NOTES TO THE AUDITED FINANCIAL STATEMENTS
March 31, 2019
(Unaudited)
Note 1 – Organization and Summary of Significant Accounting Policies
The Company was incorporated in the State of Nevada as a for-profit Company on September 5, 2012.
On July 12, 2018, we completed a reverse acquisition transaction through a share exchange with GMCI, the sole shareholder of SBS Mining Corp. Malaysia Sdn. Bhd (“SBS”), whereby we acquired 100% of the outstanding shares of SBS from GMCI in exchange for the issuance of a total of 720,802,346 shares of our common stock to GMCI, representing 102.08% of our pre-merger issued and outstanding shares of common stock. As a result of the reverse acquisition, SBS became our wholly-owned subsidiary and the former SBS Shareholders, GMCI and subsequently its shareholders, became our controlling stockholders. The share exchange transaction was treated as a recapitalization, with SBS as the acquirer and the Company as the acquired party for accounting purposes. Unless the context suggests otherwise, when we refer in this report to business and financial information for periods prior to the consummation of the reverse acquisition, we are referring to the business and financial information of SBS.
SBS Mining Corp. Malaysia Sdn. Bhd., is a Malaysian corporation whose primary business is mining, exploration and trading of certain mineral ores and properties located in Malaysia. During fiscal 2017 the Company commenced revenue generating operations as a result of its mineral trading business (See Note 3). Essentially all of the Company’s property, plant and equipment assets are held in Malaysia. The functional currency of the Company is the Malaysian Ringgit (MYR).
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements (“US GAAP”) and with the instructions to Form 10-Q and Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements.
Fiscal Year
The Company’s fiscal year end is June 30.
Basis of Presentation
The accompanying condensed consolidated financial statements have been prepared in accordance with US GAAP and are presented in U.S. dollars.
The amounts shown in these financial statements for periods prior to July 4, 2018 are those of SBS. For the period from July 5, 2018 through March 31, 2019, the amounts shown in these financial statements are the consolidated results of the Company including its wholly owned subsidiary, SBS.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s Form 8-K/A filed on September 20, 2018. The results of operations for the periods ended March 31, 2019 and the same period last year are not necessarily indicative of the operating results for the full years. In the opinion of management, the unaudited consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s financial position and of the results of operations and cash flows for the periods presented, all such adjustments were of a normal and recurring nature, with the exception of the recapitalization related to the reverse acquisition transaction that occurred on July 12, 2018 which of a non-recurring nature.
Principles of Consolidation
The accompanying consolidated financial statements include all of the accounts of the Company and its wholly owned subsidiary SBS Mining Corp. Malaysia Sdn. Bhd. All significant intercompany accounts and transactions have been eliminated.
Use of Estimates and Assumptions
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 as of the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results when ultimately realized could differ from these estimates.
Revenue Recognition
Revenues are presented net of discounts. In general, the Company recognizes revenue when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered to the customer, (iii) the fee is fixed or determinable, and (iv) collectability is reasonably assured.
The Company applies judgment with respect to whether it can establish a selling price based on third party evidence. The Company does not have any product offerings that would be considered multiple deliverables; therefore, the pricing model is determined using competitor prices for similar product offerings, and/or contracts independently negotiated between the Company and purchasers.
To date, all of the revenue recognized by the Company has been derived from transactions with related parties (See Note 3). In addition, all of the revenue recognized with those related parties has been based on verbal conditions. To date the Company has not entered into a formal written agreement for its commissions earned on the trading of unwashed bauxite ore. The Company has determined that in recording its revenue through March 31, 2019, that the selling price and other conditions derived from its transactions with related parties were not fixed and determinable until those trading commissions were paid to the Company by its related party. Because of this, through March 31, 2019, the Company has recorded its trading commissions earned with Sincere Pacific Mining (M) Sdn. Bhd. (“Sincere”) on the cash basis. In the future, should the Company enter into formal agreements, the recognition method may change.
