July 31, 2021 and April 30, 2021.
Note 7 – COMMITMENTS AND CONTINGENCIES
As of July 31, 2021, the Company has no material
commitments or contingencies.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31, 2021
(UNAUDITED)
Note 8 – INTEREST AND PENALTIES
The Company includes interest and penalties arising
from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of July 31, 2021 and April
30, 2021, the Company had no accrued interest or penalties related to uncertain tax positions.
Note 9 – INCOME TAXES
The Company adopted the provisions of uncertain
tax positions as addressed in ASC 740-10-65-1. As a result of the implementation of ASC 740-10-65-1, the Company recognized no increase
in the liability for unrecognized tax benefits.
The Company has no tax position on July 31, 2021,
for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The
Company does not recognize interest accrued related to unrecognized tax benefits in interest expenses and penalties in operating expenses.
No such interest or penalties were recognized during the period presented. The Company had no accruals for interest and penalties on July
31, 2021. The Company’s utilization of any net operating loss carry forward may be unlikely as a result of its intended activities.
The valuation allowance on July 31, 2021 was
$20,328. The net change in valuation allowance during the three months ended July 31, 2021 was $29,939. In assessing the realization
of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred income tax assets
will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable
income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal
of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on
consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred
income tax asset balances to warrant the application of a full valuation allowance as of July 31, 2021 and 2020. All tax years since
inception remain open for examination only by taxing authorities of United States and State of Nevada.
The Company has a net operating loss carryforward
for tax purposes totaling $96,802 as of July 31, 2021, expiring in 2041. There is a limitation on the amount of taxable income that can
be offset by carryforwards after a change in control (generally greater than a 50% change in ownership). Temporary differences, which
give rise to a net deferred tax asset, are as follows:
Schedule
of deferred taxes
|
|
As of
July 31, 2021
(Unaudited)
|
|
|
As of
April 30, 2021
(Audited)
|
|
Non-current deferred tax assets:
|
|
|
|
|
|
|
|
|
Net operating loss carryforwards
|
|
$
|
(96,802
|
)
|
|
$
|
(239,365
|
)
|
|
|
|
|
|
|
|
|
|
Total deferred tax assets
|
|
|
(20,328
|
)
|
|
|
(50,267
|
)
|
Valuation allowance
|
|
|
20,328
|
|
|
|
50,267
|
|
Net deferred tax assets
|
|
$
|
–
|
|
|
$
|
–
|
|
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31, 2021
(UNAUDITED)
The actual tax benefit at the expected rate of
21% differs from the expected tax benefit for the three months ended July 31, 2021 as follows:
Schedule
of actual tax benefit
|
|
Three months ended
July 31, 2021
(Unaudited)
|
|
|
Three months ended
July 31, 2020
(Unaudited)
|
|
Computed "expected" tax benefit
|
|
$
|
(20,328
|
)
|
|
$
|
(50,267
|
)
|
Change in valuation allowance
|
|
|
20,328
|
|
|
|
50,267
|
|
Actual tax benefit
|
|
$
|
–
|
|
|
$
|
–
|
|
Note 10 – SUBSEQUENT EVENTS
In accordance with ASC Topic 855, “Subsequent
Events” the Company has analyzed its operations subsequent to July 31, 2021 to the date these financial statements were available
to be issued, August 20, 2021, and has determined that it does not have any material subsequent events to disclose in these financial
statements.