CHINA WUYI MOUNTAIN, LTD.
CONDENSED BALANCE SHEETS
| | February 28, 2022 | | | August 31, 2021 | |
| | (unaudited) | | | | |
ASSETS | |
| | | | | | |
CURRENT ASSETS | | | | | | |
Cash | | $ | 689 | | | $ | 785 | |
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TOTAL CURRENT ASSETS | | $ | 689 | | | $ | 785 | |
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LIABILITIES AND STOCKHOLDERS’ DEFICIT |
| | | | | | | | |
CURRENT LIABILITIES | | | | | | | | |
Accounts payable | | $ | 1,665 | | | $ | 1,616 | |
Due to related party (Note 4) | | | 99,081 | | | | 84,761 | |
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TOTAL CURRENT LIABILITIES | | | 100,746 | | | | 86,377 | |
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COMMITMENTS AND CONTINGENCIES | |
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STOCKHOLDERS’ DEFICIT | | | | | | | | |
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Preferred stock, par value $0.001, 2,000,000 authorized, -nil- issued and outstanding | | | | | | | | |
Common stock, par value $0.001, 200,000,000 authorized – 85,600,000 shares issued and outstanding | | | 85,600 | | | | 85,600 | |
Subscription receivable | | | (50,000 | ) | | | (50,000 | ) |
Additional paid in capital | | | 89,491 | | | | 89,491 | |
Accumulated deficit | | | (225,148 | ) | | | (210,683 | ) |
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TOTAL STOCKHOLDERS’ DEFICIT | | | (100,057 | ) | | | (85,592 | ) |
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TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | | $ | 689 | | | $ | 785 | |
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)
| | Three months ended February 28, 2022 | | | Three months ended February 28, 2021 | | | Six months ended February 28, 2022 | | | Six months ended February 28, 2021 | |
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REVENUE | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
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EXPENSES | | | | | | | | | | | | | | | | |
Office and general | | $ | 2,569 | | | $ | 345 | | | $ | 14,465 | | | $ | 393 | |
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TOTAL EXPENSES | | | (2,569 | ) | | | (345 | ) | | | (14,465 | ) | | | (393 | ) |
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NET LOSS | | $ | (2,569 | ) | | $ | (345 | ) | | $ | (14,465 | ) | | $ | (393 | ) |
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NET LOSS PER COMMON SHARE – BASIC AND DILUTED | | $ | (0.00 | ) | | $ | (0.00 | ) | | $ | (0.00 | ) | | $ | (0.00 | ) |
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WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – BASIC AND DILUTED | | | 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 28, 2022
(UNAUDITED)
| | Common Stock | | | Additional | | | | | | | | | | |
| | Number of shares | | | Amount | | | Paid-in Capital | | | Subscription Receivable | | | Accumulated Deficit | | | Total | |
| | | | | | | | | | | | | | | | | | |
Balance, August 31, 2021 | | | 85,600,000 | | | $ | 85,600 | | | $ | 89,491 | | | $ | (50,000 | ) | | $ | (210,683 | ) | | $ | (85,592 | ) |
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Net loss for the period ended November 30, 2021 | | | - | | | | - | | | | - | | | | - | | | | (11,896 | ) | | | (11,896 | ) |
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Balance, November 30, 2021 | | | 85,600,000 | | | $ | 85,600 | | | $ | 89,491 | | | $ | (50,000 | ) | | $ | (222,579 | ) | | $ | (97,488 | ) |
Net loss for the period ended February 28, 2022 | | | - | | | | - | | | | - | | | | - | | | | (2,569 | ) | | | (2,569 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Balance, February 28, 2022 | | | 85,600,000 | | | $ | 85,600 | | | $ | 89,491 | | | $ | (50,000 | ) | | $ | (225,148 | ) | | $ | (100,057 | ) |
CONDENSED STATEMENTS OF STOCKHOLDERS’ DEFICIT
For the Six-month period ended February 29, 2021
(UNAUDITED)
| | Common Stock | | | Additional | | | | | | | | | | |
| | Number of shares | | | Amount | | | Paid-in Capital | | | Subscription Receivable | | | Accumulated Deficit | | | Total | |
| | | | | | | | | | | | | | | | | | |
Balance, August 31, 2020 | | | 85,600,000 | | | $ | 85,600 | | | $ | 89,491 | | | $ | (50,000 | ) | | $ | (180,049 | ) | | $ | (54,958 | ) |
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Net loss for the period ended November 30, 2020 | | | - | | | | - | | | | - | | | | - | | | | (48 | ) | | | (48 | ) |
