Company Quick10K Filing
ECCO Auto World
Price-0.00 EPS-0
Shares93 P/E0
MCap-0 P/FCF0
Net Debt-0 EBIT-0
TEV-0 TEV/EBIT1
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-11-23
10-Q 2020-06-30 Filed 2020-09-04
10-K 2020-03-31 Filed 2020-08-20
10-Q 2019-12-31 Filed 2020-02-13
10-Q 2019-09-30 Filed 2019-11-12
10-Q 2019-06-30 Filed 2019-08-12
10-K 2019-03-31 Filed 2019-07-19
10-Q 2018-12-31 Filed 2019-01-31
10-Q 2018-09-30 Filed 2018-11-16
10-Q 2018-06-30 Filed 2018-08-14
10-K 2018-02-28 Filed 2018-05-29
10-Q 2017-11-30 Filed 2018-01-16
10-Q 2017-08-31 Filed 2017-10-16
8-K 2020-06-16
8-K 2019-09-30
8-K 2018-08-24
8-K 2018-06-30
8-K 2018-01-25

ECCO 10Q Quarterly Report

Part I - Financial Information
Item 1. Unaudited Condensed Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II &Mdash; Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information.
Item 6. Exhibits
EX-31.1 ex31-1.htm
EX-32.1 ex32-1.htm

ECCO Auto World Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
2279701792691305688186733166-155352017201820192020
Assets, Equity
20460-53153-126766-200379-273992-3476052017201820192020
Rev, G Profit, Net Income
25045013069610942-108812-228566-3483202017201820192020
Ops, Inv, Fin

10-Q 1 form10-q.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

 

For The Six Month Period Ended September 30, 2020

 

or

 

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

 

For the transition period from ___________ to ____________

 

Commission File Number 333-218334

 

ECCO AUTO WORLD CORPORATION

(Exact name of registrant issuer as specified in its charter)

 

Nevada   30-0943638

(State or other jurisdiction

of incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

Unit C, 4/F, China Insurance Building, 48 Cameron Road,

Tsim Sha Tsui, Kowloon, Hong Kong.

(Address of principal executive offices, including zip code)

 

Registrant’s phone number, including area code +852 8134 5953

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

YES [X] NO [  ]

 

Indicate by check mark whether the registrant 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).

 

YES [  ] NO [X]

 

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. (Check one):

 

Large Accelerated Filer [  ] Accelerated Filer [  ] Non-accelerated Filer [  ] Smaller reporting company [X]

Emerging growth company [X]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ] No [X]

 

The aggregate market value of the Company’s common stock held by non-affiliates computed by reference to the closing bid price of the Company’s common stock, as of the last business day of the registrant’s most recently completed second fiscal quarter:

 

 

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.

N/A

 

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 September 30, 2020
Common Stock, $.0001 par value   93,089,643

 

 

 

   
   

 

TABLE OF CONTENTS

 

    Page
PART I FINANCIAL INFORMATION  
ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS: F-1
  Condensed Consolidated Balance Sheets as of September 30, 2020 (unaudited) and March 31, 2020 (Audited) F-2
  Condensed Consolidated Statements of Operations and Comprehensive Income for the Six Months Ended September 30, 2020 and 2020 (unaudited) F-3
  Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Six Months Ended September 30, 2020 (unaudited) F-4
  Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2020 and 2019 (unaudited) F-5
  Notes to the Condensed Consolidated Financial Statements F-6 - F-14
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 3-4
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 5
ITEM 4. CONTROLS AND PROCEDURES 5
     
PART II OTHER INFORMATION  
ITEM 1 LEGAL PROCEEDINGS 6
ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 6
ITEM 3 DEFAULTS UPON SENIOR SECURITIES 6
ITEM 4 MINE SAFETY DISCLOSURES 6
ITEM 5 OTHER INFORMATION 6
ITEM 6 EXHIBITS 6
  SIGNATURES 7

 

 2 
   

 

PART I – FINANCIAL INFORMATION

 

ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

ECCO AUTO WORLD CORPORATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

 

 F-1 
   

 

ECCO AUTO WORLD CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

As of September 30, 2020 March 31, 2020

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

   As of
September 30, 2020
   As of
March 31, 2020
 
   (Unaudited)   (Audited) 
ASSETS          
CURRENT ASSETS          
Cash and cash equivalents   4,179    8,969 
Other receivable and prepayment   2,920    2,920 
Due from related party   13,940    7,088 
Total Current Assets   21,039    18,977 
           
NON-CURRENT ASSETS          
Plant and equipment, net   28,547    32,549 
TOTAL ASSETS  $49,586    51,526 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
CURRENT LIABILITIES          
Other payables and accrued liabilities   186,790    181,684 
Deferred Revenue   9,100    17,500 
Total Current Liabilities   195,890    199,184 
TOTAL LIABILITIES  $195,890    199,184 
STOCKHOLDERS’ EQUITY          
Preferred stock, $0.0001 par value; 200,000,000 shares authorized; None issued and outstanding          
Common Stock, par value $0.0001; 600,000,000 shares authorized, 93,089,643 shares issued and outstanding as of September 30, 2020 and March 31, 2020   9,309    9,309 
Additional paid in capital   622,147    622,147 
Accumulated loss   (783,917)   (793,612)
Accumulated other comprehensive gain   6,157    14,498 
TOTAL STOCKHOLDERS’ EQUITY  $(146,304)  $(147,658)
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $49,586   $51,526 

 

See accompanying notes to condensed consolidated financial statements.

 

 F-2 
   

 

ECCO AUTO WORLD CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF OPERATION AND COMPREHENSIVE INCOME

For the six months ended September 30, 2020 and 2019

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

   Three months ended Sept 30   Six months ended Sept 30 
   2020   2019   2020   2019 
                 
REVENUE  $19,100   $-   $35,600   $- 
                     
COST OF REVENUE  $-   $-   $-   $- 
                     
GROSS PROFIT  $19,100   $-   $35,600   $- 
                     
OTHER INCOME  $-   $-   $1   $61 
                     
GENERAL AND ADMINISTRATIVE EXPENSES  $(13,893)  $(17,132)  $(25,906)  $(28,354)
                     
(LOSS)/GAIN BEFORE INCOME TAX  $5,207   $(17,132)  $9,695   $(28,293)
                     
INCOME TAX PROVISION  $-    -   $-   $- 
                     
NET (LOSS)/GAIN  $5,207   $(17,132)  $9,695   $(28,293)
                     
OTHER COMPREHENSIVE LOSS  $(3,873)  $-   $(8,341)  $(13)
                     
TOTAL COMPREHENSIVE INCOME/(LOSS)  $1,334   $(17,132)  $1,354   $(28,306)
                     
Net loss per share, basic and diluted:   (0.00)   (0.00)   (0.00)   (0.00)
                     
Weighted average number of common shares outstanding – Basic and diluted   93,089,643    93,089,643    93,089,643    93,089,643 

 

See accompanying notes to condensed consolidated financial statements.

 

 F-3 
   

 

ECCO AUTO WORLD CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

For the six months ended September 30, 2020

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

 