Cash and Cash Equivalents
The company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At March 31, 2019, and June 30, 2018, cash includes cash on hand and cash in the bank. The Company operates in Malaysia where deposit insurance for deposits is provided up to MYR 250,000 (approximately US$60,000). From time to time the Company’s account balances may exceed that limit.
Fair Value of Financial Instruments
The carrying value of financial instruments including cash and cash equivalents, receivables, prepaid expenses, accounts payable and accrued expenses, approximates their fair value due to the relatively short-term nature of these instruments.
Foreign Currencies
Functional and presentation currency
- Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the entity operates (the ‘functional currency’). The financial statements are presented in US Dollars, which is the Company’s presentation currency. The Company’s functional currency is the Malaysian Ringgit.
Transactions and Balances
- Foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of operations. The translation adjustment increases or decreases “accumulated other comprehensive income” included on the balance sheet.
Plant and Equipment Depreciation
Plant and equipment are stated at cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated on a straight-line basis to write off the cost of plant and equipment over their expected useful lives at the following annual rates:
Motor Vehicles
|
|
|
20
|
%
|
Office equipment
|
|
|
33
|
%
|
Tools and equipment
|
|
|
33
|
%
|
Computer and software
|
|
|
33
|
%
|
Leasehold improvements
|
|
Term of lease
|
|
Furniture and Fixture
|
|
|
33
|
%
|
Mineral Properties
The Company is engaged in the business of the acquiring, exploring, developing, mining, and producing mineral properties and or resources, with a current emphasis on sea sand mining (see Note 9) and previous emphasis on iron ore, bauxite and tin. Mineral claims and other property acquisition costs are capitalized as incurred. Such costs are carried as an asset of the Company and JHW Holdings Sdn. Bhd. until it becomes apparent through exploration activities that the cost of such properties will not be realized through mining operations. Mineral exploration costs are expensed as incurred, and when it becomes apparent that a mineral property can be economically developed as a result of establishing proven or probable reserve, the exploration costs, along with mine development costs, are capitalized. The costs of acquiring mineral claims, capitalized exploration costs, and mine development costs are recognized for depletion and amortization purposes under the units-of-production method over the estimated life of the probable and proven reserves. If mineral properties, exploration, or mine development activities are subsequently abandoned or impaired, any capitalized costs are charged to operations in the current period.
Exploration Expenditures
Exploration, acquisition (except for property purchase costs), and general and administrative costs related to exploration projects and prospecting activities are charged to expense as incurred. Exploration expenses in the nine months ended March 31, 2019 and 2018 were $nil and $nil (see Note 9).
Impairment of Long-Lived Assets
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. During the nine months ended March 31, 2019 and 2018, there was impairment of long-lived assets of $nil and $nil, respectively.
Segment Reporting
FASB ASC 820 “Segments Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about geographical areas, business segments and major customers in financial statements. Our proposed future business segments are expected to span more than one geographical area. Specifically, the Company intends to generate revenue through mineral trading and exploration activities.
Income Taxes
The Company accounts for income taxes in accordance with ASC Topic 740,
Income Taxes
. This statement prescribes the use of the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company recognizes interest and penalties related to unrecognized tax benefits or failure to comply with local tax legislation within the income tax expense line in the accompanying Statement of Operations and Comprehensive Loss. Accrued interest and penalties are included within the related tax liability line in the Balance Sheets.
Loss Per Share
The Company follows the provisions of ASC Topic 260,
Earnings per Share
. Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Basic and diluted losses per share are the same as all potentially dilutive securities are anti-dilutive.
Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock or conversion of notes into shares of the company’s common stock that could increase the number of shares outstanding and lower the earnings per share of the company’s common stock. This calculation is not done for periods in a loss position as this would be antidilutive. As of March 31, 2019, there were approximately 45,104 potentially diluted common shares outstanding and as of June 30, 2018, there were no stock options or stock awards, or other convertible securities that would have been included in the computation of diluted earnings per share that could potentially dilute basic earnings per share in the future.
