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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 6/10/22 Phoenix Plus Corp. 10-Q 4/30/22 75:3.7M M2 Compliance LLC/FA |
Document/Exhibit Description Pages Size
1: 10-Q Quarterly Report HTML 532K
2: EX-31.1 Certification -- §302 - SOA'02 HTML 25K
3: EX-32.1 Certification -- §906 - SOA'02 HTML 22K
9: R1 Cover HTML 78K
10: R2 Condensed Consolidated Balance Sheets HTML 106K
11: R3 Condensed Consolidated Balance Sheets HTML 38K
(Parenthetical)
12: R4 Condensed Consolidated Statements of Operations HTML 84K
and Comprehensive Losses (Unaudited)
13: R5 Condensed Consolidated Statements of Changes In HTML 40K
Stockholders' Equity (Unaudited)
14: R6 Condensed Consolidated Statements of Cash Flows HTML 72K
(Unaudited)
15: R7 Description of Business and Organization HTML 38K
16: R8 Summary of Significant Accounting Policies HTML 65K
17: R9 Common Stock HTML 48K
18: R10 Property, Plant and Equipment HTML 31K
19: R11 Prepayments and Deposits HTML 27K
20: R12 Trade Payable HTML 26K
21: R13 Equity Method Investment HTML 30K
22: R14 Other Payables and Accrued Liabilities HTML 28K
23: R15 Revenue HTML 30K
24: R16 Other Income HTML 30K
25: R17 Income Taxes HTML 51K
26: R18 Lease Right-Of-Use Asset and Lease Liabilities HTML 51K
27: R19 Significant Event HTML 25K
28: R20 Segment Information HTML 44K
29: R21 Concentrations of Risk HTML 88K
30: R22 Subsequent Events HTML 25K
31: R23 Summary of Significant Accounting Policies HTML 101K
(Policies)
32: R24 Description of Business and Organization (Tables) HTML 33K
33: R25 Summary of Significant Accounting Policies HTML 29K
(Tables)
34: R26 Property, Plant and Equipment (Tables) HTML 26K
35: R27 Prepayments and Deposits (Tables) HTML 26K
36: R28 Trade Payable (Tables) HTML 25K
37: R29 Equity Method Investment (Tables) HTML 27K
38: R30 Other Payables and Accrued Liabilities (Tables) HTML 27K
39: R31 Revenue (Tables) HTML 26K
40: R32 Other Income (Tables) HTML 28K
41: R33 Income Taxes (Tables) HTML 43K
42: R34 Lease Right-Of-Use Asset and Lease Liabilities HTML 54K
(Tables)
43: R35 Segment Information (Tables) HTML 38K
44: R36 Concentrations of Risk (Tables) HTML 89K
45: R37 Schedule of Details of Company's Subsidiary HTML 34K
(Details)
46: R38 Description of Business and Organization (Details HTML 22K
Narrative)
47: R39 Schedule of Foreign Currency Translation (Details) HTML 31K
48: R40 Summary of Significant Accounting Policies HTML 50K
(Details Narrative)
49: R41 Common Stock (Details Narrative) HTML 83K
50: R42 Schedule of Property, Plant and Equipment HTML 28K
(Details)
51: R43 Property, Plant and Equipment (Details Narrative) HTML 22K
52: R44 Scehedule of Prepayment and Deposits (Details) HTML 27K
53: R45 Schedule of Trade Payable (Details) HTML 25K
54: R46 Schedule of Equity Method Investment (Details) HTML 27K
55: R47 Equity Method Investment (Details Narrative) HTML 25K
56: R48 Schedule of Other Payables and Accrued Liabilities HTML 27K
(Details)
57: R49 Schedule of Revenue (Details) HTML 28K
58: R50 Schedule of Other Income (Details) HTML 25K
59: R51 Schedule of Local and Foreign Components of Income HTML 33K
(Loss) Before Income Tax (Details)
60: R52 Schedule of Provision for Income Tax (Details) HTML 37K
61: R53 Income Taxes (Details Narrative) HTML 30K
62: R54 Schedule of Initial Recognition of Operating Lease HTML 25K
Right and Lease Liability (Details)
63: R55 Schedule of Operating Lease Right of Use Asset HTML 31K
(Details)
64: R56 Schedule of Operating Lease Liability (Details) HTML 36K
65: R57 Schedule of Maturities of Operating Lease HTML 27K
Obligation (Details)
66: R58 Schedule of Other Information (Details) HTML 30K
67: R59 Lease Right-Of-Use Asset and Lease Liabilities HTML 22K
(Details Narrative)
68: R60 Schedule of No Inter-Segment Sales (Details) HTML 64K
69: R61 Schedule of Concentration of Risk (Details) HTML 55K
70: R62 Subsequent Events (Details Narrative) HTML 26K
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phpc-20220430
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
i ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For The Quarterly Period Ended i April 30, 2022
or
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 Number: i 333-233778
(Exact name of registrant issuer as specified in its charter)
| i Nevada | i 61-1907931 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
i 2-3 & 2-5 BEDFORD BUSINESS PARK, i JALAN 3/137B,
i 58200 i KUALA LUMPUR, MALAYSIA
(Address of principal executive offices, including zip code)
Registrant’s phone number, including area code + i 603 i 7971 8168
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.