   COMMON STOCK   ADDITIONAL           ACCUMULATED OTHER     
   Number of
Shares
   Amount   PAID-IN CAPITAL   ACCUMULATED LOSSES   MERGER RESERVE   COMPREHENSIVE INCOME/(LOSS)   TOTAL EQUITY 
Balance as of April 1, 2019   93,089,643   $9,309   $622,147   $(570,484)  $15   $(1,364)  $59,623 
Balance as of April 1, 2019 (acquisition of new subsidiaries)   -   $-    -   $(187,435)   -    3,544    (183,891)
Balance as of April 1, 2019 (Restated)   93,089,643   $9,309    622,147    (757,919)   -    2,180    (124,268)
Transaction with owner   -    -    -    -    (15)   -    (15)
Accumulated other comprehensive loss   -    -    -    -    -    12,318   $12,318 
Net loss for the year   -    -    -   $(35,693)   -    -   $(35,693)
Balance as of March 31, 2020   93,089,643   $9,309    622,147    (793,612)   -    14,498    (147,658)
Accumulated other comprehensive loss   -    -    -    -    -    (4,468)   (4,468)
Net Profit for the period   -    -    -    4,488    -    -    4,488 
Balance as of June 30 2020   93,089,643   $9,309    622,147    (789,124)   -    10,030    (147,638)
Accumulated other comprehensive loss                       -    (3,873)   (3,873)
Net loss for the period                  5,207    -    -    5,207 
Balance as of September 30, 2020   93,089,643   $9,309    622,147    (783,917)   -    6,157    (146,304)

 

See accompanying notes to condensed consolidated financial statements.

 

 F-4 
   

 

ECCO AUTO WORLD CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended September 30, 2020 and 2019

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

    Six Months Ended  
   

September 30, 2020

(Unaudited)

   

September 30, 2019

(Unaudited)

 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net profit/(loss)   $ 9,695      $ (28,293 )
Adjustment to reconcile net loss to net used in operating activities:                
Depreciation   $ 5,053     $ 366  
Changes in operating assets and liabilities:                
Prepaid Expenses   $ -     $ 1,052  
Due from related parties   $ (6,577 )     500  
Other payables and accrued liabilities   $ (5,212 )   $ (13,959)  
Deferred Revenue   $ (8,400 )     -  
Due to related parties   $ -     $ 4,150  
Net cash used in  operating activities   $ (5,441 )   $ (36,184 )
                 
Effect of exchange rate changes on cash and cash equivalents   $ 651     $ (13 )
Net decrease in cash and cash equivalents   $ (4,790 )   $ (36,197 )
Cash and cash equivalents, beginning of period   $ 8,969     $ 52,390  
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 4,179     $ 16,193  

 

See accompanying notes to condensed consolidated financial statements.

 

 F-5 
   

 

ECCO AUTO WORLD CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the Six months ended September 30, 2020

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

1. DESCRIPTION OF BUSINESS AND ORGANIZATION

 

ECCO Auto World Corporation is organized as a Nevada limited liability company, incorporated on June 6, 2016. For purposes of consolidated financial statement presentation, ECCO Auto World Corporation and its subsidiary are herein referred to as “the Company” or “we”. The Company is a business whose planned principal operations are to develop and operate an Automobile mobile application or a platform to connect auto repair shops and car owners.

 

On June 7, 2017, the Company acquired 100% interest in ECCO Auto World Corporation, a private limited liability company incorporated in Labuan, resulting in the latter becoming a wholly-owned subsidiary company of the Company.

 

On February 17, 2020, Ecco Auto World Corp (the “ECCO”) and Mr Joson Yeo Hung Kwang Mr Chai Kok Leong and Mr Loke Che Chan, Gilbert, each representing 49.5% ,49.5% and 1% shareholding of Free Share X- Change Limited, an Anguilla corporation, (“FSX”) entered into a Sale and Purchase Agreement (the “FSX Purchase Agreement”), pursuant to which ECCO acquired 100% of the issued and outstanding shares of FSX (the “Acquisition”). As consideration thereof, ECCO agreed to paid cash consideration of US$15 to the sharaeholders

 

FSX wholly owned a subsidiary Vtrade Technology Sdn Bhd, (the “Vtrade”) in Malaysia, is a private Limited company incorporated in July 12th, 2018

 

Details of the Company’s subsidiary:

 

  Company name   Place and date of
incorporation
  Particulars of issued capital   Principal activities
               
1. ECCO Auto World Corporation   Labuan,
March 1, 2017
  100 shares of ordinary share of US$1 each   Investment holding
2. Free Share X-change Limited  

Anguilla,

December 17, 2013

  101 shares of ordinary shares of US$15 in total   Providing system and software development, Information technology (IT) consultancy and managed services.
3. Vtrade Technology Sdn Bhd  

Malaysia,

July 12, 2018

  2 shares of ordinary shares of US$0.48 in total   Providing system and software development, Information technology (IT) consultancy and managed services.

