Company Quick10K Filing
Quest Management
Price-0.00 EPS0
Shares61 P/E-0
MCap-0 P/FCF0
Net Debt-0 EBIT0
TEV-0 TEV/EBIT-0
TTM 2018-04-30, in MM, except price, ratios
10-Q 2020-07-31 Filed 2021-02-10
10-Q 2020-04-30 Filed 2020-08-11
10-Q 2020-01-31 Filed 2020-05-28
10-K 2019-10-31 Filed 2020-05-12
10-Q 2019-07-31 Filed 2020-04-23
10-Q 2019-04-30 Filed 2020-04-23
10-Q 2019-01-31 Filed 2020-04-23
10-K 2018-10-31 Filed 2020-03-27
10-Q 2018-07-31 Filed 2020-02-12
10-Q 2018-04-30 Filed 2018-06-19
10-Q 2018-01-31 Filed 2018-03-06
10-K 2017-10-31 Filed 2018-02-13
10-Q 2017-07-31 Filed 2017-09-14
10-Q 2017-04-30 Filed 2017-05-23
10-Q 2017-01-31 Filed 2017-03-17
10-K 2016-10-31 Filed 2017-02-14
10-Q 2016-07-31 Filed 2016-09-14
10-Q 2016-04-30 Filed 2016-06-01
10-Q 2016-01-31 Filed 2016-03-01
10-K 2015-10-31 Filed 2016-01-29
10-Q 2015-07-31 Filed 2015-09-17
10-Q 2015-04-30 Filed 2015-06-08
10-Q 2015-01-31 Filed 2015-03-18
8-K 2020-06-04

QUEST 10Q Quarterly Report

Item 1. Financial Statements
Note 1 - Summary of History and Significant Accounting Policies
Note 2 - Financial Condition and Going Concern
Note 3 - Property and Equipment
Note 4 - Notes Payable
Note 5 - Note Payable - Related Party
Note 6 - Income Taxes
Note 7 - Capital Changes
Note 8 - Contingencies and Commitments
Note 9 - Related Party Transactions
Note 10 - Legal Matters
Note 11 - Subsequent Events
Note 12 - Restatement of Financial Statements
Item 2. Management's Discussion and Analysis or Plan of Operation.
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 Saftey Disclosures
Item 5. Other Informaion
Item 6. Exhibits.
EX-31.1 exhibit_31-1.htm
EX-31.2 exhibit_31-2.htm
EX-32.1 exhibit_32-1.htm
EX-32.2 exhibit_32-2.htm

Quest Management Earnings 2020-07-31

Balance SheetIncome StatementCash Flow
24255191541405389523851-12502014201520172019
Assets, Equity
3157015748-74-15896-31718-475402014201520172019
Rev, G Profit, Net Income
40000225125024-12464-29952-474402014201520172019
Ops, Inv, Fin

10-Q 1 quest_20200731-10q.htm QUARTERLY REPORT

 

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 July 31, 2020

 

Commission file number 333-201215

 

QUEST MANAGEMENT INC.
(Exact name of registrant as specified in its charter)

 

Nevada
(State or other jurisdiction of incorporation or organization)

 

797 South First Street

Fulton, NY 13069

(Address of principal executive offices, including zip code.)

 

(315) 701-1031
(Telephone number, including area code)

 

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

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
None   N/A   N/A

 

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 last 90 days. YES [X] NO [ ]

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted 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 and post such files). YES [X ] 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," "non-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 [X]

Indicate the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 261,055,120 shares of common stock as of the date of February 5, 2021.

 

 
 

 

QUEST MANAGEMENT INC.

