SEC Info  
    Home      Search      My Interests      Help      Sign In      Please Sign In

JS Beauty Land Network Technology Inc – ‘10-Q’ for 9/30/19

On:  Friday, 11/15/19, at 4:26pm ET   ·   For:  9/30/19   ·   Accession #:  1493152-19-17753   ·   File #:  0-55963

Previous ‘10-Q’:  ‘10-Q/A’ on 8/26/19 for 6/30/19   ·   Next:  ‘10-Q’ on 8/5/20 for 3/31/20   ·   Latest:  ‘10-Q’ on 11/15/21 for 9/30/21

Find Words in Filings emoji
 
  in    Show  and   Hints

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

11/15/19  JS Beauty Land Network Tech Inc   10-Q        9/30/19   39:1.4M                                   M2 Compliance/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    165K 
 2: EX-31.1     Certification -- §302 - SOA'02                      HTML     22K 
 3: EX-31.2     Certification -- §302 - SOA'02                      HTML     22K 
 4: EX-32.1     Certification -- §906 - SOA'02                      HTML     17K 
15: R1          Document and Entity Information                     HTML     45K 
30: R2          Condensed Consolidated Balance Sheet                HTML     85K 
34: R3          Condensed Consolidated Balance Sheet                HTML     33K 
                (Parenthetical)                                                  
24: R4          Condensed Consolidated Statement of Operations and  HTML     75K 
                Comprehensive Income (Unaudited)                                 
14: R5          Condensed Consolidated Statement of Cash Flows      HTML     84K 
                (Unaudited)                                                      
29: R6          Statement of Stockholders' Equity (Unaudited)       HTML     46K 
33: R7          Nature of Operations and Summary of Significant     HTML     40K 
                Accounting Policies                                              
25: R8          Going Concern                                       HTML     19K 
13: R9          Inventory                                           HTML     16K 
38: R10         Property and Equipment                              HTML     17K 
26: R11         Accrued Liabilities                                 HTML     16K 
16: R12         Related Parties                                     HTML     17K 
18: R13         Other Payable                                       HTML     16K 
39: R14         Stockholders' Equity                                HTML     19K 
27: R15         Subsequent Events                                   HTML     16K 
17: R16         Nature of Operations and Summary of Significant     HTML     80K 
                Accounting Policies (Policies)                                   
19: R17         Nature of Operations and Summary of Significant     HTML     17K 
                Accounting Policies (Tables)                                     
37: R18         Nature of Operations and Summary of Significant     HTML     43K 
                Accounting Policies (Details Narrative)                          
28: R19         Nature of Operations and Summary of Significant     HTML     18K 
                Accounting Policies - Schedule of Property Plant                 
                and Equipment Useful Life (Details)                              
11: R20         Going Concern (Details Narrative)                   HTML     25K 
22: R21         Inventory (Details Narrative)                       HTML     19K 
35: R22         Property and Equipment (Details Narrative)          HTML     23K 
31: R23         Accrued Liabilities (Details Narrative)             HTML     16K 
12: R24         Related Parties (Details Narrative)                 HTML     21K 
23: R25         Other Payable (Details Narrative)                   HTML     16K 
36: R26         Stockholders' Equity (Details Narrative)            HTML     59K 
32: XML         IDEA XML File -- Filing Summary                      XML     63K 
21: EXCEL       IDEA Workbook of Financial Reports                  XLSX     32K 
 5: EX-101.INS  XBRL Instance -- jsbl-20190930                       XML    303K 
 7: EX-101.CAL  XBRL Calculations -- jsbl-20190930_cal               XML     93K 
 8: EX-101.DEF  XBRL Definitions -- jsbl-20190930_def                XML    126K 
 9: EX-101.LAB  XBRL Labels -- jsbl-20190930_lab                     XML    383K 
10: EX-101.PRE  XBRL Presentations -- jsbl-20190930_pre              XML    279K 
 6: EX-101.SCH  XBRL Schema -- jsbl-20190930                         XSD     63K 
20: ZIP         XBRL Zipped Folder -- 0001493152-19-017753-xbrl      Zip     43K 


‘10-Q’   —   Quarterly Report
Document Table of Contents

Page (sequential)   (alphabetic) Top
 
11st Page  –  Filing Submission
"Condensed Balance Sheets as of September 30, 2019 (unaudited) and December 31, 2018 (audited)
"Condensed Statements of Operations for the three months and nine ended September 30, 2019 (unaudited)
"Condensed Statements of Cash Flows for the nine months ended September 30, 2019 (unaudited)
"Condensed Statement of Stockholders' Equity for the three and nine months ended September 30, 2019 (unaudited)
"Notes to Condensed Financial Statements (unaudited)

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



 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2019

 

OR

 

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT

OF 1934

 

For the transition period from to

 

Commission file number 000-55738

 

JS BEAUTY LAND NETWORK TECHNOLOGY INC.

