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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

 

For The Quarterly Period Ended January 31, 2024

 

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 333-228847

 

MU GLOBAL HOLDING LIMITED

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

 

Nevada   30-1089215
(State or other jurisdiction of
incorporation or organization)
  (I.R.S. Employer
Identification No.)

 

Rm. 5, 7F., No. 296, Sec. 4, Xinyi Rd., Da’an Dist.,

Taipei City 106427, Taiwan (R.O.C.)

(Address of principal executive offices, including zip code)

 

Registrant’s phone number, including area code +886905153139

 

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 ☒ 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 ☒

 

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

 

Large Accelerated Filer ☐ Accelerated Filer ☐ Non-accelerated Filer ☐ 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 ☐ No 

 

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

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock   MUGH   The OTC Market – Pink Sheets

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

 

Indicate by check mark whether the registrant has fled all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

 

Yes ☐ No ☒

 

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 January 31, 2024
Common Stock, $0.0001 par value   59,434,838

 

 

 

 

 

 

TABLE OF CONTENTS

 

    Page
PART I FINANCIAL INFORMATION  
ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS: F-1
  Condensed Consolidated Balance Sheets as of January 31, 2024 (unaudited) and July 31, 2023 (audited) F-2
  Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended January 31, 2024 (unaudited) and January 31, 2023 (unaudited) F-3
  Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Six Months Ended January 31, 2024 (unaudited) and 2023 (unaudited) F-4
  Condensed Consolidated Statements of Cash Flows for the Six Months Ended January 31, 2024 (unaudited) and January 31, 2023 (unaudited) F-5
  Notes to the Condensed Consolidated Financial Statements F-6 - F-19
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 3-5
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 6
ITEM 4. CONTROLS AND PROCEDURES 6
PART II OTHER INFORMATION  
ITEM 1 LEGAL PROCEEDINGS 7
ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 7
ITEM 3 DEFAULTS UPON SENIOR SECURITIES 7
ITEM 4 MINE SAFETY DISCLOSURES 7
ITEM 5 OTHER INFORMATION 7
ITEM 6 EXHIBITS 8
  SIGNATURES 9

 

 2 

 

 

PART I FINANCIAL INFORMATION

 

ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:

 

MU GLOBAL HOLDING LIMITED

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

  Page
Condensed Consolidated Financial Statements  
   
Condensed Consolidated Balance Sheets as of January 31, 2024 (unaudited) and July 31, 2023 (audited) F-2
Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended January 31, 2024 (unaudited) and January 31, 2023 (unaudited) F-3
Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Six Months Ended January 31, 2024 (unaudited) and 2023 (unaudited) F-4
Condensed Consolidated Statements of Cash Flows for the Six Months Ended January 31, 2024 (unaudited) and January 31, 2023 (unaudited) F-5
Notes to the Condensed Consolidated Financial Statements F-6-F-19

 

 F-1 

 

 

MU GLOBAL HOLDING LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JANUARY 31, 2024 AND JULY 31, 2023

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

 

   As of   As of 
  

January 31, 2024

  

July 31, 2023

 
    Unaudited    Audited 
ASSETS          
NON-CURRENT ASSETS          
Property, plant and equipment  $-   $- 
Leased asset – Right of use   3,848    6,407 
           
Total non-current assets, excluding intangible assets   3,848    6,407 
           
INTANGIBLE ASSET          
Patent and trademark  $-   $- 
           
Total non-current assets   3,848    6,407 
           
CURRENT ASSETS          
Prepayments and deposits  $4,610   $9,264 
Amount due from related party   -    2,112 
Inventories   1,334    1,333 
Cash and cash equivalents   556    4,425 
           
Total current assets   6,500    17,134 
           
TOTAL ASSETS  $10,348   $23,541 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
NON-CURRENT LIABILITIES          
Leased liabilities  $-   $976 
Loan from director   113,534    110,985 
Loan from third party   115,039    95,988 
           
Total non-current liabilities  $228,573   $207,949 
           
CURRENT LIABILITIES          
Other payables and accrued liabilities  $47,880   $65,454 
Amount due to related parties   98,269    93,176 
Deposit from franchisees   24,939    27,774 
Deposit from customers   37,173    37,135 
Loan from director   198,439    170,805 
Leased liabilities   3,864    5,223 
           
Total current liabilities   410,564    399,567 
           
TOTAL LIABILITIES  $639,137   $607,516 
           
STOCKHOLDERS’ EQUITY          
Preferred stock, $0.0001 par value, 200,000,000 shares authorized, None issued and outstanding  $-   $- 
Common stock, $0.0001 par value, 600,000,000 shares authorized, 59,434,838 shares issued and outstanding as of January 31, 2024 and July 31, 2023 respectively   5,943    5,943 
Additional paid-in capital   1,830,300    1,830,300 
Foreign currency adjustment   37,215    37,790 
Accumulated deficit   (2,502,247)   (2,458,008)
           
Total stockholders’ equity   (628,789)   (583,975)
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $10,348   $23,541 

 

See accompanying notes to condensed consolidated financial statements.

