NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 – NATURE OF OPERATIONS AND
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company
Jasmin
Corp. (“the Company”, “we”, “us” or “our”) was incorporated in the State of Nevada
on October 7, 2014. Jasmin was an e-commerce early stage company that intended to establish itself as a designing industry of home
and space decorations made from cork materials
in France, Europe.
The new management of the Company is abandoning its existing business and is in the process of evaluating other business opportunities.
On September
8, 2017, Jean-Paul Chavanz, the previous sole officer and director and majority shareholder of Jasmin Corp., entered into a stock
purchase agreement for the sale of an aggregate of 10,000,000 shares of Common Stock of the Company, representing 79% of the issued
and outstanding shares of common stock of the Company. Pursuant to this agreement, the Company decided to discontinue its business
plan of producing and distributing Cork products and explore new opportunities. As part of the transition all the Company’s
assets were retained by the former majority shareholder and the liabilities were assumed by Mr. Chavanz as well. As a result of
this strategic shift all historical results of the Company have been classified as discontinued operations in accordance with ASC
105-20.
On September 11, 2017
Xu Dan was appointed as Chief Executive Officer, Chief Financial Officer and sole Director and sole Director and Mr. Richard Rappaport
was appointed Secretary. In addition, Mr. Jean-Paul Chavanaz submitted his resignations from all executive officer positions with
the Company, including Chief Executive Officer and President effective September 11, 2017, and submitted his resignation as a member
of the Board.
On September
27, 2018, Xu Dan submitted her resignation from all executive officer positions with the Registrant, including Chief Executive
Officer, Chief Financial Officer, and President, effective immediately. In addition, Xu Dan submitted her resignation as
a member of the Board, which resignation was effective immediately. In addition, on September 27, 2018 Richard Rappaport
submitted his resignation as Secretary of the Registrant, which resignation was effective immediately. On September _27, 2018,
Zhanfang Wang was appointed as Chief Executive Officer, Secretary, Chief Financial Officer, and sole Director and Chairman, each
effective immediately.
On September
27, 2018 the Board of Directors and shareholders of Jasmin Corp. (the "Registrant) approved an amendment to the Registrant's
Articles of Incorporation increasing the number of authorized shares of Common Stock from 75,000,000 to 200,000,000 and effecting
a five-for-one forward split of the Registrant's outstanding shares of common stock. The forward split will be effective as of
the close of business on the date of filing the amendment with the Nevada Secretary of State. In addition, the Company is requesting
a name change from Jasmin Corp. to China King Spirits Group Ltd. The Company is pursuing the name change in order more accurately
reflect the current management and distant itself from its previous operations.
JASMIN CORP.
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 – NATURE OF OPERATIONS AND
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Basis of
Presentation
The accompanying
financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America.
The Company’s yearend is June 30.
Use of Estimates and Assumptions
Preparation of the financial statements in
conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the period. Accordingly, actual results could differ from those estimates.
Cash and Cash Equivalents
For purposes of the statement of cash flows,
the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.
Earnings (Loss) per Common Share
The basic earnings (loss) per common share
is calculated by dividing the Company’s net income (loss) available to common shareholders by the weighted average number
of common shares during the period. The diluted earnings (loss) per share is calculated by dividing the Company’s net income
(loss) available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted
weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt
or equity. Diluted earnings (loss) per share are the same as basic earnings (loss) per share due to the lack of dilutive items
in the Company. As of June 30, 2018, and 2017, there were no common stock equivalents outstanding.
Income Taxes
The Company follows the liability method of
accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax balances and tax loss carry-forwards. Deferred tax assets and liabilities are measured using enacted or substantially enacted
tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled.
The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes
the date of enactment or substantive enactment.
Recent Accounting Pronouncementsxc
The Company does not expect the adoption of
any recent accounting pronouncements to have a material impact on its financial statements.
JASMIN CORP.
NOTES TO THE FINANCIAL STATEMENTS
NOTE 2 – GOING CONCERN
To date the Company has generated limited revenues
from its business operations and has incurred operating losses of $25,126 since inception. As at June 30, 2018, the Company has
a working capital deficit of $12,840. The Company requires additional funding to meet its ongoing obligations and to fund anticipated
operating losses. The ability of the Company to continue as a going concern is dependent on raising capital to fund its initial
business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company’s
ability to continue as a going concern. The Company intends to continue to fund its business by way of private placements and advances
from related parties as may be required. These financial statements do not include any adjustments relating to the recoverability
and classification of recorded asset amounts or amounts and classification of liabilities that might result from this uncertainty.
