Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This
Quarterly Report on Form 10-Q contains forward-looking statements, particularly those identified with the words, “anticipates,”
“believes,” “expects,” “plans,” “intends,” “objectives,” and similar expressions.
These statements reflect management’s best judgment based on factors known at the time of such statements. The reader may find
discussions containing such forward-looking statements in the material set forth under “Management’s Discussion and Analysis
of Financial Condition and Results of Operations,” generally, and specifically therein under the captions “Liquidity and
Capital Resources” as well as elsewhere in this Quarterly Report on Form 10-Q. Actual events or results may differ materially from
those discussed herein. The forward-looking statements specified in the following information have been compiled by our management on
the basis of assumptions made by management and considered by management to be reasonable. Our future operating results, however, are
impossible to predict and no representation, guarantee, or warranty is to be inferred from those forward-looking statements. The assumptions
used for purposes of the forward-looking statements specified in the following information represent estimates of future events and are
subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification
and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives
require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated
or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. No assurance
can be given that any of the assumptions relating to the forward-looking statements specified in the following information are accurate,
and we assume no obligation to update any such forward-looking statements
Overview
Landbay
Inc. is a New York corporation formed on January 28, 2016. Our current principle executive office is located at 36-25 Main Street, Flushing,
New York, 11354. Tel: 917-232-5799.
On
July 24, 2019, Larison Inc, the principal stockholder and 100% controlled by the prior President of the Company (“Seller”),
entered into a Stock Purchase Agreement (the “Agreement”) with Northern Ifurniture Inc (the “Buyer”). Pursuant
to the Agreement, Seller agreed to sell to the Buyer and the Buyer agreed to purchase from Seller a total of 9,222,350 shares of common
stock of the Company Purchased Shares, which represented approximately 96% of the Company’s issued and outstanding shares of common
stock. As a result, the transaction led to a change of the control and the management team of the Company.
Prior
to the change of the management team, the Company was engaging in holding or trading securities in the US market, as well as to trade
and hold whisky in the UK market. The Company has changed its focus to operate furniture retail business and furniture design business
in the New York area. We market and retail modern residential and commercial furniture in Great New York Region. Our products feature
urban and contemporary styles, combining comfort and functionality in matching furniture collections and upscale luxury pieces appealing
to lifestyle-conscious middle-income consumers. Our furniture brands come from different countries including Italy, China, Vietnam, Malaysia
and so forth, and our products feature upholstered, wood and metal-based furniture pieces. We classify our products by room, designation
or series, such as living room, dining room, bedroom and home office series, and by category or product types such as sofas, chairs,
dining tables, beds, entertainment consoles, cabinets and cupboards.
Results
of Operation for the three months ended September 30, 2021 and 2020
During
the three months ended September 30, 2021 and 2020, the Company generated revenue in the amount of $1,200 and $3,083, respectively. The
decrease in revenue was due to the decrease in demand. During the three months ended September 30, 2021 and 2020, the Company incurred
operating expenses of $9,468 and $14,014, respectively. The decrease was due to the decrease in professional fee. For the three month
September 30, 2021 and 2020, our net loss was $8,303 and $11,833, respectively. The decrease in net loss was mainly due to the decrease
in professional fee for the three month ended September 30, 2021.
Results
of Operation for the six months ended September 30, 2021 and 2020
During
the six months ended September 30, 2021 and 2020, the Company generated revenue in the amount of $1,200 and $3,083, respectively. The
decrease in revenue was due to the decrease in demand. During the six months ended September 30, 2021 and 2020, the Company incurred
operating expenses of $29,097 and $42,922, respectively. The decrease was due to the decrease in professional fee. For the six month
September 30, 2021 and 2020, our net loss was $27,059 and $39,179, respectively. The decrease in net loss was mainly due to the decrease
in professional fee for the six month ended September 30, 2020.
Equity
and Capital Resources
As
of September 30, 2021 and March 31, 2021, we had an accumulated deficit of $379,510 and $352,451, respectively. As of September 30, 2021,
we had cash of $46,695 and working capital deficit of $23,851. As of March 31, 2021, we had cash of $6,631 and a working capital of $2,224.
The decrease in the working capital was primarily due to the cash paid for operating expense.
Going
Concern Assessment
The
Company demonstrates adverse conditions that raise substantial doubt about the Company’s ability to continue as a going concern.
These adverse conditions are negative financial trends, specifically cash outflow from operating activities, operating losses, accumulated
deficit and other adverse key financial ratios.
Management’s
plan to alleviate the substantial doubt about the Company’s ability to continue as a going concern include attempting to improve
its business profitability, its ability to generate sufficient cash flow from its operations to meet its operating needs on a timely
basis, obtain additional working capital funds from the majority shareholder and the President of the Company to eliminate inefficiencies
in order to meet its anticipated cash requirements. However, there can be no assurance that these plans and arrangements will be sufficient
to fund the Company’s ongoing capital expenditures and other requirements.
The
unaudited condensed financial statements do not include any adjustments relating to the recoverability and classification of recorded
assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue as a going
concern.
Off-Balance
Sheet Arrangements
We
have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that
is material to stockholders.
Critical
Accounting Policies
The
financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States.
The preparation of these financial statements requires making estimates and judgments that affect the reported amounts of assets, liabilities,
revenues and expenses, and related disclosure of contingent assets and liabilities. The estimates are based on historical experience
and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis of making
judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ
from these estimates under different assumptions or conditions.
The
critical accounting policies are discussed in further detail in the notes to the unaudited financial statements appearing elsewhere in
this 10-Q report. Management believes that the application of these policies on a consistent basis enables us to provide useful and reliable
financial information about our operating results and financial condition.