REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
To the Board of Directors and shareholders of
Yijia Group Corp.
Opinion on the Financial Statements
We have audited the accompanying balance sheets
of Yijia Group Corp (the ‘Company’) as of April 30, 2023, and the related statements of operations, stockholders’ equity,
and cash flows for the year ended April 30, 2023, and the related notes (collectively referred to as the “financial statements”).
In our opinion, the financial statements present
fairly, in all material respects, the financial position of the Company as of April 30, 2023, and the results of its operations and its
cash flows for the year ended April 30, 2023, in conformity with accounting principles generally accepted in the United States of America.
Consideration of the Company’s Ability
to Continue as a Going Concern
The accompanying financial statements have been
prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company had
loss from operations of $24,227 for the year ended April 30, 2023, and a net working capital deficiency of $59,215 as of April 30, 2023,
these factors raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters
are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility
of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our
audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s
internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation
of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ OLAYINKA OYEBOLA & CO.
OLAYINKA OYEBOLA & CO.
(Chartered Accountants)
5968
We have served as the Company's auditor since November 2021.
Lagos, Nigeria
May 12th, 2023
YIJIA GROUP CORP.
BALANCE SHEETS
AS OF APRIL 30, 2023 AND APRIL 30, 2022
| |
| | |
| |
| |
April 30, 2023 | | |
April 30, 2022 | |
ASSETS | |
| | | |
| | |
Current Assets | |
| | | |
| | |
Cash and cash equivalents | |
$ | 8,728 | | |
$ | 23,103 | |
Total Current Assets | |
| 8,728 | | |
| 23,103 | |
| |
| | | |
| | |
Total Assets | |
$ | 8,728 | | |
$ | 23,103 | |
| |
| | | |
| | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |
| | | |
| | |
Liabilities | |
| | | |
| | |
Current Liabilities | |
| | | |
| | |
Accrued liabilities and other payable | |
$ | 51,843 | | |
$ | 45,991 | |
Amount due to a related party | |
| 16,100 | | |
| 12,100 | |
Total Current Liabilities | |
| 67,943 | | |
| 58,091 | |
| |
| | | |
| | |
Total Liabilities | |
| 67,943 | | |
| 58,091 | |
| |
| | | |
| | |
Commitments and Contingencies | |
| – | | |
| – | |
| |
| | | |
| | |
Stockholders’ Deficit | |
| | | |
| | |
Common stock, par value $0.001; 75,000,000 shares authorized, 5,871,250 and 5,871,250 shares issued and outstanding, respectively | |
| 5,871 | | |
| 5,871 | |
Additional paid in capital | |
| 58,824 | | |
| 58,824 | |
Accumulated deficit | |
| (123,910 | ) | |
| (99,683 | ) |
Total Stockholders’ Deficit | |
| (59,215 | ) | |
| (34,988 | ) |
| |
| | | |
| | |
Total Liabilities and Stockholders’ Deficit | |
$ | 8,728 | | |
$ | 23,103 | |
See accompanying notes, which are an integral part
of these financial statements.
See accompanying notes, which are an integral part
of these financial statements
See accompanying notes, which are an integral part
of these financial statements
See accompanying notes, which are an integral part
of these financial statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2023 AND 2022
Note 1 – ORGANIZATION AND NATURE OF
BUSINESS
Yijia Group Corp. (“the Company”,
“we”, “us” or “our”) was incorporated as Soldino Group Corp. on January 25, 2017 under the laws of
the State of Nevada, United States of America. The Company has ceased its operations as of October 2018. As such, the Company accounted
for all of its assets, liabilities and results of operations up to October 31, 2018 as discontinued operations. As of November 1, 2018,
the Company is a shell company. On November 15, 2018, the Company changed its name to Yijia Group Corp.
On July 28, 2021, Barry Sytner, a non-affiliate
of the registrant, purchased an aggregate of 5,066,250 common shares from Kim Lee Poh, Jian Yang and Shaoyin Wu, officers and directors
of the registrant and from Jiang Bo, Chen Bo Bo and Zheng Lixing, other majority shareholders of the registrant. The purchase price for
the common shares was paid from Mr. Sytner’s personal funds resulting in a change of control of the registrant. The common shares
were transferred to Barry Sytner effective August 4, 2021. The 5,066,250 common shares represent 86.3% of the currently issued and outstanding
common of the Company.
Also, on July 28, 2021, Shaoyin Wu, Kim Lee Poh
and Jian Yang resigned as officers and directors of the Company.
Concurrently, on July 28, 2021, Barry Sytner,
was appointed as Chief Executive Officer and Director of the Company.