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding twelve months (or shorter period that the registrant was required to submit and post such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer ☐ Accelerated Filer ☐ i 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. i ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| i Common Stock | i PXPC | The OTC Market – Pink Sheets |
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has fled all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
| Class | Outstanding at April 30, 2022 | |
| Common Stock, $.0001 par value |
C:
TABLE OF CONTENTS
C:
| C: 2 |
ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:
PHOENIX PLUS CORP.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
C:
| F-1 |
PHOENIX PLUS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF APRIL 30, 2022 AND JULY 31, 2021
(Currency expressed in United States Dollars (“US$”), except for number of shares)
| As of | As of | |||||||
| April 30, 2022 | July 31, 2021 | |||||||
| Unaudited | Audited | |||||||
| ASSETS | ||||||||
| NON-CURRENT ASSETS | ||||||||
| Lease asset- right of use | $ | i 23,396 | $ | i 38,848 | ||||
| Equity method investment | i 231,705 | - | ||||||
| Total Non-Current Assets | i 255,101 | i 38,848 | ||||||
| CURRENT ASSETS | ||||||||
| Trade receivable | $ | - | $ | i 39,900 | ||||
| Prepayment and deposits | i 7,119 | i 244,348 | ||||||
| Cash in bank | i 1,683,548 | i 1,910,872 | ||||||
| Total Current Assets | $ | i 1,690,667 | $ | i 2,195,120 | ||||
| TOTAL ASSETS | i 1,945,768 | i 2,233,968 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Trade payable | $ | - | $ | i 38,738 | ||||
| Other payables and accrued liabilities | i 58,200 | i 28,679 | ||||||
| Lease liabilities, current | i 19,960 | i 19,749 | ||||||
| Total Current Liabilities | $ | i 78,160 | $ | i 87,166 | ||||
| NON-CURRENT LIABILITIES | ||||||||
| Lease liabilities, non-current | $ | i 3,436 | $ | i 19,099 | ||||
| TOTAL LIABILITIES | $ | i 81,596 | $ | i 106,265 | ||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Preferred stock, $ par value; shares authorized; issued and outstanding | - | - | ||||||
| Common Shares, par value $; shares authorized, shares issued and outstanding as of April 30, 2022 and July 31, 2021 | $ | i 33,270 | $ | i 33,270 | ||||
| Additional paid in capital | i 3,245,230 | i 3,245,230 | ||||||
| Accumulated deficit | ( i 1,414,328 | ) | ( i 1,150,797 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | $ | i 1,864,172 | $ | i 2,127,703 | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | i 1,945,768 | $ | i 2,233,968 | ||||
See accompanying notes to condensed consolidated financial statements.
C:
| F-2 |
PHOENIX PLUS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSSES
FOR THE THREE AND NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
See accompanying notes to condensed consolidated financial statements.
C:
| F-3 |
PHOENIX PLUS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR NINE MONTHS ENDED APRIL 30, 2022 AND 2021
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
Nine
Months Ended April 30, 2022
(Unaudited)
| COMMON SHARES | ADDITIONAL | |||||||||||||||||||
| Number of Shares | Amount | PAID-IN CAPITAL | ACCUMULATED DEFICIT | TOTAL EQUITY | ||||||||||||||||
| Balance as of July 31, 2021 | i 332,699,500 | $ | i 33,270 | $ | i 3,245,230 | $ | ( i 1,150,797 | ) | $ | i 2,127,703 | ||||||||||
| Net loss for the period | - | - | - | ( i 263,531 | ) | ( i 263,531 | ) | |||||||||||||
| Balance as of April 30,2022 | i 332,699,500 | i 33,270 | i 3,245,230 | ( i 1,414,328 | ) | i 1,864,172 | ||||||||||||||
Nine
Months Ended April 30, 2021
(Unaudited)
| COMMON SHARES | ADDITIONAL | |||||||||||||||||||
| Number of Shares | Amount | PAID-IN CAPITAL | ACCUMULATED DEFICIT | TOTAL EQUITY | ||||||||||||||||
| Balance as of July 31, 2020 | i 331,917,500 | $ | i 33,192 | $ | i 2,463,308 | $ | ( i 812,445 | ) | $ | i 1,684,055 | ||||||||||
| Net loss for the period | - | - | - | ( i 219,976 | ) | ( i 219,976 | ) | |||||||||||||
| Balance as of April 30, 2021 | i 331,917,500 | i 33,192 | i 2,463,308 | ( i 1,032,421 | ) | i 1,464,079 | ||||||||||||||
See accompanying notes to condensed consolidated financial statements.
C:
| F-4 |
PHOENIX PLUS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED APRIL 30, 2021
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
See accompanying notes to condensed consolidated financial statements.
