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Fellazo Corp. – ‘10-Q’ for 5/31/22

On:  Tuesday, 7/12/22, at 11:12am ET   ·   For:  5/31/22   ·   Accession #:  1640334-22-1465   ·   File #:  333-208237

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

 7/12/22  Fellazo Corp.                     10-Q        5/31/22   28:1.6M                                   Pubco Reporting … Inc/FA

Quarterly Report   —   Form 10-Q

Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                    HTML    326K 
 2: EX-31.1     Certification -- §302 - SOA'02                      HTML     16K 
 3: EX-32.1     Certification -- §906 - SOA'02                      HTML     12K 
 9: R1          Cover                                               HTML     62K 
10: R2          Consolidated Balance Sheets                         HTML     99K 
11: R3          Consolidated Balance Sheets (Parenthetical)         HTML     19K 
12: R4          Consolidated Statements of Operations and           HTML     98K 
                Comprehensive Loss (Unaudited)                                   
13: R5          Consolidated Statements of Changes in Stockholders  HTML     57K 
                Deficit (Unaudited)                                              
14: R6          Consolidated Statements of Cash Flows (Unaudited)   HTML     64K 
15: R7          Organization Description of Business and Going      HTML     17K 
                Concern                                                          
16: R8          Summary of Significant Accounting Policies          HTML     26K 
17: R9          Related Party Transactions                          HTML     15K 
18: R10         Summary of Significant Accounting Policies          HTML     38K 
                (Policies)                                                       
19: R11         Summary of Significant Accounting Policies          HTML     16K 
                (Tables)                                                         
20: R12         Organization Description of Business and Going      HTML     27K 
                Concern (Details Narrative)                                      
21: R13         Summary of Significant Accounting Policies          HTML     15K 
                (Details)                                                        
22: R14         Summary of Significant Accounting Policies          HTML     26K 
                (Details Narrative)                                              
23: R15         Related Party Transactions (Details Narrative)      HTML     25K 
26: XML         IDEA XML File -- Filing Summary                      XML     42K 
24: XML         XBRL Instance -- fllz_10q_htm                        XML    337K 
25: EXCEL       IDEA Workbook of Financial Reports                  XLSX     26K 
 6: EX-101.CAL  XBRL Calculations -- fllz-20220531_cal               XML     65K 
 8: EX-101.DEF  XBRL Definitions -- fllz-20220531_def                XML     75K 
 5: EX-101.LAB  XBRL Labels -- fllz-20220531_lab                     XML    270K 
 7: EX-101.PRE  XBRL Presentations -- fllz-20220531_pre              XML    199K 
 4: EX-101.SCH  XBRL Schema -- fllz-20220531                         XSD     46K 
27: JSON        XBRL Instance as JSON Data -- MetaLinks              121±   159K 
28: ZIP         XBRL Zipped Folder -- 0001640334-22-001465-xbrl      Zip     54K 


‘10-Q’   —   Quarterly Report

Document Table of Contents

Page (sequential)   (alphabetic) Top
 
11st Page  –  Filing Submission
"Table of Contents
"Part I -- Financial Information
"Item 1
"Financial Statements
"Item 2
"Management's Discussion and Analysis of Financial Condition or Plan of Operation
"Item 3
"Quantitative and Qualitative Disclosures About Market Risk
"Item 4
"Controls and Procedures
"Part Ii -- Other Information
"Legal Proceedings
"Item 1A
"Risk Factors
"Unregistered Sales of Equity Securities and Use of Proceeds
"Defaults Upon Senior Securities
"Mine Safety Disclosures
"Item 5
"Item 6
"Exhibits
"Signatures

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



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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form  i 10-Q

 

(Mark One)

 

 i 

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

 

 

 

For the quarterly period ended  i May 31, 2022

 

or

 

 i 

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

 

For the transition period from ____________to ____________

 

Commission File Number  i 333-208237

 

 i FELLAZO CORP.

(Exact name of registrant as specified in its charter)

 

 i Nevada

 

 i 30-0840869

(State or other jurisdiction of incorporation or organization)

 

(IRS Employer Identification No.)