Starting from July 30, 2021, the Company commenced
its operation in the rendering of business consulting service to domestic and international customers. On July 30, 2021, the Company entered
into two consulting agreements with non-affiliates to provide business consulting services. Under the consulting agreements, the Company
will receive consulting fees of $5,000 and $10,000 per month, respectively. The term of the consulting agreements is for an initial three
month period. Unless terminated in writing prior to the end of the period, the consulting agreements are renewable for successive three
month periods.
Note 2 – GOING CONCERN
The accompanying financial statements have been
prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern.
The Company incurred net loss of $24,227 for the year ended April 30, 2023 and an accumulated deficit of $123,910.
Therefore, there is substantial doubt about the
Company’s ability to continue as a going concern without future profitability. Management anticipates that the Company will be dependent,
in the near future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it will
be able to raise additional funds through the capital markets.
In light of management’s efforts, there
are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going
concern. The accompanying financial statements have been prepared on a going concern basis which contemplates the realization of assets
and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to
the recoverability and classification of assets or the amounts and classifications of liabilities that might be necessary should the Company
be unable to continue as a going concern.
Note 3 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
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 fiscal year
is April 30.
YIJIA GROUP CORP.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2023 AND 2022
Use of Estimates
The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount
of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments
Accounting Standards Codification (“ASC”)
topic 820 "Fair Value Measurements and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs
in measuring fair value. The hierarchy organizes the inputs into three levels based on the extent to which inputs used in measuring fair
value are observable in the market.
These tiers include:
Level 1: |
defined as observable inputs such as quoted prices in active markets; |
Level 2: |
defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; |
Level 3: |
defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
The carrying value of cash and the Company’s
loan from shareholders approximates its fair value due to their short-term maturity.
Income Taxes
Income taxes are computed using the asset and
liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences
between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.
A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.
Uncertain Tax Positions
The Company did not take any uncertain tax positions
and had no adjustments to its income tax liabilities or benefits pursuant to the ASC 740 provisions of Section 740-10-25 for the years
ended April 30, 2023 and 2022.
YIJIA GROUP CORP.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2023 AND 2022
Revenue Recognition
The Company adopted Accounting Standards Update
(“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) using the full retrospective
transition method. The Company's adoption of ASU 2014-09 did not have a material impact on the amount and timing of revenue recognized
in its condensed financial statements.
Under ASU 2014-09, the Company recognizes revenue
when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects
to be entitled to in exchange for those goods or services.
The Company applies the following five steps in
order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:
· |
identify the contract with a customer; |
· |
identify the performance obligations in the contract; |
· |
determine the transaction price; |
· |
allocate the transaction price to performance obligations in the contract; and |
· |
recognize revenue as the performance obligation is satisfied. |
Consulting income is recognized, when the service
is rendered and billed to the customer on a monthly basis, pursuant to the fulfillment of service terms in the agreement.
Net (Loss) Income Per Share
The Company computes net income/(loss) per share
in accordance with FASB ASC 260 “Earnings per Share”. Basic (loss)/income per share is computed by dividing net (loss)/income
available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted (loss)/income
per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive (loss)/income per share excludes
all potential common shares if their effect is anti-dilutive. As of April 30, 2023 and 2022, there were no potentially dilutive debt or
equity instruments issued or outstanding.
Currencies
The Company’s reporting and functional currencies
are both the U.S. dollar. Foreign currency transaction gains and losses are included in other income (expense) but are negligible.
Comprehensive Income
Comprehensive income is defined as all changes
in stockholders’ deficit, exclusive of transactions with owners, such as capital investments. Comprehensive income includes net
income or loss, changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments
in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. As of April 30, 2023 and 2022, there were no differences
between our comprehensive loss and net loss.
YIJIA GROUP CORP.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2023 AND 2022
Related parties
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 party in making financial and operational decisions. Companies are also considered to be related if they are subject
to common control or common significant influence.
Recent Accounting Pronouncements
From time to time, new accounting pronouncements
are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies and adopted by the Company
as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that
are not yet effective will not have a material impact on its financial position or results of operations upon adoption.
Simplifying the Accounting for Debt with Conversion
and Other Options.
In June 2020, the FASB issued ASU 2020-06 to
simplify the accounting in ASC 470, “Debt with Conversion and Other Options” and ASC 815, “Contracts in
Equity’s Own Entity”. The guidance simplifies the current guidance for convertible instruments and the derivatives
scope exception for contracts in an entity’s own equity. Additionally, the amendments affect the diluted EPS calculation for
instruments that may be settled in cash or shares and for convertible instruments. This ASU was effective beginning in
the first quarter of the Company’s fiscal year 2021. Early adoption is permitted. The amendments in this update must be
applied on either full retrospective basis or modified retrospective basis through a cumulative-effect adjustment to retained
earnings/(deficit) in the period of adoption. The Company is currently evaluating the impact of ASU 2020-06 on its financial
statements and related disclosures, as well as the timing of adoption.