C:
| F-5 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
i
1. DESCRIPTION OF BUSINESS AND ORGANIZATION
Phoenix Plus Corp. was incorporated on November 5, 2018 under the laws of the state of Nevada.
The Company, through its subsidiaries, engaged in providing technical consultancy on solar power system and consultancy on green energy solution, and also focused on the commercialization of a targeted portfolio of solar products (amorphous thin film solar panels and ancillary products) and technologies for a wide range of applications including electrical power production.
On March 18, 2019, the Company acquired i 100% of the equity interests in Phoenix Plus Corp. (herein referred as the “Malaysia Company”), a private limited company incorporated in Labuan, Malaysia.
On July 25, 2019, Phoenix Plus Corp., a Malaysia Company acquired Phoenix Plus International Limited (herein referred as the “Hong Kong Company”), a private limited company incorporated in Hong Kong.
i
Details of the Company’s subsidiary:
SCHEDULE OF DETAILS OF COMPANY’S SUBSIDIARY
| Company name | Place and date of incorporation |
Particulars of issued capital |
Principal activities | ||||
| 1. | i Phoenix Plus Corp. | i Labuan / January 4, 2019 | i 100 shares of ordinary share of US$1 each | i Investment holding | |||
| 2. | i Phoenix Plus International Limited | i Hong Kong / March 19, 2019 | i 1 ordinary share of HKD$1 | i Providing technical consultancy on solar power system and consultancy on green energy solution |
C:
| F-6 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
/ i
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
i
The consolidated financial statements for Phoenix Plus Corp. and its subsidiaries for the period ended April 30, 2022 is prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of Phoenix Plus Corp. and its wholly owned subsidiaries, Phoenix Plus Corp. and Phoenix Plus International Limited. Intercompany accounts and transactions have been eliminated on consolidation. The Company has adopted July 31 as its fiscal year end.
i
The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions have been eliminated upon consolidation.
i
Management uses estimates and assumptions in preparing these financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheets, and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates.
i
In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients.
Revenue is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue. The Company derives its revenue from provision of technical consultancy on solar power system and consultancy on green energy solution.
i
Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.
i
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational:
Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the statement of operations.
i
Investment under equity method
The Company apply the equity method to account for investments it possesses the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when the investor possesses more than i 20% of the voting interests of the investee.
In applying the equity method, the Company records the investment at cost and subsequently increase or decrease the carrying amount of the investment by proportionate share of the net earnings or losses and other comprehensive income of the investee. The Company records dividends or other equity distributions as reductions in the carrying value of the investment.
C:
| F-7 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
/ i
Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a i greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.
/ i
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, for the period ended April 30, 2022, the Company incurred a net loss of $ i 263,531 and has generated revenue of $ i 19,918. The Company has accumulated deficit of $ i 1,414,328 which raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
The Company’s ability to continue as a going concern is dependent upon improving its profitability and the continuing financial support from its shareholders. Management believes the existing shareholders or external financing will provide the additional cash to meet the Company’s obligations as they become due. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stock holders, in the case of equity financing.
C:
| F-8 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
/ i
The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic loss per share is computed by dividing the net income/(loss) by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.
i
Foreign currencies translation
Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of operations.
The reporting currency of the Company is United States Dollars (“US$”). The Company and its subsidiaries in Labuan and Hong Kong maintain its books and record in United States Dollars (“US$”) which is their functional currency.
In general, for consolidation purposes, assets and liabilities of its subsidiary whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income within the statement of stockholders’ equity.
i
Translation of amounts from MYR into US$1 and HK$ into US$1 has been made at the following exchange rates for the respective periods:
SCHEDULE OF FOREIGN CURRENCY TRANSLATION
// i
Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.
C:
| F-9 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
i
Fair value of financial instruments:
The carrying value of the Company’s financial instruments: cash and cash equivalents, prepayment, deposits, accounts payable and accrued liabilities and amount due to a director approximate at their fair values because of the short-term nature of these financial instruments.
The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:
Level 1: Observable inputs such as quoted prices in active markets;
Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
i
Prior to August 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective August 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. The implementation of ASC 842 did not have a material impact on the Company’s consolidated financial statements and did not have a significant impact on our liquidity. The Company adopted ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods. (see Note 12).
i
Recent accounting pronouncements
The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.
C:C:
| F-10 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
/ i
On November 5, 2018, the Company issued shares of restricted common stock, with a par value of $ per share, to Mr. Fong Teck Kheong for initial working capital of $ i 10.
On March 25, 2019, the Company issued shares of restricted common stock, with a par value of $ per share, to Mr. Fong Teck Kheong for additional working capital of $ i 11,990.
Between March 28, 2019 to April 1, 2019, the Company issued shares of restricted common stock to 5 parties, with a par value of $ per share, for total additional working capital of $ i 13,500.
On April 1, 2019, the Company issued shares of restricted common stock to AGAPE ATP Corporation a company incorporated in Nevada with a par value of $ per share, for additional working capital of $ i 1,500.
