Company Quick10K Filing
Quick10K
M101
10-Q 2019-06-30 Quarter: 2019-06-30
10-K 2019-03-31 Annual: 2019-03-31
10-Q 2018-12-31 Quarter: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-K 2018-03-31 Annual: 2018-03-31
10-Q 2017-12-31 Quarter: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-K 2017-03-31 Annual: 2017-03-31
10-Q 2016-12-31 Quarter: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-K 2016-03-31 Annual: 2016-03-31
10-Q 2015-12-31 Quarter: 2015-12-31
8-K 2019-10-04 Officers
8-K 2018-12-07 Officers
IORG Intreorg Systems 8
TAKD Transakt 7
NNUP Nocopi Technologies 3
IGEN Igen Networks 3
DHCC Diamondhead Casino 0
BNKL Bionik Laboratories 0
CPA17 Corporate Property Associates 17 - Global 0
MDFZF Medifocus 0
GAHR Griffin-American Healthcare REIT III 0
PGAI PGI 0
MOZO 2019-06-30
Item 1. Financial Statements
Note 1 - Nature of Business and Continuance of Operations
Note 2 - Summary of Significant Accounting Policies
Note 3 - Going Concern
Note 4 - Related Party Transactions
Note 5 - Share Capital
Note 6 - Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Conditions and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - 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 mozo_ex311.htm
EX-31.2 mozo_ex312.htm
EX-32.1 mozo_ex321.htm
EX-32.2 mozo_ex322.htm

M101 Earnings 2019-06-30

MOZO 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 mozo_10q.htm FORM 10-Q mozo_10q.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

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

 

For the quarterly period ended June 30, 2019 

 

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

 

For the transition period from ____________ to ______________

 

Commission file number: 000-55512

 

M101 CORP.

(Exact name of registrant as specified in its charter)

 

Nevada

 

87-0363526

(State or other jurisdiction

of incorporation or organization)

 

(IRS Employer

Identification No.)

 

Suite 20.03, Plaza 138

Jalan Ampang

Kuala Lumpur, Malaysia, 50450

(Address of principal executive offices)

 

+603.2181.0150

(Registrant’s telephone number)

 

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

 

Title of each class:

 

Trading Symbol(s)

 

Name of each exchange on which registered:

N/A

 

 N/A

 

N/A

 

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 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). Yes ¨ No x

 

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

 

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

¨

Smaller reporting company

x

(Do not check if a smaller reporting company)

Emerging growth company

¨

 

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

 

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

 

The number of shares of the issuer’s common stock outstanding as of August 14, 2019 was 760,250,000 shares, par value $0.001 per share.

 

 
 
 
 

 

M101 CORP.

(formerly CONCEPT HOLDING CORP.)

FORM 10-Q

Quarterly Period Ended June 30, 2019

 

INDEX

 

 

Page

 

PART I. FINANCIAL INFORMATION

 

3

 

Item 1.

Financial Statements

 

3

 

Balance Sheets as of June 30, 2019 and March 31, 2019 (unaudited)

 

3

 

Statements of Operations for the Three Months ended June 30, 2019 and 2018 (unaudited)

 

4

 

Statements of Cash Flows for the Three Months ended June 30, 2019 and 2018 (unaudited)

 

6

 

Statements of Stockholders’ Deficit for the Three Months ended June 30, 2019 and 2018 (unaudited)

 

 

7

 

 

Notes to the Unaudited Condensed Financial Statements

 

8

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

11

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

12

 

Item 4.

Controls and Procedures

 

12

 

PART II. OTHER INFORMATION

 

13

 

Item 1.

Legal Proceedings

 

13

 

Item 1A.

Risk Factors

 

13

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

13

 

Item 3.

Defaults Upon Senior Securities

 

13

 

Item 4.

Mine Safety Disclosures

 

13

 

Item 5.

Other Information

 

13

 

Item 6.

Exhibits

 

13

 

SIGNATURES

 

14

 

 

 

7

 

 

 
2
 
 

 

Item 1. Financial Statements

 

M101 CORP.

