The accompanying interim financial statements
of Yijia Group Corp. (“the Company”, “we”, “us” or “our”), have been prepared without
audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with United States generally accepted principles have been condensed
or omitted pursuant to such rules and regulations.
The interim financial statements are condensed
and should be read in conjunction with the company’s latest annual financial statements.
In the opinion of management, the financial
statements contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial
condition, results of operations, and cash flows of the Company for the interim periods presented.
See accompanying notes, which are an integral
part of these condensed financial statements
See accompanying notes, which are an integral
part of these condensed financial statements
See accompanying notes, which are an integral
part of these condensed financial statements
See accompanying notes, which are an integral
part of these condensed financial statements
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED OCTOBER 31,
2020
(UNAUDITED)
Note 1 – BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated
financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United
States (“GAAP”), the instructions to Form –Q and Rule 10-01 of Regulation S-X. Certain information and note
disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made
are adequate to make the information not misleading.
In the opinion of management, the consolidated
balance sheet as of April 30, 2020 which has been derived from audited financial statements and these unaudited condensed financial
statements reflect all normal and considered necessary to state fairly the results for the periods presented. The results for the
period ended October 31, 2020 are not necessarily indicative of the results to be expected for the entire fiscal year ending April
30, 2021 or for any future period.
These unaudited condensed consolidated
financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial
statements and notes thereto included in the Annual Report on Form 10-K for the year ended April 30, 2020.
Note 2 – ORGANIZATION AND NATURE
OF BUSINESS
Yijia Group Corp. (formerly, Soldino Group
Corp.) (“the Company”, “we”, “us” or “our”) was incorporated on January 25, 2017
under the laws of the State of Nevada, United States of America. The Company has ceased its operations in 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.
From November 1, 2018, the Company is a shell company.
On October 31, 2018, Aurora Fiorin resigned
as the President, Treasurer, Secretary and Director of the Company. Ms. Fiorin’s resignation as President, Treasurer and
Secretary was effective immediately. Ms. Fiorin’s resignation as a Director was effective ten (10) days following the filing
by the Company of the Information Statement on Schedule 14f-1 with the United States Securities and Exchange Commission (the “SEC”).
Prior to Ms. Fiorin’s resignation, she appointed Ms. Shaoyin Wu as the new President and Chief Executive Officer of the Company
and Mr. Kim Lee Poh as the Company’s new Chief Financial Officer and Secretary. Messrs. Wu and Poh were appointed as the
new board members of the Company together with Mr. Jian Yang.
On November 15, 2018, the Company filed
a Certificate of Amendment to the Articles of Incorporation with Nevada’s Secretary of State to change its name to Yijia
Group Corp.
Note 3 – GOING CONCERN
The accompanying unaudited condensed 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 $23,632 for the six months ended October 31, 2020 and an accumulated
deficit of $210,903.
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.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED OCTOBER 31,
2020
(UNAUDITED)
Note 4 – SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
Use of Estimates
The preparation of the unaudited condensed
financial statements in conformity with accounting principles generally accepted in the U.S. 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 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 Standard 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 prioritizes 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
amount due to a related party 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 six months ended October 31, 2020 and 2019.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED OCTOBER 31,
2020
(UNAUDITED)
Revenue Recognition
The Company recognizes revenue in accordance
with “ASC” No. 605, “Revenue Recognition”. ASC-605 requires that four basic criteria must be met before
revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is
fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's
judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions
for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period
the related sales are recorded. The Company will defer any revenue for which the product has not been delivered or is subject to
refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will
be required. No revenue was generated for the three and six months ended October 31, 2020 and 2019.
Net Loss Per Share
The Company computes net loss per share
in accordance with FASB ASC 260 “Earnings per Share”. Basic net loss per share is computed by dividing net loss available
to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives
effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common
shares if their effect is anti-dilutive. As of October 31, 2020, 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 October
31, 2020 and April 30, 2020, there were no differences between our comprehensive loss and net loss.
Related parties
Parties, which can be a corporation or
individual, are considered to be if the entities have 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.
Reclassification
Certain reclassifications have been made
to the financial statements for the prior periods to present that information on a basis consistent with the current period.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED OCTOBER 31,
2020
(UNAUDITED)
Recent Accounting Pronouncements
In June 2016, the Financial Accounting
Standards Board (“FASB”) issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement
of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 amends the impairment model by requiring
entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments,
including trade receivables. In November 2018, the FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326,
Financial Instruments - Credit Losses” (“ASU 2018-19”) which clarifies that receivables arising from operating
leases are accounted for using lease guidance and not as financial instruments. In April 2019, the FASB issued ASU No. 2019-04,
“Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and
Topic 825, Financial Instruments” (“ASU 2019-04”) which clarifies treatment of certain credit losses. In
May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief
” (“ASU 2019-05”) which provides an option to irrevocably elect to measure certain individual financial assets
at fair value instead of amortized cost. In November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements
to Topic 326, Financial Instruments - Credit Losses” (“ASU 2019-11”), which provides guidance around how
to report expected recoveries. In February 2020, the Financial Accounting Standards Board issued ASU No. 2020-02, “Financial
Instruments - Credit Losses” (Topic 326) (“ASU 2020-02”) which provides updated guidance on how an entity
should measure credit losses on financial instruments and delayed the effective date of the original pronouncement for smaller
reporting companies. ASU 2016-13, ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11 and ASU 2020-02 (collectively, “ASC
326”) are effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted.