On April 1, 2019, the Company issued shares of restricted common stock, with a par value of $ per share, to H&D Holding Sdn Bhd, a company incorporated in Malaysia, for additional working capital of $ i 3,000.
Between April 9, 2019 to April 16, 2019, the Company issued shares of restricted common stock to Junsei Ryu, Lee Chong Chow and Phoenix Plus Holding Sdn Bhd with a par value of $ per share, for additional working capital of $ i 753,000.
Between April 25, 2019 to May 10, 2019, the Company sold shares to 19 foreign individuals, whom all reside in Malaysia. A total of shares of restricted common stock were sold at a price of $ per share. The total proceeds to the Company amounted to a total of $ i 200,000.
Between May 11, 2019 to June 18, 2019, the Company sold shares to 23 foreign parties whom resides in Malaysia. A total of shares of restricted common stock were sold at a price of $ per share. The total proceeds to the Company amounted to $ i 413,500.
Between May 20, 2019 to July 25,2019, the Company sold shares to 15 foreign parties, all of which do not reside in the United States. A total of shares of restricted common stock were sold at a price of $ per share. The total proceeds to the Company amounted to a total of $ i 1,100,000.
On July 9, 2021, the company has issued free trade common share of the company at a $ per share for a total consideration of $ i 782,000.
As of April 30, 2022, the Company has an issued and outstanding common share of .
/ i
4. PROPERTY, PLANT AND EQUIPMENT
i
Property, plant and equipment as of April 30, 2022 and July 31, 2021 and are summarized below:
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT
| As of April 30, 2022 (unaudited) | As of July 31, 2021 (audited) | |||||||
| Leasehold improvement | $ | i 114,263 | $ | i 114,263 | ||||
| Accumulated depreciation | ( i 114,263 | ) | $ | ( i 114,263 | ) | |||
| Total | $ | - | $ | - |
These leasehold improvement include, but are not strictly limited to, preparing the interior of the office space for the Company’s use, improving functionality, and purchasing new office equipment. The leasehold improvement have completed on September 2019.
Depreciation expense for the nine months period ended April 30, 2022 and April 30, 2021 was $0 and $ i 36,649 respectively.
C:
| F-11 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2021
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
/ i
i
Prepayments and deposits consisted of the following at April 30, 2022 and July 31, 2021:
SCEHEDULE OF PREPAYMENT AND DEPOSITS
| As of April 30, 2022 (unaudited) | As of July 31, 2021 (audited) | |||||||
| Subscription receivable | $ | - | $ | i 232,040 | ||||
| Deposits | i 3,277 | i 3,277 | ||||||
| Prepayment | i 3,842 | i 9,031 | ||||||
| Total prepayments and deposits | $ | i 7,119 | $ | i 244,348 |
/ i
i
Prepayments and deposits consisted of the following at April 30, 2022 and July 31, 2021:
| As of April 30, 2022 (unaudited) | As of July 31, 2021 (audited) | |||||||
| Trade payable | $ | - | $ | i 38,738 | ||||
| Total trade payable | $ | - | $ | i 38,738 |
/ i i
SCHEDULE OF EQUITY METHOD INVESTMENT
|
As of April 30, 2022 (unaudited) |
|
As of (audited) | |||||
| Investment, at cost | $ | i 232,040 | $ | - | ||||
| Less: Equity method loss | ( i 335 | ) | - | |||||
| Equity method investments | $ | i 231,705 | $ | - |
The Company holds investment in business that is accounted for pursuant to the equity method due to the Company’s ability to exert significant influence over decisions relating to its operating and financial affairs. Revenue and expenses of this investment are not consolidated into the Company’s financial statements; rather, the proportionate share of the earnings/losses is reflected as equity method earnings/losses in statements of operations and comprehensive income/loss. As of April 30, 2022, the Company holds i 33.9% interest in the investee company.
During the nine months period ended April 30, 2022 and 2021, the Company accounted $ i 335 and $0 of equity method loss respectively.
