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Azar International Corp. – ‘10-Q’ for 5/31/20

On: Tuesday, 7/14/20, at 9:51pm ET · As of: 7/15/20 · For: 5/31/20 · Accession #: 1477932-20-3991 · File #: 333-234137

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 7/15/20  Azar International Corp.          10-Q        5/31/20   34:1M                                     Discount Edgar/FA

Quarterly Report — Form 10-Q — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                    HTML    170K 
 2: EX-31.1     Certification -- §302 - SOA'02                      HTML     16K 
 3: EX-32.1     Certification -- §906 - SOA'02                      HTML     12K 
10: R1          Cover                                               HTML     61K 
11: R2          Balance Sheets                                      HTML     51K 
12: R3          Balance Sheets (Parenthetical)                      HTML     20K 
13: R4          Statements of Operations (Unaudited)                HTML     40K 
14: R5          Statement of Stockholders Equity (Deficit)          HTML     25K 
                (Unaudited)                                                      
15: R6          Statements of Cash Flows (Unaudited)                HTML     50K 
16: R7          Organization and Business                           HTML     15K 
17: R8          Going Concern                                       HTML     16K 
18: R9          Summary of Significant Accounting Policies          HTML     25K 
19: R10         Equipment (Net)                                     HTML     14K 
20: R11         Intangible Assets                                   HTML     14K 
21: R12         Captial Stock                                       HTML     14K 
22: R13         Related Party Transactions                          HTML     14K 
23: R14         Subsequent Events                                   HTML     14K 
24: R15         Summary of Significant Accounting Policies          HTML     50K 
                (Policies)                                                       
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                (Details Narrative)                                              
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‘10-Q’ — Quarterly Report
Document Table of Contents

Page	(sequential)	(alphabetic)	↑Top
		Alternative Formats (Word, et al.) Controls and procedures Defaults upon senior securities Exhibits Item 1 Item 2 Item 3 Item 4 Item 5 Item 6 Legal proceedings Management's discussion and analysis of financial condition and results of operations Mine safety disclosures Other Information Part Ii Quantitative and qualitative disclosures about market risk Signatures Table of Contents Unregistered sales of equity securities and use of proceeds
1	1st Page – Filing Submission
"	Table of Contents
"	Item 2
"	Management's discussion and analysis of financial condition and results of operations
"	Item 3
"	Quantitative and qualitative disclosures about market risk
"	Item 4
"	Controls and procedures
"	Part Ii
"	Other Information
"	Item 1
"	Legal proceedings
"	Unregistered sales of equity securities and use of proceeds
"	Defaults upon senior securities
"	Mine safety disclosures
"	Item 5
"	Item 6
"	Exhibits
"	Signatures

This is an HTML Document rendered as filed. [ Alternative Formats ]

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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM i 10-Q

Mark One

i ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended i May 31, 2020

i ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to _______

COMMISSION FILE NO. i 333-234137

i AZAR INTERNATIONAL CORP.

(Exact name of registrant as specified in its charter)

i Nevada

7999

i 98-1448750

(State or Other Jurisdiction of

Incorporation or Organization)

(Primary Standard Industrial

Classification Number)

(IRS Employer

Identification Number)

Azar International Corp.

i Carretera Turistica, Luperon, 12th km, No. 7

i Grand Parada, i Puerto Plata, i Dominican Republic

( i 829) i 947-5251

(Address and telephone number of registrant's executive office)

Indicate by checkmark whether the issuer: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. i Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). i Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filed, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	i ☒
		Emerging growth company	i ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. YES ☐ NO ☒

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes i ☐ No ☒

Applicable Only to Issuer Involved in Bankruptcy Proceedings During the Preceding Five Years. N/A

Indicate by checkmark whether the issuer has filed all documents and reports required to be filed by Section 12, 13 and 15(d) of the Securities Exchange Act of 1934 after the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐

Applicable Only to Corporate Registrants

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the most practicable date:

Class		Outstanding as of July 14, 2020
Common Stock, $0.001		i 3,000,000

AZAR INTERNATIONAL CORP.