(Exact name of registrant as specified in its charter)

 

Nevada   83-1365356
(State or other jurisdiction   I.R.S. Employer
of incorporation)   Identification Number

 

No. 99, Taihu Road, Yancheng, Jiangsu Province, China

(Address of principal executive offices)

 

778-888-2886

(Registrant’s telephone number, including area code)

 

Securities to be registered under Section 12(g) of the Act:

Common stock, par value $0.001 per share

(Title of class)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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.

 

Yes [X] No [  ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer [  ] Accelerated filer [  ]
Non-accelerated filer [  ] (Do not check if a smaller reporting company) Smaller reporting company [X]
  Emerging growth company [  ]

 

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. [  ]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

Yes [  ] No [X]

 

Indicate the number of shares outstanding of each of the registrant’s classes of common stock as of the latest practicable date.

 

Class   Outstanding at November 15, 2019
Common Stock, par value $0.001   2,136,428

 

Documents incorporated by reference: None

 

 

 

 C: 
   
 

 

CONDENSED FINANCIAL STATEMENTS

 

Condensed Balance Sheets as of September 30, 2019 (unaudited) and December 31, 2018 (audited) 3
Condensed Statements of Operations for the three months and nine ended September 30, 2019 (unaudited) 4
Condensed Statements of Cash Flows for the nine months ended September 30, 2019 (unaudited) 5
Condensed Statement of Stockholders’ Equity for the three and nine months ended September 30, 2019 (unaudited) 6
Notes to Condensed Financial Statements (unaudited) 7

 

 C: 
 C: 2
 

 

JS BEAUTY LAND NETWORKING TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEET

 

  

As of

September 30, 2019

   December 31, 2018 
   (Unaudited)     
ASSETS          
           
Current Assets          
Cash and cash equivalents  $80,926   $130,747 
Prepaid expense   24,728    6,706 
Inventory   50,288    6,261 
Other Receivable   187    - 
Total Current Assets   156,129    143,714 
           
Prepaid expense-long term   679,658    - 
Property And Equipment, Net   8,976    11,081 
           
Total Assets  $844,763   $154,795 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current Liabilities          
Accrued liabilities  $13,990   $14,546 
Due to related party   80,174    73,900 
Tax payable   -    - 
Other payable   124,245    66,214 
           
Total Liabilities  $218,409    154,660 
           
Stockholders’ Equity          
Preferred stock, $0.001 par value 10,000,000 shares authorized;          
none issued and outstanding at September 30, 2019 and December 31, 2018   -    - 
Common stock, $0.001 par value, 100,000,000 shares authorized;          
2,136,428 and 1,371,428 shares issued and outstanding at September 30, 2019 and December 31, 2018   2,136    1,371 
           
Additional paid in capital   890,772    123,020 
Accumulated deficit   (253,240)   (127,616)
Accumulated other comprehensive income   (12,155)   3,795 
           
Total JS Beauty Land Network Technology Inc.’ Equity  $627,513    570 
           
Non-controlling interest   (1,159)   (435)
           
Total Stockholders’ Equity   626,354    135 
           
Total Liabilities and Stockholders’ Equity  $844,763   $154,795 

 

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

 

 C: 
3
 

 

JS BEAUTY LAND NETWORKING TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

(UNAUDITED)

 

   For the Three Months ended
September 30,
   For the Nine Months ended September 30,   For the Period from May 8, 2018 (Inception) to September 30, 
   2019   2018   2019   2018 
                 
Revenue  $26,577   $-   $40,418   $- 
Cost of Revenues   7,658    -    11,687    - 
Gross Profit   18,919    -    28,731    - 
                     
Operating expenses   34,948    54,635    151,626    86,010 
                     
Operating Loss   (16,029)   (54,635)   (122,895)   (86,010)
                     
Other income (expense)                    
Interest income   80    -    330    - 
Interest expense   (1,224)   -    (3,661)   - 
Other income   -    7    -    7 
Other income - related parties   -    69    -    69 
Other income (expense)   (1,144)   76    (3,331)   76 
                     
Loss before income taxes   (17,173)   (54,559)   (126,226)   (85,934)
                     