/ i
8. OTHER PAYABLES AND ACCRUED LIABILITIES
i
Other payables and accrued liabilities consisted of the following at April 30, 2022 and July 31, 2021:
SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES
|
As of April 30, 2022 (unaudited) |
|
As of (audited) | |||||
| Accrued audit fees | $ | - | $ | i 12,500 | ||||
| Accrued expenses | $ | i 58,200 | $ | i 16,179 | ||||
| Total other payables and accrued liabilities | $ | i 58,200 | $ | i 28,679 |
/ i
i
For the period ended April 30, 2022 and 2021, the Company has revenue arise from the following:
| Nine months ended April 30, 2022 (unaudited) | Nine months ended April 30, 2021 (unaudited) | |||||||
| Consultancy service provided | $ | i 19,918 | $ | i 28,815 | ||||
| Total revenue | $ | i 19,918 | $ | i 28,815 | ||||
/
/ i
i
For the period ended April 30, 2022 and 2021, the Company has income arise from the following:
| Nine months ended April 30, 2022 (unaudited) | Nine months ended April 30, 2021 (unaudited) | |||||||
| Gain from foreign exchange arise from bank remittance transaction: | $ | $ | ||||||
| Local | - | - | ||||||
| Foreign, representing | ||||||||
| -Labuan | i 34,191 | i 36,699 | ||||||
| -Hong Kong | i 3,266 | i 618 | ||||||
| $ | i 37,457 | $ | i 37,317 | |||||
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| F-12 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
/ i
i
For the nine months ended April 30, 2022, the local (United States) and foreign components of loss before income taxes were comprised of the following:
SCHEDULE OF LOCAL AND FOREIGN COMPONENTS OF INCOME (LOSS) BEFORE INCOME TAX
Nine months ended April 30, 2022 (unaudited) | Nine months ended April 30, 2021 (unaudited) | |||||||
| Tax jurisdictions from: | - | - | ||||||
| Local | $ | ( i 105,967 | ) | ( i 58,378 | ) | |||
| Foreign, representing | ||||||||
| - Labuan | ( i 48,617 | ) | i 33,301 | |||||
| - Hong Kong | $ | ( i 108,947 | ) | ( i 194,899 | ) | |||
| Loss before income tax | $ | ( i 263,531 | ) | ( i 219,976 | ) | |||
i
The provision for income taxes consisted of the following:
SCHEDULE OF PROVISION FOR INCOME TAX
Nine months ended April 30, 2022 (unaudited) | Nine months ended April 30, 2021 (unaudited) | |||||||
| Current: | - | - | ||||||
| - Local | $ | - | $ | - | ||||
| - Foreign | - | - | ||||||
| Deferred: | - | - | ||||||
| - Local | - | - | ||||||
| - Foreign | - | - | ||||||
| Income tax expense | $ | - | $ | - | ||||
Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the year that includes the enactment date.
The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company has subsidiaries that operate in various countries: United States, Hong Kong and Labuan, Malaysia that are subject to taxes in the jurisdictions in which they operate, as follows:
United States of America
The Company is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of April 30, 2022 the operations in the United States of America incurred $ i 565,669 of cumulative net operating losses which can be carried forward indefinitely to offset a maximum of i 80% future taxable income. The Company has provided for a full valuation allowance of $ i 452,535 against the deferred tax assets on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.
Labuan
Under the current laws of the Labuan, Phoenix Plus Corp.is governed under the Labuan Business Activity Act, 1990. The tax charge for such company is based on i 3% of net audited profit.
Hong Kong
Phoenix Plus International Limited is subject to Hong Kong Profits Tax, which is charged at the statutory income tax rate of i 16.5% on its assessable income.
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| F-13 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
/ i
12. LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES
The Company officially adopted ASC 842 for the period on and after August 1, 2019 as permitted by ASU 2016-02. ASC 842 originally required all entities to use a “modified retrospective” transition approach that is intended to maximize comparability and be less complex than a full retrospective approach. On July 30, 2018, the FASB issued ASU 2018-11 to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU 2016-02 of which permits entities may elect not to recast the comparative periods presented when transitioning to ASC 842. As permitted by ASU 2018-11, the Company elect not to recast comparative periods, thusly.
A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows.
i
The recognition of operating lease right and lease liability as follow:
SCHEDULE OF INITIAL RECOGNITION OF OPERATING LEASE RIGHT AND LEASE LIABILITY
| Gross lease payable | $ | i 42,647 | ||
| Less: imputed interest | ( i 2,202 | ) | ||
| Recognition as of July 1, 2021 | $ | i 40,445 |
i
As of April 30, 2022 operating lease right of use asset as follow:
SCHEDULE OF OPERATING LEASE RIGHT OF USE ASSET
| Initial recognition as of August 1, 2019 | $ | i 26,772 | ||
| Additional portion from 1 July 31, 2020 to 30 June 2021 | i 2,719 | |||
| Add: new lease addition from 1 July 2021 to 30 June 2023 | i 40,445 | |||
| Accumulated amortization | ( i 45,949 | ) | ||
| Foreign exchange translation gain | i 591 | |||
| Balance as of April 30, 2022 | $ | i 23,396 |
i
As of April 30, 2022, operating lease liability as follow:
SCHEDULE OF OPERATING LEASE LIABILITY
| Initial recognition as of August 1, 2019 | $ | i 26,772 | ||
| Add: additional portion (increase of leasing fee) | i 2,719 | |||
| Add: new lease addition from 1 July 2021 to 30 June 2023 | i 40,445 | |||
| Less: gross repayment | ( i 47,408 | ) | ||
| Add: imputed interest | i 348 | |||
| Foreign exchange translation gain | i 520 | |||
| Balance as of April 30, 2022 | $ | i 23,396 | ||
| Less: lease liability current portion | ( i 19,960 | ) | ||
| Lease liability non-current portion | $ | i 3,436 |
For the period ended April 30, 2022, the amortization of the operating lease right of use asset are $4,818.