 

 F-2 

 

 

MU GLOBAL HOLDING LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE THREE AND SIX MONTHS ENDED JANUARY 31, 2024 and 2023

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

(UNAUDITED)

 

   2024   2023   2024   2023 
  

Three Months Ended

January 31

  

Six Months Ended

January 31

 
   2024   2023   2024   2023 
REVENUE  $343   $7,247   $343   $128,241 
                     
COST OF REVENUE   -    -    -    (108,844)
                     
GROSS PROFIT  $343   $7,247   $343   $19,397 
                     
OTHER INCOME   1,686    617    6,205    2,358 
                     
SELLING AND MARKETING EXPENSES   (198)   (3)   (915)   (278)
                     
GENERAL AND ADMINISTRATIVE EXPENSES   (20,818)   (26,200)   (49,872)   (72,628)
                     
LOSS BEFORE INCOME TAX  $(18,987)  $(18,339)  $(44,239)  $(51,151)
                     
INCOME TAX PROVISION   -    -    -    - 
                     
NET LOSS  $(18,987)  $(18,339)  $(44,239)  $(51,151)
Other comprehensive loss:                    
- Foreign currency translation loss   (7,020)   (24,678)   (575)   (265)
                     
TOTAL COMPREHENSIVE LOSS  $(26,007)  $(43,017)  $(44,814)   (51,416)
                     
Net loss per share- Basic and diluted   (0.0004)   (0.0007)   (0.0008)   (0.0009)
                     
Weighted average number of common shares outstanding - Basic and diluted   59,434,838    59,434,838    59,434,838    59,434,838 

 

See accompanying notes to condensed consolidated financial statements.

 

 F-3 

 

 

MU GLOBAL HOLDING LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED JANUARY 31, 2024 AND 2023

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

(UNAUDITED)

 

                         
Six months ended January 31, 2024
   Common Stock   Additional  

Accumulated

Other

         
  

Number of

Shares

   Amount  

Paid-In

Capital

   Comprehensive Income  

Accumulated

Deficit

  

Total

Equity

 
Balance as of August 1, 2023   59,434,838   $5,943   $1,830,300   $37,790   $(2,458,008)  $(583,975)
Net loss for the period   -    -    -    -    (25,252)   (25,252)
Foreign currency translation adjustment   -    -    -    6,445    -    6,445 
Balance as of October 31, 2023   59,434,838   $5,943   $1,830,300   $44,235   $(2,483,260)  $(602,782)
Net loss for the period   -    -    -    -    (18,987)   (18,987)
Foreign currency translation adjustment   -    -    -    (7,020)   -    (7,020)
Balance as of January 31, 2024   59,434,838   $5,943   $1,830,300    37,215    (2,502,247)   (628,789)

 

Six months ended January 31, 2023
   Common Stock   Additional  

Accumulated

Other

         
  

Number of

Shares

   Amount  

Paid-In

Capital

   Comprehensive Income  

Accumulated

Deficit

  

Total

Equity

 
Balance as of August 1, 2022   59,434,838   $5,943   $1,830,300   $19,574   $(2,389,181)  $(533,364)
Net loss for the period   -    -    -    -    (32,812)   (32,812)
Foreign currency translation adjustment   -    -    -    24,413    -    24,413 
Balance as of October 31, 2022   59,434,838   $5,943   $1,830,300   $43,987   $(2,421,993)  $(541,763)
Net loss for the period   -    -    -    -    (18,339)   (18,339)
Foreign currency translation adjustment   -    -    -    (24,678)   -    (24,678)
Balance as of January 31, 2023   59,434,838   $5,943   $1,830,300    19,309    (2,440,332)   (584,780)

 

See accompanying notes to condensed consolidated financial statements.

 

 F-4 

 

 

MU GLOBAL HOLDING LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JANUARY 31, 2024 AND 2023

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

(UNAUDITED)

 

   2024   2023 
   Six months ended January 31 
   2024   2023 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net loss  $(44,239)  $(51,151)
Adjustments to reconcile net loss to net cash used in operating activities:          
Amortization   2,536    2,419 
Impairment   (1,051)   3,584 
Reversal of asset written off   -    (6)
Lease interest   113    117 
Interest expense   4,656    5,289 
Gain on disposal   (3,012)   (108)
Gain on discounting of long-term loan   (2,227)   - 
Changes in operating assets and liabilities:          
Prepayments and deposits   4,656    2,041 
Other payables and accrued liabilities   (17,614)   (16,597)
Amount due to related party   1,756    8,193 
Lease liabilities   (2,455)   (2,587)
Amount due from related party   5,449    11,295 
Deposit from franchisee   (2,862)   - 
Deposit from customers   -    8,882 
Net cash used in operating activities  $(54,294)  $(28,629)
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Purchase of patent and trademark   (2,466)   (3,584)
Proceed on disposal   6,529    114 
Net cash generated from / (used in) investing activities  $4,063   $(3,470)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Loan from director  $27,634   $23,400 
Loan from related party   -    (3,035)
Loan from third party   18,937    17,087 
Net cash generated from financing activities  $46,571   $37,452 
           
Effect of foreign exchange translation   (209)   (477)
           
Net change in cash and cash equivalents   (3,869)   4,876 
           
Cash and cash equivalents, beginning of period   4,425    2,909 
CASH AND CASH EQUIVALENTS, END OF PERIOD  $556   $7,785 

 

See accompanying notes to condensed consolidated financial statements.