 

 i T2-L8-3, Level 8 i IOI City Tower Two, Lebuh IRC,

  i IOI Resort City i 62502 Putrajaya i Malaysia 

 

 i 62502

(Address of principal executive offices)

(Zip Code)

 

+ i 6017  i 998 9889

http://fellazo.com

(Registrant’s telephone number, including area code)

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

None

None

None

 

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.  i Yes ☒ NO ☐

 

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

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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

 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. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes  i  NO ☒

 

Fellazo Corp has  i 86,264,000 common shares issued and outstanding as of June 30, 2022.

 

 

 

 

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

Item 1.

 

Financial Statements

 

3

 

 

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition or Plan of Operation

 

10

 

 

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

14

 

 

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

14

 

 

 

 

 

 

 

PART II - OTHER INFORMATION

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

15

 

 

 

 

 

 

 

Item 1A.

 

Risk Factors

 

15

 

 

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

15

 

 

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

15

 

 

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

15

 

 

 

 

 

 

 

Item 5.

 

Other Information

 

15

 

 

 

 

 

 

 

Item 6.

 

Exhibits

 

16

 

 

 

 

 

 

 

SIGNATURES

 

17

 

 

 
2

Table of Contents

 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

FELLAZO CORP.

Consolidated Balance Sheets

(Unaudited)

 

 

 

May 31,

 

 

August 31,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

 

$ i 29,175

 

 

$ i 7,361

 

Accounts receivable

 

 

 i 22,355

 

 

 

 i -

 

Prepaid expense

 

 

 i 1,215

 

 

 

 i -

 

Total Current Assets

 

 

 i 52,745

 

 

 

 i 7,361

 

TOTAL ASSETS

 

$ i 52,745

 

 

$ i 7,361

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$ i 17,950

 

 

$ i 13,721

 

Due to related parties

 

 

 i 1,689,045

 

 

 

 i 1,409,229

 

Total Current Liabilities

 

 

 i 1,706,995

 

 

 

 i 1,422,950

 

TOTAL LIABILITIES

 

 

 i 1,706,995

 

 

 

 i 1,422,950

 

 

 

 

 

 

 

 

 

 

Stockholders' Deficit

 

 

 

 

 

 

 

 

Common stock, $ i 0.001 par value,  i 1,000,000,000 shares authorized;

 

 

 

 

 

 

 

 

 i 86,264,000 shares issued and outstanding

 

 

 i 86,264

 

 

 

 i 86,264

 

Additional paid-in capital

 

 

 i 36,122

 

 

 

 i 36,122

 

Accumulated deficit

 

 

( i 1,597,683)

 

 

( i 1,403,624)

Accumulated other comprehensive income (loss)

 

 

 i 7,792

 

 

 

( i 981)

Total Fellazo Corp. Stockholders' Deficit

 

 

( i 1,467,505)

 

 

( i 1,282,219)

Non-controlling interest

 

 

( i 186,745)

 

 

( i 133,370)

Total Stockholders' Deficit

 

 

( i 1,654,250)

 

 

( i 1,415,589)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

 

$ i 52,745

 

 

$ i 7,361

 

 

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

 

 
3

Table of Contents

 

FELLAZO CORP.

Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

 

 

 

Three months ended

 

 

Nine Months Ended

 

 

 

May 31,

 

 

May 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues

 

$ i 48,128

 

 

$ i 10,385

 

 

$ i 63,710

 

 

$ i 190,943

 

Revenues from related parties

 

 

 i -

 

 

 

 i 11,075

 

 

 

 i 8,669

 

 

 

 i 33,493

 

Revenues total

 

 

 i 48,128

 

 

 

 i 21,460

 

 

 

 i 72,379

 

 

 

 i 224,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Goods Sold

 

 

 i 37,389

 

 

 

 i 13,400

 

 

 

 i 42,918

 

 

 

 i 146,349

 

Cost of Goods Sold from related parties

 

 

( i 0)

 

 

 i 4,976

 

 

 

 i 9,301

 

 

 

 i 22,041

 

Cost of Goods Sold total

 

 

 i 37,389

 

 

 

 i 18,376

 

 

 

 i 52,219

 

 

 

 i 168,390

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 i 10,739

 

 

 

 i 3,084

 

 

 

 i 20,160

 

 

 

 i 56,046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

$ i 92,397

 

 

$ i 90,309

 

 

$ i 276,726

 

 

$ i 286,157

 

   Total operating expenses

 

 

 i 92,397

 

 

 

 i 90,309

 

 

 

 i 276,726

 