Income Tax Expense   -    -    -    - 
                     
Net loss  $(17,173)  $(54,559)  $(126,226)  $(85,934)
                     
Less: net loss attributable to non-controlling interest   (124)   (466)   (602)   (466)
Net loss attributable to JS Beauty Land Network Technology Inc.   (17,049)   (54,093)   (125,624)   (85,468)
                     
Other comprehensive income                    
Foreign currency translation gain   (31,473)   4,493    (15,950)   4,493 
                     
Total Comprehensive Loss Attributable to JS Beauty Land Network Technology Inc.  $(48,522)  $(49,600)  $(141,574)  $(80,975)
                     
Loss per share - basic and diluted  $(0.01)  $(0.05)  $(0.07)  $(0.13)
                     
Weighted average shares-                    
 basic and diluted   2,136,428    1,000,000    1,718,901    641,379

 

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

 

 C: 
4
 

 

JS BEAUTY LAND NETWORKING TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

 

   For the
Nine Months
ended
September 30,
   For the Period from
May 8, 2018 (Inception) to
September 30,
 
   2019   2018 
         
CASH FLOWS FROM OPERATING ACTIVITIES          
Net loss  $(126,226)  $(85,934)
Non-cash adjustment to reconcile net loss to net cash:          
Depreciation   1,753    - 
Imputed interest expense   3,661    - 
Changes in Operating Assets and Liabilities:          
Prepaid expense   (18,724)   - 
Other Receivable   (195)   - 
Inventory   (46,102)   (6,910)
Prepaid expense-long term   (707,874)   - 
Accrued liabilities   (557)   6,800 
Due to a related party   9,406    80,778 
Other payable   58,031    26,875 
           
NET CASH PROVIDED BY OPERATING ACTIVITIES   (826,828)   21,609 
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Purchase of plant and equipment   -    (17,813)
Proceeds from disposal of plant and equipment   -    891 
           
NET CASH UESED IN INVESTING ACTIVITIES   -    (16,922)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Proceeds from shares to be issued   -    118,957 
Proceeds from issuance of shares   765,000    1,000 
           
NET CASH PROVIDED BY FINANCING ACTIVITIES   765,000    119,957 
           
NET INCREASE IN CASH AND CASH EQUIVALENTS   (61,828)   124,644 
           
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS   12,007    1,952 
           
CASH AND CASH EQUIVALENTS:          
           
Cash Balance, Beginning of Period   130,747    - 
           
Cash Balance, End of Period  $80,926   $126,596 
           
SUPPLEMENTAL DISCLOSURES:          
Cash paid for income tax  $-   $- 
Cash paid for interest  $-   $- 

 

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

 

 C: 
5
 

 

JS BEAUTY LAND NETWORKING TECHNOLOGY INC. AND SUBSIDIARY

STATEMENT OF STOCKHOLDERS’ EQUITY

FOR THE QUARTER ENDED SEPTEMBER 30, 2019 AND 2018

(UNAUDITED)

 

       Additional      Accumulated Other      Total 
   Common Stock   Paid-in   Accumulated   Comprehensive   Noncontrolling   Stockholders’ 
   Shares   Amount   Capital   Deficit   Income   Interest   Equity 
                             
Balance as of December 31, 2018   1,371,428   $1,371   $123,020   $(127,616)  $3,795   $(435)  $                135 
                                    
Imputed interest expense   -    -    3,517    -    -    -    3,517 
Share issuance for cash   765,000    765    764,235    -    -    -    765,000 
Shares to be issued   -         -    -    -    -    - 
Net loss   -    -    -    (125,624)   -    (602)   (126,226)
Accumulated other comprehensive income   -    -    -    -    (15,950)   (122)   (16,072)
                                    
Balance as of September 30, 2019   2,136,428   $2,136   $890,772   $(253,240)  $(12,155)  $(1,159)  $626,354 

 

       Additional      Accumulated Other      Total 
   Common Stock   Paid-in   Accumulated   Comprehensive   Noncontrolling   Stockholders’ 
   Shares   Amount   Capital   Deficit   Income   Interest   Equity 
                             
Balance May 8, 2018 (Inception)      -   $    -   $        -   $-   $-   $-   $                       - 
                                    
Imputed interest expense   -    -    -    -    -    -    - 
Share issuance for cash   1,000,000    1,000    -    -    -    -    1,000 
Shares to be issued   -         -    -    -    -    - 
Net loss   -    -    -    (85,468)   -    (466)   (85,468)
Accumulated other comprehensive income   -    -    -    -    4,493    45    4,538 
                                    