 

 F-5 

 

 

MU GLOBAL HOLDING LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JANUARY 31, 2024

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

(UNAUDITED)

 

1. DESCRIPTION OF BUSINESS AND ORGANIZATION

 

MU Global Holding Limited is organized as a Nevada limited liability company, incorporated on June 4, 2018. For purposes of consolidated financial statement presentation, MU Global Holding Limited and its subsidiary are herein referred to as “the Company” or “we”. The Company business of which planned principal operations are to provide wellness and beauty services to customers via Company owned outlets, franchised outlets or distribution of our product to third party wellness and beauty salon.

 

On June 29, 2018, the Company acquired 100% interest in MU Worldwide Group Limited, a private limited liability company incorporated in Seychelles and its subsidiary MU Global Holding Limited, a private limited liability company incorporated in Hong Kong. On August 16, 2018, MU Global Holding Limited incorporated a wholly owned subsidiary in Shanghai, People Republic of China under the name of MU Global Health Management (Shanghai) Limited.

 

Details of the Company’s subsidiary:

 

  Company name   Place and date of incorporation   Particulars of issued capital   Principal activities
               
1. MU Worldwide Group Limited   Seychelles, June 7, 2018   100 shares of ordinary share of US$1 each   Investment holding
               
2. MU Global Holding Limited   Hong Kong, January 30, 2018   1 ordinary share of HK$1  

Providing SPA and Wellness service in Hong Kong

               
3.  MU Global Health Management (Shanghai) Limited   Shanghai, August 16, 2018   RMB 7,405,866   Providing SPA and Wellness service in China

 

 F-6 

 

 

MU GLOBAL HOLDING LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JANUARY 31, 2024

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

(UNAUDITED)

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

The accompanying unaudited condensed consolidated financial statements as of and for the six months ended January 31, 2024, and 2023, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) that permit reduced disclosure for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period ended January 31, 2024, are not necessarily indicative of the results that may be expected for the year ending July 31, 2024. The Condensed Consolidated Balance Sheets information as of January 31, 2024, was derived from the Company’s audited Consolidated Financial Statements as of and for the year ended July 31, 2023, included in the Company’s Annual Report on Form 10-K filed with the SEC on October 30, 2023. These financial statements should be read in conjunction with that report.

 

Basis of consolidation

 

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

 

Use of estimates

 

Management uses estimates and assumptions in preparing these financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheets, and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates.

 

Revenue recognition

 

The Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients.

 

Revenue is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue. The Company derives its revenue from provision of wellness and beauty services to customers via Company owned outlets, franchised outlets or distribution of our product to third party wellness and beauty salon.

 

Cost of revenue

 

Cost of revenue includes the cost of services and product incurred to provide wellness and beauty services and purchase of products.

 

Cash and cash equivalents

 

Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.

 

Property, plant and equipment

 

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational:

 

Classification   Estimated useful life
Leasable equipment   5 years
Computer hardware and software   3 years
Office equipment   3 years
Outlet design fee and equipment   3 years
Application development fee   3 years

 

Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of operations and comprehensive loss.

 

 F-7 

 

 

MU GLOBAL HOLDING LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JANUARY 31, 2024

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

(UNAUDITED)

 

Impairment of long-live assets

 

Long-lived assets primarily include trademark of the Company. In accordance with the provision of ASC Topic 360, Impairment or Disposal of Long-Lived Assets, the Company generally conducts its annual impairment evaluation to its long-lived assets, usually in the fourth quarter of each fiscal year, or more frequently if indicators of impairment exist, such as significant sustained change in the business climate. The recoverability of long-lived assets is measured at the lowest level group. If the total of the expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying amount of the asset.

 

Leases

 

The Company recognizes lease payments for its short-term lease on a straight-line basis over the lease term in accordance with ASC 842.

 

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease.

 

In determining the present value of the unpaid lease payments, ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. As most of the Company leases do not provide an implicit rate, the Company uses its incremental borrowing rate as the discount rate for the lease. The Company incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments.

 

Inventories

 

Inventories consisting of products available for sell, are stated at the lower of cost or market value. Cost of inventory is determined using the first-in, first-out (FIFO) method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of revenues in the Consolidated Statements of Operations and Comprehensive Loss.

 

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 China and is subject to tax in this jurisdiction. As a result of its business activities, the Company will file tax returns that are subject to examination by the foreign tax authority.

 

Going concern

 

The accompanying financial statements have been prepared using the going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

 

For the period ended January 31, 2024, the Company incurred a net loss of $44,239. As of January 31, 2024, the Company suffered an accumulated deficit of $2,502,247, capital deficiency of $628,789 and negative operating cash flows of $54,294. The Company’s ability to continue as a going concern is dependent upon improving the profitability and the continuing financial support from its shareholders and director. Management believes the existing shareholders, director or external financing will provide the additional cash to meet the Company’s obligations as they become due.

 

These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result in the Company not being able to continue as a going concern.