 

 

 i 286,157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

( i 81,658)

 

 

( i 87,225)

 

 

( i 256,566)

 

 

( i 230,111)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before taxes

 

 

( i 81,658)

 

 

( i 87,225)

 

 

( i 256,566)

 

 

( i 230,111)

Provision for income tax

 

 

 i -

 

 

 

 i -

 

 

 

 i -

 

 

 

 i -

 

Net loss

 

 

( i 81,658)

 

 

( i 87,225)

 

 

( i 256,566)

 

 

( i 230,111)

Net loss attributable to the non-controlling interest

 

 

( i 18,739)

 

 

( i 23,031)

 

 

( i 62,507)

 

 

( i 46,949)

Net Loss Attributable to The Shareholders of Fellazo Corp.

 

$( i 62,919)

 

$( i 64,194)

 

$( i 194,059)

 

$( i 183,162)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation gain (loss)

 

 

 i 14,843

 

 

 

 i 3,081

 

 

 

 i 17,905

 

 

 

( i 1,248)

Total comprehensive loss

 

 

( i 66,815)

 

 

( i 84,144)

 

 

( i 238,661)

 

 

( i 231,359)

Comprehensive Loss attributable to the non-controlling interest

 

 

( i 11,169)

 

 

( i 21,459)

 

 

( i 53,375)

 

 

( i 47,585)

Comprehensive Loss Attributable to The Shareholders of Fellazo Corp.

 

$( i 55,646)

 

$( i 62,685)

 

$( i 185,286)

 

$( i 183,774)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and dilutive net loss per common share

 

$( i 0.00)

 

$( i 0.00)

 

$( i 0.00)

 

$( i 0.00)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic and diluted

 

 

 i 86,264,000

 

 

 

 i 86,264,000

 

 

 

 i 86,264,000

 

 

 

 i 86,264,000

 

 

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

 

 
4

Table of Contents

 

FELLAZO CORP.

Consolidated Statements of Changes in Stockholders’ Deficit

(Unaudited)

 

For the three and nine months ended May 31, 2022

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Accumulated other

 

 

Non

 

 

 

 

 

 

Common Stock

 

 

paid in

 

 

Accumulated

 

 

comprehensive

 

 

controlling

 

 

 

 

 

 

 Shares

 

 

 Amount

 

 

  Capital

 

 

 Deficit

 

 

 loss

 

 

 Interest

 

 

 Total

 

Balance, August 31, 2021

 

 

 i 86,264,000

 

 

$ i 86,264

 

 

$ i 36,122

 

 

$( i 1,403,624)

 

$( i 981)

 

$( i 133,370)

 

$( i 1,415,589)

Net loss

 

 

-

 

 

 

 i -

 

 

 

 i -

 

 

 

( i 65,786)

 

 

 i -

 

 

 

( i 22,159)

 

 

( i 87,945)

Foreign currency translation gain

 

 

-

 

 

 

 i -

 

 

 

 i -

 

 

 

 i -

 

 

 

 i 2,850

 

 

 

 i 2,966

 

 

 

 i 5,816

 

Balance, November 30, 2021

 

 

 i 86,264,000

 

 

$ i 86,264

 

 

$ i 36,122

 

 

$( i 1,469,410)

 

$ i 1,869

 

 

$( i 152,563)

 

$( i 1,497,718)

Net loss

 

 

-

 

 

 

 i -

 

 

 

 i -

 

 

 

( i 65,354)

 

 

 i -

 

 

 

( i 21,609)

 

 

( i 86,963)

Foreign currency translation loss

 

 

-

 

 

 

 i -

 

 

 

 i -

 

 

 

 i -

 

 

 

( i 1,350)

 

 

( i 1,404)

 

 

( i 2,754)

Balance, February 28, 2022

 

 

 i 86,264,000

 

 

$ i 86,264

 

 

$ i 36,122

 

 

$( i 1,534,764)

 

$ i 519

 

 

$( i 175,576)

 

$( i 1,587,435)

Net loss

 

 

-

 

 

 

 i -

 

 

 

 i -

 

 

 

( i 62,919)

 

 

 i -

 

 

 

( i 18,739)

 

 

( i 81,658)

Foreign currency translation gain

 

 

-

 

 

 

 i -

 

 

 

 i -

 

 

 

 i -

 

 

 

 i 7,273

 