Balance as of September 30, 2018   1,000,000   $1,000   $-   $(85,468)  $4,493   $(421)  $(79,930)

 

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

 

 C: 
6
 

 

JS BEAUTY LAND NETWORK TECHNOLOGY INC. AND SUBSIDIARY

 

Notes to Unaudited Financial Statements

 

NOTE 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

NATURE OF OPERATIONS

 

JS Beauty Land Network Technology Inc. (the “Company” or “JS” or “We’ or “Us”) is a Nevada corporation incorporated on May 8, 2018. The Company was formed as a US corporation to use as a vehicle for raising equity both in the United States and abroad.

 

On August 6, 2018, the Company and an unrelated party established a subsidiary company, Jiangsu Meiyunmei Technology Inc. (“MYM”), in China. The Company owns 99% of the common shares of MYM. MYM’s business plan is to operate jewelry manufacturing facilities and retailers in China, particularly dealing in fine emerald and jade jewelry. MYM intends to offer jewelry both in a retail setting and through online channels. MYM intends to target high-end jewelry consumers and investors and collectors of fine jade jewelry. In the longer term, MYM intends to operate a franchising business for retail sales of fine jewelry. MYM started jewelry retail sales in November 2018.

 

BASIS OF PRESENTATION

 

The Company’s unaudited condensed consolidated financial statements are prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements include the financial statements of JS and its subsidiary MYM. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the unaudited condensed consolidated financial statements have been included.

 

The summary of significant accounting policies presented below is designed to assist in understanding the Company’s unaudited financial statements. Such unaudited financial statements and accompanying notes are the representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects and have been consistently applied in preparing the accompanying unaudited financial statements.

 

Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) were omitted pursuant to such rules and regulations. The results for the period ended September 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019.

 

Non-controlling interests

 

Non-controlling interests represents the individual shareholder’s proportionate share of 1% of equity interest in Jiangsu Meiyunmei Technology Inc.

 

USE OF ESTIMATES

 

The preparation of unaudited financial statements in conformity with GAAP 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 reporting periods. Actual results could differ from those estimates.

 

 C: 
7
 

 

CASH AND CASH EQUIVALENTS

 

Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days or less. Cash and cash equivalents amounted to $80,926 and $130,747 as of September 30, 2019 and December 31, 2018, respectively.

 

INVENTORIES

 

Inventories are stated at the lower of cost or net realizable value. Costs include the cost of purchasing of finished goods. The cost of inventories is calculated using the weighted average method. Any excess of the cost over the net realizable value of each item of inventories is recognized as a provision for diminution in the value of inventories.

 

Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products.

 

PROPERTY, PLANT AND EQUIPMENT

 

Property and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows:

 

Items   Useful life
Office equipment   3–5 years

 

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the statement of income in other income and expenses.

 

CONCENTRATION OF RISK

 

The Company incurs expense transactions that are denominated in RMB. A portion of the Company’s subsidiary’s assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies that require certain supporting documentation in order to affect the remittance.

 

As of September 30, 2019 and December 31, 2018, $69,879 and $119,700 of the Company’s cash were on deposit at financial institutions in the PRC where there currently is no rule or regulation requiring such financial institutions to maintain insurance to cover bank deposits in the event of bank failure.

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. Cash in bank amounted to $80,926 and $130,747 as of September 30, 2019 and December 31, 2018, respectively.

 

REVENUE RECOGNITION

 

The Company adopted Accounting Standards Codification (“ASC”) 606. ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.

 

The Company has assessed the impact of the guidance by performing the following five steps analysis:

 

Step 1: Identify the contract

Step 2: Identify the performance obligations

Step 3: Determine the transaction price

Step 4: Allocate the transaction price

Step 5: Recognize revenue

 

 C: 
8
 

 

 

The Company recognizes revenue from the sale of jewelry through its retail shop as of December 31,2018. Customer makes full payment and picks up their purchases at time of purchase. The Company does not offer customers right of return.

 

Sales represent the invoiced value of goods, net of surcharges and value added tax (“VAT”), if any, and are recognized upon delivery of goods and passage of title.

 

The Company had net revenue of $40,418 for the nine months ended September 30, 2019.

 

INCOME TAXES

 

Under ASC 740, “Income Taxes,” deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when it is more likely than not that some or all of the deferred tax assets will not be realized. As of September 30, 2019 and December 31, 2018, there were no deferred taxes due to the uncertainty of the realization of net operating loss or carry forward prior to expiration.