 

 F-8 

 

 

MU GLOBAL HOLDING LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JANUARY 31, 2024

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

(UNAUDITED)

 

Net loss per share

 

The Company calculates net loss per share in accordance with ASC Topic 260 “Earnings Per Share”. Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

 

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 Consolidated Statements of Operations and Comprehensive loss.

 

The functional currency of the parent Company is United States dollar and the functional currency of the subsidiaries MU Worldwide Group Limited (Seychelles) and MU Global Holding Limited (Hong Kong) is United States dollar. MU Global Health Management (Shanghai) Limited is in Renminbi.

 

The reporting currency of the Company and its subsidiary is United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$.

 

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 loss within the statements of stockholders’ equity.

 

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

 

  

As of and for the six months ended

January 31

 
   2024   2023 
Period-end RMB : US$1 exchange rate   7.13    6.75 
Period-average RMB : US$1 exchange rate   7.21    6.99 
Period-end HK$ : US$1 exchange rate   7.82    7.84 
Period-average HK$ : US$1 exchange rate   7.82    7.83 
Period-end TWD : US$1 exchange rate   31.18    30.04 
Period-average TWD : US$1 exchange rate   31.74    30.96 

 

Related parties

 

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

 

 F-9 

 

 

MU GLOBAL HOLDING LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JANUARY 31, 2024

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

(UNAUDITED)

 

Fair value of financial instruments:

 

The carrying value of the Company’s financial instruments: cash and cash equivalents, account receivables, amount due to a director, and accounts payable and approximate at their fair values because of the short-term nature of these financial instruments.

 

The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

 

Level 1: Observable inputs such as quoted prices in active markets;

 

Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

 

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

Recently adopted Accounting Standards

 

In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses (Topics 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. In November 2019, the FASB issued ASU 2019-10 highlighted the adoption timeline. For smaller reporting entities, Topic 326 is effective for annual periods beginning after December 15, 2022, including interim period within those fiscal years, of which is effective for the Company on January 1, 2023.

 

Credit loss rate is determined by historical collection based on aging schedule, adjusted for current conditions using reasonable and supportable forecast. Based on the aging categorization and the adjusted loss per category, an allowance for credit losses is calculated by multiplying the adjusted loss rate with the amortized cost in the respective age category.

 

Recent accounting pronouncements

 

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

 

 F-10 

 

 

MU GLOBAL HOLDING LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JANUARY 31, 2024

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

(UNAUDITED)

 

3. PROPERTY, PLANT AND EQUIPMENT

 

Property, plant and equipment as of January 31, 2024 are summarized below:

 

  

As of

January 31, 2024

  

As of

July 31, 2023

 
   (Unaudited)   (Audited) 
         
Computer hardware and software  $129,301   $129,301 
Outlet equipment   120,569    120,569 
Leasable equipment   212,072    216,378 
Outlet design fee and equipment   16,763    16,763 
App development fee   37,413    37,413 
Total   516,118    520,424 
Accumulated depreciation1  $(394,351)  $(395,140)
Impairment   (139,665)   (143,182)
Foreign currency translation adjustment   17,898    17,898 
Property, plant and equipment, net  $-   $- 

 

1For the period ended January 31, 2024 and January 31, 2023, depreciation expense was $0 and $0 respectively.

 

DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT

 

  

As of

January 31, 2024

  

As of

July 31, 2023

 
   (Unaudited)   (Audited) 
Proceed from disposal of property, plant and equipment  $6,529   $20,514 
Disposal of equipment written off at net book value   -    (6)
Disposal of equipment impaired at net book value   (3,517)   (6,364)
Total gain on disposal  $3,012   $14,144 

 

4. LEASE

 

As of November 6, 2021, the Company recognized approximately US$11,581 lease liability as well as right-of-use asset for all leases at the commencement date. Lease liabilities are measured at present value of the sum of remaining rental payments as of November 6, 2021, with discounted rate of 4.35% adopted from “Zhao Shang bank” of China as a reference for discount rate.

 

A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows.

 

The initial recognition of operating lease right and lease liability as follow:

 

      
Gross lease payable  $12,048 
Less: Imputed interest   (467)
Initial recognition  $11,581 
Less: Remeasurement of existing lease   (843)
Balance  $10,738 

 

As of January 31, 2024 and July 31, 2023, the operating lease right of use asset as follow:

 

  

As of

January 31, 2024

  

As of

July 31, 2023

 
   (Unaudited)   (Audited) 
Balance at beginning of the period/year   6,407    6,267 
Add: New operating lease liability   -    5,223 
Foreign exchange translation loss   (23)   (246)
Amortization   (2,536)   (4,837)
Balance at end of the period/year  $3,848   $6,407 

 

 F-11 

 

 

As of January 31, 2024 and July 31, 2023, the operating lease liability as follow:

 

  

As of

January 31, 2024

  

As of

July 31, 2023

 
   (Unaudited)   (Audited) 
As of August 1  $6,199   $6,559 
Add: New operating lease liability   -    5,223 
Less: Gross repayment   (2,427)   (5,509)
Add: Imputed interest   113    176 
Foreign exchange translation loss   (21)   (250)
Balance end of the period/year  $3,864   $6,199 

 

For the period ended January 31, 2024, the amortization of the operating lease right of use asset was $2,536 while for the period ended January 31, 2023, the amortization of the operating lease right of use asset was $2,419.