 

 

 i 7,570

 

 

 

 i 14,843

 

Balance, May 31, 2022

 

 

 i 86,264,000

 

 

$ i 86,264

 

 

$ i 36,122

 

 

$( i 1,597,683)

 

$ i 7,792

 

 

$( i 186,745)

 

$( i 1,654,250)

 

For the three and nine months ended May 31, 2021

 

 

 

 

 

 

 

Additional

 

 

 

 

Accumulated other

 

 

Non

 

 

 

 

 

Common Stock

 

 

Paid in

 

 

Accumulated

 

 

comprehensive

 

 

controlling

 

 

 

 

 

 Shares

 

 

 Amount

 

 

 Capital

 

 

 Deficit

 

 

 loss

 

 

 Interest

 

 

 Total

 

Balance, August 31, 2020

 

 

 i 86,264,000

 

 

$ i 86,264

 

 

$ i 36,122

 

 

$( i 1,143,619 )

 

$( i 1,094 )

 

$( i 66,669 )

 

$( i 1,088,996 )

Net loss

 

 

-

 

 

 

 i -

 

 

 

 i -

 

 

 

( i 63,883 )

 

 

 i -

 

 

 

( i 20,085 )

 

 

( i 83,968 )

Foreign currency translation loss

 

 

-

 

 

 

 i -

 

 

 

 i -

 

 

 

 i -

 

 

 

( i 1,815 )

 

 

( i 1,889 )

 

 

( i 3,704 )

Balance, November 30, 2020

 

 

 i 86,264,000

 

 

$ i 86,264

 

 

$ i 36,122

 

 

$( i 1,207,502 )

 

$( i 2,909 )

 

$( i 88,643 )

 

$( i 1,176,668 )

Net loss

 

 

-

 

 

 

 i -

 

 

 

 i -

 

 

 

( i 55,085 )

 

 

 i -

 

 

 

( i 3,833 )

 

 

( i 58,918 )

Foreign currency translation loss

 

 

-

 

 

 

 i -

 

 

 

 i -

 

 

 

 i -

 

 

 

( i 306 )

 

 

( i 319 )

 

 

( i 625 )

Balance, February 28, 2021

 

 

 i 86,264,000

 

 

$ i 86,264

 

 

$ i 36,122

 

 

$( i 1,262,587 )

 

$( i 3,215 )

 

$( i 92,795 )

 

$( i 1,236,211 )

Net loss

 

 

-

 

 

 

 i -

 

 

 

 i -

 

 

 

( i 64,194 )

 

 

 i -

 

 

 

( i 23,031 )

 

 

( i 87,225 )

Foreign currency translation gain

 

 

-

 

 

 

 i -

 

 

 

 i -

 

 

 

 i -

 

 

 

 i 1,509

 

 

 

 i 1,572

 

 

 

 i 3,081

 

Balance, May 31, 2021

 

 

 i 86,264,000

 

 

$ i 86,264

 

 

$ i 36,122

 

 

$( i 1,326,781 )

 

$( i 1,706 )

 

$( i 114,254 )

 

$( i 1,320,355 )

 

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

 

 
5

Table of Contents

 

FELLAZO CORP.

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

Nine Months Ended

 

 

 

May 31,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net loss

 

$( i 256,566)

 

$( i 230,111)

Adjustments to reconcile net loss to net cash used in operations:

 

 

 

 

 

 

 

 

Expenses paid by a related party

 

 

 i 317,206

 

 

 

 i 299,017

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

( i 23,216)

 

 

 i -

 

Prepaid

 

 

( i 1,218)

 

 

 i -

 

Deposit

 

 

 i -

 

 

 

 i 6,696

 

Accounts payable and accrued liabilities

 

 

 i 4,236

 

 

 

( i 13,693)

Net Cash Provided by Operating Activities

 

 

 i 40,442

 

 

 

 i 61,909

 

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

Advances from a related party

 

 

 i 51,570

 

 

 

 i 10,458

 

Repayment to a related party

 

 

( i 69,972)

 

 

( i 72,638)

Net Cash Used in Financing Activities

 

 

( i 18,402)

 

 

( i 62,180)

 

 

 

 

 

 

 

 

 

Effects on changes in foreign exchange rate

 

 

( i 226)

 

 

( i 115)

 

 

 

 

 

 

 

 

 

Net change in cash

 

 

 i 21,814

 

 

 

( i 386)

Cash, beginning of period

 

 

 i 7,361

 

 

 

 i 6,665

 

Cash, end of period

 

$ i 29,175

 

 

$ i 6,279

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information

 

 

 

 

 

 

 

 

Interest paid

 

$ i -

 

 

$ i -

 

Income taxes paid

 

$ i -

 

 

$ i -

 

 

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

 

 
6

Table of Contents

 

FELLAZO CORP.