 

LOSS PER COMMON SHARE

 

Basic loss per common share excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the loss of the entity. As of September 30, 2019, there are no outstanding dilutive securities. For nine months ended September 30, 2019 and 2018, the Company had net loss per common share, basic and diluted of $0.07 and $0.13, respectively.

 

RELATED PARTIES

 

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

 

FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The Company follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

 

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

 

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

 

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

 

 C: 
9
 

 

Level 3 inputs are unobservable inputs for the asset or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the short maturity of these instruments.

 

RECENT ACCOUNTING PRONOUNCEMENTS

 

In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory”, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-06 will be effective for the Company in its first quarter of 2019. The Company does not expect that the adoption of this guidance will have a material impact on its financial statements.

 

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) and the United States Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

 

NOTE 2 - GOING CONCERN

 

The Company has generated minimum revenue since inception to date and has sustained operating loss of $126,226 during the nine months ended September 30, 2019. The Company had a negative working capital deficit of $62,280 and a negative accumulated deficit of $253,240 as of September 30, 2019 and a working capital deficit of $10,946 and an accumulated deficit of $127,616 December 31, 2018. The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations and/or obtaining additional financing from its members or other sources, as may be required.

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern; however, the above condition raises substantial doubt about the Company’s ability to do so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

 

In order to maintain its current level of operations, the Company will require additional working capital from either cash flow from operations or from the sale of its equity. However, the Company currently has no commitments from any third parties for the purchase of its equity. If the Company is unable to acquire additional working capital, it will be required to significantly reduce its current level of operations.

 

NOTE 3 – INVENTORY

 

As of September 30, 2019 and December 31, 2018, the Company had inventory of finished goods $50,288 and $6,261, respectively. There were no reserves as of September 30, 2019 and December 31, 2018.

 

NOTE 4 – PROPERTY AND EQUIPMENT

 

As of September 30, 2019 and December 31, 2018, the Company had gross property and equipment of $11,220 and $11,665 and accumulated depreciation of $2,244 and $583, respectively. Property and equipment consisted of the office equipment. As of September 30, 2019, property and equipment had begun to use. For the the nine months ended September 30, 2019, depreciation expenses amounted to $1,753.

 

NOTE 5 –ACCRUED LIABILITIES

 

As of September 30, 2019 and December 31, 2018, the Company had accrued liabilities of $13,990 and $14,546, respectively.

 

 C: 
10
 

 

NOTE 6 - RELATED PARTIES

 

Due to related parties amounted to $80,174 and $73,900 as of September 30, 2019 and December 31, 2018, respectively. The amount due to two related parties, director of the Company, Faxian Qian, and director of MYM, Zhaojin Xu, are loans made by related parties, which are unsecured, non-interest bearing, and due on demand. The Company accrued imputed interest with 6% per annum. Imputed interest amounted $3,661 for the nine months ended September 30, 2019 and was recorded as paid in capital.

 

Our directors have not been compensated for the services.

 

NOTE 7 – OTHER PAYABLE

 

Other payable amounted to $124,245 and $66,214 as of September 30, 2019 and December 31, 2018, respectively. Other payable are payments for general and administrative expenses made by an unrelated party on behalf of the Company. The balance of other payable is unsecured, non-interest bearing, and due on demand. Other payable is primarily payments for incorporation fees, audit fees, and professional fees.

 

NOTE 8 - STOCKHOLDERS’ EQUITY

 

The Company is authorized to issue 100,000,000 shares of common stock and 10,000,000 shares of preferred stock. There is no preferred stock issued and outstanding as of September 30, 2019 and December 31, 2018. There are 2,136,428 and 1,371,428 shares of common stock outstanding as of September 30, 2019 and December 31, 2018, respectively.

 

In June 2018, the Company issued 1,000,000 shares of common stock at $0.001 per share to the Company’s CEO for $1,000.

 

In August 2018, the Company sold 67,428 shares of common stock at $0.25 per share for total of $16,857 to 6 unrelated parties.

 

In September 2018, the Company sold 124,000 shares of common stock at $0.25 per share for total of $31,000 to 12 unrelated parties.

 

In September 2018, the Company sold 126,000 shares of common stock at $0.35 per share for total of $44,100 to 12 unrelated parties.

 

In September 2018, the Company sold 54,000 shares of common stock at $0.5 per share for total of $27,000 to 5 unrelated parties.

