The following discussion of our results of operations and cash flows for the
years ended March 31, 2022 and 2021, and financial conditions as of March 31,
2022, and 2021 should be read in conjunction with our consolidated financial
statements and the related notes included elsewhere in this Form 10-K.
Overview
Landbay Inc is a New York corporation formed on January 28, 2016. Our current
principle executive office is located at 36-25 Main Street, Flushing, New York,
11354. Tel: 917-232-5799.
On July 24, 2019, Larison Inc, the principal stockholder and 100% controlled by
the prior President of the Company ("Seller"), entered into a Stock Purchase
Agreement (the "Agreement") with Northern Ifurniture Inc (the "Buyer"). Pursuant
to the Agreement, Seller agreed to sell to the Buyer and the Buyer agreed to
purchase from Seller a total of 9,222,350 shares of common stock of the Company
Purchased Shares, which represented approximately 96% of the Company's issued
and outstanding shares of common stock. As a result, the transaction led to a
change of the control and the management team of the Company.
Prior to the change of the management team, the Company was engaging in holding
or trading securities in the US market, as well as to trade and hold whisky in
the UK market. The Company has changed its focus to operate furniture retail
business and furniture design business in the New York area.
The Company also continues to look for other opportunities which could
potentially increase the profits of the Company in the year of 2022.
Results of Operation for the years ended March 31, 2022 and 2021
During the year ended March 31, 2022, the Company generated sales revenue in the
amount of $9,572. During the year ended March 31, 2021, the Company generated
revenue in the amount of $3,868 for sales of furniture. During the years ended
March 31, 2022 and 2021, the Company had loss from commodity trading in the
amount of $nil and $1,090, respectively. The increase in revenue was mainly due
to the increased furniture sales for the year ended March 31, 2022 as compared
with the year ended March 31, 2021. As of March 31, 2022 and 2021, the Company
wrote down inventory in the amount of $nil and $138,429, respectively, based on
the Company's best estimate resulted from the impact of COIVD-19 pandemic.
During the years ended March 31, 2022 and 2021, the Company operating expenses
were at $49,501 and $74,121, respectively. The decrease of operating expenses
was due to the decrease in professional fees and depreciation expenses. For the
years ended March 31, 2022 and 2021, our net loss was $44,596 and $206,877,
respectively. The decrease in net loss was mainly contributed by the decreased
operating expenses for the year ended March 31, 2022 with no one-time inventory
written down which was incurred during the year ended March 31, 2021.
8
Equity and Capital Resources
As of March 31, 2022 and 2021, we had an accumulated deficit of $402,247 and
$357,651, respectively. As of March 31, 2022, we had cash of $26,140 and working
capital deficiency of $46,588. As of March 31, 2021, we had cash of $6,631 and a
working capital deficiency of $2,976. The increase in the working capital
deficiency was primarily due to the cash paid for operating expense for the year
ended March 31, 2022.
Going Concern Assessment
The Company demonstrates adverse conditions that raise substantial doubt about
the Company's ability to continue as a going concern. These adverse conditions
are negative financial trends, specifically cash outflow from operating
activities, operating losses, accumulated deficit and other adverse key
financial ratios.
Management's plan to alleviate the substantial doubt about the Company's ability
to continue as a going concern include attempting to improve its business
profitability, its ability to generate sufficient cash flow from its operations
to meet its operating needs on a timely basis, obtain additional working capital
funds from the majority shareholder and the President of the Company to
eliminate inefficiencies in order to meet its anticipated cash requirements.
However, there can be no assurance that these plans and arrangements will be
sufficient to fund the Company's ongoing capital expenditures and other
requirements.
The financial statements do not include any adjustments relating to the
recoverability and classification of recorded assets, or the amounts and
classification of liabilities that might be necessary in the event that the
Company cannot continue as a going concern.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to
have a current or future effect on our financial condition, changes in financial
condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources that is material to stockholders.
Critical Accounting Policies
The discussion and analysis of our financial condition and results of operations
are based upon our financial statements, which have been prepared in accordance
with the accounting principles generally accepted in the United States of
America. Preparing financial statements requires management to make estimates
and assumptions that affect the reported amounts of assets, liabilities,
revenue, and expenses. These estimates and assumptions are affected by
management's application of accounting policies. We believe that understanding
the basis and nature of the estimates and assumptions included in Note 2 of our
financial statements is critical to an understanding of our financial
statements.
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