Part I	Financial information

Item 1	Financial statements (unaudited)	3
Item 2	Management’s discussion and analysis of financial condition and results of operations	11
Item 3	Quantitative and qualitative disclosures about market risk	13
Item 4	Controls and procedures	13

PART II	Other Information

Item 1	Legal proceedings	14
Item 2	Unregistered sales of equity securities and use of proceeds	14
Item 3	Defaults upon senior securities	14
Item 4	Mine safety disclosures	14
Item 5	Other information	14
Item 6	Exhibits	15
	Signatures	16

2 | Page

Table of Contents

AZAR INTERNATIONAL CORP.

BALANCE SHEETS

	MAY 31, 2020 (UNAUDITED)			AUGUST 31, 2019 (AUDITED)
ASSETS
Current Assets
Cash & cash equivalents	$	i 2,156		$	i 5,000
Total current assets	$	i 2,156		$	i 5,000
Non-Current assets
Equipment (net)		i 264			i -
Intangible assets (net)		i 3,867			i -
Total non-Current assets	$	i 4,131			i -
TOTAL ASSETS	$	i 6,287		$	i 5,000

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Loans from related parties		i 7,797			i 2,978
Total current liabilities	$	i 7,797		$	i 2,978
Total Liabilities	$	i 7,797		$	i 2,978

Stockholders’ Equity (Deficit)
Common stock, $ i 0.001 par value, i 75,000,000 shares authorized;
i 3,000,000 shares issued and outstanding		i 3,000			i 3,000
Accumulated Deficit		( i 4,510	)		( i 978	)
Total Stockholders’ equity (deficit)	$	( i 1,510	)	$	i 2,022
Total Liabilities and Stockholders’ Equity (Deficit)	$	i 6,287		$	i 5,000

The accompanying notes are an integral part of these financial statements.

3 | Page

Table of Contents

AZAR INTERNATIONAL CORP.

STATEMENTS OF OPERATIONS

(UNAUDITED)

Three months

ended

May 31, 2020

Three months

ended

May 31, 2019

Nine months

ended

May 31, 2020

For the period from Inception (September 20, 2018) to May 31, 2019

Revenue

i -

i 4,000

i -

OPERATING EXPENSES

Cost of sales

i -

i 1,400

i -

General and administrative expenses

i 1,629

i -

i 6,132

i 978

Total Operation expenses

( i 1,629

)

i -

( i 7,532

)

( i 978

)

Income (Loss) before provision for income taxes

( i 1,629

)

i -

( i 3,532

)

( i 978

)

Provision for income taxes

i -

Net income (loss)

( i 1,629

)

i -

( i 3,532

)

( i 978

)

Income (loss) per common share:

Basic and Diluted

i 0.00

i -

( i 0.00

)

( i 0.00

)

Weighted Average Number of Common Shares Outstanding:

Basic and Diluted

i 3,000,000

i 2,192,913

The accompanying notes are an integral part of these financial statements.

4 | Page

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AZAR INTERNATIONAL CORP.

STATEMENT OF STOCKHOLDER’S EQUITY (DEFICIT)

FOR THE PERIOD FROM INCEPTION (SEPTEMBER 20, 2018) to MAY 31, 2020

(UNAUDITED)

Number of

Common

Shares

Amount

Deficit

accumulated

Total

Balance at September 20, 2018, Inception

i -

Shares issued at $0.001 for the period from Inception (September 20, 2018) to August 31, 2019

i 3,000,000

i 3,000

Net loss for the period from Inception (September 20, 2018 to May 31, 2019

i -

( i 978

)

( i 978

)

Balances as of May 31, 2019

i 3,000,000

i 3,000

( i 978

)

i 2,022

Balances as of August 31, 2019

i 3,000,000

i 3,000

( i 978

)

i 2,022

Net loss for the nine months ended May 31, 2020

i -

( i 3,532

)

( i 3,532

)

Balances as of May 31, 2020

i 3,000,000

i 3,000

( i 4,510

)

( i 1,510

)

The accompanying notes are an integral part of these financial statements.

5 | Page

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AZAR INTERNATIONAL CORP.

STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine months ended May 31, 2020			For the period from Inception (September 20, 2018) to May 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	( i 3,532	)	$	( i 978	)
Adjustments as of non-cash items
Depreciation		i 75			i -
Amortization		i 933			i -
Net cash provided by Operating activities		( i 2,524	)		( i 978	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of non-current assets		( i 5,139	)		i -
Net cash provided by (used in) Investing activities		( i 5,139	)		i -

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of common stock		i -			i 3,000
Proceeds of loan from shareholder		i 4,819			i 2,978
Net cash provided by Financing activities		i 4,819			i 5,978
Increase (decrease) in cash and equivalents		( i 2,844	)		i 5,000
Cash and equivalents at beginning of the period		i 5,000			i -
Cash and equivalents at end of the period	$	i 2,156		$	i 5,000
Supplemental cash flow information:
Cash paid for:
Interest	$	i -		$	i -
Taxes	$	i -		$	i -

The accompanying notes are an integral part of these financial statements.

6 | Page

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AZAR INTERNATIONAL CORP.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

FOR THE NINE MONTHS PERIOD ENDED MAY 31, 2020

NOTE 1 – ORGANIZATION AND BUSINESS

AZAR INTERNATIONAL CORP. (the “Company”) is a corporation established under the corporation laws in the State of Nevada on September 20, 2018. Azar International Corp. is in the tourism business.

The Company has adopted August 31 fiscal year end.

NOTE 2 – GOING CONCERN

The Company’s financial statements as of May 31, 2020 have been prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The Company has accumulated loss from inception (September 20, 2018) to May 31, 2020 of $4,510. These factors among others raise substantial doubt about the ability of the company to continue as a going concern for a reasonable period of time.

During the quarter ended May 31, 2020, the Company was negatively impacted by the effects of the worldwide COVID-19 pandemic. The Company’s business is tourism in the Dominican Republic. Border closer, travel bans and quarantine place doubt on the Company’s revenue, which could result in continued losses.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification 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 financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.

New Accounting Pronouncements

There were various accounting standards and interpretations issued recently, none of which are expected to a have a material impact on our financial position, operations or cash flows.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company's bank accounts are deposited in insured institutions. The funds are insured up to $ i 250,000. At May 31, 2020, the Company's bank deposits did not exceed the insured amounts.

/ /

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Stock-Based Compensation

As of May 31, 2020, the Company has not issued any stock-based payments to its employees.

Stock-based compensation is accounted for at fair value in accordance with ASC 718, when applicable. To date, the Company has not adopted a stock option plan and has not granted any stock options.

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 at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.

Fair Value of Financial Instruments

ASC 825, “Disclosures about Fair Value of Financial Instruments”, requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of May 31, 2020.

The respective carrying values of certain on-balance-sheet financial instruments approximate their fair values. These financial instruments include cash, accounts payable and related party loan payable. Fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair value.

Income Taxes

Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Revenue Recognition

We adopted Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”, and all related interpretations for recognition of our revenue from tours and services. Previously we recorded revenue based on ASC Topic 605. Adoption of new accounting standard did not have any material impact on our reported revenue.

Revenue is recognized when the following criteria are met:

	-	Identification of the contract, or contracts, with customer;
	-	Identification of the performance obligations in the contract;
	-	Determination of the transaction price;
	-	Allocation of the transaction price to the performance obligations in the contract; and
	-	Recognition of revenue when, or as, we satisfy performance obligation.

The Company has evaluated all the recent accounting pronouncements and determined that there are no other accounting pronouncements that will have a material effect on the Company’s financial statements.

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Fixed Assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs, if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any subsidy/reimbursement/contribution received for installation and acquisition of any fixed assets is shown as deduction in the year of receipt. Capital work- in progress is stated at cost.

Subsequent expenditure related to an item of fixed assets is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repairs and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit and Loss for the period during which such expenses are incurred.

Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the assets derecognized.

The Company utilizes straight-line depreciation over the estimated useful life of the asset.

Office Equipment – i 3 years

Earnings per Share

ASC No. 260, “Earnings Per Share”, specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. The Company has adopted the provisions of ASC No. 260.