i
Maturities of operating lease obligation as follow:
SCHEDULE OF MATURITIES OF OPERATING LEASE OBLIGATION
| Year ending | ||||
| April 30, 2022 (12 months) | $ | i 19,960 | ||
| June 30, 2023 (2 months) | i 3,436 | |||
| Total | $ | i 23,396 |
i
Other information:
| Nine Months ended April 30, | ||||||||
| 2022 | 2021 | |||||||
| (unaudited) | (unaudited) | |||||||
| Cash paid for amounts included in the measurement of lease liabilities: | - | - | ||||||
| Operating cash flow from operating lease | $ | i 15,452 | $ | i 13,462 | ||||
| Right-of-use assets obtained in exchange for operating lease liabilities | i 23,396 | i 2,703 | ||||||
| Remaining lease term for operating lease (years) | i 1.17 | i 0.2 | ||||||
| Weighted average discount rate for operating lease | i 5.6 | % | i 3.3 | % | ||||
Lease expenses were $ i 15,975 and $ i 12,874 during nine months ended April 30, 2022 and 2021 respectively. The Company adopt ASC 842 on and after August 1, 2019.
/ i
On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the “COVID-19 outbreak”) and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally.
The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, it is uncertain as to the full magnitude that the pandemic will have on our financial condition, liquidity, and future results of operations. Management is actively monitoring the impact of the global situation on our financial condition, liquidity, operations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, we are not able to estimate the effects of the COVID-19 outbreak on our results of operations, financial condition, or liquidity for the period ended April 30, 2022.
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| F-14 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
i
ASC 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about services categories, business segments and major customers in financial statements. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes.
i
The Company had no inter-segment sales for the periods presented. Summarized financial information concerning the Company’s reportable segments is shown as below:
SCHEDULE OF NO INTER-SEGMENT SALES
By Geography:
| United States | Malaysia | Hong Kong | Total | |||||||||||||
| For the period ended April 30, 2022 | ||||||||||||||||
| United States | Malaysia | Hong Kong | Total | |||||||||||||
| Revenue | $ | - | $ | - | $ | i 19,918 | $ | i 19,918 | ||||||||
| Cost of revenue | - | - | ( i 16,328 | ) | ( i 16,328 | ) | ||||||||||
| Net loss | ( i 105,967 | ) | ( i 48,617 | ) | ( i 108,947 | ) | ( i 263,531 | ) | ||||||||
| Total assets | $ | i 231,705 | $ | i 1,576,492 | $ | i 137,571 | $ | i 1,945,768 | ||||||||
| United States | Malaysia | Hong Kong | Total | |||||||||||||
| For the period ended April 30, 2021 | ||||||||||||||||
| United States | Malaysia | Hong Kong | Total | |||||||||||||
| Revenue | $ | - | $ | - | $ | i 28,815 | $ | i 28,815 | ||||||||
| Cost of revenue | - | - | ( i 43,131 | ) | ( i 43,131 | ) | ||||||||||
| Net (loss)/income | ( i 58,378 | ) | i 33,301 | ( i 194,899 | ) | ( i 219,976 | ) | |||||||||
| Total assets | $ | i 232,040 | $ | i 1,784,706 | $ | i 169,433 | $ | i 2,186,179 | ||||||||
C:
| F-15 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
/ i i
SCHEDULE OF CONCENTRATION OF RISK
(a) Major customers
For the three months ended April 30, 2022 and 2021, the customers who accounted for 10% or more of the Company’s revenue and its trade receivable balance at period-end are presented as follows:
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
| Revenue | Percentage of revenue | Trade
| ||||||||||||||||||||||
| Customer A | $ | - | $ | i 8,531 | - | % | i 58 | % | $ | - | $ | i 9,885 | ||||||||||||
| Customer B | - | i 6,091 | - | i 42 | % | - | - | |||||||||||||||||
| $ | - | $ | i 14,622 | - | % | i 100 | % | $ | - | $ | i 9,885 | |||||||||||||
For the nine months ended April 30, 2022 and 2021, the customers who accounted for 10% or more of the Company’s revenue and its trade receivable balance at period-end are presented as follows:
(b) Major vendors
For the three months ended April 30, 2022 and 2021, the vendors who accounted for 10% or more of the Company’s cost of revenue and its trade payable balance at period-end are presented as follows:
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
| Cost of revenue | Percentage of cost of revenue | Trade payable | ||||||||||||||||||||||
| Vendor A | $ | - | $ | i 12,946 | - | % | i 100 | % | $ | - | $ | - | ||||||||||||
| $ | - | $ | i 12,946 | - | % | i 100 | % | $ | - | $ | - | |||||||||||||
For the nine months ended April 30, 2022 and 2021, the vendors who accounted for 10% or more of the Company’s cost of revenue and its trade payable balance at period-end are presented as follows:
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
| Cost of revenue s | Percentage of cost of revenue | Trade Payable | ||||||||||||||||||||||
| Vendor A | $ | i 16,328 | $ | i 43,131 | i 100 | % | i 100 | % | $ | - | $ | - | ||||||||||||
| $ | i 16,328 | $ | i 43,131 | i 100 | % | i 100 | % | $ | - | $ | - | |||||||||||||
/ i
The Company has evaluated subsequent events from the balance sheet date through April 30, 2022 the date the Company issued unaudited consolidated financial statements in accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. During this period, there was no subsequent event that required recognition or disclosure.
