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iMine Corp. – ‘10-Q’ for 4/30/22

On:  Wednesday, 6/1/22, at 7:57am ET   ·   For:  4/30/22   ·   Accession #:  1640334-22-1162   ·   File #:  0-55233

Previous ‘10-Q’:  ‘10-Q’ on 3/14/22 for 1/31/22   ·   Next:  ‘10-Q’ on 12/5/22 for 10/31/22   ·   Latest:  ‘10-Q’ on 3/15/24 for 1/31/24

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

 6/01/22  iMine Corp.                       10-Q        4/30/22   40:1.9M                                   Pubco Reporting … Inc/FA

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM  i 10-Q

Commission file number:  i 000-55233

 i 60 NE 14TH STREET,  i UNIT 1803

 i Miami  i FL  i 33132

(Address of principal executive offices)

 i 786- i 553-4006

(Registrant’s telephone number, including area code)

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

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.

If an emerging growth company, indicate by a 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 ☐

As of May 28, 2022, there were  i 74,498,053 shares of the issuer’s common stock, par value $0.001 per share, outstanding.

iMINE CORPORATION

Form 10-Q

April 30, 2022

TABLE OF CONTENTS

FORWARD LOOKING STATEMENTS

This report contains forward-looking statements regarding our business, financial condition, results of operations and prospects. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this report. Additionally, statements concerning future matters are forward-looking statements.

Although forward-looking statements in this report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed under the headings “Risks Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our annual report on Form 10-K for the year ended July 31, 2021, in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Form 10-Q, and information contained in other reports that we file with the SEC. You are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this report.

We file reports with the SEC. The SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us.

We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this report, except as required by law. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this quarterly report, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.

All references in this Form 10-Q to the “Company,” “iMine,” “we,” “us,” “our” and words of like import relate to are to iMine Corporation and its subsidiary, which is inactive.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

iMINE CORPORATION

Consolidated Balance Sheets

 (Unaudited)

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

iMINE CORPORATION

Consolidated Statements of Operations

(Unaudited)

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

iMINE CORPORATION

Consolidated Statements of Changes in Stockholders’ Deficit

(Unaudited)

For the Three and Nine months ended April 30, 2022

For the Three and Nine months ended April 30, 2021

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

iMINE CORPORATION

Consolidated Statements of Cash Flows

(Unaudited)

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

iMINE CORPORATION

Notes to Unaudited Consolidated Financial Statements

The following table summarizes fair value measurements by level at April 30, 2022 and July 31, 2021, measured at fair value on a recurring basis:

Net Loss per Share of Common Stock

Recent Accounting Pronouncements

Interest of  i 5% is payable annually until the settlement date. The notes default rate of  i 12% is payable from maturity date of the notes. During the nine months ended April 30, 2022, and 2021, the Company recorded interest expense of $ i 15,123 and $ i 44,876, respectively. No interest has been paid during the nine months ended April 30, 2022 and 2021.

During the nine months ended April 30, 2022, the Company issued  i 32,189,100 shares of common stock to the CEO for the settlement of the convertible note, and interest, in the aggregate amount of $ i 643,782.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Overview

In April 2019 we discontinued our prior crypto currency mining business. We are now in the process of looking for a new business, either through an acquisition or commencing new business activities. Although we have had discussions with potential acquisition candidates, as of the date of this report, we have not signed any agreement, letter of intent or memorandum of understanding with respect to any potential acquisition, and we cannot assure you that we will be able to make any acquisition. Because of our limited financial condition, the low price and lack of liquidity of our stock, and our stock being quoted on OTC Pink, we believe it is unlikely that we will be able to acquire any company other than a company without a history of earnings. In such event, we would likely need to raise a significant amount of funds. We have no assurance that financing will be available to us on acceptable, if any, terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing would result in additional dilution to existing stockholders.

In 2018 we purchased certain equipment for $500,000 borrowed from Mr. Romero. The equipment was never delivered to us in the United States, and on October 29, 2021, we entered into a settlement agreement with Gygabyte whereby we paid $10,790 to Gigabyte. Four pallets of equipment have been shipped from Taiwan and are expected to arrive in the U.S. next quarter. The equipment is in component parts and there is no assurance if this can be assembled and mined or sold since this equipment was purchased over three years ago.

On November 1, 2021 we entered into a settlement with Mr. Romero whereby he converted the principal amount of his $500,000 loan along with accrued interest into shares of the company at $.02 per share and we issued additional shares to him for his service as the CEO under his previous employment agreement. The total number of shares issued to Mr. Romero for his note conversion and compensation was 35,189,100.

Results of Operations

Three Months Ended April 30, 2022 and 2021

For the three months ended April 30, 2022, we incurred operating loss of $31,059, primarily professional fees, resulting in a net loss of $31,059 or ($0.00) per share (basic and diluted). For the three months ended April 30, 2021, we incurred operating expenses of $15,480, primarily professional fees, resulting in a loss from operations of $15,480. Other expenses consisted of interest expense of $14,630, resulting in a net loss of $30,110 or ($0.00) per share (basic and diluted).