Notes to the Consolidated Financial Statements

May 31, 2022

(Unaudited)

 

 i 

NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN

 

Fellazo Corp. (the Company, “we”, “us” or “our”) was incorporated in the State of Nevada on May 28, 2014.

 

The Company had commenced to be engaged in the industry of “Healthcare and Personal Wellness” products and related products. Activities include but not limited to sourcing raw materials or partly or fully finished products, manufacturing, wholesale and trading of these products.

 

Our office has relocated to T2-L8-3, Level 8, IOI City Tower Two, Lebuh IRC, IOI Resort City, 62502 Putrajaya, Malaysia since March 2021.

 

Going Concern Uncertainties

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.

 

As of May 31, 2022, the Company had an accumulated deficit of $ i 1,597,683, and net loss of $ i 256,566 for the nine months ended May 31, 2022. Losses have principally occurred as a result of the substantial resources required for general and administrative expenses associated with our operations. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders or external financing. Management believes the existing stockholders will provide the additional cash to meet with the Company’s obligations as they become due. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations.

 

These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern.

 / 

 

 i 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

 i 

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by U.S. GAAP for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended August 31, 2021.

 / 

 

 
7

Table of Contents

 

Principles of Consolidation

 

 i 

The accompanying consolidated financial statements include the financial statements of the Company and its  i 49% owned subsidiary Fellazo Berhad, an entity under common control. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

 / 

 

Variable Interest Entities

 

 i 

The Company holds both the power to direct the most significant activities of FB, as well as an economic interest in FB and, as such, is deemed to be the primary beneficiary or consolidator of FB. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity.

 

Revenue recognition

 

 i 

The Company commenced its operation in mid-October 2019. At this initial stage revenue is earned from the trading of raw bird-nest only.

 

The Company’s revenue recognition procedures consist of the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations pursuant to each of its sales transactions:

 

 

·

identify the contract with a customer;

 

·

identify the performance obligations in the contract;

 

·

determine the transaction price;

 

·

allocate the transaction price to performance obligations in the contract; and

 

·

recognize revenue as the performance obligation is satisfied.

 

However, at this initial stage of our operations which started with trading of raw bird-nest, management is using this stage for exposure of management to the bird-nest business in order to learn and experience with our suppliers, who are bird-nest farmers or their agents, determination of quality of the raw material, the process of raw bird-nest cleaning of the different class of the raw material and market for these clean bird-nest.

 

At this initial stage we have not entered into any formal contracts with our suppliers and purchasers, most of the suppliers and purchasers are known to our management or introduced to the management by closed business friends.

 

 
8

Table of Contents

 

Cost of Goods Sold – Trading of Raw Bird-Nest

 

 i 

At this initial stage of business operations which the management considered as exposure, gaining of knowledge and experience of the overall bird-nest business, our Cost of goods sold only include the actual cost of the raw bird-nest.

 

Foreign Currency Translation

 

 i 

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 statement of operations.

 

 i 

Exchange Rates

 

May 31,

2022

 

 

August 31,

2021

 

Spot rate RM : USD exchange rate

 

 

 i 0.2284

 

 

 

 i 0.2406

 

Average period RM : USD exchange rate

 

 

 i 0.2336

 

 

 

 i 0.2389

 

 / 
 / 

 

Concentrations

 

 i 

The Company had a concentration in demand for its products as four customers comprised  i 100% of the Company’s sales where for one customer was approximately  i 61%, a second customer was approximately  i 27% and a third customer was approximately  i 10%.

 

The Company had a concentration in supply of its products as four customers comprised  i 100% of Company’s purchases where for one supplier was approximately  i 90% and second supplier was approximately  i 9%.