 

Balance Sheets

(Unaudited)

 

 

 

June 30, 2019

 

 

March 31, 2019

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Prepaid expenses

 

$4,000

 

 

$7,000

 

Total Current Assets

 

 

4,000

 

 

 

7,000

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$4,000

 

 

$7,000

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$5,949

 

 

$8,860

 

Accrued interest, related party

 

 

16,890

 

 

 

14,770

 

Due to related parties

 

 

391,911

 

 

 

376,356

 

Convertible note payable, related party

 

 

106,292

 

 

 

106,292

 

Total Current Liabilities

 

 

521,042

 

 

 

506,278

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

521,042

 

 

 

506,278

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Preferred stock, par value $0.001 per share, 10,000,000 shares authorized, no shares issued and outstanding

 

 

-

 

 

 

-

 

Common stock, par value $0.001 per share, 10,000,000,000 shares authorized, 760,250,000 shares issued and outstanding

 

 

760,250

 

 

 

760,250

 

Capital deficiency

 

 

(449,450)

 

 

(449,450)

Accumulated deficit

 

 

(827,842)

 

 

(810,078)

Total Stockholders’ Deficit

 

 

(517,042)

 

 

(499,278)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$4,000

 

 

$7,000

 

 

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

 

 
3
 
 

 

M101 CORP.

 

Statements of Operations

(Unaudited)

 

 

 

For the Three Months Ended

 

 

 

June30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

REVENUES

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

General and administrative

 

 

3,144

 

 

 

10,183

 

Professional fees

 

 

12,500

 

 

 

63,283

 

 

 

 

15,644

 

 

 

73,466

 

 

 

 

 

 

 

 

 

 

OPERATING LOSS

 

 

(15,644)

 

 

(73,466)

 

 

 

 

 

 

 

 

 

OTHER EXPENSE

 

 

 

 

 

 

 

 

Interest expense

 

 

(2,120)

 

 

(2,120)

 

 

 

(2,120)

 

 

(2,120)

 

 

 

 

 

 

 

 

 

NET LOSS

 

$(17,764)

 

$(75,586)

 

 

 

 

 

 

 

 

 

Basic and Diluted Loss per Common Share

 

$(0.00)

 

 

(0.00)

Basic and Diluted Weighted Average Common Shares Outstanding

 

 

760,250,000

 

 

 

760,250,000

 

 

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

 

 
4
 
 

 

M101 CORP.

 

Statements of Stockholders’ Deficit

For the three months ended June 30, 2019 and June 30, 2018

(Unaudited)

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

Number
of Shares

 

 

Amount

 

 

Capital

Deficiency

 

 

Accumulated

Deficit

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance - March 31, 2019

 

 

760,250,000

 

 

$760,250

 

 

$(449,450)

 

$(810,078)

 

$(499,278)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(17,764)

 

 

(17,764)

Balance - June 30, 2019

 

 

760,250,000

 

 

$760,250

 

 

$(449,450)

 

$(827,842)

 

$(517,042)

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

Number

of Shares

 

 

Amount

 

 

Capital

Deficiency

 

 

Accumulated

Deficit

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance - March 31, 2018

 

 

760,250,000

 

 

$760,250

 

 

$(449,450)

 

$(590,577)

 

$(279,777)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(75,586)

 

 

(75,586)

Balance - June 30, 2018

 

 

760,250,000

 

 

$760,250

 

 

$(449,450)

 

$(666,163)

 

$(355,363)

 

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

 

 
5
 
 

 

M101 CORP.

Statements of Cash Flows

(Unaudited)

 

 

 

For the Three Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss

 

$(17,764)

 

$(75,586)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses

 

 

3,000

 

 

 

2,500

 

Accounts payable and accrued liabilities

 

 

(2,911)

 

 

(30,349)

Accrued interest, related party

 

 

2,120

 

 

 

2,120

 

Net cash used in operating activities

 

 

(15,555)

 

 

(101,315)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from related party advances

 

 

15,555

 

 

 

101,315

 

Net cash provided by financing activities

 

 

15,555

 

 

 

101,315

 

 

 

 

 

 

 

 

 

 

Net changes in cash and cash equivalents

 

 

-

 

 

 

-

 

Cash and cash equivalents - beginning of period

 

 

-

 

 

 

-

 

Cash and cash equivalents - end of period

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

Supplemental Cash Flow Disclosures

 

 

 

 

 

 

 

 

Cash paid for interest

 

$-

 

 

$-

 

Cash paid for income taxes

 

$-

 

 

$-

 

 

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

 

 
6
 
 

 

 

 

 

 

 

7

 
 

 

M101 CORP.

 

Notes to the Unaudited Financial Statements

June 30, 2019

 

NOTE 1 - NATURE OF BUSINESS AND CONTINUANCE OF OPERATIONS

 

M101 Corp. (the Company) was incorporated on May 20, 1980 as Concept Holding Corp. under the laws of the State of Utah.

