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 SIX MONTHS ENDED OCTOBER 31, 2021
(UNAUDITED)
Note 1 – BASIS OF PRESENTATION
The accompanying unaudited condensed 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 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 October 31,
2021 are not necessarily indicative of the results to be expected for the entire fiscal year ending April 30, 2022 or for any future period.
These unaudited condensed 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.
Starting from July 30, 2021, the Company
commenced its operation in the rendering of business consulting service to domestic and international customers. On July 30, 2021, the
Company entered into two consulting agreements with non-affiliates to provide business consulting services. Under the consulting agreements,
the Company will receive consulting fees of $5,000 and $10,000 per month, respectively. The term of the consulting agreements is for an
initial three month period. Unless terminated in writing prior to the end of the period, the consulting agreements are renewable for successive
three month periods.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2021
(UNAUDITED)
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 $17,098 and an accumulated deficit of $81,793 at October 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.
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.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED OCTOBER 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 six months
ended October 31, 2021 and 2020.
Revenue Recognition
The Company adopted Accounting Standards Update
("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) using the full retrospective
transition method. The Company's adoption of ASU 2014-09 did not have a material impact on the amount and timing of revenue recognized
in its condensed financial statements.
Under ASU 2014-09, the Company recognizes revenue
when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects
to be entitled to in exchange for those goods or services.
The Company applies the following five steps in
order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:
•
|
identify the contract with a customer;
|
•
|
identify the performance obligations in the contract;
|
•
|
determine the transaction price;
|
•
|
allocate the transaction price to performance obligations in the contract; and
|
•
|
recognize revenue as the performance obligation is satisfied.
|
Consulting income is recognized, when the service
is rendered and billed to the customer on a monthly basis, pursuant to the fulfillment of service terms in the agreement.
Net Income (Loss) Per Share
The Company computes net profit per share in accordance
with FASB ASC 260 “Earnings per Share”. Basic income (loss) per share is computed by dividing net income (loss) available
to common shareholders by the weighted average number of outstanding common shares during the period. Diluted profit per share gives effect
to all dilutive potential common shares outstanding during the period. Dilutive profit per share excludes all potential common shares
if their effect is anti-dilutive.
As of October 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 October 31, 2021
and April 30, 2021, there were no differences between our comprehensive income (loss) and net income (loss).
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2021
(UNAUDITED)
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.
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
In September 2016, the FASB issued ASU No. 2016-13,
“Financial Instruments – Credit Losses (Topic 326)” (“ASU 2016-13”), which requires the immediate recognition
of management’s estimates of current and expected credit losses. In November 2018, the FASB issued ASU 2018-19, which makes certain
improvements to Topic 326. In April and May 2019, the FASB issued ASUs 2019-04 and 2019-05, respectively, which adds codification improvements
and transition relief for Topic 326. In November 2019, the FASB issued ASU 2019-10, which delays the effective date of Topic 326 for Smaller
Reporting Companies to interim and annual periods beginning after December 15, 2022, with early adoption permitted. In November 2019,
the FASB issued ASU 2019-11, which makes improvements to certain areas of Topic 326. In February 2020, the FASB issued ASU 2020-02, which
adds an SEC paragraph, pursuant to the issuance of SEC Staff Accounting Bulletin No. 119, to Topic 326. Topic 326 is effective for the
Company for fiscal years and interim reporting periods within those years beginning after December 15, 2022. Early adoption is permitted
for interim and annual periods beginning December 15, 2019. The Company is currently evaluating the potential impact of adopting this
guidance on the condensed financial statements.
All new accounting pronouncements issued but not
yet effective are not expected to have a material impact on our results of operations, cash flows or financial position with the exception
of the updated previously disclosed above, there have been no new accounting pronouncements not yet effective that have significance to
the condensed financial statements.
Note 5 – AMOUNT DUE TO A RELATED PARTY
For the six months ended October 31, 2021, the
amount of $153,049 was forgiven by a related party of the Company.
As of October 31, 2021, the amount due to a related
party represented temporary advances made by the Company’s director, Mr. Barry Sytner, which was unsecured, interest-free with no
fixed repayment term. Imputed interest on this amount is considered insignificant.
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 October 31, 2021 and April 30, 2021.
Note 7 – COMMITMENTS AND CONTINGENCIES
As of October 31, 2021, the Company has no material
commitments or contingencies.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED OCTOBER 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 October 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 October 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 October
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 October 31, 2021 was
$17,177. The net change in valuation allowance during the six months ended October 31, 2021 was $33,090. 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 October 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 $81,793 as of October 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
October 31, 2021
(Unaudited)
|
|
|
As of
April 30, 2021
(Audited)
|
|
Non-current deferred tax assets:
|
|
|
|
|
|
|
|
|
Net operating loss carryforwards
|
|
$
|
(81,793
|
)
|
|
$
|
(239,365
|
)
|
|
|
|
|
|
|
|
|
|
Total deferred tax assets
|
|
|
(17,177
|
)
|
|
|
(50,267
|
)
|
Valuation allowance
|
|
|
17,177
|
|
|
|
50,267
|
|
Net deferred tax assets
|
|
$
|
–
|
|
|
$
|
–
|
|
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2021
(UNAUDITED)
The actual tax benefit at the expected rate of
21% differs from the expected tax benefit for the six months ended October 31, 2021 and 2020, as follows:
Schedule of actual tax benefit
|
|
|
|
|
|
|
|
|
|
|
Six months ended
October 31, 2021
(Unaudited)
|
|
|
Six months ended
October 31, 2020
(Unaudited)
|
|
Computed "expected" tax benefit
|
|
$
|
(17,177
|
)
|
|
$
|
(44,290
|
)
|
Change in valuation allowance
|
|
|
17,177
|
|
|
|
44,290
|
|
Actual tax benefit
|
|
$
|
–
|
|
|
$
|
–
|
|
Note 10 – SUBSEQUENT EVENTS
In
accordance with ASC Topic 855, “Subsequent Events” the Company has analyzed its operations subsequent to October 31,
2021 to the date these financial statements were available to be issued, November 10, 2021,
and has determined that it does not have any material subsequent events to disclose in these financial statements.