Recently issued accounting pronouncements
In May 2014, the FASB issued Accounting Standards Update No. 2014-09 which was amended in August 2015 by Update No 2015-14: Revenue from Contracts with Customers. The standard outlines a five-step model for revenue recognition with the core principle being that a company should recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. Companies can choose to apply the standard using either the full retrospective approach or a modified retrospective approach. Under the modified approach, financial statements will be prepared for the year of adoption using the new standard but prior periods presented will not be adjusted. Instead, companies will recognize a cumulative catch-up adjustment to the opening balance of retained earnings. This new guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period and the Company will adopt the standard beginning on July 1, 2019.
There are several new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) which are not yet effective. Each of these pronouncements, as applicable, has been or will be adopted by the Company. As of March 31, 2019, none of these pronouncements is expected to have a material effect on the financial position, results of operations or cash flows of the Company.
Under the JOBS Act, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have opted to take advantage of this extended transition period. Since we will not be required to comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies, our financial statements may not be comparable to financial statements of companies that comply with public company effective dates.
Note 2 – Going Concern
For the nine months ended March 31, 2019, the Company reported a net loss of $685,943. In addition, as of March 31, 2019, the Company had a working capital deficit of approximately $3.2 million with cash on hand less than $16,000. The Company believes that its existing capital resources are not adequate to enable it to execute its business plan and as of the date of these financial statements and has no firm commitment for either additional debt or equity financing available to it in order to meet its current commitments. These conditions raise substantial doubt as to the Company’s ability to continue as a going concern. The Company estimates that it will require significant additional cash resources during fiscal 2019 and beyond, as JHW received its main permit from the Government of Malaysia to commence sea sand mining in January 2019 (see Note 9). The Company initiated a private placement of preference shares in order to meet its upcoming needs. The Company has received approximately $70,000 in relation to the preference shares and the subscription period closed on February 28, 2019. The accompanying financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern. If we fail to generate positive cash flow or obtain additional financing, when required, we may have to modify, delay, or abandon some or all of our business and expansion plans.
The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amount and classification of liabilities that might result from this uncertainty.
Note 3 – Advance Payment on Mineral Trading – Related Party
In the year ended June 30, 2016, SBS advanced to Sincere Pacific Mining Sdn. Bhd. approximately $614,000 (MYR 2,774,000) for the purpose of commencing bauxite trading and financing activities. In that same period, the Company impaired all but $186,372 (MYR 800,000). During the year ended June 30, 2018, the Company received two repayments of MYR 500,000 and MYR 300,000 respectively, which reduced the amounts of the advance not impaired during the fiscal year ended June 30, 2016 to nil as of June 30, 2018. Should the Company, in future periods, collect further amounts under the trading program from its original advance, those amounts will be shown as income in the financial statements of the Company.
Note 4 – Plant and Equipment
|
|
March 31,
|
|
|
June 30,
|
|
|
|
2019
|
|
|
2018
|
|
Cost
|
|
|
|
|
|
|
Motor Vehicles
|
|
$
|
15,922
|
|
|
$
|
16,123
|
|
Office equipment
|
|
|
26,075
|
|
|
|
9,885
|
|
Computers and software
|
|
|
13,841
|
|
|
|
14,016
|
|
Tools and equipment
|
|
|
519
|
|
|
|
526
|
|
Furniture and Fixture
|
|
|
38,048
|
|
|
|
38,528
|
|
|
|
|
94,405
|
|
|
|
79,078
|
|
Accumulated Depreciation
|
|
|
(68,885
|
)
|
|
|
(59,353
|
)
|
Plant and Equipment, Net
|
|
$
|
25,520
|
|
|
$
|
19,725
|
|
Depreciation for the nine months ended March 31, 2019, and 2018 was $7,524 and $22,075, respectively.
