CHINA WUYI MOUNTAIN, LTD.
CONDENSED BALANCE SHEETS
|
|
February 29,
2020
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|
August 31,
2019
|
|
|
(unaudited)
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|
|
ASSETS
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
1,073
|
|
|
$
|
1,169
|
|
Other receivable (Note 4)
|
|
|
20,000
|
|
|
|
20,000
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
|
$
|
21,073
|
|
|
$
|
21,169
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
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|
|
|
|
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|
|
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CURRENT LIABILITIES
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|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
9,092
|
|
|
$
|
8,498
|
|
Due to related party (Note 4)
|
|
|
46,249
|
|
|
|
46,249
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
|
|
55,341
|
|
|
|
54,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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STOCKHOLDERS’ EQUITY (DEFICIT)
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Capital stock (Note 3)
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Authorized
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2,000,000 shares of preferred stock, $0.001 par value,
|
|
|
|
|
|
|
|
|
Issued and outstanding - nil
|
|
|
—
|
|
|
|
—
|
|
200,000,000 shares of common stock, $0.001 par value,
|
|
|
|
|
|
|
|
|
Issued and outstanding
|
|
|
|
|
|
|
|
|
85,600,000 shares of common stock (85,600,000 - August 31, 2019)
|
|
|
85,600
|
|
|
|
85,600
|
|
Subscription receivable
|
|
|
(50,000
|
)
|
|
|
(50,000
|
)
|
Additional paid in capital
|
|
|
89,491
|
|
|
|
89,491
|
|
Accumulated deficit
|
|
|
(159,359
|
)
|
|
|
(158,669
|
)
|
|
|
|
|
|
|
|
|
|
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)
|
|
|
(34,268
|
)
|
|
|
(33,578
|
)
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
|
$
|
21,073
|
|
|
$
|
21,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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Going Concern
(Note 1)
The accompanying
notes are an integral part of these condensed financial statements.
CHINA WUYI
MOUNTAIN, LTD.
CONDENSED STATEMENTS
OF OPERATIONS
(Unaudited)
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|
Three months ended
February 29, 2020
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|
Three months ended
February 28, 2019
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|
Six months ended
February 29, 2020
|
|
Six months ended
February 28, 2019
|
|
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REVENUE
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office and general
|
|
$
|
345
|
|
|
$
|
498
|
|
|
$
|
690
|
|
|
$
|
797
|
|
Consulting fees
|
|
|
—
|
|
|
|
3,000
|
|
|
|
—
|
|
|
|
16,403
|
|
Professional fees
|
|
|
—
|
|
|
|
13,700
|
|
|
|
—
|
|
|
|
13,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EXPENSES
|
|
|
345
|
|
|
|
17,198
|
|
|
|
690
|
|
|
|
30,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(345
|
)
|
|
$
|
(17,198
|
)
|
|
$
|
(690
|
)
|
|
$
|
(30,900
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC NET LOSS PER COMMON SHARE
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF BASIC COMMON SHARES OUTSTANDING
|
|
|
85,600,000
|
|
|
|
85,600,000
|
|
|
|
85,600,000
|
|
|
|
85,600,000
|
|
The accompanying
notes are an integral part of these condensed financial statements.
CHINA WUYI MOUNTAIN,
LTD.