July 31, 2020

FORM 10-Q

 

TABLE OF CONTENTS

 

Item # Description

Page

Numbers

     
  PART I  
     
ITEM 1 UNAUDITED FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS 4-28
     
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 29
     
ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 29
     
ITEM 4 CONTROLS AND PROCEDURES 30
     
  PART II  
     
ITEM 1 LEGAL PROCEEDINGS 31
     
ITEM 1A RISK FACTORS 31
     
ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 31
     
ITEM 3 DEFAULTS UPON SENIOR SECURITIES 31
     
ITEM 4 MINE SAFETY DISCLOSURES 31
     
ITEM 5 OTHER INFORMATION 31
     
ITEM 6 EXHIBITS 32
     
  SIGNATURES 33

 

 

2

 
 

ITEM 1.     FINANCIAL STATEMENTS

 

QUEST MANAGEMENT, INC.

 

INDEX TO CONENSED FINANCIAL STATEMENTS

(Unaudited)

 

 

TABLE OF CONTENTS

 

 

 

  PAGE
   
   
CONDENSED BALANCE SHEETS (UNAUDITED) 4
   
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) 5
   
CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) 6
   
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) 7
   
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS 8

 

 

 

 

  

 

 

 

 

 

 

 

 3

 
 

QUEST MANAGEMENT, INC.

Condensed Balance Sheets

July 31, 2020 and October 31, 2019

(Unaudited)

 

   July 31,  October 31,
   2020  2019
   (Restated)  (Restated)
ASSETS
       
Current Assets      
Cash  $—     $—   
           
Total Current Assets   —      —   
           
           
Total Assets  $—     $—   
           
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
           
Current Liabilities          
Notes payable  $1,605   $1,605 
Notes payable-Related party   11,105    —   
Accounts payable and accrued expenses   14,994    9,653 
           
Total Current Liabilities   27,704    11,258 
           
Total Liabilities   27,704    11,258 
           
Commitments and contingencies   —      —   
           
Stockholders (Deficit)          
Common stock, no par value, 750,000,000 shares authorized; 261,055,120 and 61,055.120 issued and outstanding at July 31, 2020 and October 31, 2019   261,055    61,055 
Additional paid-in capital   2,289,734    1,857,945 
Accumulated (Deficit)   (2,578,493)   (1,930,258)
Total Stockholders' (Deficit)   (27,704)   (11,258)
           
Total Liabilities and Stockholders' (Deficit)  $—     $—   

 

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

4

 
 

QUEST MANAGEMENT, INC.

Condensed Statements of Operations

(Unaudited)

 

   Three Months Ended  Nine Months Ended   
   July 31,  July 31,   
   2020  2019  2020  2019
      (Restated)  (Restated)  (Restated)
Revenues  $—     $—     $—     $—   
                     
Total revenues   —      —      —      —   
                     
Operating Expenses                    
General and administrative   9,112    2,250    20,542    2,250 
                     
Total operating expenses   9,112    2,250    20,542    2,250 
                     
(Loss) before other expenses   (9,112)   (2,250)   (20,542)   (2,250)
                     
Other (expense)                    
Loss from debt conversion   —      —      (615,855)   —   
Interest (expense)   (11,806)   (16)   (11,838)   (48)
                     
Total other (expense)   (11,806)   (16)   (627,693)   (48)
                     
(Loss) before income taxes   (20,918)   (2,266)   (648,235)   (2,298)
Income taxes   —      —      —      —   
                     
Net (loss)  $(20,918)  $(2,266)  $(648,235)  $(2,298)
                     
(Loss) per share-Basic and diluted  $(0.00)  $(0.00)  $(0.00)  $(0.00)
                     
Weighted average shares outstanding                    
Basic and diluted   261,055,120    61,055,120    169,868,764    61,055,120 

 

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

 5

 
 

QUEST MANAGEMENT, INC.