 / 

 

 i 

NOTE 3 – RELATED PARTY TRANSACTIONS

 

Our Management Agent, Swipypay Berhad (a company established in Malaysia) is  i 80% owned by our Director – Mr. Yap Kit Chuan. Total outstanding amount due to our Management Agent was $ i 1,689,045 and $ i 1,409,229 as at May 31, 2022 and August 31, 2021 respectively. The additional amount of $ i 279,816 incurred in the nine months ended May 31, 2022, primarily consisted of operating expenses paid on behalf of the Company of $ i 317,206, advances from a related party of $ i 51,570, and a repayment to a related party of $ i 69,972. The difference of amount was a result of change of exchange rate.

 / 

 

 
9

Table of Contents

  

Item 2. Management’s Discussion and Analysis of Financial Condition or Plan of Operation

 

FORWARD-LOOKING STATEMENTS

 

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

 

Our unaudited consolidated financial statements are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our consolidated financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.

 

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock.

 

As used in this quarterly report, the terms “we”, “us”, “our”, our company or the Company mean Fellazo Corp., and Fellazo Berhad, a Malaysian company, of which we own 49%, unless otherwise indicated.

 

Overview of Corporate History

 

Fellazo Corp. was incorporated in the State of Nevada on May 28, 2014. The Company’s fiscal year end is August 31.

 

Overview of Current Business

 

The Company’s core business is “Healthcare and Personal Wellness” products - primarily bird-nest based, which include manufacturing and retail (retail chain and online). With our expertise in online applications platforms, we will be developing an online network platform to market and sell our products. and also create a system to source and purchase raw materials we required.

 

In mid of October 2019, the Company’s 49% subsidiary Fellazo Berhad (FB) started purchases of raw bird-nests directly from bird-nest farmers or their agents, and re-sold them to bird-nest processors; wherever possible these raw bird-nests are delivered directly from the farmer to the processor, so that we would not have to maintain a facility to store these raw bird-nests at an early stage of our business development.

 

FB’s show factory had since moved to a new location after our Head-Office moved to Putrajaya, the Malaysian Government’s Federal Administrative Center. The new show factory is located within half an hour from our office and continue to be managed by our Management Agent, Swipypay Berhad.

 

Due to the continuous effects of the Covid-19 pandemic and the economy uncertainty, our operations are on bare minimum and any plan for expansion had been put on hold until the overall economy climate improves.

 

 
10

Table of Contents

 

On April 1, 2021, Yap Kit Chuan, President, director and owner of ninety-six percent (96%) of the issued and outstanding shares of Common Stock of the Company, agreed to transfer, to a number of business associates, up to approximately 26,000,000 shares of the Company’s Common Stock, representing thirty percent (30%) of the total issued and outstanding shares of Common Stock of the Company.

 

On July 15, 2021, Yap Kit Chuan, agreed to increase the proposed transfers up to a total of 35,000,000 shares, representing up to forty-one percent (41%) of the issued and outstanding shares of the Company’s Common Stock. The transfer will occur from time to time and will now be completed on or before August 31, 2021. The transfers will be undertaken pursuant to Regulation S of the Securities Act of 1933, and the shares transferred will continue to carry a restrictive legend.

 

As of August 31, 2021, the total of 34,835,373 shares have been transferred to 249 new and 9 existing shareholders, and the number of shares belonged to Yap Kit Chuan was 48,368,127 shares.

 

Our office is located at T2-L8-3, Level 8, IOI City Tower Two, Lebuh IRC, IOI Resort City, 62502 Putrajaya, Malaysia. Our corporate website is http://fellazo.com.

 

We have never declared bankruptcy, been in receivership, or involved in any kind of legal proceeding.

 

Results of Operations

 

The following summary of our results of operations should be read in conjunction with our financial statements included elsewhere in this quarterly report.

 

Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation. We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

 

Comparison of the three months ended May 31, 2022 and 2021

 

 

 

Three months ended

 

 

 

 

 

 

 

 

 

May 31,

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

Change

 

 

%

 

Revenue

 

$48,128

 

 

$21,460

 

 

$26,668

 

 

 

124%

Cost of Goods Sold

 

 

37,389

 

 

 

18,376

 

 

 

19,013

 

 

 

103%

General and administrative expenses

 

 

92,397

 

 

 

90,309

 

 

 

2,088

 

 

 

2%

Net income (loss)

 

$(81,658

)

 

$(87,225

)

 

$5,567

 

(6%)

 

 

For the three months ended May 31, 2022, we had revenue of $48,128 and cost of goods sold of $37,389, as compared to $21,460 and $18,376 for the same period in 2021. The Company started with trading of raw bird-nest since fiscal year 2020 and it is an initial stage of our operations.