 

On December 19, 2014, the Company completed a change of domicile merger with Concept Holding Corp., a Nevada corporation which became the surviving entity and Concept Technologies, Inc., a Utah corporation ceased.

 

On July 21, 2017, the Board of Directors of the Company elected to file Articles of Merger with the Nevada SOS whereby it would enter into a statutory merger with its wholly-owned subsidiary, M101 Corp., a Nevada corporation, pursuant to Nevada Revised Statutes 92A.200, et seq. The effect of such merger is the Company is the surviving entity and changed its name to “M101 Corp.” The merger took effect on August 14, 2017. The Company currently has no business operations.

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending March 31, 2020. The notes to the unaudited financial statements are condensed, as disclosures that would substantially duplicate the disclosures contained in the audited financial statements for fiscal year 2019 have been omitted. This report should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended March 31, 2019 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on July 9, 2019.

 

 
8
 
 

 

Use of Estimates

 

The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Financial Instruments

 

The Company’s financial instruments consist primarily of accounts payable and debts. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short-term maturities and approximate market interest rates of these instruments.

 

Related Parties

 

We follow ASC 850, ”Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions (see Note 4).

 

Prepaid Expenses

 

Prepaid expenses relate to prepayment made for future services in advance and will be expensed over time as the benefit of the services is received in the future, expected within one year.

 

As of June 30, 2019 and March 31, 2018, prepaid expenses were $4,000 and $7,000 related to OTC Markets monthly fees from July through October 2019.

 

Recently Issued Accounting Pronouncements

 

Management has considered all recent accounting pronouncements issued, and believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

 

NOTE 3 - GOING CONCERN

 

The Company has not yet generated any revenue since its inception and has an operating loss of $15,644 and net loss of $17,764 for the three months ended June 30, 2019. As of June 30, 2019, the Company has accumulated deficit of $827,842, and negative working capital of $517,042. The Company’s continuation as a going concern is dependent on its ability to execute its operation plan to generate sufficient cash flows from operations to meet its obligations and/or obtaining additional financing from its shareholders or other sources, as may be required. There can be no assurance that the necessary debt or equity financing will be available, or will be available on terms acceptable to the Company. We estimate that based on current plans and assumptions, our available cash will not be sufficient to satisfy our cash requirements under our present operating expectations, without further financing, for up to 12 months.

 

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

 

 
9
 
 

 

We are attempting to generate sufficient revenue; however, our cash position may not be sufficient to support our daily operations. While we believe in the viability of our strategy to generate sufficient revenues in the future and in our ability to raise additional funds, there can be no assurances to that effect. The ability of our company to continue as a going concern is dependent upon our ability to further implement our business plan, generate sufficient revenue to cover operating expenses and in our ability to raise additional funds.

 

NOTE 4 - RELATED PARTY TRANSACTIONS

 

As of June 30, 2019 and March 31, 2019, total amounts due to related parties was $391,911 and $376,356, respectively

 

 

 

June 30,

 

 

March 31,

 

 

 

2019

 

 

2019

 

Amount due to former director

 

$390,661

 

 

$375,106

 

Amount due to former shareholder

 

 

1,250

 

 

 

1,250

 

 

 

$391,911

 

 

$376,356

 

 

During the three months ended June 30, 2019 and 2018, the former director of the Company, who resigned on December 7, 2018, advanced $15,555 and $101,315, respectively, to the Company for operating expense payments on behalf of the Company. As of June 30, 2019 and March 31 2019, the Company owed $390,661 and $375,106, respectively, to the former Director of the Company.

 

As of June 30, 2019 and March 31, 2019, the Company owed $1,250 and $1,250, respectively, to a former shareholder for the payment of transfer agent termination fees on behalf of the Company. The shareholder sold all his shareholdings to the new Director of the Company in December 2018.

 

8% Convertible Note – July 2017

 

Convertible notes payable consisted of the following at June 30, 2019 and March 31, 2019:

 

 

 

June 30,

 

 

March 31

 

 

 

2019

 

 

2019

 

Convertible Note - July 2017

 

$106,292

 

 

$106,292

 

 

On July 5, 2017, the Company issued an 8% convertible note in the principal amount of $106,292 to a former shareholder for the payment of the Company’s promissory notes and accrued interest at $84,588 and accounts payable and accrued liabilities of $21,704. The convertible note is due on demand, bears interest of 8% per annum and is convertible at a conversion price of $0.01 per share. No beneficial conversion was recognized because the note conversion price of $0.01 per share exceeded the Company stock trading price of $0.0001 on July 5, 2017. As of June 30, 2019 and March 31, 2019, the accrued interest payable on the convertible note was $16,890 and $14,770, respectively.