Nine months Ended April 30, 2022 and 2021

For the nine months ended April 30, 2022, we incurred operating loss of $64,768, primarily professional fees, resulting in a loss from operations of $64,768. Other income consisted of release of liability of $19,500 and reverse professional fees of $49,500, and interest expense of $15,123, resulting in a net loss of $10,891, or ($0.00) per share (basic and diluted). For the nine months ended April 30, 2021, we incurred operating expenses of $23,360, primarily professional fees, resulting in a loss from operations of $23,360. Other expenses consisted of interest expense of $44,876, resulting in a net loss of $68,236 or ($0.00) per share (basic and diluted).

Liquidity and Capital Resources

The following summarizes our change in working capital from July 31, 2021 to April 30, 2022:

The decrease in working capital deficiency is primarily due to an extinguishment of amounts payable to related parties and conversion of debt.

The following table summarizes our cash flow for the nine months ended April 30, 2022 and 2021:

The cash flow used in operating activities for the nine months ended April 30, 2022, reflects our net loss of $10,891. This amount was decreased by release of liabilities of $69,000, increased by accrued interest on convertible notes of $15,123 and amounts due to related parties of $80,720. It was decreased by prepaid expenses of $52 and accounts payable and accrued liabilities of $16,170. The cash flow used in operating activities for the nine months ended April 30, 2021 reflects our net loss of $68,236. This amount was decreased by accrued interest on convertible notes of $44,876 and by amounts due to related parties of $19,500 and accounts payable and accrued liabilities of $3,590.

For the nine months ended April 30, 2022 and 2021, we did not have any cash flow from investing or financing activities.

Going Concern

Our financial statements have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. During the nine months ended April 30, 2022, we incurred net cash used in operating activities of $270. As of April 30, 2022, we had an accumulated deficit of $12,827,767, we had earned no revenues since inception and we were not engaged in an active business. We intend to seek to either acquire a business or enter into a new business. However, until we engage in an active business or make an acquisition, we are likely to not be able to raise any significant debt or equity financing or any funds that we may raise are likely to be on very unfavorable terms. Our ability to begin operations in a new business model is dependent upon, among other things, obtaining financing to commence operations and develop a business plan or making an acquisition. We cannot give any assurance as to our ability to develop or acquire a business or to operate profitably. These factors, among others, raise substantial doubt about our ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Critical Accounting Policies

Use of Estimates: The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that directly affect the results of reported assets, liabilities, revenue, and expenses, including the valuation of non-cash transactions. Actual results may differ from these estimates.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

As a smaller reporting company, we have elected not to provide the disclosure required by this item.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We conducted an evaluation of the effectiveness of our “disclosure controls and procedures” (“Disclosure Controls”), as defined by Rules 13a-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of April 30, 2022, the end of the period covered by this quarterly report on Form 10-Q. The Disclosure Controls evaluation was done under the supervision and with the participation of management, including our chief executive officer and chief financial officer, which positions are held by the same person who assumed both positions on August 14, 2019, and who is our only executive officer. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. Based upon this evaluation, our chief executive officer and chief financial officer, concluded that, due to the inadequacy of our internal controls over financial reporting, our sole principal being our chief executive and financial officer and sole director, and our limited internal audit function, our disclosure controls were not effective as of April 30, 2022, such that the information required to be disclosed by us in reports filed under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to the president and treasurer, as appropriate, to allow timely decisions regarding disclosure.

Changes in Internal Control over Financial Reporting

As reported in our annual report on Form 10-K for the year ended July 31, 2021, management has determined that our internal controls contain material weaknesses due to the absence of segregation of duties, as well as lack of qualified accounting personnel and excessive reliance on third party consultants for accounting, financial reporting and related activities. The lack of any separation of duties, with the same person, who is our only principal who serves as both chief executive officer and chief financial officer, who is our sole director, and who does not have an accounting background and serves on a part-time basis, makes it unlikely that we will be able to implement effective internal controls over financial reporting in the near future.

During the period ended April 30, 2022, there was no change in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

On April 8, 2021, we filed a lawsuit against the former CEO, Daniel Tsai, claiming breach of his fiduciary duty and gross misconduct. On September 30, 2021, we received a default judgement against Mr. Tsai by which his employment contract with the Company was rescinded, his 17,500,000 shares were cancelled, and we were relieved of payment to Mr. Tsai for his potential tax obligation in connection with the issuance of the shares to him. Further, the Court ruled that 1,200,000 shares issued by the Company to a friend of Mr. Tsai’s were issued without consideration, and the Company cancelled the shares.

Item 6. Exhibits.

Exhibits

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.

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Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-Q’ Filing		Date		Other Filings
		7/31/22
Filed on:		6/1/22
		5/31/22
		5/28/22
For Period end:		4/30/22
		3/24/22		8-K
		1/31/22		10-Q
		12/15/21		3
		11/1/21
		10/31/21		10-Q
		10/29/21
		9/30/21
		7/31/21		10-K
		6/5/21
		4/30/21		10-Q
		4/8/21
		1/31/21		10-Q
		12/15/20
		10/31/20		10-Q
		7/31/20		10-K
		8/14/19		8-K
		3/20/18
		3/19/18		3,  4
		10/26/10
				List all Filings

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Filing Submission 0001640334-22-001162   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

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