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

 

Basis of consolidation

 

The condensed consolidated financial statements include the accounts of the Company and its subsidiary. All inter-company accounts and transactions have been eliminated upon consolidation.

 

Use of estimates

 

Management uses estimates and assumptions in preparing these consolidated 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 sheet, and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates.

 

Revenue recognition

 

In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition”, the Company recognizes revenue from sales of goods when the following four revenue criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) selling price is fixed or determinable; and (4) collectability is reasonable assured.

 

Revenue is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue.

 

 F-6 
   

 

ECCO AUTO WORLD CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the Six months ended September 30, 2020

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

The Company derives its revenue from provision of servicing scheduling, system optimization advisory services, also providing Finance IT solution, system and software development, Information technology (IT) consultancy and managed services. The services are billed on a fixed-fee basis.

 

Cost of revenue

 

Cost of revenue includes the cost of consultation services in providing system and software development, Information technology (IT) consultancy and managed services.

 

Cash and cash equivalents

 

The Company considers all highly liquid instruments with a maturity of six months or less at the time of issuance to be cash equivalents.

 

Plant and equipment

 

Plant and equipment is stated at cost less accumulated depreciation and impairment. Depreciation of plant and equipment are calculated on the straight-line method over their estimated useful lives as follows:

 

Classification   Estimated useful lives
Computer and peripherals   5 years

 

Expenditures for maintenance and repairs are expenses as incurred.

 

Income taxes

 

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 greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

 

The Company conducts major businesses in Malaysia and Hong Kong, and is expanding to China and Thailand. The Company is subject to tax in these jurisdiction. As a result of its business activities, the Company will file tax returns that are subject to examination by the foreign tax authority.

 

Net income/(loss) per share

 

The Company calculates net income/(loss) per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income/(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 income/(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.

 

 F-7 
   

 

ECCO AUTO WORLD CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended September 30, 2020

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

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 Condensed Consolidated Statements of Operations and Comprehensive Income

 

The reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the Company’s subsidiary in Malaysia maintains their books and record in their local currency, Ringgits Malaysia (“RM”) which is functional currency as being the primary currency of the economic environment in which the entity operates.

 

In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not 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 statements of stockholders’ equity.

 

Translation of amounts from RM into US$1 has been made at the following exchange rates for the respective periods:

 

   As of and for the period ended
September 30
 
   2020   2019 
         
Period-end RM : US$1 exchange rate   4.1551    4.1889 
Period-average RM : US$1 exchange rate   4.2618    4.1553 

 

Source of currency rate: https://www.x-rates.com/

 

Fair value of financial instruments

 

The carrying value of the Company’s financial instruments: cash and cash equivalents, and accounts payable and approximate 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.

 

 F-8 
   

 

ECCO AUTO WORLD CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended September 30, 2020

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

Recent accounting pronouncements

 

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of such any pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

 

 F-9 
   

 

ECCO AUTO WORLD CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended September 30, 2020

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

Off-Balance Sheet Arrangements

 

As of September 30, 2020, 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.

 

 F-10 
   

 

 

ECCO AUTO WORLD CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended September 30, 2020

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

3. PLANT AND EQUIPMENT

 

   September 30, 2020   March 31, 2020 
         
Computer and peripherals  $51,266   $51,266 
Accumulated depreciation   (21,849)   (16,796)
Effect of translation exchange   (870)   (1,921)
Plant and equipment  $28,547   $32,549 

 

Depreciation expense for the three and six months ended September 30, 2020 is $953 and $5,053 respectively. Depreciation for the three and six months ended September 30, 2019 is $183 and $366 respectively.