Financial Instruments
In June 2016, the FASB issued ASU 2016-13, “Financial
Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”),
which modifies the measurement of expected credit losses of certain financial instruments. In February 2020, the FASB issued ASU 2020-02
and delayed the effective date of ASU 2016-13 until fiscal year beginning after December 15, 2023. The Company is currently evaluating
the impact of adopting ASU 2016-13 on its financial statements.
Simplifying the Accounting for Income Taxes
In December 2019, the FASB issued ASU 2019-12
to simplify the accounting in ASC 740, “Income Taxes.” This guidance removes certain exceptions related to the approach
for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax
liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This ASU will be effective
beginning in the first quarter of the Company’s fiscal year 2021. Early adoption is permitted. Certain amendments in this update
must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments must be applied
on a modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption. The
adoption of ASU 2019-12 does not have a significant impact on the Company’s financial statements as of and for the year ended April
30, 2023.
YIJIA GROUP CORP.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2023 AND 2022
Earnings Per Share
In April 2021, the FASB issued ASU 2021-04, which
included Topic 260 “Earnings Per Share”. This guidance clarifies and reduces diversity in an issuer’s accounting
for modifications or exchanges of freestanding equity-classified written call options due to a lack of explicit guidance in the FASB Codification.
The ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021. Early adoption is permitted. The Company
is currently evaluating the impact of adopting ASU 2021-04 on its financial statements.
Note 4 – COMMON STOCK
Authorized shares
The Company has 75,000,000, $0.001 par value shares
of common stock authorized.
Issued and outstanding shares
As of April 30, 2023 and 2022, there were 5,871,250
shares of common stock issued and outstanding.
Note 5 – COMMITMENTS AND CONTINGENCIES
As of April 30, 2023 and 2022, the Company has
no material commitments or contingencies.
Note 6 – INCOME TAXES
The Company adopted the provisions of uncertain
tax positions as addressed in ASC 740-10-65-1. As a result of the implementation of ASC 740-10-65-1, the Company recognized no increase
in the liability for unrecognized tax benefits.
The Company has no tax position at April 30, 2023
for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The
Company does not recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.
No such interest or penalties were recognized during the period presented. The Company had no accruals for interest and penalties at April
30, 2023 and 2022. The Company’s utilization of any net operating loss carry forward may be unlikely as a result of its intended
activities.
The valuation allowance as of April 30, 2023 and
2022 was $26,021 and $20,933. The net change in valuation allowance during the years ended April 30, 2023 and 2022 was $5,088 and $65,586.
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all
of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation
of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled
reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based
on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred
income tax asset balances to warrant the application of a full valuation allowance as of April 30, 2023 and 2022. All tax years since
inception remains open for examination only by taxing authorities of US Federal and state of Nevada.
YIJIA GROUP CORP.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2023 AND 2022
The Company has a net operating loss carryforward
for tax purposes totaling $123,910 and $99,683 as of April 30, 2023 and 2022, expiring through 2041. There is a limitation on the amount
of taxable income that can be offset by carryforwards after a change in control (generally greater than a 50% change in ownership). Temporary
differences, which give rise to a net deferred tax asset, are as follows:
Schedule of deferred tax assets | |
| | |
| |
| |
As of April 30, 2023 | | |
As of April 30, 2022 | |
Non-current deferred tax assets: | |
| | | |
| | |
Net operating loss carryforward | |
$ | (123,910 | ) | |
$ | (99,683 | ) |
| |
| | | |
| | |
Total deferred tax assets | |
| (26,021 | ) | |
| (20,933 | ) |
Valuation allowance | |
| 26,021 | | |
| 20,933 | |
Net deferred tax assets | |
$ | – | | |
$ | – | |
Note 7 – RELATED PARTY TRANSACTIONS
The Company has been provided free office space
by its stockholder. The management determined that such cost is nominal and did not recognize the rent expense in its financial statements.
From time to time, the stockholder and director
of the Company advanced funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and due on
demand.
Apart from the transactions and balances detailed
elsewhere in these accompanying financial statements, the Company has no other significant or material related party transactions during
the years presented.
Note 8 – SUBSEQUENT EVENTS
In accordance with ASC Topic 855, “Subsequent
Events” the Company has analyzed its operations subsequent to April 30, 2023 to the date these financial statements were available
to be issued, May 11, 2023 and has determined that it does not have any material subsequent events to disclose in these financial statements.