Note 5 – Other receivable and deposits
|
|
March 31,
|
|
|
June 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
Sundry receivables
|
|
$
|
16,778
|
|
|
$
|
1,721
|
|
Other receivable
|
|
|
612
|
|
|
|
-
|
|
Deposits, including utility, security deposits
|
|
|
440
|
|
|
|
1,612
|
|
|
|
$
|
17,830
|
|
|
$
|
3,333
|
|
Note 6 – Related party advances and expenses
Advances from related parties:
|
|
March 31,
|
|
|
June 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
Advances from its Directors
|
|
$
|
1,040,793
|
|
|
$
|
1,066,278
|
|
Advances from related party
|
|
|
1,433,555
|
|
|
|
189,795
|
|
Advances from holding company
|
|
|
730,864
|
|
|
|
740,091
|
|
Total
|
|
$
|
3,205,212
|
|
|
$
|
1,996,164
|
|
During the nine months ended March 31, 2019 and 2018, the Company received advance from a director of $3,228 and $306,844 and repaid advances from a director of $15,069 and $256,045, respectively.
During the nine months ended March 31, 2019 and 2018, the Company received advances from a related party of $896,124 and $278,371, respectively.
At the time of the recapitalization, the Company assumed related party liabilities of $346,781.
The Company has imputed interest at the rate of approximately 6.5% on the advances made to the Company in the amount of $103,127 during the nine months ended March 31, 2019, and has imputed interest at the rate of approximately 6.5% on the advances made to the Company in the amount of $115,930 during the nine months ended March 31, 2018.
Note 7 – Commitments and Contingencies
Office Leases
During the nine months ended March 31, 2019, and 2018, the Company expensed $nil and $138,469 with respect to its leasing obligations. During the year ended June 30, 2018, the Company terminated all of its outstanding lease obligations. All deposits under the office leases were forfeited to the landlord as required under the leases upon early termination.
Other Matters
The Company is currently in negotiations with a related party, Nami Development Capital Sdn Bhd (“NDC”), in order to provide the Company with administrative support in the form of a management fee contract. The Company expects that it will obtain both executive and staff level support, office space and computer and other office equipment for all administrative functions sometime in the fiscal year ending June 30, 2019. In the quarter ended March 31, 2019, NDC charged the Company a management fee which was composed entirely of compensation costs related to personnel provided to the Company in the amount of $192,953 which was reported on the line “General and Administrative Expenses – Related Party” in the Statement of Operations.
From time to time the Company may be subject to proceedings, lawsuits, and other claims related to government agencies, operations, shareholders and contracts. The Company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses. A determination of the amount of accrual required, if any, for these contingencies is made after analysis of each matter. The required accrual, if any, may change in the future due to new developments in each matter or changes in settlement strategies. The Company does not believe that there are presently any such matters that will have a material adverse effect on its financial condition or results of operations.
Acquisition
On January 17, 2019, Nami entered into a Letter of Intent with Pembinaan Kaya Hebat Sdn Bhd, a Malaysian corporation engaged in granite mining business (“PKH”) for the acquisition by NAMI of up to one hundred percent (100%) of the issued and outstanding capital stock of PKH with consideration at a purchase price at fair market value (the “Acquisition). The completion of the Acquisition is subject to various conditions precedent, including but not limited to negotiating and execution a form of purchase agreement that is acceptable to both parties, approval of the financial statements of both parties, and fair market valuation of PKH. In the event that Nami is able to complete the Acquisition, it intends to operate PKH as its wholly-owned subsidiary or a majority-owned subsidiary.
Note 8 – Share Capital
Common Stock
The Company’s capitalization is 5,000,000,000 common shares with a par value of $0.001 per share. No preferred shares have been authorized or issued.
As of March 31, 2019, the Company has not granted any stock options and has not recorded any stock-based compensation.
On July 4, 2018, the Company entered into a Share Exchange Agreement with GMCI, as the shareholder (the “SBS Shareholders”) of SBS Mining Corp. Malaysia Sdn. Bhd., a Malaysian corporation (“SBS”), pursuant to which the Company acquired 100% of the issued and outstanding shares of SBS from GMCI in exchange for the issuance of 720,802,346 shares of the Company to GMCI. As a result of Exchange, SBS became wholly owned subsidiary of NAMI and GMCI became majority shareholder of NAMI owning 50.51% of capital stock of the Company.
On July 19, 2018, the Company was notified that GMCI approved and declared a dividend of shares of Nami to the stockholders of GMCI, on a pro rata basis, determined in accordance with the number of shares of capital stock of GMCI held by such stockholders, thereby transferring ownership of 100% of the outstanding shares of Nami held by GMCI to the stockholders of the GMCI (collectively, the “Nami Stock Dividend”). The Nami Stock Dividend was completed on August 21, 2018.