 

Maturities of operating lease obligation as follow:

 

     
Year ending    
July 31, 2024 (6 months)  $3,375 
October 31, 2024 (3 months)   489 
Total  $3,864 

 

Other information:

 

   Six months ended   Six months ended 
   January 31, 2024   January 31, 2023 
   (Unaudited)   (Unaudited) 
Cash paid for amounts included in the measurement of lease liabilities:          
Operating cash flow from operating lease  $2,455   $2,587 
Right-of-use assets obtained in exchange for operating lease liabilities  $3,848   $3,754 
Remaining lease term for operating lease (years)   0.75    0.75 
Weighted average discount rate for operating lease   4.35%   4.35%

 

Lease expenses were $113 and $117 during the period ended January 31, 2024 and January 31, 2023 respectively.

 

5. PATENT AND TRADEMARK

 

         
   As of   As of 
   January 31, 2024   July 31, 2023 
   (Unaudited)   (Audited) 
Patent and trademark1  $38,454   $35,988 
Accumulated amortization   (6,986)   (6,986)
Impairment   (31,442)   (28,976)
Foreign currency translation adjustment   (26)   (26)
Patent and trademark, net  $-   $- 

 

1The patents and trademarks are held under the Company’s subsidiaries in Hong Kong and Shanghai, China.

 

Amortization were $0 and $0 for the period ended January 31, 2024 and January 31, 2023 respectively.

 

6. PREPAYMENTS AND DEPOSITS

 

   As of
January 31, 2024
   As of
July 31, 2023
 
   (Unaudited)   (Audited) 
Prepayments  $1,828   $4,017 
Deposits   2,782    5,247 
Total prepayments and deposits  $4,610   $9,264 

 

7. AMOUNT DUE FROM RELATED PARTY

 

  

As of

January 31, 2024

  

As of

July 31, 2023

 
   (Unaudited)   (Audited) 
Tien Mu International Co., Ltd1  $       -   $2,112 
Total amount due from related party  $-   $2,112 

 

1Tien Mu International Co., Ltd is owned by Ms. Niu Yen-Yen, the Director and Chief Executive Officer of the Company. Tien Mu International Co., Ltd is an operating agent of the Company’s operation in Taiwan, which collects deposits from franchisees on behalf of the Company.

 

 F-12 

 

 

MU GLOBAL HOLDING LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JANUARY 31, 2024

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

(UNAUDITED)

 

8. INVENTORIES

 

   As of   As of 
   January 31, 2024   July 31, 2023 
   (Unaudited)   (Audited) 
Finished goods, at cost  $1,334   $1,333 
Total inventories  $1,334   $1,333 

 

9. OTHER PAYABLES AND ACCRUED LIABILITIES

 

  

As of

January 31, 2024

  

As of

July 31, 2023

 
   (Unaudited)   (Audited) 
Other payables  $41,880   $40,854 
Accrued audit fees   -    15,000 
Accrued professional fees   6,000    9,600 
Total other payables and accrued liabilities  $47,880   $65,454 

 

 F-13 

 

 

MU GLOBAL HOLDING LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JANUARY 31, 2024

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

(UNAUDITED)

 

10. AMOUNT DUE TO RELATED PARTIES

 

  

As of

January 31, 2024

  

As of

July 31, 2023

 
   (Unaudited)   (Audited) 
Hsieh, Chang-Chung1  $93,176   $93,176 
Tien Mu International Co., Ltd2   5,093    - 
   $98,269   $93,176 

 

1Hsieh, Chang-Chung, one of the current shareholders of the Company, served as Chief Financial Officer (“Principal Financial Officer”, “Principal Accounting Officer”) of the Company during the period from June 5, 2018 to October 31, 2022. The amount due represents salary expenses accrued to Mr. Hsieh. He resigned as Chief Financial Officer of the Company with effective from November 1, 2022.

 

2Tien Mu International Co., Ltd is owned by Ms. Niu Yen-Yen, the Director and Chief Executive Officer of the Company. The amount due represents general and administrative expenses paid on behalf by the related party.

 

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

 

11. LOAN FROM THIRD PARTY

 

  

As of

January 31, 2024

  

As of

July 31, 2023

 
   (Unaudited)   (Audited) 
Shang Hai Shi Ba Enterprise Management Centre  $115,039   $95,988 
Total loan from third party  $115,039   $95,988 

 

The loan is unsecured, interest-free and repayable in year 2024 and year 2025. The loan is further extended to repayment in year 2026 with a loan agreement entered on August 2, 2023.

 

12. LOAN FROM DIRECTOR

 

  

As of

January 31, 2024

  

As of

July 31, 2023

 
   (Unaudited)   (Audited) 
Current  $198,439   $170,805 
Non-current   113,534    110,985 
Total loan from Director  $311,973   $281,790 

 

Current portion of the loan provided by director Niu Yen-Yen is unsecured, interest-free and repayable upon demand.