 

NOTE 5 – SHARE CAPITAL

 

Preferred Stock

 

The Company is authorized to issue an aggregate of 10,000,000 shares of preferred stock with a par value of $0.001 per share. As at June 30, 2019 and March 31, 2019, no preferred shares have been issued.

 

Common Stock

 

The Company is authorized to issue an aggregate of 10,000,000,000 shares of common stock with a par value of $0.001 per share.

 

As of June 30, 2019 and March 31, 2019, the Company had 760,250,000 shares of common stock issued and outstanding.

 

NOTE 6 – SUBSEQUENT EVENTS

 

Management has evaluated subsequent events through the date these financial statements were issued. Based on our evaluation no material events have occurred that require disclosure.

 

 
10
 
 

 

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

 

When used in this Quarterly Report, the words “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “project,” “intend,” and similar expressions are intended to identify forward-looking statements regarding events, conditions, and financial trends that may affect our future plans of operations, business strategy, operating results, and financial position. Persons reviewing this Queerly Report are cautioned that any forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties and actual results may differ materially from those included within the forward-looking statements as a result of various factors. Such factors are discussed further below under “Trends and Uncertainties,” and also include general economic factors and conditions that may directly or indirectly impact our financial condition or results of operations.

 

Results of Operations

 

Three Months Ended June 30, 2019 and June 30, 2018

 

 

 

Three Months

 

 

Three Months

 

 

 

 

 

Ended

 

 

Ended

 

 

 

 

 

June 30,

 

 

June 30,

 

 

 

 

 

2019

 

 

2018

 

 

Changes

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$-

 

 

$-

 

 

$-

 

Operating Expenses

 

$15,644

 

 

$73,466

 

 

$(57,822)

Other Expenses

 

$2,120

 

 

$2,120

 

 

$-

 

Net Loss

 

$(17,764)

 

$(75,586)

 

$57,822

 

 

We had no operations during the three months ended June 30, 2019 or 2018, nor do we have operations as of the date of this filing. We had a net loss of $17,764 and $75,586 for the three months ended June 30, 2019 and 2018, respectively. The decrease was mainly attributable to the decrease in professional fees incurred during the three months ended June 30, 2019. Professional fees were $12,500 and $63,283 for the three months ended June 30, 2019 and 2018, respectively. The decrease in professional expenses was mainly attributable to the decrease in legal fees as we did not incur any legal consultation and advisory fees during the three months ended June 30, 2019. General and administrative expenses were $3,144 and $10,183 for the three months ended June 30, 2019 and 2018, respectively. The decrease in general and administrative expenses was mainly attributable to the decrease in transfer agent fees without fees incurred for share certificates and cancellation during the three months ended June 30, 2019.

 

Liquidity and Capital Resources

 

 

 

As of

 

 

As of

 

 

 

 

 

June 30,

 

 

March 31,

 

 

 

 

 

2019

 

 

2019

 

 

Changes

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

$4,000

 

 

$7,000

 

 

$(3,000)

Current Liabilities

 

$521,042

 

 

$506,278

 

 

$14,764

 

Working Capital (Deficiency)

 

$(517,042)

 

$(499,278)

 

$(17,764)

 

As of June 30, 2019, our total assets were $4,000 and our total liabilities were $521,042.

 

Stockholders’ deficit was at $517,042 as of June 30, 2019 compared to deficit of $499,278 as of March 31, 2019.

 

We had no cash on hand as of June 30, 2019 to meet ongoing expenses and debts that may accumulate. Accumulated deficit was at $827,842 as of June 30, 2019, compared to accumulated deficit of $810,078 as of March 31, 2019.

 

As at June 30, 2019, we had a working capital deficit of $517,042 compared with a working capital deficit of $499,278 as at March 31, 2019. The increase in working capital deficit was primarily attributed to the increase in amount due to related parties for advancement from directors paying off vendors on behalf of the Company.