NOTE 3 – DISCOUNTINUED OPERATIONS
On September
8, 2017, Jean-Paul Chavanz, the previous sole officer and director and majority shareholder of Jasmin Corp., entered into a stock
purchase agreement for the sale of an aggregate of 10,000,000 shares of Common Stock of the Company, representing 79% of the issued
and outstanding shares of common stock of the Company. Pursuant to this agreement, the Company decided to discontinue its business
plan of producing and distributing Cork products and explore new opportunities. As part of the transition all the Company’s
assets were retained by the former majority shareholder and the liabilities were assumed by Mr. Chavanz as well. As a result of
this strategic shift all historical results of the Company have been classified as discontinued operations in accordance with ASC
205-20. The total loss on transition of assets and liabilities during the year ended June 30, 2018 was $16,532 of which $5,906
was recorded as general and administrative expenses and $10,626 was recorded as a reduction to additional paid in capital
Results
of discontinued operations for the years ended June 30, 2018 and 2017 are as follows:
|
|
Year ended
June 30,
2018
|
|
Year
ended
June 30,
2017
|
|
|
|
|
|
Revenues
|
|
$
|
-
|
|
|
$
|
27,335
|
|
Cost of Goods Sold
|
|
|
-
|
|
|
|
3,375
|
|
Gross Profit
|
|
|
-
|
|
|
|
23,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and Administrative Expenses
|
|
|
5,906
|
|
|
|
30,265
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes
|
|
|
(5,906
|
)
|
|
|
(30,265
|
)
|
|
|
|
|
|
|
|
|
|
Income tax expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM DISCONTINUED OPERATIONS
|
|
$
|
(5,906
|
)
|
|
$
|
(6,305
|
)
|
|
|
|
|
|
|
|
|
|
JASMIN CORP.
NOTES TO THE FINANCIAL STATEMENTS
NOTE 3 – DISCOUNTINUED OPERATIONS
(continued)
Cash Flow from discontinued operations for the years ended June 30, 2018 and 2017 is as follows;
|
|
Year ended
June 30,
2018
|
|
Year ended
June 30,
2017
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net loss from operations
|
|
$
|
(5,906
|
)
|
|
$
|
(6,305
|
)
|
Adjustments to reconcile net loss to net cash (used in) operating activities:
|
|
|
|
|
|
|
|
|
Loss on discontinued operations
|
|
|
5,906
|
|
|
|
-
|
|
Depreciation expenses
|
|
|
-
|
|
|
|
936
|
|
CHANGES IN OPERATING ASSETS AND LIABILITIES
|
|
|
|
|
|
|
|
|
Decrease in prepaid expenses
|
|
|
-
|
|
|
|
(5,380
|
)
|
Increase in inventory
|
|
|
-
|
|
|
|
(4,771
|
)
|
Accounts payable
|
|
|
-
|
|
|
|
300
|
|
NET CASH (USED IN) PROVIDED BY DISCONTINUED OPERATING ACTIVITIES
|
|
|
-
|
|
|
|
(15,220
|
)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Equipment
|
|
|
-
|
|
|
|
(10,486
|
)
|
NET CASH (USED IN) PROVIDED BY DISCONTINUED INVESTING ACTIVITIES
|
|
|
-
|
|
|
|
(10,486
|
)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from sale of common stock
|
|
|
-
|
|
|
|
20,912
|
|
Loan – related party
|
|
|
(1,951
|
)
|
|
|
3,000
|
|
NET CASH (USED IN) PROVIDED BY DISCONTINUED FINANCING ACTIVITIES
|
|
|
(1,951
|
|
|
|
23,912
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH FROM DISCONTINUED OPERATIONS
|
|
$
|
(1,951
|
)
|
|
$
|
(1,794
|
)
|
NOTE 4 –
EQUITY
On April 18, 2016,
the Company issued 10,000,000 shares of common stock to a director for cash proceeds of $2,000 at $0.0002 per share.
During January 2017
the Company issued 82,500 shares of common stock for cash proceeds of $643 at $0.0078 per share.
JASMIN CORP.
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4 –
EQUITY (continued)
During February 2017
the Company issued 555,750 shares of common stock for cash proceeds of $4,341 at $0.0078 per share.
During March 2017
the Company issued 1,450,000 shares of common stock for cash proceeds of $11,543 at $0.0079 per share.