 

In May 2019, the Company sold 765,000 shares of common stock at $1.0 per share for total of $765,000 to 44 unrelated parties.

 

NOTE 9 – SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to September 30, 2019 to the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements.

 

 C: 
11
 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Forward Looking Statements

 

This management’s discussion and analysis should be read in conjunction with the financial statements and notes included elsewhere in this registration statement.

 

This management’s discussion and analysis, as well as other sections of this registration statement, may contain “forward-looking statements” that involve risks and uncertainties, including statements regarding our plans, future events, objectives, expectations, estimates, forecasts, assumptions or projections. Any statement that is not a statement of historical fact is a forward-looking statement, and in some cases, words such as “believe,” “estimate,” “project,” “expect,” “intend,” “may,” “anticipate,” “plan,” “seek,” and similar expressions identify forward-looking statements. These statements involve risks and uncertainties that could cause actual outcomes and results to differ materially from the anticipated outcomes or results, and undue reliance should not be placed on these statements. These risks and uncertainties include, but are not limited to, the matters discussed under the caption “Risk Factors” in Item 1A of this registration statement. JS Beauty Land Network Technology Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

 

For the period ended September 30, 2019, the financial statements have been prepared by management in accordance with the standards of the Public Company Accounting Oversight Board (United States).

 

OVERVIEW

 

JS Beauty Land Network Technology Inc. was organized on May 8, 2018 as a Nevada corporation under Chapter 78 of the Nevada Revised Statutes. The Company has one subsidiary, Jiangsu Meiyunmei Technology Inc. (“MYM”), a Chinese company. The Company owns 99% of the common shares of MYM.

 

The Company qualifies as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act which became law in April 2012. The definition of an “emerging growth company” is a company with an initial public offering of common equity securities which occurred after December 8, 2011 and has less than $1 billion of total annual gross revenues during last completed fiscal year.

 

Overview of the Business

 

The Company commenced jewelry sales on November 2018 and started to generate revenue at that time. The Company was formed as a US corporation to use as a vehicle for raising equity both in the United States and abroad.

 

JS Beauty Land Network Technology, Inc. (also referred to as the Company) is a Chinese retailer and wholesaler of jade stone-adorned jewelry and decorations. The Company intends to directly engage in the manufacture, marketing and sales of fine jewelry and art from China through its newly formed Chinese subsidiary, Jiangsu Meiyunmei Technology Inc. (“MYM”). The Company commenced retail sales operations in November 2018. We are unaware of any specific restrictions imposed by the Government of China with respect to the conduct of the business of the Company or its Chinese subsidiary. The Company intends to utilize a business model that would focus on repeat clientele and collectors. In addition to its core business, the Company intends to offer memberships to its customers estimated to cost approximately $1,500, which will offer exclusive purchase opportunities. The Company’s activities will range from procuring high-quality stones, to building cooperative partnerships with its customers. The Company’s Chinese headquarters are in Xuanwu, Nanjing, Jiangsu, China.

 

 C: 
12
 

 

Market Opportunity

 

Jade remains a unique, sentimental, high-end gemstone in China, with export revenues of approximately $23,000,000 in the first quarter of 2018. While the Chinese market is keen on translucency and color, the western market is keen on artistry, carving details, and especially originality. During the previous fiscal year (2016-2017), Myanmar exported over 11,000 tons of raw jade, worth approximately $250,000,000 to neighboring markets, especially China. The total export value of mineral products from China, including jade, was approximately $865,000,000 in the last fiscal year. The foregoing statistics are based solely on management’s opinion or belief.

 

Marketing and Distribution

 

Marketing is done through a variety of channels, including the Internet, networking, trade shows, social media, and influencer marketing. In addition, print advertising will target carefully chosen audiences. The distribution channels will be retail branch locations and online through the We Chat platform.

 

Target Market

 

JS Beauty Land Network Technology, Inc. anticipates that the primary customers of its products and services will be:

 

  Men between 30 and 44 Years - Management believes that this market has a high interest in the purchase of high-end jade jewelry.
  Luxury Market - Luxury jewelry sales.
  Junior Buyers – According to Chinese traditions, people give longevity locks, bracelets, and necklaces to children as goodwill tokens and as a way of wishing them a healthy and happy life.
  Wedding Market - It is estimated that more than 50% of sales are related to weddings.
  Festival Market - Jewelry sales influenced by festivals and anniversaries. Most people buy jewelry as a gift to celebrate birthdays and festivals, especially the Lunar New Year and Qixi Festival (the Chinese equivalent of Valentine’s Day).