On May 17, 2022, the Company, through its Labuan incorporated subsidiary, Phoenix Plus Corp., subscribed i 100% of the equity interests in Phoenix Green Energy Sdn. Bhd., a private limited company incorporated in Malaysia, which its principal activities are engaged in the industry of renewable energy.
/
C:
| F-16 |
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The information contained in this Form 10-Q is intended to update the information contained in our Annual Report on Form 10-K for the year ended July 31, 2021 filed with the Securities and Exchange Commission on November 12, 2021 (the “Form 10-K”) and presumes that readers have access to, and will have read, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other information contained in such Form 10-K. The following discussion and analysis also should be read together with our financial statements and the notes to the financial statements included elsewhere in this Form 10-Q.
The following discussion contains certain statements that may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements appear in a number of places in this Report, including, without limitation, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These statements are not guarantees of future performance and involve risks, uncertainties and requirements that are difficult to predict or are beyond our control. Forward-looking statements speak only as of the date of this quarterly report. You should not put undue reliance on any forward-looking statements. We assume no responsibility to update the forward-looking statements contained in this transition report on Form 10-Q. The following should also be read in conjunction with the unaudited condensed Consolidated Financial Statements and notes thereto that appear elsewhere in this report.
Company Overview
Phoenix Plus Corp., a Nevada Corporation, is a company that operates through its wholly owned subsidiary, Phoenix Plus Corp., a Company organized in Labuan, Malaysia. It should be noted that our wholly owned subsidiary, Phoenix Plus Corp., owns 100% of Phoenix Plus International Limited, the operating Hong Kong Company which is described below. All of the previous entities share the same exact business plan.
We have a physical office in Malaysia with address of 2-3 & 2-5 Bedford Business Park, Jalan 2/137B, Batu 5, Jalan Kelang Lama, 58200 Kuala Lumpur, Malaysia which completed renovation in September 2019. The office space is 12,000 square feet and to date the company has spent $114,263 towards ongoing renovations. These renovations include, but are not strictly limited to, preparing the interior of the office space for the Company’s use, improving functionality, and purchasing new office equipment. Our office space is rented by Phoenix Plus International Limited for a 24 months period from July 1, 2021 to June 30, 2023, for an initial down payment of MYR 13,500 and additional bi-monthly payments in the amount of MYR 7,500 over the course of the lease. The Company has an option to renew the tenancy for another 12 months period at a rental subject to mutual agreement with the landlord.
Phoenix Plus Corp, through its Hong Kong subsidiary, is engaged in providing technical consultancy on solar power systems and consultancy on green energy solutions, with an additional focus on the commercialization of a targeted portfolio of solar products (amorphous thin film solar panels and ancillary products) and technologies for a wide range of applications including electrical power production. Our mission is to harness the power of the sun to meet the growing resource demands of sustainable 21st century development.
Our business is to market and sell solar power products, systems and services. Specifically, we intend to engage in the following:
| ● | Install solar panels in both commercial and residential settings; and |
| ● | Develop and maintain solar parks. |
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| 3 |
Results of Operation
For the three months ended April 30, 2022 and 2021
Revenue
For the three months ended April 30, 2022 and 2021, the Company has generated revenue of $0 and $14,622 respectively. The revenue represented income from consultancy services provided to our customers on engineering, equipment procurement and transportation, and construction on solar plant.
Cost of Revenue and Gross Margin
For the three months ended April 30, 2022 and 2021, cost incurred arise in providing consultancy services are $0 and $12,946 respectively. The Company generates a gross profit for the three months ended April 30, 2022 and 2021 of $0 and $1,676.
Selling and marketing expenses
For the three months ended April 30, 2022 and 2021, we had incurred selling and marketing expenses in the amount of $0 and $40,457. These expenses comprised of marketing events and conference to promote the company in Malaysia.
General and administrative expenses
For the three months ended April 30, 2022 and 2021, we had incurred general and administrative expenses in the amount of $159,839 and $94,842. These expenses are comprised of professional fees, listing consultancy fees, office and outlet operation expenses and depreciation.
Other Income
The Company recorded an amount of $1,866 and $0 as other income for the three months ended April 30, 2022 and 2021. This income is derived from the interest income and foreign exchange gain.
Net Loss
Our net loss for three months ended April 30, 2022 and 2021 were $158,104 and $133,623. The net loss mainly derived from the general and administrative, and selling and marketing expenses incurred.