During April 2017
the Company issued 556,250 shares of common stock for cash proceeds of $4,385 at $0.0078 per share.
Subsequent
to the year ending June 30, 2018 the Board of Directors and shareholders of Jasmin Corp. (the "Company”) on September
27, 2018 approved an amendment to the Company’s Articles of Incorporation increasing the number of authorized shares of Common
Stock from 75,000,000 to 200,000,000 and effecting a five-for-one forward split of the Company's outstanding shares of common stock.
The Company has 200,000,000 common shares authorized
with a par value of $0.001 per share. No preferred shares have been authorized or issued.
There were 12,644,500
(pre-split 2,528,900) shares of common stock issued and outstanding as of June 30, 2018 and June 30, 2017 respectively.
All references in these financial statements
to number of common shares, price per share and weighted average number of shares outstanding prior to the 5:1 forward split have
been adjusted to reflect the stock split on a retroactive basis unless otherwise noted.
NOTE 5 –
RELATED PARTIES
On February 28, 2018 and on March 9, 2018 the
Company received a total of $19,000 in shareholder loans from WP Acquisition (currently known as Century Acquisition LLC), a Company
controlled by a shareholder. The amounts due to related parties are unsecured and non- interest-bearing with no set terms of repayment.
NOTE 6 – INCOME TAXES
The significant
components of deferred income tax assets at June 30, 2018, and 2017 are as follows:
|
|
June 30,
2018
|
|
June 30,
2017
|
|
|
|
|
|
Net operating loss carry-forward
|
|
$
|
(5,276
|
)
|
|
$
|
(1,340
|
)
|
Less: valuation allowance
|
|
|
5,276
|
|
|
|
1,340
|
|
|
|
|
|
|
|
|
|
|
Net deferred income tax asset
|
|
$
|
-
|
|
|
$
|
-
|
|
JASMIN CORP.
NOTES TO THE FINANCIAL STATEMENTS
NOTE 6 – INCOME TAXES (continued)
The amount taken into income as deferred
income tax assets must reflect that portion of the income tax loss carry forwards that is more likely-than-not to be realized
from future operations. The Company has chosen to provide a full valuation allowance against all available income tax loss
carry forwards. The Company has recognized a valuation allowance for the deferred income tax asset since the Company cannot
be assured that it is more likely than not that such benefit will be utilized in future years. The valuation allowance is
reviewed annually. When circumstances change, and which cause a change in management's judgment about the realizability of
deferred income tax assets, the impact of the change on the valuation allowance is generally reflected in current income.
On December 22, 2017, new federal tax reform
legislation was enacted in the United States (the “2017 Tax Act”), resulting in significant changes from previous tax
law. The 2017 Tax Act reduces the federal corporate income tax rate to 21% from 35% effective July 1, 2018 for the Company. The
rate change, along with certain immaterial changes in tax basis resulting from the 2017 Tax Act, resulted in a reduction of the
Company’s deferred tax assets of $6,834 and a corresponding reduction in the valuation allowance.
As of June 30, 2018, and 2017, the Company
has no unrecognized income tax benefits. The Company’s policy for classifying interest and penalties associated with unrecognized
income tax benefits is to include such items as tax expense. No interest or penalties have been recorded during the year ended
June 30, 2018 and June 30, 2017 and no interest or penalties have been accrued as of June 30, 2018 and 2017. As of June 30, 2018,
and 2017, the Company did not have any amounts recorded pertaining to uncertain tax positions.
A reconciliation of the provision for income
taxes at the United States federal statutory rate for the years ended June 30, 2018 and 2017 is as follows:
|
|
June 30,
2018
|
|
June 30,
2017
|
|
|
|
|
|
Net Operating Loss
|
|
$
|
(18,746
|
)
|
|
$
|
(6,3005
|
)
|
Income tax rate
|
|
|
21
|
%
|
|
|
21
|
%
|
Income tax benefit at statutory rate
|
|
|
(3,937
|
)
|
|
|
(1,324
|
)
|
Change in valuation allowance
|
|
|
3,937
|
|
|
|
1,324
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
$
|
–
|
|
|
$
|
-
|
|
NOTE 7 –
SUBSEQUENT EVENTS
On September
27, 2018 the Board of directors and the majority of its shareholders of Jasmin Corp., approved an amendment of 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 Jasmin Corp. to China King Spirit Group Ltd. and change the symbol from JSMM to CKSG. The Company is waiting for approval
of the name change and symbol change from FINRA at which time it will file the amendment with the Nevada Secretary of State.