 

 
11

Table of Contents

 

Our general and administrative expenses were $92,397 for the three months ended May 31, 2022, as compared to $90,309 for the same period in 2021. General and administrative expense mainly consisted of management fee and payroll expense.

 

Our net loss decreased by $5,567 due to an increase in revenue and gross profit.

 

Comparison of the nine months ended May 31, 2022 and 2021

 

 

 

Nine Months Ended

 

 

 

 

 

 

 

May 31,

 

 

 

 

 

 

 

2022

 

 

2021

 

 

Change

 

 

%

 

Revenue

 

$72,379

 

 

$224,436

 

 

$(152,057)

 

(68%)

 

Cost of Goods Sold

 

 

52,219

 

 

 

168,390

 

 

 

(116,171)

 

(69%)

 

General and administrative expenses

 

 

276,726

 

 

 

286,157

 

 

 

(9,431)

 

(3%)

 

Net loss

 

$(256,566

)

 

$(230,111

)

 

$26,455

 

 

 

11%

 

For the nine months ended May 31, 2022, we had revenue of $72,379 and cost of goods sold of $52,219, as compared to $224,436 and $168,390 for the same period in 2021. The Company started with trading of raw bird-nest since fiscal year 2020 and it is an initial stage of our operations.

 

Our general and administrative expenses were $276,726 for the nine months ended May 31, 2022, as compared to $286,157 for the same period in 2021. General and administrative expense mainly consisted of management fee and payroll expense.

 

Our net loss increased by $26,455 due to a decrease in revenue and gross profit.

 

Liquidity and Capital Resources

 

Working Capital

 

 

 

May 31,

 

 

August 31,

 

 

 

 

 

 

 

2022

 

 

2021

 

 

Change

 

 

%

 

Current assets

 

$52,745

 

 

$7,361

 

 

$45,384

 

 

 

617%

Current liabilities

 

$1,706,995

 

 

$1,422,950

 

 

$284,045

 

 

 

20%

Working capital deficiency

 

$(1,654,250)

 

$(1,415,589)

 

$(238,661)

 

 

17%

 

The Company’s current assets consists of cash of $29,175, accounts receivable of $22,355 and prepaid expense of $1,215 at May 31, 2022, as compared to cash of $7,361 at August 31, 2021.

 

 
12

Table of Contents

 

As at May 31, 2022, current liabilities consisted of accounts payable and accrued liabilities of $17,950 and due to a related party of $1,689,045, as compared to August 31, 2021, current liabilities consisted of accounts payable and accrued liabilities of $13,721 and due to a related party of $1,409,229. The increase in current liabilities is primarily due to the operating expenses paid by the related party.

 

Cash Flows

 

 

 

Nine Months Ended

 

 

 

 

 

May 31,

 

 

 

 

 

2022

 

 

2021

 

 

Change

 

Cash provided by operating activities

 

$40,442

 

 

$61,909

 

 

$(21,467)

Cash used in financing activities

 

 

(18,402)

 

 

(62,180)

 

 

43,778

 

Effects on changes in foreign exchange rate

 

 

(226)

 

 

(115)

 

 

(111)

Net change in cash

 

$21,814

 

 

$(386)

 

$22,200

 

 

Cash Flow from Operating Activities

 

Cash flows provided by operations was $40,442 during the nine months ended May 31, 2022, compared with $61,909 during the same period in 2021. The decrease in cash provided by operating activities is mainly due to an increase in net loss.

 

Cash Flow from Financing Activities

 

During the nine months ended May 31, 2022, the Company received $51,570 from a related party, and repaid $69,972 to a related party. During the nine months ended May 31, 2021, the Company received $10,458 from a related party, and repaid $72,638 to a related party.

 

Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

 

Critical Accounting Policies and Estimates

 

Management’s discussion and analysis of our financial condition and results of operations are based upon our unaudited consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. We review the accounting policies used in reporting our financial results on a regular basis. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, net sales and expenses and related disclosure of contingent liabilities. We base our estimates on historical experience and on various other assumptions that we believe are reasonable for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Our actual results may differ materially from these estimates.

