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,
2020
(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 –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, 2020 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, 2020 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, 2020.
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.
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 incurred net loss of $11,247 for the three months ended July 31, 2020 and an accumulated deficit
of $198,518.
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.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL
STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31,
2020
(UNAUDITED)
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.
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, 2020 and 2019.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31,
2020
(UNAUDITED)
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,
2020 and 2019.
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, 2020, 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, 2020 and April 30, 2020, 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.
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.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31,
2020
(UNAUDITED)
In August 2018,
the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-13 Fair Value Measurement (Topic 820) (“ASU
2018-13”) which modifies the disclosure requirement on fair value measurements. The new guidance is effective for fiscal
years beginning after December 15, 2019. The Company is evaluating the effect, if any, the update will have on its financial statements
when adopted in Fiscal 2021.
In January 2017,
the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill
Impairment (“ASU 2017-04”), which simplifies how an entity is required to test goodwill for impairment by
eliminating Step 2 from the goodwill impairment test. Under ASU 2017-04 goodwill impairment will be tested by comparing
the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying
amount exceeds the reporting unit’s fair value. The new guidance must be applied on a prospective basis and is effective
for periods beginning after December 15, 2019, with early adoption permitted. The Company does not plan to adopt ASU 2017-04 early
and is in the process of determining the effect that ASU 2017-04 may have; however, the Company expects the new standard to have
an immaterial effect on its financial statements when adopted in Fiscal 2021.
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 2019, the FASB issued ASU
No. 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12,
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, 2020. Early adoption is permitted but must involve the adoption of all amendments contained in ASU 2019-12
concurrently. The Company has not adopted ASU 2019-12 and is evaluating the potential impact of adoption on its financial statements.
Note 5 – AMOUNT DUE TO A RELATED
PARTY
Amount due to a related party represents
temporary advance by the director of the Company. The amount is unsecured, interest-free and has no fixed terms of repayment.
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, 2020 and April 30, 2020.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31,
2020
(UNAUDITED)
Note 7 – COMMITMENTS AND CONTINGENCIES
As of July 31, 2020, the Company has no
material commitments or contingencies.
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,
2020 and April 30, 2020, 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, 2020, 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, 2020. 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, 2020
was $41,689. The net change in valuation allowance during the three months ended July 31, 2020 was $2,362. 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, 2020 and 2019. All tax years
since inception remain open for examination only by taxing authorities of United States and State of Nevada.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL
STATEMENTS
FOR THE THREE
MONTHS ENDED JULY 31, 2020
(UNAUDITED)
The Company has a net operating loss carryforward
for tax purposes totaling $198,518 as of July 31, 2020, expiring in 2040. 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:
|
|
As of
July 31, 2020
(Unaudited)
|
|
|
As of
April 30, 2020
(Audited)
|
|
Non-current deferred tax assets:
|
|
|
|
|
|
|
|
|
Net operating loss carryforward
|
|
$
|
(198,518
|
)
|
|
$
|
(187,271
|
)
|
|
|
|
|
|
|
|
|
|
Total deferred tax assets
|
|
|
(41,689
|
)
|
|
|
(39,327
|
)
|
Valuation allowance
|
|
|
41,689
|
|
|
|
39,327
|
|
Net deferred tax assets
|
|
$
|
–
|
|
|
$
|
–
|
|
The actual tax benefit at the expected
rate of 21% differs from the expected tax benefit for the three months ended July 31, 2020 as follows:
|
|
Three months ended
July 31, 2020
(Unaudited)
|
|
|
Three months ended
July 31, 2019
(Unaudited)
|
|
Computed "expected" tax benefit
|
|
$
|
(41,689
|
)
|
|
$
|
(28,312
|
)
|
Change in valuation allowance
|
|
|
41,689
|
|
|
|
28,312
|
|
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, 2020 to the date these financial statements were
available to be issued, September 18, 2020, and has determined that it does not have any material subsequent events to disclose
in these financial statements.