 

The long-term loan provided by director Niu Yen-Yen is unsecured, interest-free and repayable in year 2024, for working capital purpose. The long-term loan is further extended to repayment in year 2026 with a loan agreement entered on August 2, 2023.

 

 F-14 

 

 

13. INCOME TAXES

 

For the six months ended January 31, 2024 and January 31, 2023, the local (United States) and foreign components of income/(loss) before income taxes were comprised of the following:

 

   Six months ended January 31 
   2024   2023 
Tax jurisdictions from:          
Local  $(22,144)  $(20,945)
Foreign, representing          
- Seychelles   -    (1,600)
- Hong Kong   1,372    (6,462)
- Shanghai   (23,467)   (22,144)
Loss before income tax  $(44,239)  $(51,151)

 

The provision for income taxes consisted of the following:

 

    

For the period ended

January 31, 2024

    

For the period ended

January 31, 2023

 
Current:         
- Local  $-   $- 
- Foreign   -    - 
Deferred:          
- Local   -    - 
- Foreign   -    - 
           
Income tax expense  $-   $- 

 

The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company has subsidiaries that operate in various countries: United States Seychelles, Hong Kong and Shanghai, PRC that are subject to taxes in the jurisdictions in which they operate, as follows:

 

United States of America

 

The Company is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of January 31, 2024, the operations in the United States of America incurred $515,378 of cumulative net operating losses which can be carried forward indefinitely to offset a maximum of 80% future taxable income. The Company has provided for a full valuation allowance of $412,302 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.

 

Seychelles

 

Under the current laws of the Seychelles, MU Worldwide Group Limited is registered as an international business company which governs by the International Business Companies Act of Seychelles and there is no income tax charged in Seychelles.

 

Hong Kong

 

MU Global Holding Limited is subject to Hong Kong Profits Tax, which is charged at the statutory income tax rate of 16.5% on its assessable income.

 

Shanghai

 

MU Global Health Management (Shanghai) Limited are operating in the People’s Republic of China (PRC) subject to the Corporate Income Tax governed by the Income Tax Law of the PRC with a unified statutory income tax rate of 25%.

 

 F-15 

 

 

MU GLOBAL HOLDING LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JANUARY 31, 2024

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

(UNAUDITED)

 

14. COMMON STOCK

 

On June 4, 2018, our Chief Executive Officer, Ms. Niu Yen-Yen subscribed 100,000 shares of restricted common stock of the Company at par value of $0.0001 per share. The monies from this transaction, which totalled $10, went to the Company to be used as initial working capital.

 

On July 6, 2018, Ms. Niu Yen-Yen and Server Int’l Co., Ltd. subscribed 25,000,000 and 11,000,000 restricted shares of common stock, respectively, of the Company, at par value of $0.0001 per share. The monies from these transactions, which totalled $3,600, went to the Company to be used as initial working capital. Server Int’l Co., Ltd. is controlled entirely by Ms. Niu Yen-Yen.

 

On July 7, 2018, Chang Chun-Ying and Chang Su-Fen subscribed 4,300,000 and 5,000,000 restricted shares of common stock, respectively, of the Company, at par value of $0.0001 per share. The monies from these transactions, which totalled $930, went to the Company to be used as initial working capital.

 

On July 9, 2018, GreenPro Asia Strategic SPC and GreenPro Venture Capital Limited, subscribed 2,835,000 and 2,165,000 restricted shares of common stock of the Company, respectively, at par value of $0.0001 per share. The monies from these transactions, which totalled $500, went to the Company to be used as initial working capital.

 

From July 9, 2018 to July 10, 2018 the Company issued a total of 2,150,000 shares of restricted common stock to three non-US residents. Shares were sold at par value, $0.0001 per share. Total proceeds from these shares totalled $215 and went to the Company to be used as initial working capital.

 

On July 10, 2018, Server Int’l Co., Ltd, a Company solely controlled and owned by the CEO has transferred 1,500,000 shares of common stock to 8 non-US residents.

 

On July 11, 2018 the Company issued a total of 710,000 shares of restricted common stock to two non-US residents at a price of $0.03 per share. Total proceeds from these sales of shares totalled $21,300 and went to the Company to be used as initial working capital.

 

On July 25, 2018 the Company issued a total of 995,000 shares of restricted common stock to ten non-US residents at a price of $0.03 per share. Total proceeds from these sales of shares totalled $29,850 and went to the Company to be used as initial working capital.

 

On July 26, 2018 the Company issued 250,000 shares of restricted common stock to one non-US resident at a price of $0.20 per share. Total proceeds from these sales of shares totalled $50,000 and went to the Company to be used as initial working capital.

 

On July 31, 2018 Dezign Format Pte Ltd and Cheng Young-Chien each subscribed 2,000,000 restricted shares of common stock of the Company, at $0.20 per share, for total consideration of $800,000. Proceeds went to the Company to be used as initial working capital.

 

 F-16 

 

 

From August 1, 2018 to December 13, 2018, Ms. Niu Yen-Yen, the CEO of the Company has transferred 1,557,800 shares of common stock to 16 non-US residents.