On March 31, 2019 and June 30, 2018, the Company had 1,426,927,346 and 706,125,000, respectively, common shares issued and outstanding.
Preferred Shares - SBS
In August 2018, SBS designated a new class of preferred equity, designated the 12% redeemable cumulative preference shares, in its attempt to raise capital for business expansion and exploration and mining activities. SBS authorized the issuance of up to 50 million shares at the issue price of MYR 1.0 per share. The new preferred equity carries a cumulative 12% preferred dividend, payable on a quarterly basis, based on the issue price of the preferred security. The preferred dividend will have priority to any payment of dividends on the common equity. The preferred shares automatically convert to NAMI Corp common shares two years after issuance if not converted earlier at the rate of USD $1.50 on then value translated into USD of each 12% redeemable cumulative preference share. In the event of the liquidation or winding up of SBS, the preferred shares are entitled to distributions prior to any amounts distributed to the common equity holders. The holders of the preferred shares, so long as the cumulative preferred dividend is timely paid each quarter, have no general voting rights, but have rights to vote on any matters that effect the provisions of the preference shares. In the event that SBS fails to timely make its quarterly dividend payment, the holders of the preferred equity receive the right to vote on any and all general corporate matters on a 1 for 1 basis with the number of preferred shares held. All preferred dividends were paid on a timely basis through the issuance of these financial statements.
In the period ended March 31, 2019, SBS was in discussion with certain investors for a private offering of the 12% redeemable cumulative preference shares. Prior to the subscription for this new preferred equity, one investor advanced the Company $59,530 (MYR 240,000). In August 2018, the Company received a signed subscription from the preference share private placement for the amount tendered and will convert the payable to the preferred equity at the time of receipt of the signed subscription in the first quarter of Fiscal 2019.
In August 2018, the Company received approximately $8,878 (MYR 40,000) in a second subscription of its 12% redeemable cumulative preference shares.
The preferred share subscription offering was closed on February 28, 2019.
Instruments Convertible into Common or Preferred Shares
As of March 31, 2019, the Company had 280,000 shares of preferred stock convertible into 45,724 common shares.
Note 9 – Sea Sand Mining Project
On August 30, 2017, SBS entered into an irrevocable right of use (“IRU”) agreement with JHW Holdings Sdn. Bhd. (“JHW”), whereby SBS shall be given exclusive rights to operate mining and extraction activities on the designated area (1,113 square kilometers outside the waters of the state of Terengganu, Malaysia, subject to certain terms and conditions therein) and manage all matters relating to the operations. The Company currently estimates that the acreage available under the IRU will provide approximately 5 years of sustained mining operations. As part of the IRU, the Company is responsible for all permitting costs (both for mining operation and for the right to sell the mined sand internationally) at both the state and federal levels of all applicable ministries and departments in Malaysia. As compensation for the IRU, the Company is obligated to remit to JHW on a quarterly basis, 25% of the profits from the mining activities, as defined within the agreement. The Company has submitted the required environmental and engineering assessments as part of the permitting process for approximately 383 square kilometres, and in January 2019, JHW was issued by the government of Malaysia the first set of permits necessary to commence sea sand mining operations. The Company is expecting to receive approval for the exporting rights in early 2019. The Company is required to prepay MYR 500,000 of future royalty amounts due under the agreement with JHW, of which SBS funded MYR 200,000 (approximately $48,000) as of March 31, 2019.
As of March 31, 2019, the Company has capitalized $359,226 (MYR 1,466,541) of concession acquisition costs associated with the permit applications for the project and recorded $25,625 of amortization expense, resulting in a net balance of $284,384.