 

 
13

Table of Contents

 

For a complete description of our critical accounting policies and estimates, refer to our 2021 Annual Report on Form 10-K filed with the Securities and Exchange Commission on December 16, 2021.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable to smaller reporting companies.

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act 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 Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of May 31, 2022. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms as a result of the following material weaknesses:

 

(1) lack of a functioning audit committee and lack of a majority of outside directors on the Company’s board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures;

 

(2) inadequate segregation of duties consistent with control objectives;

 

(3) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of U.S. GAAP and SEC disclosure requirements; and

 

(4) ineffective controls over period end financial disclosure and reporting processes.

 

The specific material weakness identified by our management was ineffective controls over certain aspects of the financial reporting process because of a lack of a sufficient complement of personnel with a level of accounting expertise and an adequate supervisory review structure that is commensurate with our financial reporting requirements and inadequate segregation of duties. A “material weakness” is a deficiency, or 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 would not be prevented or detected on a timely basis.

 

We expect to be materially dependent upon third parties to provide us with accounting consulting services for the foreseeable future which we believe mitigates the impact of the material weaknesses discussed above. Until such time as we have a chief financial officer with the requisite expertise in U.S. GAAP and establish an audit committee and implement internal controls and procedures, there are no assurances that the material weaknesses and significant deficiencies in our disclosure controls and procedures will not result in errors in our financial statements which could lead to a restatement of those financial statements.

  

Changes in Internal Controls

 

There have been no changes in our internal controls over financial reporting identified in connection with the evaluation required by paragraph (d) of Securities Exchange Act Rule 13a-15 or Rule 15d-15 that occurred in the quarter ended May 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 
14

Table of Contents

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

As of the date of this Quarterly Report on Form 10-Q, we are not a party to any legal proceedings that could have a material adverse effect on the Company’s business, financial condition or operating results. Further, to the Company’s knowledge no such proceedings have been threatened against the Company.

 

Item 1A. Risk Factors

 

As a “smaller reporting company”, we are not required to provide the information required by 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.

 

Item 5. Other Information

 

None.

 

 
15

Table of Contents

 

Item 6. Exhibits

 

The following exhibits are filed herewith or are incorporated by reference to exhibits previously filed with the SEC:

 

Incorporated by Reference

Exhibit No.

Title

Form

Exhibit

Filing Date

3.1

Articles of Incorporation

S-1

3.1

11/27/2015

3.3

Bylaws

S-1

3.2

11/27/2015

3.4

Certificate of Amendment to Articles of Incorporation, effective as of September 19, 2017

8-K

3.1

09/22/2017

10.1

 

Stock purchase agreement

10-Q

10.1

04/23/2019

31.1*

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1+

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101*

 

Inline XBRL Document Set for the condensed consolidated financial statements and accompanying notes in Part I, Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q.

 

 

 

 

104*

 

Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set.

 

 

 

 

 

___________

* Filed herewith

+ Furnished herewith.

 

 
16

Table of Contents

 

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.

 

 

FELLAZO CORP.

 

(Registrant)

 

Dated: July 12, 2022

 

/s/ YAP KIT CHUAN

 

YAP KIT CHUAN

 

President, CEO, CFO, Treasurer,

Secretary and Chairman of the Board of Directors of the Company

 

(Principal Executive Officer, Principal Financial Officer

and Principal Accounting Officer)

 

 
17

 


Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-Q’ Filing    Date    Other Filings
8/31/22
Filed on:7/12/22
6/30/22
For Period end:5/31/22
2/28/2210-Q
12/16/2110-K
11/30/2110-Q
8/31/2110-K,  NT 10-K
7/15/21
5/31/2110-Q
4/1/218-K,  8-K/A
2/28/2110-Q,  NT 10-Q
11/30/2010-Q,  NT 10-K
8/31/2010-K,  NT 10-K
5/28/14
 List all Filings 


3 Previous Filings that this Filing References

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

 4/23/19  Fellazo Corp.                     10-Q        2/28/19   34:1.4M                                   Pubco Reporting … Inc/FA
 9/22/17  Fellazo Corp.                     8-K:5,9     9/22/17    2:217K                                   M2 Compliance LLC/FA
11/27/15  Fellazo Corp.                     S-1                    9:185K                                   Global Fin’l Corp./FA
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