 

On May 7, 2019, the convertible promissory note issued by the Company amounted $779,125 to 45 accredited investors who reside in Taiwan with the conversion price of $1 per share have been converted to 779,125 common stock of the company after the S-1 registration statement was declared effective on May 6, 2019.

 

From May 14, 2019 to July 31, 2019, the company issued 150,317 shares of common stock at a price of $1.00 per share through the Initial Public Offering (IPO) to 36 non-US residents.

 

From August 1, 2020 to July 31, 2021, Ms. Niu Yen-Yen, the CEO of the Company, had 395,000 shares of common stock transferred from 3 non-US residents and had sold 3,364,921 shares of common stock to 20 non-US residents.

 

From August 1, 2021 to July 31, 2022, Ms. Niu Yen-Yen, the CEO of the Company, had 55,522 shares of common stock transferred from 2 non-US residents and had sold 6,800,000 shares of common stock to 3 non-US residents.

 

From August 1, 2022 to July 31, 2023, Ms. Niu Yen-Yen had sold 610,000 shares of common stock to 5 non-US residents.

 

As of January 31, 2024, MU Global Holding Limited has an issued and outstanding common share of 59,434,838.

 

15. CONCENTRATIONS OF RISK

 

(a) Major customers

 

For the three months period ended January 31, 2024 and 2023, the customers who accounted for 10% or more of the Company’s revenues and its trade receivable balance at period-end are presented as follows:

 

    2024     2023     2024     2023     2024     2023  
   Revenue  

Percentage of

revenue

   Trade receivable 
   (Unaudited)   (Unaudited)   (Unaudited) 
                         
Customer A  $343   $-    100%   -%  $-   $- 
Customer B   -    7,155    -%   99%   -    - 
   $343   $7,155    100%   99%  $-   $- 

 

For the six months period ended January 31, 2024 and 2023, the customers who accounted for 10% or more of the Company’s revenues and its trade receivable balance at period-end are presented as follows:

 

    2024     2023     2024     2023     2024     2023  
   Revenue  

Percentage of

revenue

   Trade receivable 
   (Unaudited)   (Unaudited)   (Unaudited) 
                         
Customer A  $343   $-    100%   -%  $-   $- 
Customer B   -    120,938    -%   94%   -    - 
   $343   $120,938    100%   94%  $-   $- 

 

(b) Major vendors

 

For the three months period ended January 31, 2024 and 2023, there is no vendor who accounted for 10% or more of the Company’s purchases and its trade payable balance at period-end.

 

 F-17 

 

 

For the six months period ended January 31, 2024 and 2023, the vendors who accounted for 10% or more of the Company’s purchases and its trade payable balance at period-end are presented as follows:

 

   2024   2023   2024   2023   2024   2023 
   Purchases  

Percentage of

purchases

   Trade payable 
   (Unaudited)   (Unaudited)   (Unaudited) 
                         
Vendor A  $-   $108,844    -%   100%  $-   $- 
   $-   $108,844    -%   100%  $-   $- 

 

(c) Exchange rate risk

 

The operation of the Company’s subsidiaries in international markets results in exposure to movements in currency exchange rates. We have experienced foreign currency gains and losses due to the strengthening and weakening of the U.S. dollar. The potential of volatile foreign exchange rate fluctuations in the future could have a significant effect on our results of operations. The Company has not historically used financial instruments to hedge its foreign currency exchange rate risks.

 

The currencies that create a majority of the Company’s exchange rate exposure are RMB, HK$, and TWD. The Company translates all assets and liabilities at the rate of exchange in effect at the balance sheet date and income and expense activity at the approximate rate of exchange at the transaction date.

 

16. COMMITMENTS AND CONTINGENCIES

 

On November 6, 2021, the Company entered into a contract rental agreement to rent the office in Shanghai for a period of one year commencing on November 6, 2021 with tri-monthly payments in the amount of RMB 3,500 per month over the course of the lease and an entitlement of 1 month rent free period as relief upon rented the premise for full 11 months. The Company has an option to renew after the end of the agreement. On October 18, 2022, the Company has renewed the tenancy agreement for 12 months with tri-monthly payments in the amount of RMB 3,500 per month over the course of the lease from November 6, 2022 to November 5, 2023 and is entitled for 1 month rent free period as relief upon rented the premise for full 11 months. The Company has an option to renew after the end of the agreement. On August 7, 2023, the Company has further renewed the tenancy agreement for 12 months with tri-monthly payments in the amount of RMB 3,500 per month over the course of the lease from November 6, 2023 to November 5, 2024 and is entitled for 1 month rent free period as relief upon rented the premise for full 11 months.

 

As of January 31, 2024, the Company has the aggregate minimal rent payments due in the next two years as follows:

 

Year ending July 31    
     
2024  $3,375 
2025   489 
Total  $3,864 

 

17. RELATED PARTY TRANSACTIONS

 

For the period ended January 31, 2024 the Company has following transactions with related parties:

 

  

For the period ended

January 31, 2024

(Unaudited)

  

For the year ended

July 31, 2023

(Audited)

 
Professional fee:          
- Related party A  $5,000   $16,080 
           
Consultation fee:          
- Related party B  $-   $8,100 
           
Total  $5,000   $24,180 

 

Related party A is the fellow subsidiaries of a corporate shareholder of the Company. Related party B is the employee and shareholder of the Company.