CONDENSED STATEMENTS OF STOCKHOLDERS’ DEFICIT
For the Six-month period ended February 29, 2020
(UNAUDITED)
|
|
Common Stock
|
|
Additional
|
|
|
|
|
|
|
|
|
Number of shares
|
|
Amount
|
|
Paid-in
Capital
|
|
Subscription
Receivable
|
|
Accumulated Deficit
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, August 31, 2019
|
|
|
|
85,600,000
|
|
|
$
|
85,600
|
|
|
$
|
89,491
|
|
|
$
|
(50,000
|
)
|
|
$
|
(158,669
|
)
|
|
$
|
(33,578
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
Net loss for the period ended November 30, 2019
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(345
|
)
|
|
|
(345
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, November 30, 2019
|
|
|
|
85,600,000
|
|
|
$
|
85,600
|
|
|
$
|
89,491
|
|
|
$
|
(50,000
|
)
|
|
$
|
(159,014
|
)
|
|
$
|
(33,923
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for period ended February 29, 2020
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(345
|
)
|
|
|
(345
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, February 29, 2020
|
|
|
|
85,600,000
|
|
|
$
|
85,600
|
|
|
$
|
89,491
|
|
|
$
|
(50,000
|
)
|
|
$
|
(159,359
|
)
|
|
$
|
(34,268
|
)
|
CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY/(DEFICIT)
For the Six-month period ended February 28, 2019
(UNAUDITED)
|
|
Common Stock
|
|
Additional
|
|
|
|
|
|
|
|
|
Number of shares
|
|
Amount
|
|
Paid-in
Capital
|
|
Subscription
Receivable
|
|
Accumulated Deficit
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, August 31, 2018
|
|
|
|
85,600,000
|
|
|
$
|
85,600
|
|
|
$
|
89,491
|
|
|
$
|
(50,000
|
)
|
|
$
|
(112,323
|
)
|
|
$
|
12,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the period ended November 30, 2018
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(13,702
|
)
|
|
|
(13,702
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance , November 30, 2018
|
|
|
|
85,600,000
|
|
|
$
|
85,600
|
|
|
$
|
89,481
|
|
|
$
|
(50,000
|
)
|
|
$
|
(126,025
|
)
|
|
$
|
(934
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the period ended February 28, 2019
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(17,198
|
)
|
|
|
(17,198
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, February 28, 2019
|
|
|
|
85,600,000
|
|
|
$
|
85,600
|
|
|
$
|
89,481
|
|
|
$
|
(50,000
|
)
|
|
$
|
(143,223
|
)
|
|
$
|
(18,132
|
)
|
The accompanying
notes are an integral part of these condensed financial statements.
CHINA WUYI MOUNTAIN, LTD.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
Six months ended
February 29, 2020
|
|
Six months ended
February 28, 2019
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net loss for the period
|
|
$
|
(690
|
)
|
|
$
|
(30,900
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Increase (decrease) in accounts payable
|
|
|
594
|
|
|
|
3,372
|
|
Accounts receivable
|
|
|
—
|
|
|
|
(20,000
|
)
|
|
|
|
|
|
|
|
|
|
NET CASH USED IN OPERATING ACTIVITIES
|
|
|
(96
|
)
|
|
|
(47,528
|
)
|
|
|
|
|
|
|
|
|
|
CASH FLOW FROM INVESTING ACTIVITIES
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Related party advances
|
|
|
—
|
|
|
|
7,749
|
|
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
|
|
—
|
|
|
|
7,749
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH
|
|
|
(96
|
)
|
|
|
(39,779
|
)
|
|
|
|
|
|
|
|
|
|
CASH, BEGINNING
|
|
|
1,169
|
|
|
|
40,885
|
|
|
|
|
|
|
|
|
|
|
CASH, ENDING
|
|
$
|
1,073
|
|
|
$
|
1,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION AND NONCASH
FINANCING ACTIVITIES:
Cash paid during the period for:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
$
|
—
|
|
|
$
|
—
|
|
Related party debt forgiveness
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these condensed financial statements.
CHINA WUYI MOUNTAIN, LTD
NOTES TO CONDENSED FINANCIAL STATEMENTS
February 29, 2020 (unaudited)
|
NOTE 1 –
NATURE OF OPERATIONS AND BASIS OF PRESENTATION
KOKOS GROUP INC. 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 Wu Yi Mountain
Ltd. On May 24, 2018 FINRA approved the Company’s corporate action changing the Company’s name and trading symbol effective
May 25, 2018.
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.
Going concern
The financial statements have been prepared assuming
that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation
of liabilities in the normal course of business.
To date the Company has generated no revenues from
its business operations and has incurred operating losses since inception of $159,359. As at February 29, 2020, the Company has working
capital deficit of 34,268. 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. As of August 31, 2018, the Company has issued 800,000,000 founders shares at $0.0000125 per share for net proceeds of
$10,000 to the Company and private placements of 25,600,000 common shares at $0.000375 per share for net proceeds of $9,600. 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 15, 2018 the Company had received $100,000.
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 2 –
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited financial statements have
been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form
10-Q. They do not include all information and footnotes required by United States generally accepted accounting principles for complete
financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes
to the financial statements for the fiscal year ended August 31, 2019 included in the Company’s 10-K filed with the Securities and
Exchange Commission on May 10, 2021. The unaudited financial statements should be read in conjunction with those financial statements
included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely
of normal recurring adjustments, have been made. Operating results for the six months ended February 29, 2020 are not necessarily indicative
of the results that may be expected for the year ending August 31, 2020.