 

Potential Acquisitions

 

As an adjunct to its business strategy, the Company will also seek to identify potential acquisitions which are involved in the operation of jewelry manufacturing facilities and jewelry retailers in China, particularly those dealing in fine emerald and jade jewelry.

 

Company Funding

 

To date, the Company’s funding has been raised by a combination of sales of shares and loans. At September 30, 2019, the aggregate amount of such related party loans was $80,174 and the Company had other payables in the amount of $124,245. All such advances are non-interest bearing and payable on demand. To date, these advances are not the subject of any written agreements, however, if not repaid in the short term, the Company may enter into formal loan agreements with respect to these obligations in the future. The Company expects that these advances will be repaid from equity raised in China. This funding has been utilized to fund the formation of the Company and legal and accounting services incurred in connection with the Company becoming a US reporting company and for general working capital.

 

The Company intends to undertake to raise approximately $5,000,000 in new investment, exclusively from investors located in China. In this regard, the Company intends to primarily offer equity investment in the form of common stock or convertible debt. The Company believes that these funds can be raised within a 12-month period, but there is no guarantee that this will occur. These funds would be used for general corporate purposes and to expand sales channels in China and internationally.

 

 C: 
13
 

 

Capital Formation

 

JS Beauty Land Network Technology Inc., shareholder’s equity capital formation.

 

The company was formed on May 8, 2018, with no capital. Thereafter, the Company issued 1,000,000 shares of founder’s capital to Faxian Qian at $0.001 per share for an aggregate of $1,000. In August and September 2018, the Company sold an additional 371,428 at investors in China for prices ranging from $0.25 per share to $0.50 per share for aggregate proceeds of $118,957. In May 2019, the Company sold 765,000 shares of common stock at $1.0 per share for total of $765,000 to 44 unrelated parties.

 

During fiscal year 2019, the Company will clearly require additional funding for ongoing operations. There is no guarantee that we will be able to raise any additional capital and have no current arrangements for any such financing.

 

Results of Operations

 

Three Months Ended September 30, 2019 Compared to September 30, 2018

 

The following table summarizes the results of our operations during the three months ended September 30, 2019 and 2018, respectively, and provides information regarding the dollar and percentage increase or (decrease) from the current three-month period to the prior three-month period:

 

Line Item  9/30/19   9/30/18   Increase
(Decrease)
   Percentage
Increase
(Decrease)
 
                 
Revenues  $26,577   $-   $26,577    Inf. 
Operating expenses   34,948    54,635    (19,687)   (36.0)%
Net loss   (17,173)   (54,559)   (37,386)   (68.5)%
Loss per share of common stock   (0.01)   (0.05)   (0.04)   (85)%

 

We recorded a net loss of $17,173 for the three months ended September 30, 2019 as compared with a net loss of $54,559 for the three months ended September 30, 2018 due primarily to an increase in revenues and a decrease in general and administrative expense.

 

Nine Months Ended September 30, 2019

 

The following table summarizes the results of our operations during the nine months ended September 30, 2019. There is no comparable data for the nine months ended September 30, 2018:

 

Line Item  9/30/19 
     
Revenues  $40,418 
Operating expenses   151,626 
Net loss   (126,226)
Loss per share of common stock   (0.07)

 

We recorded a net loss of $126,226 for the nine months ended September 30, 2019. There is no comparable data for the nine months ended September 30, 2018.

 

 C: 
14
 

 

Liquidity and Capital Resources

 

As of September 30, 2019, we had total assets of $844,763, a negative working capital of $62,280 and an accumulated stockholders’ deficit of $253,240. Our operating activities used $826,828 in cash for the nine-month period ending September 30, 2019. Our revenues were $26,577 in the three-month period ending September 30, 2019. There is no comparative data for any prior periods.

 

Management believes that the Company’s cash on hand will be sufficient to fund all Company obligations and commitments for the next twelve months. Historically, we have depended on loans from our principal shareholders and their affiliated companies to provide us with working capital as required. There is no guarantee that such funding will be available when required and there can be no assurance that our stockholders, or any of them, will continue making loans or advances to us in the future.

 

At September 30, 2019, the Company had loans outstanding from two related parties in the aggregate amount of $80,174, which represents amounts loaned to the Company to pay the Company’s expenses of operation. All such advances are non-interest bearing and payable on demand. The Company accrued imputed interest with 6% interest rate per annum. Imputed interest amounted $1,202 during the period.