Basic net loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted earnings per share are the same as basic earnings per share due to the lack of dilutive items in the Company.

Risks and Uncertainties

In December 2019, a novel strain of coronavirus surfaced in China, which has and is continuing to spread throughout the world, including the United States and Dominican Republic. On January 30, 2020, the World Health Organization declared the outbreak of the coronavirus disease (COVID-19) a “Public Health Emergency of International Concern,” and on March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic”. The governors of New York, California and several other states, as well as mayors on many cities, have ordered their residents to cease traveling to non-essential jobs and to curtail all unnecessary travel, and to stay in their homes as much as possible in the coming weeks, as the nation confronts the escalating coronavirus outbreak, and similar restrictions have been recommended by the federal authorities and authorities in many other states and cities. The Company is not able to predict the ultimate impact that COVID -19 will have on its business; however, if the current economic conditions continue, the Company will be forced to significantly scale back its business operations and its growth plans, and could ultimately have a significant negative impact on the Company.

NOTE 4 – EQUIPMENT (NET)

Company purchased equipment as on September 30, 2019 for $ i 339.

The Company depreciates its property using straight-line depreciation over the estimated useful life of i 3 years.

For the nine-month period ended May 31, 2020 the company recorded $ i 75 in depreciation expense. From inception (September 20, 2018) through May 31, 2020 the company has recorded a total of $ i 75 in depreciation expense.

NOTE 5 – INTANGIBLE ASSETS

Intangibles comprise of Company’ website. The website was purchased on October 31, 2019 for $ i 4,800. The Company amortize its intangible using straight-line depreciation over the estimated useful life of i 3 years.

For the nine-month period ended May 31, 2020 the company recorded $ i 933 in amortization expense. From inception (September 20, 2018) through May 31, 2020 the company has recorded a total of $ i 933 in amortization expense.

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NOTE 6 – CAPTIAL STOCK

The Company has i 75,000,000 shares of common stock authorized with a par value of $ i 0.001 per share.

In November 2018, the Company issued i 3,000,000 shares of its common stock at $ i 0.001 per share for total proceeds of $ i 3,000.

As of May 31, 2020, the Company had i 3,000,000 shares issued and outstanding.

NOTE 7 – RELATED PARTY TRANSACTIONS

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by officers, directors, or shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.

Since September 20, 2018 (Inception) through May 31, 2020, the Company’s sole officer and director loaned the Company $ i 7,797 to pay for incorporation costs and operating expenses. As of May 31, 2020, the amount outstanding was $ i 7,797. The loan is non-interest bearing, due upon demand and unsecured.

NOTE 8 – SUBSEQUENT EVENTS

The Company has evaluated subsequent events from May 31, 2020 to the date the financial statements were issued and has determined that there are no items to disclose.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

FORWARD LOOKING STATEMENTS

Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

DESCRIPTION OF BUSINESS

On September 20, 2018, the Company was incorporated under the laws of the State of Nevada. We are engaged in the tourism. Azar International Corp. organizes individual and group sailing tours in the Dominican Republic. Services and itineraries provided by our company include custom packages according to the client’s specifications. We develop and offer our own sailing tours in the North part of Dominican Republic as well as third-party suppliers.

RESULTS OF OPERATIONS

Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.

We expect we will require additional capital to meet our long-term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

As of May 31, 2020, our total assets were $6,287 compared to $5,000 in total assets at August 31, 2019. As of May 31, 2020, our total liabilities were $7,797 compared to $2,978 in total liabilities at August 31, 2019.

Stockholders’ equity was $2,022 as of August 31, 2019 compared to deficit of $1,510 as of May 31, 2020.

Three months ended May 31, 2020 compared to three months May 31, 2019.

During three months ended May 31, 2020 and 2019 we have not generated any revenue.

During the three months ended May 31, 2020, we incurred expenses of $1,627 compared to $-0- incurred during the three-month period ended May 31, 2019.

Our net loss for the three months ended May 31, 2020 was $1,629 compared to $-0- during the three-month period ended May 31, 2019.