Segmented Reporting
FSAB ASC 280, “Disclosure about Segments of
an Enterprise and Related Information”, changed the way public companies report information about segments of their business in
their quarterly reports issued to shareholders. It also requires entity-wide disclosures about the products and services the entity provides,
the material countries in which it holds assets and reports revenues and its major customers.
CHINA WUYI MOUNTAIN, LTD
NOTES TO CONDENSED FINANCIAL STATEMENTS
February 29, 2020 (unaudited)
|
NOTE 2 –
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Comprehensive Loss
“Reporting Comprehensive Income,” establishes
standards for the reporting and display of comprehensive loss and its components in the financial statements. As at February 29, 2020
the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the
financial statements.
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.
Revenue Recognition
The Company recognizes revenue in accordance with
ASC topic 605 “Revenue Recognition, and other applicable revenue recognition guidance under US GAAP. Sales revenue is recognized
for our retail and wholesale customers when: (i) persuasive evidence of a sales arrangement exists, (ii) the sales terms are fixed or
determinable, (iii) title and risk of loss have transferred, and (iv) collectability is reasonably assured — generally when products
are shipped to the customer and services are rendered, except in situations in which title passes upon receipt of the products by the
customer. Revenue consists of revenue earned for the sale of organic coconut water and services provided by the Company. Revenue
is recognized at the time the product is shipped to the customer and or services provided by the Company are fulfilled.
Financial Instruments
All significant financial assets, financial liabilities
and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information
relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practical the fair values
of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair
value has been disclosed.
Loss per Common Share
The basic earnings (loss) per share is calculated
by dividing the Company’s net income available to common shareholders by the weighted average number of common shares during the
year. 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.
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.
CHINA WUYI MOUNTAIN, LTD
NOTES TO CONDENSED FINANCIAL STATEMENTS
February 29, 2020 (unaudited)
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NOTE 2 –
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Stock-based Compensation
The Company follows ASC 718-10, "Stock Compensation",
which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary
focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 is a revision to SFAS
No. 123, "Accounting for Stock-Based Compensation," and supersedes Accounting Principles Board ("APB") Opinion No.
25, "Accounting for Stock Issued to
Employees," and its related implementation guidance.
ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the
grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of
awards after the grant date must be recognized. The Company has not adopted a stock option plan and has not granted any stock options.
As at February 29, 2020 the Company had not adopted a stock option plan nor had it granted any stock options. Accordingly, no stock-based
compensation has been recorded to date.
Recent Accounting Pronouncements
The Company’s management has evaluated all the
recently issued, but not yet effective, accounting standards that have been issued or proposed by the FASB or other standards-setting
bodies through the filing date of these financial statements and does not believe the future adoption of any such pronouncements will
have a material effect on the Company’s financial position and results of operations.
NOTE
3 – 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 February 29, 2020 are 85,600,000 common shares and no preferred shares have been issued.
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 February 29, 2020 $50,000 unpaid stock purchased amount are recorded
as “Subscription receivable“ under
stockholders’ equity on the balance sheet.
As of February 29, 2020, the Company has not granted
any stock options and has not recorded any stock-based compensation.
As of February 29, 2020, the Company issued 0 shares
of preferred stock and 85,600,000 common shares are issued and outstanding.
NOTE 4 – OTHER
RECEIVABLE
On December 12, 2018 the Company advanced $20,000
to China Dahongpao Hong Kong Co. Ltd. For legal work and due diligence investigation on a potential merger/consolidation. If the potential
merger/consolidation is abandoned by China Dahongpao Hong Kong Co. Ltd., the funds will be payable by December 31, 2021. The amounts owed
by the party are unsecured and non-interest bearing.
NOTE
5 – RELATED PARTY TRANSACTIONS
During the period ended August 31, 2019 Century Acquisitions
advance $20,000 and paid outstand invoice for $1,749. The amounts due to the related party are unsecured and non- interest-bearing with
no set terms of repayment.
As of February
29, 2020 the balance of due to related party is $46,249 (August 31, 2019 - $46,249). The amounts due to the related party are unsecured
and non- interest-bearing with no set terms of repayment.
CHINA WUYI MOUNTAIN, LTD
NOTES TO CONDENSED FINANCIAL STATEMENTS
February 29, 2020 (unaudited)
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NOTE 6 – SUBSEQUENT EVENTS
During April and May 2021,
Century Acquisition (Formerly WP Acquisition Company, LLC), a 19.25% shareholder, paid outstanding invoices on behalf of the Company for
$21,976. The amounts due to the related party are unsecured and non- interest-bearing with no set terms of repayment.