Condensed Statements of Stockholders' Equity (Deficit)

For the Three and Nine Months ended July 31, 2020 and 2019

(Unaudited)

         Additional      
   Common Stock  Paid-In  Retained  Stockholders'
   Shares  Amount  Capital  (Deficit)  (Deficit)
      (Restated)  (Restated)  (Restated)  (Restated)
 Balance-November 1, 2018   61,055,120   $61,055   $1,857,945   $(1,925,494)  $(6,494)
                          
 Net(loss) for the three months ended January 31, 2019   —      —      —      (16)   (16)
                          
 Balance-January 31, 2019   61,055,120    61,055    1,857,945    (1,925,510)   (6,510)
                          
 Net (loss) for the three months ended April 30, 2019   —      —      —      (16)   (16)
                          
 Balance-April 30, 2019   61,055,120    61,055    1,857,945    (1,925,526)   (6,526)
                          
 Net (loss) for the three months ended July 31, 2019   —      —      —      (2,266)   (2,266)
                          
 Balance-July, 2019   61,055,120   $61,055   $1,857,945   $(1,927,792)  $(8,792)
                          
 Balance-November 1, 2019   61,055,120   $61,055   $1,857,945   $(1,930,258)  $(11,258)
                          
 Net (loss) for the three months ended January 31, 2020   —      —      —      (2,563)   (2,563)
                          
 Balance-January 31, 2020   61,055,120    61,055    1,857,945    (1,932,821)   (13,821)
                          
 Common stock issued for debt   200,000,000    200,000    420,000    —      620,000 
                          
 Net (loss) for the three months ended April 30, 2020   —      —      —      (624,754)   (624,754)
                          
Balance-April 30, 2020   261,055,120    261,055    2,277,945    (2,557,575)   (18,575)
                          
Interest expense for conversion feature of note   —      —      11,789    —      11,789 
                          
 Net (loss) for the three months ended July 31, 2020   —      —      —      (20,918)   (20,918)
                          
Balance-July 31, 2020   261,055,120   $261,055   $2,289,734   $(2,578,493)  $(27,704)

 

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

6

 
 

QUEST MANAGEMENT, INC.

Condensed Statements of Cash Flows

(Unaudited)

   Nine Months
   Ended
   July 31,
   2020  2019
   (Restated)   
CASH FLOWS FROM OPERATING ACTIVITIES:          
     Net (loss)  $(648,235)  $(2,298)
     Adjustments to reconcile net loss to net cash used          
          in operating activities:          
             Loss from debt conversion   615,855    —   
             Interest expense for debt conversion feature   11,789    —   
             Common stock issued for product   —      —   
          Changes in assets and liabilities:          
              Increase in accounts payable and accrued expenses   5,341    2,298 
           
             Net cash (used) in operating activities   (15,250)   —   
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
     Purchase of property, plant and equipment   —      —   
           
             Net cash used in investing activities   —      —   
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
     Increase in common stock from debt conversion   4,145    —   
     Increase in notes payable-Related party   11,105    —   
           
             Net cash provided by financing activities   15,250    —   
           
             Net (decrease) in cash   —      —   
           
CASH AT BEGINNING PERIOD   —      —   
           
CASH AT END OF PERIOD  $—     $—   
           
SUPPLEMENTAL CASH FLOW INFORMATION:          
     Cash paid for interest  $—     $—   
     Cash paid for income taxes  $—     $—   

 

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

 7

 
 

 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

NOTE 1- Summary of History and Significant Accounting Policies

 

Nature of Operations

 

Quest Management, Inc. (“Quest” or the “Company”) was incorporated in the State of Nevada on October 12, 2014. Quest originally intended to engage in the business of development of marketing channels to distribute fitness equipment to the wholesale market in the United States. The Company is currently looking for acquisition candidates that would bring operations, profitability and cash flows to the Company.

 

Basis of Presentation

 

The accompanying unaudited condensed financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or the SEC, including the instructions to Form 10-Q and Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted from these statements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements and should be read in conjunction with our audited financial statements for the year ended October 31, 2019, included in our Annual Report on Form 10-K for the year ended October 31, 2019. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the periods presented have been reflected herein.

 

Concentration of Risk

 

The Company places its cash and temporary cash investments with established financial institutions.  At times, such cash and investments may be in excess of the FDIC insurance limit.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.  

 

Stock-based Compensation

 

The Company records stock-based compensation in accordance with ASC 718, Compensation - Stock Based Compensation which requires the measurement and recognition of compensation expense based on grant date fair values for all share-based awards made to third parties, employees and directors, including stock options. Effective January 1, 2019, the Company adopted ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.