Note 10 – Geographic Segment Reporting
The following table shows operating activities information by geographic segment for the three and nine months ended March 31, 2019 and 2017:
Nine months ended March 31, 2019
|
|
USA
|
|
|
Malaysia
|
|
|
Total
|
|
Revenue
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Depreciation, depletion, amortization and impairment
|
|
|
-
|
|
|
|
(33,149
|
)
|
|
|
(33,149
|
)
|
General and administrative expenses
|
|
|
(531,493
|
)
|
|
|
(21,162
|
)
|
|
|
(552,655
|
)
|
Other income (expenses)
|
|
|
-
|
|
|
|
(100,139
|
)
|
|
|
(100,139
|
)
|
Net loss
|
|
$
|
(531,493
|
)
|
|
$
|
(154,450
|
)
|
|
$
|
(685,943
|
)
|
Nine months ended March 31, 2018
|
|
USA
|
|
|
Malaysia
|
|
|
Total
|
|
Revenue
|
|
$
|
-
|
|
|
$
|
51,017
|
|
|
$
|
51,017
|
|
Depreciation, depletion, amortization and impairment
|
|
|
-
|
|
|
|
(22,075
|
)
|
|
|
(22,075
|
)
|
General and administrative expenses
|
|
|
-
|
|
|
|
(297,503
|
)
|
|
|
(297,503
|
)
|
Other expenses
|
|
|
-
|
|
|
|
(115,930
|
)
|
|
|
(115,930
|
)
|
Net loss
|
|
$
|
-
|
|
|
$
|
(384,491
|
)
|
|
$
|
(384,491
|
)
|
Three months ended March 31, 2019
|
|
USA
|
|
|
Malaysia
|
|
|
Total
|
|
Revenue
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Depreciation, depletion, amortization and impairment
|
|
|
-
|
|
|
|
(27,840
|
)
|
|
|
(27,840
|
)
|
General and administrative expenses
|
|
|
(323,411
|
)
|
|
|
(20,724
|
)
|
|
|
(344,135
|
)
|
Other income (expenses)
|
|
|
-
|
|
|
|
(35,513
|
)
|
|
|
(35,513
|
)
|
Net loss
|
|
$
|
(323,411
|
)
|
|
$
|
(84,077
|
)
|
|
$
|
(407,488
|
)
|
Three months ended March 31, 2018
|
|
USA
|
|
|
Malaysia
|
|
|
Total
|
|
Revenue
|
|
$
|
-
|
|
|
$
|
1,736
|
|
|
$
|
1,736
|
|
Depreciation, depletion, amortization and impairment
|
|
|
-
|
|
|
|
(7,986
|
)
|
|
|
(7,986
|
)
|
General and administrative expenses
|
|
|
-
|
|
|
|
(82,332
|
)
|
|
|
(82,332
|
)
|
Other expenses
|
|
|
-
|
|
|
|
(54,530
|
)
|
|
|
(54,530
|
)
|
Net loss
|
|
$
|
-
|
|
|
$
|
(143,112
|
)
|
|
$
|
(143,112
|
)
|
The following table shows assets information by geographic segment at March 31, 2019 and June 30, 2018:
As of March 31, 2019
|
|
USA
|
|
|
Malaysia
|
|
|
Total
|
|
Current assets
|
|
$
|
-
|
|
|
$
|
82,813
|
|
|
$
|
82,813
|
|
Concession acquisition costs
|
|
|
-
|
|
|
|
333,374
|
|
|
|
333,374
|
|
Property and equipment, net
|
|
|
-
|
|
|
|
25,520
|
|
|
|
25,520
|
|
Total assets
|
|
$
|
-
|
|
|
$
|
441,707
|
|
|
$
|
441,707
|
|
As of June 30, 2018
|
|
USA
|
|
|
Malaysia
|
|
|
Total
|
|
Current assets
|
|
$
|
-
|
|
|
$
|
22,840
|
|
|
$
|
22,840
|
|
Concession acquisition costs
|
|
|
-
|
|
|
|
236,749
|
|
|
|
236,749
|
|
Property and equipment, net
|
|
|
-
|
|
|
|
19,725
|
|
|
|
19,725
|
|
Total assets
|
|
$
|
-
|
|
|
$
|
279,314
|
|
|
$
|
279,314
|
|
Note 11 – Subsequent events
The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and has determined that there are no events to disclose.