 

4. DUE FROM RELATED PARTIES

 

The amount due from related parties are unsecured, interest-free with no fixed repayment term, for working capital purpose.

 

5. COMMON STOCK

 

As of September 30, 2020 and March 31, 2020 the Company has 93,089,643 shares issued and outstanding respectively. There are no shares of preferred stock issued and outstanding.

 

 F-11 
   

 

 

ECCO AUTO WORLD CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the Six months ended September 30, 2020

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

6. OTHER PAYABLES AND ACCRUED LIABILITIES

 

   September 30, 2020   March 31, 2020 
         
Accrued audit fee  $19,345   $28,991 
Accrued review fee   7,000    3,800 
Other payable   160,445    148,894 
Total other payables and accrued liabilities  $186,790   $181,685 

 

As of March 31, 2020, the other payable is made up of loan from non-trade third party amounted to US$148,894.

 

As of September 30, 2020, the other payable is made up of loan from non-trade third party amounted to US$160,445. There is no interest incur  and repayment period is upon request by non-trade third party.

 

7. INCOME TAXES

 

For the six months ended September 30, 2020, the local (United States) and foreign components of income/(loss) before income taxes were comprised of the following:

 

  

Six months ended

  

Six months ended

 
   September 30, 2020   September 30, 2019 
         
Tax jurisdictions from:          
- Local  $(19,666)  $(26,717)
- Foreign, representing   -    - 
Labuan  $(143)   (1,576)
Malaysia   8,379    - 
Anguilla   21,125    - 
Loss before income tax  $9,695   $(28,293)

 

The provision for income taxes consisted of the following:

 

      Six months ended       Six months ended  
      September 30, 2020       September 30, 2019  
Current:                
- Local   $ -     $ -  
- Foreign     -       -  
Deferred:                
- Local     -       -  
- Foreign     -       -  
    $       $    
Income tax expense   $ -     $ -  

 

 F-12 
   

 

ECCO AUTO WORLD CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the Six months ended September 30, 2020

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

United States of America

 

The Tax Cuts and Jobs Act was enacted in the United States on December 22, 2017. The Act reduces the US federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creates new taxes on certain foreign sourced earnings. In December 2017, the SEC issued SAB 118, which directs taxpayers to consider the impact of the U.S. legislation as “provisional” when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law.

 

As of September 30, 2020, the Company does not recognize any provisional amount for the transition tax.

 

We re-measured certain deferred tax assets and liabilities based on the rates at which they are anticipated to reverse in the future, which is generally 21%. However, we are still examining certain aspects of the Act and refining our calculations, the Company is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of September 30, 2020, the operations in the United States of America incurred $667,189 of cumulative net operating loss which can be carried forward to offset future taxable income. The net operating loss carryforwards begin to expire in 2040, if unutilized. The Company has provided for a full valuation allowance of $140,110 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, ECCO Auto World Corporation is governed under the Labuan Business Activity Act, 1990. The tax charge for such company is based on 3% of net audited profit.

 

Malaysia

 

Vtrade Technology Sdn Bhd is subject to Malaysia Corporate Tax, which is charged at the statutory income tax rate range from 17% to 24% on its assessable income. As of September 30, 2020, the operations in the Malaysia incurred $285,266 of cumulative net operating loss. The Company has provided for a full valuation allowance of $48,495 against the deferred tax assets on the expected future tax benefits from the net operating loss carry forwards as the management believes it is more likely than not that these assets will not be realized in the future.

 

Anguilla

 

Under the current laws of the Anguilla Free Share Xchange Limited is registered as an international business company which governs by the International Business Companies Act of Anguilla and there is no income tax charged in Anguilla.