 

ASC 718 requires companies to estimate the fair value of share-based awards to employees and directors on the date of grant using an option-pricing model. The Company uses the Black-Scholes option-pricing model as its method of determining fair value. This model is affected by the Company's stock price as well as assumptions regarding a number of subjective variables. These subjective variables include, but are not limited to the Company's expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. The value of the portion of the award that is ultimately expected to vest is recognized as an expense in the statement of operations over the requisite service period.

 

Upon the adoption of ASU 2018-07, the Company measures the fair value of equity instruments for non-employee payment awards on the grant date.

 

8

 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

Long-lived Assets

 

Long-lived assets are stated at cost. Maintenance and repairs are expensed as incurred. Depreciation is determined using the straight-line method over the estimated useful lives of the assets, which is five years.

 

Where an impairment of a property’s value is determined to be other than temporary, impairment for the estimated potential loss is recorded to adjust the property to its net realizable value.

 

When items of building or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in the results of operations. The Company does not have any long-lived tangible assets, which are considered to be impaired as of July 31, 2020 and October 31, 2019.

 

The Company applies the provisions of ASC 360-10, Property, Plant and Equipment, where applicable to all long-lived assets. ASC 360-10 addresses accounting and reporting for impairment and disposal of long-lived assets. The Company periodically evaluates the carrying value of long-lived assets to be held and used in accordance with ASC 360-10. ASC 360-10 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal.

 

Intangible Assets

 

Goodwill and intangible assets are reviewed for potential impairment in accordance with ASC 350, Intangibles - Goodwill and Other, whenever events or circumstances indicate that their carrying amounts may not be recoverable. The Company had no such intangibles at July 31, 2020 or October 31, 2019, and recorded no impairment losses during the nine months ended July 31, 2020 or 2019.

 

Revenue Recognition

 

The Company applies ASC 606, Revenue from Contracts with Customers. Under ASC 606, the Company will recognize revenue from the sale of our exercise equipment by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue as each performance obligation is satisfied.

 

Advertising

 

Advertising costs are expensed as incurred.  Advertising expenses for the nine months ended July 31, 2020 and 2019 were $0.

 

9

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

Fair Value of Financial Instruments

 

The Company adopted ASC 820, Fair Value Measurements and Disclosures, which provides a framework for measuring fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standard also expands disclosures about instruments measured at fair value and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

 

Level 1 — Quoted prices for identical assets and liabilities in active markets;

Level 2 — Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and

Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

 

Use of Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires 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 the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates.

 

Emerging Growth Company Critical Accounting Policy Disclosure

 

The Company qualifies as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards.   As an emerging grown company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has chosen to “opt out” of such extended transition period, and as a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies.

 

10

 
 

QUEST MANAGMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

Income Taxes

 

The Company accounts for income taxes under ASC 740-10-30, Income Taxes. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.  Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

 

The Company adopted ASC 740-10-25, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements.  Under ASC 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement.  ASC 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures.  The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of ASC 740-10-25.

 

Loss Per Share

 

Net loss per common share is computed pursuant to ASC 260-10-45, Earnings Per Share.  Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period, unless their effect is anti-dilutive due to continuing losses.  There were no potentially dilutive shares outstanding as of July 31, 2020 and October 31, 2019.

 

Recent Accounting Pronouncements

 

We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations or financial position.

 

11

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

NOTE 2 – Financial Condition and Going Concern

 

The Company’s financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  The Company has sustained operating losses during the current year-to-date and may not achieve the level of profitable operations to sustain its activities.  These factors raise substantial doubt as to its ability to obtain debt and/or equity financing and achieve profitable operations.

 

Management intends to raise additional operating funds through equity and/or debt offerings.  However, there can be no assurance management will be successful in its endeavors.  Ultimately, the Company will need to achieve profitable operations in order to continue as a going concern.

 

There are no assurances that the Company will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support its working capital requirements.  To the extent that funds generated from operations and any private placements, public offerings and/or bank financing are insufficient, the Company will have to raise additional working capital.  No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company.  If adequate working capital is not available to the Company, it may be required to curtail its operations.

