NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
NOVEMBER 30, 2018
NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and Article 10 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of November 30, 2018 and the results of operations and cash flows for the periods presented. The results of operations for the three months ended November 30, 2018 are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited financial statements should be read in conjunction with the financial statements for the year ended August 31, 2018, and related notes thereto included in the elsewhere in this filing.
Organization and Business Description
Fellazo Corp. (“the Company”, “we”, “us” or “our”) was incorporated in the State of Nevada on May 28, 2014.
During the quarter ending November 30, 2018 the Company had commenced its transformation process into an IT based company specialized in Mobile Application Developments with worldwide clientele and a portfolio investment company in primary industries such as healthcare, energy, development and capital market.
Our office is located at 8
th
Floor, Wisma Huazong, Lot 15285, 0.7km Lebuhraya Sungei Besi, 43300 Seri Kembangan, Selangor Darul Ehsan, Malaysia.
NOTE 2 – GOING CONCERN
The Company’s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business. As at November 30, 2018, the Company has a working capital deficit of $584,258 and has not yet established a stabilized source of revenue sufficient to cover operating cost for the foreseeable future. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.
In 2019, the Company is planning to commence it operations with heavy emphasis into healthcare - primarily bird-nest based health supplement and bird-nest related health produces which include manufacturing and retail (retail chain and online). With our expertise in online applications platform, we would be developing an online network platform to market and sell our produces and also a system to source and purchase raw materials we required.
Prime market for our produces at this stage would be East and South East Asia with focus into China’s upcoming consumer market.
We will also be sourcing funds from potential investors to finance purchases of raw materials needed to support our operations and surplus for potential buyers.
NOTE 3 – RELATED PARTY TRANSACTIONS
Our Management Agent, Swipypay Berhad (a company established in Malaysia) is 70% owned by our Director – Mr Yap Kit Chuan. Total outstanding amount due to our Management Agent was $578,888 and $522,919 as at November 30, 2018 and August 31, 2018 respectively.
The additional amount of $55,969 incurred in this quarter consisted of the followings;
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Description
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Coverage of Expense
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Paid/Due To
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Amount($)
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1.
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Management Fees
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September 2018 to November 2018
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Swipypay Berhad
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15,000
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2.
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Payroll Expenses
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September 2018 to November 2018
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Swipypay Berhad
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23,226
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3.
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Shares Management Fees
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Retainer - June 2018 to August 2018
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Globex Transfer, LLC
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300
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4.
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Audit Fees
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Audit Review Fee – Q3 ending May 2018
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Malone-Bailey LLP
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3.000
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5.
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Audit Fees
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Audit – year ending August 31, 2018
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Malone-Bailey LLP
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8.000
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6.
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Audit Fees
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Tax Filing - year ending August 31, 2018
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Malone-Bailey LLP
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3,250
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7.
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Regulatory Filings
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Filing fees - November 2018 - January, 2019
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PubCo Reporting Solutions, Inc
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1,250
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8.
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Legal Fees
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Advance Legal Fees
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Parsons/Burnett/Bjordahl/Hume, LLP
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2,000
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9.
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Bank Charges
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Swipypay Berhad
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297
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10.
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Gain on Exchange
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(354
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)
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Total
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55,969
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NOTE 4 – SUBSEQUENT EVENTS
The Board of Director had agreed in principle for the Company on December 1, 2018 to acquire 49% shareholdings of Fellazo Berhad, a shell public limited company established in Malaysia. Fellazo Berhad is 80% owned by our President, CEO, CFO, Treasurer, Secretary and Chairman of the Board of Directors of the Company Mr. Yap Kit Chuan since April 17, 2018.
The acquisition will be based on exchange of shares between the Company and Mr. Yap Kit Chuan; once confirmed is expected to be complete in January 2019.