Item 2. Management’s Discussion and Analysis of Financial
Condition and Results of Operations.
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 February 29, 2020
and February 28, 2019 we had no revenues. Expenses for the three-month period ended February 29, 2020 totaled $345 resulting in a net
loss of $345. The net loss for the three-month period ended February 29, 2020 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-month period ended February 28,
2019 totaled $17,198 resulting in a net loss of $17,198. The net loss for the three-month period ended February 28, 2019 is a result of
expenses of $17,198 comprised primarily of; consulting expenses of $3,000; professional fees of $13,700; transfer agent expenses of $431;
and bank service charges of $67. The decrease in expenses for between the three-month periods February 29, 2020 and February 28, 2019
is due to the decrease in consulting and professional fees during the period.
For the six-month period ended February 29, 2020 and
February 28, 2019 we had no revenues. Expenses for the six-month period ended February 29, 2020 totaled $690 resulting in a net loss of
$690. The net loss for the six-month period ended February 29, 2020 is a result of expenses of $690 comprised primarily of; transfer agent
expenses of $594; and bank service charges of $96. Compared to the expenses for the six-month period ended February 28, 2019 totaled $30,900
resulting in a net loss of $30,900. The net loss for the six-month period ended February 28, 2019 is a result of expenses of $30,900 comprised
primarily of; consulting expenses of $16,403; professional fees of $13,700; transfer agent expenses of $728; and bank service charges
of $69. The decrease in expenses for between the six-month periods February 29, 2020 and February 28, 2019 is due to the decrease in consulting
and professional fees during the period.
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. A related party has verbally committed to continue to fund our operations. However, this is not in
writing and maybe rescinded at any time.
As of February 29, 2020, we had $1,073 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 February 29, 2020, were $55,341 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 February, 29, 2020, 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.
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.
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 February
29, 2020 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 .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 February 29, 2020, $50,00 unpaid stock purchased amount are recorded as “Subscription
receivable“ under stockholders’ equity on the balance sheet.
As of February 29, 2020, the Company has not granted any stock options
and has not recorded any stock-based compensation.
As of February 29, 2020, 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
Item 3. Quantitative and Qualitative Disclosures About Market
Risk.
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange
Act and are not required to provide the information required under this item.
Item 4. Controls and Procedures.
Disclosure Controls and Procedures
Disclosure controls and procedures are controls and
other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities
Exchange Act of 1934 is recorded, processed, summarized and reported, within the time period specified in the SEC's rules and forms. Disclosure
controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed
in our reports filed or submitted under the Securities Exchange Act of 1934 is accumulated and communicated to management including our
principal executive officer and principal financial officer as appropriate, to allow timely decisions regarding required disclosure.
In connection with this quarterly report, as required
by Rule 15d-15 under the Securities Exchange Act of 1934, we have carried out an evaluation of the effectiveness of the design and operation
of our company's disclosure controls and procedures. The material weaknesses in our disclosure control procedures are as follows:
1. Lack
of formal policies and procedures necessary to adequately review significant accounting transactions. We utilize a
third party independent contractor for the preparation of our financial statements. Although the financial statements and footnotes are
reviewed by our management, we do not have a formal policy to review significant accounting transactions and the accounting treatment
of such transactions. The third party independent contractor is not involved in our day to day operations and may not be provided information
from our management on a timely basis to allow for adequate reporting/consideration of certain transactions. Based upon that evaluation,
our company’s principal executive officer and principal financial officer concluded that as of February 29, 2020 our disclosure
controls and procedures were not effective due to the existence of material weaknesses in our internal controls over financial reporting.
2. Audit
Committee and Financial Expert. We do not have an audit committee with a financial expert and, thus, we lack the appropriate oversight
within the financial reporting process.
We intend to initiate measures to remediate the identified
material weaknesses, including, but not necessarily limited to, the following:
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Establishing a formal review process of significant accounting transactions that includes participation of our principal executive officer, principal financial officer and corporate legal counsel.
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Form an audit committee that will establish policies and procedures that will provide our Board of Directors with a formal review process that will among other things, assure that management controls and procedures are in place and being maintained consistently.
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Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over
financial reporting (as defined in Rule 13a-15(f) or 15d-15(f)) during the quarter ended February 29, 2020 that have materially affected,
or are reasonably likely to materially affect, our internal controls over financial reporting.