 

NOTE 3 – Property and Equipment

 

We purchased our principal executive offices at 1 Kalnu iela, Malta, LV-4630 Latvia, on October 30, 2014 for $7,915. 

 

The Company depreciates its property using straight-line depreciation over the estimated useful life of 40 years.

 

This property now has a $0 value after impairment on October 31, 2018.

 

The current executive offices are provided without cost, located at: 797 South First Street Fulton, NY 13069.

 

NOTE 4 – Notes Payable

On May 31, 2016, the Company issued a Convertible Promissory Note in the principal amount of $16,605 to Peak Marine Holdings LLC, a Florida limited liability company (“Peak”). This Convertible Promissory Note (the “Note”) was issued in consideration of advances and loans made by Peak to the Company.

 

Pursuant to the terms of the Note, the holder has the right to convert any portion of the principal amount thereof at the par value of the Company’s common stock. The holder also has the right to assign any portion of the Note, or assign the shares to be issued upon any conversion of the Notes, to other parties. During the month of December 2016, Peak sold all its interest in the Note to five (5) independent third parties (the “Holders”).

 

During the month of January 2017, the Holders provided notices of election to convert a total of $15,000 of the Note into shares, which totaled 15,000,000 shares of common stock. The remaining balance on the Note is $1,605.

 

At July 31, 2020, the Company has recorded $502 in accrued interest payable on the Note. The interest expense for the nine months ended July 31, 2020 and 2019 was $49 and $48

 

12

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

NOTE 5 – Note Payable-Related Party

 

Directors and President of the Company had loaned the company for operations from time to time on need basis. The Company’s former director and president loaned the company of $ 4,066 which was non-interest bearing, unsecured and payable upon demand. As of the year ended, October 31, 2018, the Company had taken a gain on impairment of this loan, with $4,066 recognized in other income and adjusted loan payable balance to $0. The balance to this loan as of April 30, 2020 is $0.

 

As of July 31, 2020, loan amount of $11,105 is due to Custodian of the company. The note is non-interest bearing, unsecured and is payable on demand.

 

These loans resulted in a beneficial payment feature of $11,790 which was recorded to interest expense upon issuance. These loans were for operating expenses of the Company, due upon demand and have no interest rate.

 

NOTE 6 – Income Taxes

 

The Company adopted the provisions of ASC 740-10 (formerly known as FIN No. 48, Accounting for Uncertainty in Income Taxes). ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements. ASC 740-10 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The application of income tax law is inherently complex. Laws and regulation in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding the income tax exposures. Interpretations and guidance surrounding income tax laws and regulations change over time. As such, changes in the subjective assumptions and judgments can materially affect amounts recognized in the balance sheets and statements of income.

 

The Company has no unrecognized tax benefit, which would affect the effective tax rate if recognized. There has been no significant change in the unrecognized tax benefit during the period ended July 31, 2020.

 

We classify interest and penalties arising from the underpayment of income taxes in the statement of income under general and administrative expenses. As of July 31, 2020, we had no accrued interest or penalties related to uncertain tax positions.

 

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

 

13

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

The components of deferred income tax assets (liabilities) at July 31, 2020, were as follows:

 

   Balance  Rate  Tax
 Federal loss carryforward  $2,578,493    21%  $541,484 
Valuation allowance             (541,484)
       Deferred tax asset            $—   

 

Due to the passage of the “Tax Cuts and Jobs Act” on December 20, 2017 the rate of the U.S. Federal Income Tax dropped from 34% to 21%, which is a flat percentage tax rate used for the calculation of the deferred income tax assets.

 

The new law also changes the rules on NOL carry forward. The 20-year limitation was eliminated, giving the taxpayer the ability to carry forward losses indefinitely. However, NOL carry forward arising after January 1, 2018, will now be limited to 80 percent of taxable income.