 

Off Balance Sheet Arrangements

 

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 or capital expenditures or capital resources that is material to an investor in our securities.

 

Contractual Obligations and Commitments

 

None.

 

Seasonality

 

Our operating results are not affected by seasonality.

 

Inflation

 

Our business and operating results are not affected in any material way by inflation.

 

Critical Accounting Policies

 

Use of estimates

 

The preparation of our financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Estimates and judgments used are based on management’s experience and the assumptions used are believed to be reasonable given the circumstances that exist at the time the financial statements are prepared. Actual results may differ from these estimates.

 

Emerging Growth Company

 

The Company has made an election to be an emerging growth company as defined under the Jumpstart Our Business Startups Act of 2012 (“Jobs Act”). Included with this election, the Company has also irrevocably elected to use the provisions within the Jobs Act that allow companies that go public to continue to use the private company adoption date rules for new accounting policies. In this regard, the Company has made an irrevocable election to use the extended transition period provided in Securities Act Section 7(a)(2)(B) for complying with new or revised accounting standards. Should the Company obtain revenues in excess of $1 billion on an annual basis, have its non-affiliated market capitalization increase to over $700 million as of the last day of its second quarter, or raise in excess of $1 billion in public offerings of its equity or instruments directly convertible into its equity, it will forfeit its status under the Jobs Act as an emerging growth company.

 

 C: 
15
 

 

Other

 

The Securities and Exchange Commission issued Financial Reporting Release No. 60, “Cautionary Advice Regarding Disclosure About Critical Accounting Policies” suggesting that companies provide additional disclosure and commentary on their most critical accounting policies. In Financial Reporting Release No. 60, the Securities and Exchange Commission has defined the most critical accounting policies as the ones that are most important to the portrayal of a company’s financial condition and operating results, and require management to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. The nature of our business generally does not call for the preparation or use of estimates. Due to the fact that the Company does not have any operating business, we do not believe that we do not have any such critical accounting policies.

 

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk.

 

Information not required to be filed by Smaller reporting companies.

 

ITEM 4. Controls and Procedures.

 

Disclosures and Procedures

 

Pursuant to Rules adopted by the Securities and Exchange Commission, the Company carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Exchange Act Rules. This evaluation was done as of the end of the period covered by this report under the supervision and with the participation of the Company’s principal executive officer (who is also the principal financial officer).

 

Based upon that evaluation, he believes that the Company’s disclosure controls and procedures are not effective in gathering, analyzing and disclosing information needed to ensure that the information required to be disclosed by the Company in its periodic reports is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Such conclusion is due to the presence of material weakness in internal control over financial reporting as described below: we did not maintain effective internal control over financial reporting as we are a very small company and does not have separation of duties and our accounting staff lack sufficient U.S. GAAP experience and requires further substantial training.

 

This Quarterly Report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this Quarterly Report.

 

Changes in Internal Controls

 

There was no change in the Company’s internal control over financial reporting that was identified in connection with such evaluation that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

 C: 
16
 

 

PART II — OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

There are no legal proceedings against the Company and the Company is unaware of such proceedings contemplated against it.

 

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

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

Not applicable.

 

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

(a) Not applicable.

(b) Item 407(c)(3) of Regulation S-K:

 

During the quarter covered by this Report, there have not been any material changes to the procedures by which security holders may recommend nominees to the Board of Directors.

 

ITEM 6. EXHIBITS

 

(a) Exhibits

 

31.1   Certification of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
31.2   Certification of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
32.1   Certification of Principal Executive Officer and Principal Financial Officer furnished pursuant to 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 Linkbase Document
101.LAB   XBRL Taxonomy Extension Label Linkbase Document
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document

 

 C: 
17
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  JS BEAUTY LAND NETWORK TECHNOLOGY INC.
     
  By: /s/ Faxian Qian 
  Title: Chief Executive Officer, President,
Chief Financial Officer

 

Dated: November 15, 2019

 

 C: 
18
 

 


Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-Q’ Filing    Date    Other Filings
12/31/1910-K
Filed on:11/15/19
For Period end:9/30/19NT 10-Q
12/31/1810-K
9/30/1810-Q,  10-Q/A,  NT 10-Q
8/6/18UPLOAD
5/8/18
12/8/11
 List all Filings 
Top
Filing Submission 0001493152-19-017753   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Copyright © 2024 Fran Finnegan & Company LLC – All Rights Reserved.
AboutPrivacyRedactionsHelp — Thu., Mar. 28, 11:17:00.1am ET