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Nine months ended May 31, 2020 compared to the period from Inception (September 20, 2018) to May 31, 2019.

During nine months ended May 31, 2020 we have generated $4,000 in revenue compared to $-0- during the period from Inception (September 20, 2018) to May 31, 2019.

During the nine months ended May 31, 2020, we incurred expenses of $7,532 compared to $978 incurred during the period from Inception (September 20, 2018) to May 31, 2019.

Our net loss for the nine months ended May 31, 2020 was $3,532 compared to $978 during the period from Inception (September 20, 2018) to May 31, 2019.

Cash Flows used by Operating Activities

For the nine-month period ended May 31, 2020, net cash flows used in operating activities was $2,524. Net cash flows used in operating activities was $978 for the period from Inception (September 20, 2018) to May 31, 2019.

Cash Flows used by Investing Activities

We used $5,139 in investing activities during the nine-month period ended May 31, 2019 compared to $-0- for the period from Inception (September 20, 2018) to May 31, 2019.

Cash Flows from Financing Activities

For the nine-month period ended May 31, 2020, net cash flows from financing activities was $4,819 received from the related party compared to $5,978 received from the related party and issuance of common stock during the period from Inception (September 20, 2018) to May 31, 2019.

Effects of COVID-19

In March 2020, a novel strain of coronavirus (COVID-19) was declared a global pandemic by the World Health Organization. This pandemic has negatively affected the U.S. and global economies, disrupted global supply chains and financial markets, and led to significant travel and transportation restrictions, including mandatory closures and orders to “shelter-in-place”.

As the pandemic continues the global tourism may continue to decline, which will continue to affect our revenue and, as a result, could adversely affect our operating results and financial condition. The Dominican government lifted the State of Emergency and allowed the resumption of commercial aviation effective July 1, however, there are still limitations regarding public activities. Social distancing protocols have been established for a variety of activities and masks are required by law in public spaces.

During the quarter ended May 31, 2020, the Company was negatively impacted by the effects of the worldwide COVID-19 pandemic, border closer, travel bans and quarantine, and is likely to continue to be adversely affected for a significant period of time.

PLAN OF OPERATION AND FUNDING

We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next twelve months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.

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OFF-BALANCE SHEET ARRANGEMENTS

As of the date of this Quarterly Report, we do not have any 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 are material to investors.

GOING CONCERN

The independent registered public accounting firm auditors' report accompanying our August 31, 2019 financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

As a "smaller reporting company" as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Our disclosure controls and procedures are designed to ensure that information required to be disclosed in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Our principal executive officer and principal financial and accounting officer have reviewed the effectiveness of our “disclosure controls and procedures” (as defined in the Securities Exchange Act of 1934 Rules 13(a)-15(e) and 15(d)-15(e)) within the end of the period covered by this Quarterly Report on Form 10-Q and have concluded that the disclosure controls and procedures were effective to ensure that material information relating to the Company is recorded, processed, summarized, and reported in a timely manner.

Changes in Internal Controls over Financial Reporting

There have been no changes in the Company's internal control over financial reporting during the nine-month period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

No senior securities were issued and outstanding during the nine-month period ended May 31, 2020.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable to our Company.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

31.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a)

32.1	Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002

101.INS	XBRL Instance Document

101.SCH	XBRL Taxonomy Extension Schema Document

101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF	XBRL Taxonomy Extension Definition Document

101.LAB	XBRL Taxonomy Extension Label Linkbase Document

101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

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SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AZAR INTERNATIONAL CORP.

Date: July 14, 2020	By:	/s/ *Hilario Lopez Vargas*
		Hilario Lopez Vargas
		President and Chief Executive Officer and Chief Financial Officer

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Dates Referenced Herein and Documents Incorporated by Reference

This ‘10-Q’ Filing	Date	Other Filings

Filed as of:	7/15/20
Filed on:	7/14/20
For Period end:	5/31/20
	3/11/20
	1/30/20	UPLOAD
	10/31/19
	9/30/19
	8/31/19
	5/31/19
	9/20/18
		List all Filings

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Azar International Corp. – ‘10-Q’ for 5/31/20

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