 

NOTE 7 – Capital Changes

 

On February 6, 2020, $4,145 of debt was purchased in the Company in exchange for 200,000,000 shares of common stock issued to a Related Party. The Company recorded a loss on the conversion of this debt in the amount of $615,855. The fair market value of the common stock was $.0031 on the date of the conversion.

 

NOTE 8 – Contingencies and Commitments

 

The Company follows ASC 440 & ASC 450, subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies and commitments, respectively. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur.

 

The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

 

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

 

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows.

 

Management of the Company has conducted a diligent search and concluded that there were no commitments, contingencies, or legal matters pending at the balance sheet dates.

 

14

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

The effects of Covid -19 could impact our ability to operate under the going concern and maintain sufficient liquidity to continue operations. The impact of Covid-19 on companies is evolving rapidly and its future effects are uncertain. There are material uncertainties from Covid-19 that cast significant doubt on the company’s ability to operate under the going concern. It is highly likely that our company will have issues relating to the current situation that need to be considered by management. There will be a wide range of factors to take into account in going concern judgments and financial projections including travel bans, restrictions, government assistance and potential sources of replacement financing, financial health of suppliers and customers and their effect on expected profitability and other key financial performance ratios including information that shows whether there will be sufficient liquidity to continue to meet obligations when they are due.

 

NOTE 9 – Related Party Transactions

 

On February 3, 2020, the Custodian as an interim officer acting on behalf of the Company, appointed Yamilka Veras as President, Director and Sole officer of the Company.

 

On February 6, 2020, $4,145 of debt was purchased in the Company in exchange for 200,000,000 shares of common stock issued to a Related Party. The Company incurred a loss of $615,855 from the debt conversion.

 

As of July 31, 2020 a loan amount of $11,105 is due to Custodian of the company on a note payable. The note payable is non-interest bearing, unsecured and is payable on demand.

  

NOTE 10 – Legal Matters

 

On December 2, 2019, one of the Company’s shareholders made a motion and application to be appointed as custodian of the Company based on prior management abandoning its responsibilities to continue making filings at the Nevada Secretary of State’s office and for failing to hold a shareholders’ meeting in over 2 years and otherwise failing to keep current in its obligations to the Company.  Upon motion and application to the District Court, Clark County Nevada, the Court granted the shareholder’s request and the shareholder was appointed as custodian for the Company (“Custodian”). 

 

As Custodian of the Company, the shareholder was ordered to file an amendment to the Company’s articles of incorporation which was filed in conformity with N.R.S. 78.347(4) and the shareholder was ordered to have the Company’s charter reinstated in Nevada, to notice and hold a shareholder meeting; to provide a report to the Court of the actions taken at the shareholder meeting; to identify and name a new registered agent in the State of Nevada; to reinstate the Company in the State of Nevada; and the Custodian. In addition to the aforementioned items set forth in the Order Appointing the Custodian, the Custodian was given the power and authority to take any action it deemed reasonable and for the benefit of the Company and its shareholders.  The Custodian is now in the process of meeting all of the requirements set forth in the Court Order and filing a motion to terminate its services.  Upon granting the motion, the Court will issue an Order acknowledging that the Custodian has performed all of the duties that had been required of it and the management of the Company will revert exclusively to the officers and directors appointed by the Custodian.

 

NOTE 11 – Subsequent Events

 

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to July 31, 2020 through the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements.

 

15

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

On June 3, 2020, Andrew Birnbaum, Friction & Heat, LLC, a Utah limited liability company (“F&H”), the Company entered into a certain Stock Purchase Agreement (the “SPA”) whereby Andrew Birnbaum acquired 200,000,000 restricted shares of the Company’s common stock from F&H in exchange for payment of a $400,000 promissory note to F&H. Following the execution of the SPA, a change of control of the Company occurred. Andrew Birnbaum is now the majority shareholder of the Company, owning 76.6% of the issued and outstanding shares of common stock.

