This section of this Form 10-Q includes a number of forward-looking statements
that reflect our current views with respect to future events and financial
performance. Forward-looking statements are often identified by words like
believe, expect, estimate, anticipate, intend, project and similar expressions,
or words which, by their nature, refer to future events. You should not place
undue certainty on these forward-looking statements. These forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from our predictions.
Results of Operations
For the three-month period ended November 30, 2019 and November 30, 2018 we had
no revenues. Expenses for the three-month period ended November 30, 2019 totaled
$345 resulting in a net loss of $345. The net loss for the three-month period
ended November 30, 2019 is a result of expenses of $345 comprised primarily of
transfer agent expenses of $297, and bank service charges of $48. Compared to
the expenses for the three-months ended November 30, 2018 totaled $13,702
resulting in a net loss of $13,702. The net loss for the three-month period
ended November 30, 2018 is a result of expenses of $13,702 comprised primarily
of consulting expenses of $13,403, transfer agent expenses of $297 and bank
services charges of $2. The decrease in expenses for between the three-month
periods November 30, 2019 and November 30, 2018 is due to the decrease in
consulting fees.
Capital Resources and Liquidity
We have generated no revenues to date and anticipate until we generate a more
rapid growth in revenues we will require additional financings in order to fully
implement our plan of operations. With the exception of cash advances from our
sole Officer and Director, cash received in our initial offering and our recent
private placement of $150,000 (of which $100,000 had been received), we have not
had any additional funding. We must raise additional cash to implement our
strategy and stay in business. Our president has verbally committed to continue
to fund our operations. However, this is not in writing and maybe rescinded at
any time.
As of November 30, 2019, we had $1,121 in cash, $20,000 in accounts receivable
and $46,249 due from a related party. As of August 31, 2019, we had $1,169 in
cash, 20,000 in accounts receivable and $46,249 due to a related party. Total
liabilities as of November 30, 2019, were $55,044 compared to $54,747 in total
liabilities at August 31, 2019. The funds available to the Company will not be
sufficient to fund the planned operations of the Company and maintain a
reporting status. As of November 30, 2019, the Company owed $46,249 (August 31,
2019; $46,249) to a related party. All amounts due to the related party are
unsecured, non-interest bearing and have not set terms of repayment.
Company Operations
KOKOS GROUP INC. (now known as China WuYii Mountain Ltd.) was incorporated in
the State of Nevada as a for-profit Company on July 26, 2016 and established a
fiscal year end of August 31. The Company is organized to bottle, market,
distribute and sell our own brand of coconut water, presently called "Koos
Coconut Water". On November 10, 2017 the Board of directors and the majority of
its shareholders of Kokos Group Inc., amended the Company's current Certificate
of Incorporation in conformity with the applicable laws of the State of Nevada
to change the name of the Company from Kokos Group Inc. to CHINA WUYI MOUNTAIN,
LTD. The Corporate action and the Amended Articles became effective on May 26,
2018, following compliance with notification of FINRA.
On October 19, 2017 Mr. Lei Wang became its Chief Executive Officer, Chief
Financial Officer and sole Director and Mr. Richard Rappaprt was appointed
Secretary. In addition Mr. Baterina and Messrs. Flemming H.H. Hansen and Arthur
T. Claravall submitted his resignations from all executive officer positions
with the Company, including Chief Executive Officer and President effective
October 19, 2017, and each submitted their resignation as a member of the Board.
On January 18, 2018, Richard Rappaport submitted his resignation as Secretary of
Kokos Group Inc. (the "Company"), effective immediately. On the same day, Ying
Zhang was appointed Secretary, effective immediately.
On February 25, 2017 the Company entered into a Purchase Agreement to supply
69,300 private label Tetra Prisma 330ml packs of organic coconut water. The
total purchase price is $55,410. The purchaser has made the initial
non-refundable payment of $2,500. Other items on payment schedule include; an
additional $2,500 non-refundable payment upon approval of private label artwork;
$35,000 upon final order by purchaser; and $15,410 due on delivery and
acceptance of product by purchaser. Product will be delivered to purchaser
within 90 days of the Company receiving payments as per above schedule. On
November 30, 2017 the client who entered into the Purchase Agreement has decided
not to proceed with the purchase order. The new management agreed to the
cancellation of the Agreement.
The Company has not yet implemented its business model. We must raise cash to
implement our strategy and stay in business. In the event we do not raise any
proceeds, the Company's existing cash will not be sufficient to fund the
expenses related to maintaining a reporting status and to implement its planned
business. Accordingly, the Company intends to implement a different business
plan.
13
Capital Stock
The Company's capitalization is 200,000,000 common shares with a par value of
$0.001 per share and 2,000,000 preferred shares with a par value of $0.001 per
share. Total shares issued as of November 30, 2018 are 85,600,000 common shares
and no preferred shares have been issued.
On April 20, 2017, the directors of the Company approved a special resolution to
undertake a forward split of the common stock of the Company on a basis of 80
new common shares for 1 old common share. All references in these financial
statements to number of common shares, price per share and weighted average
number of shares outstanding prior to the 80:1 forward split have been adjusted
to reflect the stock split on a retroactive basis, unless otherwise noted.
On May 2, 2018, the Company entered into a subscription agreement with a
China-based company, Grand Biotechnology Group Liaoning, (the authorized signor
for Grand Biotechnology is a 4.9% shareholder of the Company), for the issuance
of an aggregate of 20,000,000 shares of restricted common stock at $0.0075 per
share for an aggregate purchase price of U.S.$150,000. On May 2, 2018, the
Company issued 20,000,000 shares of restricted common stock. On May 15, 2018 the
Company had received $100,000. As of November 30, 2019, $50,00 unpaid stock
purchased amount are recorded as "Subscription recievable" under stockholders'
equity on the balance sheet.
As of November 30, 2019, the Company has not granted any stock options and has
not recorded any stock-based compensation.
As of November 30, 2019, the Company issued 0 shares of preferred stock and
85,600,000 common shares are issued and outstanding.
Off-balance sheet arrangements
Other than the situation described in the section titled Capital Recourses and
Liquidity, the company has no off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect or change on the company's
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that are material to investors. The
term "off-balance sheet arrangement" generally means any transaction, agreement
or other contractual arrangement to which an entity unconsolidated with the
company is a party, under which the company has (i) any obligation arising under
a guarantee contract, derivative instrument or variable interest; or (ii) a
retained or contingent interest in assets transferred to such entity or similar
arrangement that serves as credit, liquidity or market risk support for such
assets
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