The adoption of ASC 326 did not have a material impact on the Company’s recognition of financial instruments within the scope
of the standard.
In January 2017, the FASB issued ASU No.
2017-04, “Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment” (“ASU
2017-04”), which eliminates step two from the goodwill impairment test and instead requires an entity to perform its annual,
or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still
has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary.
The guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019
and should be adopted on a prospective basis. The adoption of ASU 2017-04 did not have a material effect on the Company’s
current financial position, results of operations or financial statement disclosures.
In August 2018, the FASB issued ASU No.
2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value
Measurement” (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements.
ASU 2018-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted
for any removed or modified disclosures. The adoption of ASU 2018-13 did not have a material effect on the Company’s current
financial position, results of operations or financial statement disclosures.
In December 2019, the FASB issued ASU No
2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”).
ASU 2019-12 removes certain exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles. ASU
2019-12 is effective for public entities for fiscal years beginning after December 15, 2020, with early adoption permitted. The
Company does not expect ASU 2019-12 to have a material effect on the Company’s current financial position, results of operations
or financial statement disclosures.
In March 2020, the FASB issued ASU 2020-03,
“Codification Improvements to Financial Instruments” (“ASU 2020-03”). ASU 2020-03 improves and clarifies
various financial instruments topics. ASU 2020-03 includes seven different issues that describe the areas of improvement and the
related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing
clarifications. The Company adopted ASU 2020-03 upon issuance, which did not have a material effect on the Company’s current
financial position, results of operations or financial statement disclosures.
In March 2020, the FASB issued ASU No 2020-04,
“Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”
(“ASU 2020-04”). ASU 2020-04 provides temporary optional expedients and exceptions to the US GAAP guidance on contract
modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London
Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. ASU 2020-04 is effective beginning
on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company does
not expect ASU 2020-04 to have a material effect on the Company’s current financial position, results of operations or financial
statement disclosures.
Management believes recently issued accounting
pronouncements will have no impact on the financial statements of the Company.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED OCTOBER 31,
2020
(UNAUDITED)
Note 5 – AMOUNT DUE TO A RELATED
PARTY
Amount due to a related party represents
temporary advance by the director of the Company. The amount is unsecured, interest-free and has no fixed terms of repayment.
Note 6 – COMMON STOCK
The Company has authorized 75,000,000 shares
of common stock with a par value of $0.001 per share.
As of October 31, 2020 and April 30, 2020,
the Company had 5,871,250 and 5,871,250 shares of common stock issued and outstanding, respectively.
Note 7 – COMMITMENTS AND CONTINGENCIES
As of October 31, 2020, the Company has
no material commitments and contingencies.
Note 8 – INTEREST AND PENALTIES
The Company includes interest and penalties
arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of October
31, 2020 and April 30, 2020, the Company had no accrued interest or penalties related to uncertain tax positions.
Note 9 – 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 October
31, 2020 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 October 31, 2020. The Company’s utilization of any net operating loss carry forward may be unlikely as a result
of its intended activities.
YIJIA GROUP CORP.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED OCTOBER 31,
2020
(UNAUDITED)
The valuation allowance at October 31,
2020 was $44,290. The net change in valuation allowance during the six months ended October 31, 2020 was $4,963. 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 October 31,
2020 and 2019. All tax years since inception remains open for examination only by taxing authorities of US Federal and state
of Nevada.
The Company has a net operating loss carryforward
for tax purposes totaling $210,903 at October 31, 2020, expiring through 2039. 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:
|
|
As of
October 31, 2020
(Unaudited)
|
|
|
As of
April 30, 2020
(Audited)
|
|
Non-current deferred tax assets:
|
|
|
|
|
|
|
|
|
Net operating loss carryforward
|
|
$
|
(210,903
|
)
|
|
$
|
(187,271
|
)
|
|
|
|
|
|
|
|
|
|
Total deferred tax assets
|
|
|
(44,290
|
)
|
|
|
(39,327
|
)
|
Valuation allowance
|
|
|
44,290
|
|
|
|
39,327
|
|
Net deferred tax assets
|
|
$
|
–
|
|
|
$
|
–
|
|
The actual tax benefit at the expected
rate of 21% differs from the expected tax benefit for the six months ended October 31, 2020 as follows:
|
|
Six months ended
October 31, 2020
(Unaudited)
|
|
|
Six months ended
October 31, 2019
(Unaudited)
|
|
Computed "expected" tax benefit
|
|
$
|
(44,290
|
)
|
|
$
|
(32,411
|
)
|
Change in valuation allowance
|
|
|
44,290
|
|
|
|
32,411
|
|
Actual tax benefit
|
|
$
|
–
|
|
|
$
|
–
|
|
Note 10 – SUBSEQUENT EVENTS
In accordance with ASC Topic 855, “Subsequent
Events” the Company has analyzed its operations subsequent to October 31, 2020 to the date these financial statements were
available to be issued, and has determined that it does not have any material subsequent events to disclose in these financial
statements.