The information contained in this quarter report on Form 10-Q is intended to
update the information contained in our Form S-1 Amendment No.3, dated May 30,
2019, for the period ended June 30, 2019 and presumes that readers have access
to, and will have read, the "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and other information contained in such
Form S-1. The following discussion and analysis also should be read together
with our consolidated financial statements and the notes to the consolidated
financial statements included elsewhere in this Form 10-Q.
The following discussion contains certain statements that may be deemed
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements appear in a number of places in
this Report, including, without limitation, "Management's Discussion and
Analysis of Financial Condition and Results of Operations." These statements are
not guarantees of future performance and involve risks, uncertainties and
requirements that are difficult to predict or are beyond our control.
Forward-looking statements speak only as of the date of this quarterly report.
You should not put undue reliance on any forward-looking statements. We strongly
encourage investors to carefully read the factors described in our Form S-1
Amendment No.3, dated May 30, 2019, in the section entitled "Risk Factors" for a
description of certain risks that could, among other things, cause actual
results to differ from these forward-looking statements. We assume no
responsibility to update the forward-looking statements contained in this
transition report on Form 10-Q. The following should also be read in conjunction
with the unaudited Condensed Consolidated Financial Statements and notes thereto
that appear elsewhere in this report.
Company Overview
SEATech Ventures Corp., the US Company, operates through its wholly owned
subsidiary, SEATech Ventures Corp., a Labuan Company; which operates through its
wholly owned subsidiary, SEATech Ventures (HK) Limited, a Hong Kong Company; The
US, Labuan act solely for holding purposes whereas all current and future
operations in Hong Kong are planned to be carried out via SEATech Ventures (HK)
Limited, the Hong Kong Company. The purpose of the Hong Kong Company is to
function as the current regional hub, carrying out the majority of operations of
the Company.
All of the previous entities share the same exact business plan with the goal of
providing business mentoring services, nurturing and incubation services
relating to client businesses and corporate development advisory services to
entrepreneurs in the broader technology industry, but with a specific focus on
the information and communication technology industry. We will, at least
initially, primarily focus our efforts on nurturing ICT entrepreneurs in Asia.
Our advisory services will center on our "ICT Start-Up Mentorship Program",
which is designed to assist tech-based entrepreneurs in solving ICT industry
pain points caused by technical insufficiencies, inappropriate financial
modelling and weak strategic positioning within a competitive environment.
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Results of Operation
For the nine months ended September 30, 2020 and 2019
Revenues
For nine months ended September 30, 2020 and 2019, the Company has generated
revenue of $55,381 and $28,507. The revenue generated was the result of
corporate development advisory service rendered by the Company.
Cost of Revenue and Gross Margin
For the nine months ended September 30, 2020 and 2019, cost incurred arise in
providing corporate development advisory services are $50,000 and $18,720, and
the company generates a gross profit of $5,381 and $9,787 the for the nine
months ended September 30, 2020 and 2019.
Selling and marketing expenses
For the nine months ended September 30, 2020 and 2019, we had selling and
distribution expenses in the amount of $14,020 and $25,461, which was primarily
comprised of marketing expenses and expenses incurred for selling of services.
General and administrative expenses
For the nine months ended September 30, 2020 and 2019, we had general and
administrative expenses in the amount of $73,843 and $163,543 which was
primarily comprised of company renewal fee, employee salary, and employee
reimbursement.
Net Loss
For the nine months ended September 30, 2020 and 2019, the Company has incurred
a net loss of $78,791 and $179,195. The loss is mainly derived from the general
and administrative expenses.
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Liquidity and Capital Resources
As of September 30, 2020, we had cash and cash equivalents of $306,950. We had
positive operating cash flows due to minimal operating activity, we expect
increased levels of operating activities going forward will result in more
significant cash outflows.
We depend substantially on financing activities to provide us with the liquidity
and capital resources we need to meet our working capital requirements and to
make capital investments in connection with ongoing operations. For the nine
months ended September 30, 2020, we have met these requirements primarily from
previous sales of our common stock.
Cash Used In Operating Activities
For the nine months ended September 30, 2020 and 2019, net cash used in
operating activities was $376,060 and $169,195 respectively, which were the
result of our net loss attributable to selling and marketing costs, and general
and administration expenses.
Credit Facilities
We do not have any credit facilities or other access to bank credit.
Off-balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in our financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that are material to our
stockholders as of September 30, 2020.
Recent Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in
effect. These pronouncements did not have any material impact on the financial
statements unless otherwise disclosed, and the Company does not believe that
there are any other new accounting pronouncements that have been issued that
might have a material impact on its financial position or results of operations.
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