 

8. CONCENTRATIONS OF RISK

 

The Company is exposed to the following concentrations of risk:

 

(a) Major customers

 

For the year ended September 30, 2020 and 2019, the customers who accounted for 10% or more of the Company’s sales and its outstanding receivable balance at year-end are presented as follows:

 

   For the year ended September 30 
   2020   2019   2020   2019   2020   2019 
   Revenue  

Percentage of

Revenue

   Accounts Receivable, Trade 
Customer A  $17,500   $-    49%      -%  $    -   $   - 
Customer B  $18,100   $   -    51%   -%  $-   $- 
   $35,600   $-    100%   -%  $-   $- 

 

(b) Major vendor

 

For the six ended September 30, 2020 and 2019, no vendor accounted for 10% or more of the Company’s cost of revenues, or accounts payable at period-end.

 

(c) Exchange rate risk

 

The Company cannot guarantee that the current exchange rate will remain stable, therefore there is a possibility that the Company could post the same amount of income for two comparable periods and because of the fluctuating exchange rate actually post higher or lower income depending on exchange rate of RM converted into US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice.

 

9. COMMITMENTS AND CONTINGENCIES

 

As of September 30, 2020, the Company has no commitments or contingencies involved.

 

 F-13 
   

 

 

ECCO AUTO WORLD CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended September 30, 2020

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

 

10. RELATED PARTY TRANSACTIONS

 

  

Six months ended

September 30, 2020

  

Six months ended

September 30, 2019

 
Asia UBS Global Limited (1)          
- Professional Fee   4,000    7,400 
- Company Renewal Fee   2,200    550 
    6,200    7,950 

 

(1) Asia UBS Global Limited is a subsidiary of Greenpro Capital Corp. through its subsidiary Greenpro Venture Capital Limited owns approximately 4.30% of the Company issued and outstanding shares as of September 30, 2020. For the six months ended September 30, 2020, the Company has incurred professional fee of $4,000 and company renewal fees of $2,200. For the six months ended September 30, 2019, the Company has $7,400 professional fee and $550 company renewal fees incurred.

 

(2) Greenpro Financial Consulting Limited is a subsidiary of Greenpro Capital Corp., through its subsidiary Greenpro Venture Capital Limited owns approximately 4.30% of the Company issued and outstanding shares as of September 30, 2020. For the six months ended September 30, 2019, the Company incurred no professional fees.

 

11. SUBSEQUENT EVENTS

 

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, the Company has evaluated all events or transactions that occurred after March 31, 2020 up through the date the Company issued the audited consolidated financial statements. During this period, there was no subsequent event that required recognition or disclosure 

 

12. SIGNIFICANT EVENTS

 

During the fiscal year, the World Health Organization declared the Coronavirus (COVID-19) outbreak to be a pandemic, which has caused severe global social and economic disruptions and uncertainties, including markets where the Company operates.

 

The Company considers this outbreak as non-adjusting-events. The consequences brought about by Covid-19 continue to evolve and whilst the Company actively monitoring and managing its operations to respond to these changes, the Company does not consider it practicable to provide any quantitative estimate on the potential impact it may have on the Company.

 

 F-14 
   

 

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

 

The information contained in this quarter report on Form 10-Q is intended to update the information contained in our Annual Report on Form 10-K for the year ended March 31, 2020 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 consolidated financial statements and the notes to the consolidated 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 strongly encourage investors to carefully read the factors described in our Form S-1 Amendment No.8, dated July 20, 2016 in the section entitled “Risk Factors” for a description of certain risks that could, among other things, cause actual results to differ from these 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

 

ECCO Auto World Corporation, a Nevada corporation (“the Company”) was incorporated under the laws of the State of Nevada on June 6, 2016.

 

ECCO Auto World Corporation, which is incorporated in Labuan, Malaysia on March 1, 2017, is a wholly owned subsidiary of ECCO Auto World Corporation.

 

ECCO Auto World Corporation has engaged a third party for the development of ECCO App, which is a platform that connects users with auto repair shops and service centers throughout Malaysia and will be made up of a selection of auto repair shops who join our ‘ECCO Partnership’ and car owners who use the ECCO App. Auto repair shops that make use of ECCO user base will be subject to stringent supervision and entrant requirements in order to ensure quality service to users. The company has spent approximately $300,000 for the research and development of the mobile application.