 

 

 

Three Months

 

 

Three Months

 

 

 

 

 

Ended

 

 

Ended

 

 

 

 

 

June 30,

 

 

June 30,

 

 

 

 

 

2019

 

 

2018

 

 

Changes

 

 

 

 

 

 

 

 

 

 

 

Net cash used in operating activities

 

$(15,555)

 

$(101,315)

 

$85,760

 

Net cash provided by financing activities

 

$15,555

 

 

$101,315

 

 

$(85,760)

Net changes in cash and cash equivalents

 

$-

 

 

$-

 

 

$-

 

 

Cash Flow from Operating Activities

 

We have not generated any positive cash flow from operating activities. For the three months ended June 30, 2019, net cash flows used in operating activities was $15,555. The net cash used in operating activities for the three months ended June 30, 2019 was attributed to a net loss of $17,764, increased by a decrease in accounts payable and accrued liabilities of $2,911 and was offset by a decrease in prepaid expenses of $3,000 and an increase in accrued interest from note payable of $2,120.

 

For the three months ended June 30, 2018, net cash flows used in operating activities was $101,315. The net cash used in operating activities for the three months ended June 30, 2018 was attributed to a net loss of $75,586, increased by a decrease in accounts payable and accrued liabilities of $30,349 and was offset by a decrease in prepaid expenses of $2,500 and an increase in accrued interest from note payable of $2,120.

 

Cash Flow from Financing Activities

 

We have financed our operations primarily from either advances and loans from related and third parties or the issuance of equity instruments. For the three months ended June 30, 2019, net cash from financing activities was $15,555 compared to $101,315 for the three months ended June 30, 2018.

 

As of June 30, 2019 and March 31, 2019, the Company owed $390,661 and $375,106, respectively, to the former Director of the Company for the payment of professional fees on behalf of the Company.

 

As of June 30, 2019 and March 31, 2019, the Company owed $1,250 and $1,250, respectively, to a former shareholder for the payment of transfer agent termination fee on behalf of the Company.

 

On July 5, 2017, the Company issued an 8% convertible note in the principal amount of $106,292 to a former shareholder for the payment of the Company’s promissory notes and accrued interest at $84,588 and accounts payable and accrued liabilities of $21,704. The convertible note is due on demand, bears interest of 8% per annum and is convertible at a conversion price of $0.01 per share. No beneficial conversion was recognized because the note conversion price of $0.01 per share exceeded the Company stock trading price of $0.0001 on July 5, 2017. As of June 30, 2019 and March 31, 2019, the accrued interest payable on the convertible note was $16,890 and $14,770, respectively.

 

 
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Going Concern

 

Our independent auditors have added an explanatory paragraph to their audit issued in connection with the financial statements for the period ended March 31, 2019, relative to our ability to continue as a going concern. The Company, which has not generated any revenues, has incurred net losses, has nominal assets and a stockholders’ deficit. These conditions, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on its ability to meet its obligations, to obtain additional financing as may be required and ultimately to attain profitability. The financial statements do not include any adjustments that might result from the outcome of this uncertainty

 

The Company is dependent on advances from its principal shareholders or other affiliated parties for continued funding. There are no commitments or guarantees from any third party to provide such funding nor is there any guarantee that the Company will be able to access the funding it requires to continue its operations.

 

Off-Balance Sheet Arrangements

 

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to an investor in our securities.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Pursuant to Item 305(e) of Regulation of S-K (§229.305(e)), the Company is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).

 

ITEM 4. CONTROLS AND PROCEDURES

 

Disclosure Controls and Procedures

 

Disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in rules and forms adopted by the Securities and Exchange Commission, and that such information is accumulated and communicated to management, including the President and Secretary, to allow timely decisions regarding required disclosures.

 

Under the supervision and with the participation of our management, including our President and Secretary, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report. Based upon that evaluation, our President and Secretary concluded that, as of the end of the period covered by this Quarterly Report, our disclosure controls and procedures were not effective.

 

Changes in Internal Control Over Financial Reporting

 

During the fiscal quarter covered by this Quarterly Report, there has been no change in our internal control over financial reporting (as 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.

 

 
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PART II – OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us. As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us.

 

ITEM 1A. RISK FACTORS

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.

 

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

 

There were no unregistered sales of our equity securities during the period covered by this quarterly report.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

None.

 

ITEM 6. EXHIBITS

 

Exhibits:

 

31.1

 

Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Executive Officer

31.2

 

Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Financial Officer

32.1

 

Section 1350 Certification by Chief Executive Officer

32.1

 

Section 1350 Certification by Chief Financial Officer

 

 
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SIGNATURES

 

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

M101 CORP.

 

 

DATED: August 14, 2019

By:

/s/ Ousman Haji Aliyas

 

Ousman Haji Aliyas

 

Chief Executive Officer (Principal Executive Officer)

  

 

By:

/s/ Lee Hui Chin

 

Lee Hui Chin

 

Treasurer (Principal Financial Officer)

 

 

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