For the Nine Months ended April 30, 2022 and 2021
Revenue
For the nine months ended April 30, 2022 and 2021, the Company has generated revenue of $19,918 and $28,815 respectively. The revenue represented income from consultancy services provided to our customers on engineering, equipment procurement and transportation, and construction on solar plant.
Cost of Revenue and Gross Margin
For the nine months ended April 30, 2022 and 2021, cost incurred arise in providing consultancy services are $16,328 and $43,131 respectively. The Company generates a gross profit of $3,590 for the nine months ended April 30, 2022 and a gross loss of $14,316 for the nine months ended April 30, 2021.
Selling and marketing expenses
For the nine months ended April 30, 2022 and 2021, we had incurred selling and marketing expenses in the amount of $0 and $40,457. These expenses comprised of marketing events and conference to promote the company in Malaysia.
General and administrative expenses
For the nine months ended April 30, 2022 and 2021, we had incurred general and administrative expenses in the amount of $304,243 and $202,520. These expenses are comprised of professional fees, listing consultancy fees, office and outlet operation expenses and depreciation.
Other Income
The Company recorded an amount of $37,457and $37,317 as other income for the nine months ended April 30, 2022 and 2021. This income is derived from interest income and foreign exchange gain.
Net Loss
Our net loss for nine months ended April 30, 2022 and 2021 were $263,531 and $219,976. The net loss mainly derived from the general and administrative, and selling and marketing expenses incurred.
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| 4 |
Liquidity and Capital Resources
As of April 30, 2022 and 2021, we had cash and cash equivalents of $1,683,548 and $1,923,933. We expect increased levels of operations going forward will result in more significant cash flow and in turn working.
We depend substantially on financing activities to provide us with the liquidity and capital resources we need to meet our working capital requirements and to make capital investments in connection with ongoing operations.
Cash Generated From/(Used In) Operating Activities
For the nine months ended April 30, 2022, net cash used in operating activities was $227,324. The increase in cash used in operating activities was mainly for payment of general and administrative expenses, and selling and marketing expenses. For the nine months ended April 30, 2021, net cash generated from operating activities was $515,885. The increase of cash generate was mainly because of the IPO fund received from investors.
Cash Provided By Financing Activities
For the nine months ended April 30, 2022 and 2021, net cash provided by financing activities was $0 and $0.
Cash Provided By Investing Activities
For the nine months ended April 30, 2022 and 2021, the net cash used in investing activities was $0 and $0.
Credit Facilities
We do not have any credit facilities or other access to bank credit.
Off-balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders as of April 30, 2022.
Recent Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
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| 5 |
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
Evaluation of Disclosure Controls and Procedures:
We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of April 30, 2022. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer. Based upon that evaluation, our Chief Executive Officer concluded that, as of April 30, 2022, our disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management to conclude that, as of April 30, 2022, our disclosure controls and procedures were not effective: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.
Changes in Internal Control over Financial Reporting:
There were no changes in our internal control over financial reporting during the quarter ended April 30, 2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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| 6 |
We know of no materials, active or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceedings or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any beneficial shareholder are an adverse party or has a material interest adverse to us.
We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Mine Safety Disclosures
Not applicable.
None
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| 7 |
| Exhibit No. | Description | |
| 31.1 | Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer* | |
| 32.1 | Section 1350 Certification of principal executive officer * | |
| 101.INS | XBRL Instance Document* | |
| 101.SCH | XBRL Schema Document* | |
| 101.CAL | XBRL Calculation Linkbase Document* | |
| 101.DEF | XBRL Definition Linkbase Document* | |
| 101.LAB | XBRL Label Linkbase Document* | |
| 101.PRE | XBRL Presentation Linkbase Document* |
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| 8 |
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.
| Phoenix Plus Corp. | ||
| (Name of Registrant) | ||
| Date: June 10, 2022 | By: | /s/ FONG TECK KHEONG |
| Title: | Chief Executive Officer, President, Director, Secretary and Treasurer | |
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| This ‘10-Q’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| 6/30/23 | ||||
| Filed on: | 6/10/22 | |||
| 5/17/22 | ||||
| For Period end: | 4/30/22 | |||
| 11/12/21 | 10-K, 8-K | |||
| 7/31/21 | 10-K, NT 10-K | |||
| 7/9/21 | 8-K | |||
| 7/1/21 | ||||
| 4/30/21 | 10-Q, NT 10-Q | |||
| 7/31/20 | 10-K | |||
| 1/30/20 | ||||
| 8/1/19 | ||||
| 7/25/19 | ||||
| 6/18/19 | ||||
| 5/20/19 | ||||
| 5/11/19 | ||||
| 5/10/19 | ||||
| 4/25/19 | ||||
| 4/16/19 | ||||
| 4/9/19 | ||||
| 4/1/19 | ||||
| 3/28/19 | ||||
| 3/25/19 | ||||
| 3/19/19 | ||||
| 3/18/19 | ||||
| 1/4/19 | ||||
| 11/5/18 | ||||
| 7/30/18 | ||||
| List all Filings | ||||