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Balance, November 30, 2020 | | | 85,600,000 | | | $ | 85,600 | | | $ | 89,491 | | | $ | (50,000 | ) | | $ | (180,097 | ) | | $ | (55,006 | ) |
Net loss for the period ended February 28, 2021 | | | - | | | | - | | | | - | | | | - | | | | (345 | ) | | | (345 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Balance, February 28, 2021 | | | 85,600,000 | | | $ | 85,600 | | | $ | 89,491 | | | $ | (50,000 | ) | | $ | (180,442 | ) | | $ | (55,351 | ) |
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 28, 2022 | | | Six months ended February 28, 2021 | |
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OPERATING ACTIVITIES | | | | | | |
Net loss for the period | | $ | (14,465 | ) | | $ | (393 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | |
Expenses paid by related party | | | 14,320 | | | | - | |
Changes in operating assets and liabilities: | | | | | | | | |
Accounts payable | | | 49 | | | | 297 | |
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NET CASH USED IN OPERATING ACTIVITIES | | | (96 | ) | | | (96 | ) |
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CASH FLOW FROM INVESTING ACTIVITIES | | | - | | | | - | |
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CASH FLOW FROM FINANCING ACTIVITIES | | | - | | | | - | |
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NET INCREASE (DECREASE) IN CASH | | | (96 | ) | | | (96 | ) |
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CASH, BEGINNING | | | 785 | | | | 977 | |
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CASH, ENDING | | $ | 689 | | | $ | 881 | |
SUPPLEMENTAL CASH FLOW INFORMATION AND NONCASH FINANCING ACTIVITIES; | | | | | | | | |
Cash paid during the period for: | | | | | | | | |
Interest | | $ | - | | | $ | - | |
Income taxes | | $ | - | | | $ | - | |
The accompanying notes are an integral part of these condensed financial statements.
CHINA WUYI MOUNTAIN, LTD NOTES TO CONDENSED FINANCIAL STATEMENTS February 28, 2022 (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.
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 $225,148. As at February 28, 2022, the Company has working capital deficit of $100,057. 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. 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, 2021 included in the Company’s 10-K filed with the Securities and Exchange Commission on September 29, 2022. 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 28, 2022 are not necessarily indicative of the results that may be expected for the year ending August 31, 2022.
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.
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.
CHINA WUYI MOUNTAIN, LTD NOTES TO CONDENSED FINANCIAL STATEMENTS February 28, 2022 (unaudited) |
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
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.
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 28, 2022 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.
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 28, 2022 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 28, 2022 $50,000 unpaid stock purchased amount are recorded as “Subscription receivable“ under stockholders’ equity on the balance sheet.
As of February 28, 2022, the Company has not granted any stock options and has not recorded any stock-based compensation.
CHINA WUYI MOUNTAIN, LTD NOTES TO CONDENSED FINANCIAL STATEMENTS February 28, 2022 (unaudited) |
NOTE 4 – RELATED PARTY TRANSACTIONS |
During the period ended February 28, 2022, Century Acquisition (major shareholder of the Company), paid expenses on behalf of the Company of $14,320. As of February 28, 2022 the balance of due to related party is $99,081 (August 31, 2021 - $84,761). The amounts due to the related party are unsecured and non- interest-bearing with no set terms of repayment.
NOTE 5 – SUBSEQUENT EVENTS |
During March 1, 2022 through September 2022, Century Acquisition (Formerly WP Acquisition Company, LLC), is a major shareholder, paid outstanding invoices on behalf of the Company for $25,940. The amounts due to the related party are unsecured and non- interest-bearing with no set terms of repayment. These transactions increased the shareholder loan balance to $125,021 in the subsequent period.