 

During the year 2020 , ECCO Auto World Corporation has expand their business toward consultancy in providing Finance IT solution to clients. In addition, Ecco Auto World Corporation was developing Cash & Treasury Management system that strives to provide clients’ businesses with a single view of cash across their entire operation. It equips clients with innovative but practical tools aimed at removing inefficiencies, and enhance the client’s skill in strategic planning, carry out effective cash decisions based on clear, actionable information.

 

On February 17, 2020, Ecco Auto World Corp (the “ECCO”) and Mr Joson Yeo Hung Kwang Mr Chai Kok Leong and Mr Loke Che Chan, Gilbert, each representing 49.5% ,49.5% and 1% shareholding of Free Share X- Change Limited, an Anguilla corporation, (“FSX”) entered into a Sale and Purchase Agreement (the “FSX Purchase Agreement”), pursuant to which ECCO acquired 100% of the issued and outstanding shares of FSX (the “Acquisition”). As consideration thereof, ECCO agreed to paid cash consideration of US$15 to the sharaeholders

 

FSX wholly owned a subsidiary Vtrade Technology Sdn Bhd, (the “Vtrade”) in Malaysia, is a private Limited company incorporated in July 12th, 2018. The company is providing system and software development, Information technology (IT) consultancy and managed services.

 

 3 
   

 

Results of Operation

 

For Six Months Ended September 30, 2020 and 2019.

 

Revenues

 

The Company has generated a revenue of $35,600 for the period ended September 30, 2020 and was not generated revenue for the period ended September 30, 2019. During the year, the revenue generated was the result from providing consultancy service in Finance IT solution to client and Information technology (IT) consultancy and managed services.

 

Cost of Revenue

 

No cost of revenue was incurred for the period ended September 30, 2020, as consultancy services have been provided by the CEO and director to clients at no cost to the Company.

 

The Company has incurred a net gain of $9,694 and net loss of $28,293 for six months ended September 30, 2020 and 2019 respectively. The increase in net gain is mainly due to the decrease in general and administrative expenses.

 

Liquidity and Capital Resources

 

As at September 30 and March 31, 2020, the Company has a current asset entirely consisting cash and cash equivalents of $4,179 and $8,969 respectively. The decrease of $4,790 in cash flow mainly is due to the increase of operating expenses.

 

Operating Activities

 

For the six months ended September 30, 2020 and 2019, net cash used in operating activities was $5,442 and net cash used $36,184 respectively consist of mainly general and administrative transaction. This is mainly due to the decrease in general and administrative expenses.

 

Investing Activities

 

For the Six months ended September 30, 2020 and 2019, there was no net cash used in investing activities for business purpose.

 

Financing Activities

 

For the six months ended September 30, 2020 and 2019, the Company did not have any capital used in financing activities for business purpose for the current period.

 

Capital Expenditures

 

There was no capital expenditures for six months period ended September 30, 2020 and 2019.

 

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 September 30, 2020.

 

 4 
   

 

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 September 30, 2020. 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 March 31, 2020, 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 September 30, 2020, 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 six months period ended September 30, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 5 
   

 

PART II — OTHER INFORMATION

 

Item 1. Legal Proceedings

 

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.

 

Item 1A. Risk Factors.

 

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.

 

Item 5. Other Information.

 

None.

 

ITEM 6. Exhibits

 

Exhibit No.   Description
31.1   Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer and principal financial officer*
32.1   Section 1350 Certification of principal executive officer and principal financial 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*

 

* Filed herewith.

 

 6 
   

 

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.

 

  ECCO AUTO WORLD CORPORATION
  (Name of Registrant)
     
Date: November 23, 2020    
     
  By: /s/ JASON WONG CHEE HON
    JASON WONG CHEE HON
    President, Treasurer, Secretary, Director

 

 7