ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Antilia Group, Corp.
We have audited the accompanying balance sheets of Antilia Group, Corp. as of January 31, 2018 and 2017 and the related statements of operations, changes in stockholders deficit, cash flows, and the related notes (collectively referred to as financial statements) for the period ended January 31, 2018 and for the period from September 19, 2016 (inception) through January 31, 2017. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of January 31, 2018 and 2017 and the results of its operations and its cash flows for the period ended January 31, 2018 and for the period from September 19, 2016 (inception) through January 31, 2017, in conformity with accounting principles generally accepted in the United States of America.
These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on the Companys financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provide a reasonable basis for our opinion.
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note #1 to the financial statements, although the Company has limited operations it has yet to attain profitability. This raises substantial doubt about its ability to continue as a going concern. Managements plan in regard to these matters is also described in Note #1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED JANUARY 31, 2018
NOTE 1 ORGANIZATION AND BASIS OF PRESENTATION
Organization and Description of Business
ANTILIA GROUP, CORP. (the Company) was incorporated under the laws of the State of Nevada, U.S. on September 19, 2016. We are a development stage company that plans to engage in the business of selling used automobiles in the USA and Dominican Republic. The Companys physical address is Calle Duarte, No. 6 Sosua, Dominican Republic.
GOING CONCERN
The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred a loss since Inception (September 19, 2016) resulting in an accumulated deficit of $36,713 as of January 31, 2018, and further losses are anticipated in the development of its business. Accordingly, there is substantial doubt about the Companys ability to continue as a going concern.
The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and loans from directors and/or private placement of common stock.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying condensed financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at January 31, 2018 and for the related periods presented.
Basis of Presentation
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The Company has adopted a January 31 fiscal year end.
Basic Income (Loss) Per Share
The Company computes loss per share in accordance with ASC-260, Earnings per Share which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. 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.
Cash and Cash Equivalents
The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.
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The Company's bank accounts are deposited in insured institutions. The funds are insured up to $250,000. At January 31, 2018, the Company's bank deposits did not exceed the insured amounts.
Dividends
The Company has not adopted any policy regarding payment of dividends. No dividends have been paid during any of the periods shown.
Income Taxes
The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
Advertising Costs
The Companys policy regarding advertising is to expense advertising when incurred. The Company incurred advertising expense of $0 during as at January 31, 2018.
Impairment of Long-Lived Assets
The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell.
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.
Property and Equipment Depreciation Policy
Property and equipment are stated at cost and depreciated on the straight-line method over the estimated life of the asset, which is 3 years.
Stock-Based Compensation
As of January 31, 2018, the Company has not issued any stock-based payments to its employees. Stock-based compensation is accounted for at fair value in accordance with SFAS No. 123 and 123(R) (ASC 718). To date, the Company has not adopted a stock option plan and has not granted any stock options.
Revenue Recognition
The Company will recognize revenue when products are fully delivered or services have been provided and collection is reasonably assured.
Recent Accounting Pronouncements
The Company has reviewed all the recent accounting pronouncements issued to date of the issuance of these financial statements, and does not believe any of these pronouncements will have a material impact on the company.
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NOTE 3 CAPTIAL STOCK
The Company has 75,000,000 shares of common stock authorized with a par value of $0.001 per share.
On January 27, 2017, the Company issued 2,985,000 shares of its common stock at $0.001 per share for total proceeds of $2,985. For the year ended January 31, 2018, the Company issued 1,305,000 shares of its common stock at $0.02 per share for total proceeds of $26,100.
As of January 31, 2018, the Company had 4,290,000 shares issued and outstanding.
NOTE 4 RELATED PARTY TRANSACTIONS
In support of the Companys efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by officers, directors, or shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.
Since September 19, 2016 (Inception) through January 31, 2018, the Companys sole officer and director loaned the Company $13,667 to pay for incorporation costs and operating expenses. As of January 31, 2018, the amount outstanding was $13,667. The loan is non-interest bearing, due upon demand and unsecured.
NOTE 5 INVENTORY
As of January 31, 2018, the Companys inventory consists of one car that we purchased on July 21, 2017 for $4,320.
NOTE 6 INCOME TAX
As of January 31, 2018, the Company had net operating loss carry forwards of $36,713 that may be available to reduce future years taxable income through 2038. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.
NOTE 7 - SUBSEQUENT EVENTS
The Company has evaluated subsequent events from January 31, 2018 to April 13, 2018 the date the financial statements were available to be issued and has determined that there are no items to disclose.
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NOTE 8 RESTATEMENT
The October 31, 2017, July 31, 2017 and April 30, 2017 financial statements are being restated to revise the accounting for inventory, deferred revenue, revenues and cost of goods sold.
The following table summarizes changes made to the July 31, 2017 Balance Sheet.
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JULY 31, 2017
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As reported
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Adjustment
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As restated
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Current Liabilities
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Loan from related parties
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$ 5,017
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$ -
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$ 5,017
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Deferred revenue
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6,300
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(6,300)
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-
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Customer deposit
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-
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6,300
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6,300
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Accounts payable
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880
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-
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880
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Total current liabilities
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12,197
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-
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12,197
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Total Liabilities
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12,197
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-
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12,197
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The following table summarizes changes made to the October 31, 2017, July 31, 2017 and April 30, 2017 Statements of Operations.
For the Nine Months ended October 31, 2017:
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As reported
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Adjustment
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As restated
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Revenue
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$ 21,300
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$ (19,400)
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$1,900
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Cost of goods sold
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19,400
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(19,400)
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-
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Gross profit
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1,900
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-
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1,900
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For the Six months ended July 31, 2017:
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As reported
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Adjustment
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As restated
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Revenue
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$ 15,000
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$ (13,600)
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$1,400
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Cost of goods sold
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13,600
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(13,600)
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-
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Gross profit
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1,400
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-
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1,400
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Three months ended April 30, 2017:
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As reported
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Adjustment
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As restated
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Revenue
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$ 15,000
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$ (13,600)
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$1,400
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Cost of goods sold
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13,600
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(13,600)
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-
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Gross profit
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1,400
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-
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1,400
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