When this report uses the words “we,” “us,” “our,” and
the “Company,” they refer to Trendmaker, Inc. Limited. “SEC” refers to the Securities
and Exchange Commission.
(Currency expressed in United
States Dollars (“US$”), except for number of shares)
(Currency expressed in United
States Dollars (“US$”), except for number of shares)
NOTES TO CONDENSED FINANCIAL STATEMENTS
For the six months ended January 31, 2020
(Currency expressed in United States Dollars
(“US$”), except for number of shares)
(Unaudited)
1.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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Basis of preparation
The reporting currency of the Company is United States Dollars (“US$”)
and the accompanying financial statements have been expressed in US$.
Basis of presentation
The accompanying condensed unaudited financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the
rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include
all the information necessary for a comprehensive presentation of financial position and results of operations.
It is management’s opinion however, that
all material adjustments (consisting of normal recurring adjustments) have been made, which are necessary for a fair financial
statements presentation. The results for the interim period are not necessarily indicative of the results to be expected for the
year.
Nuts and Bolts International, Inc. (the “Company”)
was incorporated under the laws of the State of Nevada on August 21, 2013 to create and publish electronic non-fiction multimedia
books for the hobby and do-it-yourself consumer markets (“eBooks”) through the internet. It’s eBook publishing
operations were conducted through it’s wholly-owned subsidiary, Nuts and Bolts Publishing, LLC, which was organized under
the laws of the State of North Carolina on August 22, 2013.
Effective as of February 29, 2016, the Company
had a change of control as a result of the sale of it’s previous controlling shareholder of 5,000,000 shares of it’s
common stock, representing approximately 76.5% of the Company’s issued and outstanding common stock. Following the change
of control, the Company has discontinued the eBook publishing operations previously carried on through the previous company’s
subsidiary.
Also, following the change of control, the
Company is now engaged in the business of providing management and consulting services to Trendmaker Private Limited. Effective
as of April 14, 2016, the Company amended it’s Articles of Incorporation to change it’s name to Trendmaker, Inc., Limited.
Use of estimates
In preparing financial statements in conformity
with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements
and revenues and expenses during the reported period. Significant estimates include valuation of in kind contribution of services,
valuation of deferred tax assets. Actual results could differ from those estimates.
Revenue recognition
The Company will recognize revenue on arrangements
in accordance with FASB ASC No. 605, “Revenue Recognition”. In all cases, revenue is recognized only when the price
is fixed and determinable, persuasive evidence of an arrangement exists, the service is performed and collectability of the resulting
receivable is reasonably assured.
Cash and cash equivalents
The Company considers all highly liquid temporary cash investments
with an original maturity of three months or less to be cash equivalents. At January 31, 2020 and July 31, 2019, the Company had
no cash and cash equivalents.
Income taxes
The Company accounts for income taxes under
FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, 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 bases. Deferred tax assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC
740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that
includes the enactment date.
Related party
Parties, which can be a corporation or individual,
are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant
influence over the other party in making financial and operating decisions. Companies are also considered to be related if they
are subject to common control or common significant influence.
TRENDMAKER,
INC. LIMITED
NOTES
TO CONDENSED FINANCIAL STATEMENTS
For the six months ended January
31, 2020
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
Fair
value of financial instruments
The
carrying value of the Company’s financial instruments: cash and cash equivalents, and accounts payable and approximate their
fair values because of the short-term nature of these financial instruments.
The
Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC
820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10
establishes
a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:
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Level 1: Observable inputs such as quoted prices in active markets;
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Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
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Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop
its own assumptions.
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Recent
accounting pronouncements
FASB
issues various Accounting Standards Updates relating to the treatment and recording of certain accounting transactions. On June
10, 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-10, Development Stage
Entities (Topic 915) - Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest
Entities Guidance in Topic 810, Consolidation, which eliminates the concept of a development stage entity (DSE) entirely
from current accounting guidance. The Company has elected adoption of this standard, which eliminates the designation of DSEs
and the requirement to disclose results of operations and cash flows since inception.
In
May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers”
(“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic
605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount
that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09
is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period.
Early adoption is not permitted. In August 2015, the FASB issued an Accounting Standards Update to defer by one year the effective
dates of its new revenue recognition standard until annual reporting periods beginning after December 15, 2017 (2018 for calendar-year
public entities) and interim periods therein. Management is currently assessing the impact of the adoption of ASU 2014-09 and
has not determined the effect of the standard on our ongoing financial reporting. The Company has reviewed all recently issued,
but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected
to cause a material impact on its financial condition or the results of its operations.
TRENDMAKER,
INC. LIMITED
NOTES
TO CONDENSED FINANCIAL STATEMENTS
For
the six months ended January 31, 2020
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
(A)
Preferred Stock
The
Company was incorporated on August 21, 2013. The Company is authorized to issue 10,000,000 shares of preferred stock with a par
value of $0.0001 per share. Preferred stock may be issued in one or more series with rights and preferences are to be determined
by the board of directors. As of January 31, 2020, no shares of preferred stock have been issued.
(B)
Common Stock
The
Company is authorized to issue 100,000,000 shares of common stock with a par value of $0.0001 per share.
As
of January 31, 2020, the Company has 13,537,000 shares of common stock outstanding.
3.
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COMMITMENTS
AND CONTINGENCIES
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As
of January 31, 2020, the Company has no commitment or contingency involved.
4.
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ACCOUNTS
PAYABLE AND ACCRUED LIABILITIES
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|
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January 31, 2020
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|
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July 31, 2019
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(Unaudited)
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(Audited)
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$
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$
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Accounts payable and accrued liabilities generated from:
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Other creditors
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214,842
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214,842
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Accrued expenses
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5,919
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25,300
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220,761
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240,142
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Accounts
payable and accrued liabilities at January 31, 2020 were a total US$220,761 consisting of US$5,919 from accrued expenses
and US$214,842 from other creditors. Accounts payable and accrued liabilities at July 31, 2019 were a total US$240,142
consisting of US25,300 from accrued expenses and US$214,842 from other creditor.
5.
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RELATED
PARTY TRANSACTIONS
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As
of January 31, 2020, the Company has no related party transactions.
TRENDMAKER,
INC. LIMITED
NOTES
TO CONDENSED FINANCIAL STATEMENTS
For
the six months ended January 31, 2020
(Currency
expressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
6.
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RELATED
PARTY BALANCES
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January 31, 2020
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July 31, 2019
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(Unaudited)
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(Audited)
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$
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$
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Due from related party:
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Related Party A
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300,487
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337,688
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As
of January 31, 2020, the balance US$300,487
represented an outstanding amount due from Related Party A. Related Party A is having
common director with the Company. The amount due is unsecured, interest-free with no fixed repayment term.
As
of January 31, 2020, the Company has an accumulated deficit of $746,794 and a stockholders’ equity of $79,726. And
for the three months ended January 31, 2020, had a net loss of $6,542. This raises substantial doubt about its ability to continue
as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise
additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary
if the Company is unable to continue as a going concern. Management is taking various steps to provide the Company with the opportunity
to continue as a going concern.
The
Company has evaluated subsequent events from the balance sheet date through January 31, 2020 the date the Company issued unaudited
consolidated financial statements in accordance with ASC Topic 855, “Subsequent Events”, which establishes general
standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are
issued. During this period, there was no subsequent event that required recognition or disclosure