 

For the period ended January 31, 2024, the Company incurred professional fees of $5,000 due to related party A.

 

 F-18 

 

 

18. SEGMENT INFORMATION

 

ASC 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about services categories, business segments and major customers in financial statements. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes.

 

The Company had no inter-segment sales for the years presented. Summarized financial information concerning the Company’s reportable segments is shown as below:

 

By Geography:

 

   Nevada   Seychelles   Hong Kong   China   Total 
   For the period ended January 31, 2024 
   Nevada   Seychelles   Hong Kong   China   Total 
                     
Revenue  $-   $-   $-   $343   $343 
Cost of revenue   -    -    -    -    - 
Other income   -    -    3,013    3,192    6,205 
Selling and marketing expenses   -    -    -    (915)   (915)
General and administrative expenses   (22,144)   -    (1,641)   (26,087)   (49,872)
Net (loss) / profit before taxation   (22,144)   -    1,372    (23,467)   (44,239)
                          
Total assets  $1,050   $     1   $1,953   $7,345   $10,348 

 

   Nevada   Seychelles   Hong Kong   China   Total 
   For the period ended January 31, 2023 
   Nevada   Seychelles   Hong Kong   China   Total 
                     
Revenue  $-   $-   $120,938   $7,303   $128,241 
Cost of revenue   -    -    (108,844)   -    (108,844)
Other income   -    -    2    2,356    2,358 
Selling and marketing expenses   -    -    (200)   (78)   (278)
General and administrative expenses   (20,945)   (1,600)   (18,358)   (31,725)   (72,628)
Net loss before taxation   (20,945)   (1,600)   (6,462)   (22,144)   (51,151)
                          
Total assets  $875   $1   $3,936   $66,176   $70,988 

 

19. 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 subsequent events through the filing date of this Form 10-K with the SEC, to ensure that this filing includes appropriate disclosure of events both recognized in the financial statements as of January 31, 2024, and events which occurred subsequently but were not recognized in the financial statements. During the period, there was no subsequent event that required recognition or disclosure.

 

 F-19 

 

 

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

 

The information contained in this Form 10-Q is intended to update the information contained in our Annual Report on Form 10-K for the year ended July 31, 2023 filed with the Securities and Exchange Commission on October 30, 2023 (the “Form 10-K”) and presumes that readers have access to, and will have read, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other information contained in such Form 10-K/A. The following discussion and analysis also should be read together with our financial statements and the notes to the financial statements included elsewhere in this Form 10-Q.

 

Certain statements in this Report constitute forward-looking statements. These forward-looking statements include statements, which involve risks and uncertainties, regarding, among other things, (a) our projected sales, profitability, and cash flows, (b) our growth strategy, (c) anticipated trends in our industry, (d) our future financing plans, and (e) our anticipated needs for, and use of, working capital. They are generally identifiable by use of the words “may,” “will,” “should,” “anticipate,” “estimate,” “plan,” “potential,” “project,” “continuing,” “ongoing,” “expects,” “management believes,” “we believe,” “we intend,” or the negative of these words or other variations on these words or comparable terminology. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this filing will in fact occur. You should not place undue reliance on these forward-looking statements.

 

The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.

 

Company Overview

 

MU Global Holding Limited, the US Company, operates through its wholly owned subsidiary, MU Worldwide Group Limited, a Seychelles Company; which operates through its wholly owned subsidiary, MU Global Holding Limited, a Hong Kong Company; which operates through its wholly owned subsidiary, MU Global Health Management (Shanghai) Limited, a Shanghai Company. The US, Seychelles and Hong Kong Companies act solely for holding purposes whereas all current and future operations in China are planned to be carried out via MU Global Health Management (Shanghai) Limited, the Shanghai Company. The purpose of the Hong Kong Company is to function as the current regional hub of the Company.

 

At present, we have a physical office in Shanghai with address of Room 1510, Building 5, Ark Times Square, 3148 Chengliu Middle Road, Jiading District, Shanghai. In the future, we do not have definitive plans for which markets intend to expand to, but we base our operations in Shanghai, as we prepare for future unidentified expansion efforts.

 

All of the previous entities share the same exact business plan with the goal of developing and providing wellness and beauty services to our future clients. We aim to promote improved overall health and beauty in our clients through a holistic detoxification method. We will, at least initially, primarily focus our efforts on attracting customers in China. We have intentions, but no definitive plans or timelines, to expand to Singapore, Malaysia, Hong Kong, and Middle Eastern countries in the coming years, and subsequently we intend to make efforts to expand throughout Asia. We anticipate spending a substantial amount in marketing and advertising in the coming year.

 

 3 

 

 

Results of Operation

 

For the six months ended January 31, 2024 and 2023

 

Revenues

 

For the six months ended January 31, 2024 and 2023, the Company has generated revenue of $343 and $128,241 respectively. The revenue represented income from wellness and beauty services provided to customers, sales of products and sharing of revenue from leasable equipment with business alliance and fran