 

NOTE 12 – Restatement of Financial Statements

 

The Company’s management concluded that because of three separate transactions, as discussed in further detail below, the Company’s previously issued financial statements for all periods beginning with the years ended October 31, 2019, 2018 and 2017 and the quarters ended January 31, 2020, 2019, 2018, April 30, 2020, 2019, 2018 and July 31, 2019 and 2018 (collectively, the “Affected Periods”) should no longer be relied upon. As such the Company is restating in this report all the periods listed.

 

The first transaction was on February 1, 2016 the Company issued 500,000 shares of its common stock. Originally, no value was assigned to this issuance. The restatement for the year ended October 31, 2017 assigned a value of $20,000 to this transaction, or $.04 per share.

 

The second transaction was on December 8, 2016 the Company issued 46,000,000 shares of its common stock. Originally, no value was assigned to this issuance. The restatement for the year ended October 31, 2017 assigned a value of $1,840,000 to this transaction, or $.04 per share.

 

The third transaction was on February 6, 2020 the Company issued 200,000,000 shares of its common stock. Originally, the was recorded as a discount to additional paid-in capital. The restatement for the quarter ended April 30, 2020 was at $.0031 per share, or a charge to loss from conversion of debt in the amount of $615,885.

 

Impact of the Restatement
Year Ended October 31, 2019, 2018 and 2017
Quarters Ended April 30, 2020 and January 31, 2020
Quarters Ended July 31, April 30, and January 31, 2019, 2018
          
   As of October 31, 2017
   As Previously      
   Reported  Adjustment  As Restated
Balance Sheet Data:         
Cash  $1,640        $1,640 
Total current assets   1,640         1,640 
Fixed assets   7,321         7,321 
Total assets   8,961         8,961 
Accounts payable and accrued expenses   325         325 
Promissory note payable   5,691         5,691 
Total liabilities   5,996         5,966 
Common stock   20,000    41,055    61,055 
Additional paid-in capital   39,000    1,818,945    1,857,945 
Accumulated deficit   (56,034)   (1,860,000)   (1,916,034)
Total stockholders' deficit   2,966         2,965 
Total liabilities and stockholders' equity  $8,961        $8,961 

 

16

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

   As of January 31, 2018
   As Previously      
   Reported  Adjustment  As Restated
Balance Sheet Data:         
Cash  $5,120        $5,120 
Total current assets   5,120         5,120 
Fixed assets   7,272         7,272 
Total assets   12,392         12,392 
Accounts payable and accrued expenses   341         341 
Promissory note payable   5,691         5,691 
Total liabilities   6,012         6,012 
Common stock   20,000    41,055    61,055 
Additional paid-in capital   39,000    1,818,945    1,857,945 
Accumulated deficit   (52,620)   (1,860,000)   (1,912,620)
Total stockholders' deficit   6,380         6,380 
Total liabilities and stockholders' equity  $12,392        $12,392 
                
    Three months ended January 31, 2018
    As Previously           
    Reported    Adjustment    As Restated 
Statement of Operations Data:               
Revenue  $11,775        $11,775 
Cost of sales   6,840         6,840 
Gross profit   4,935         4,935 
Total operating expenses   1,505         1,505 
Loss from operations   3,430         3,430 
Interest expense   16         16 
Total other expense   16         16 
Net (loss)   3,414         3,414 
Net loss per share-Basic and diluted  $—          $—   
                
    Three months ended January 31, 2018
    As Previously           
    Reported    Adjustment    As Restated 
Cash Flow Data:               
Net loss  $3,414        $3,414 
Depreciation   49         49 
Accrued interest   16         16 
Total cash used in operating activities  $3,479        $3,479 

 

17

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

   As of April 30, 2018
   As Previously      
   Reported  Adjustment  As Restated
Balance Sheet Data:         
Cash  $5,304        $5,304 
Total current assets   5,304         5,304 
Fixed assets   7,272         7,272 
Total assets   12,526         12,526 
Accounts payable and accrued expenses   357         357 
Promissory note payable   5,691         5,691 
Total liabilities   6,028         6,028 
Common stock   20,000    41,055    61,055 
Additional paid-in capital   39,000    1,818,945    1,857,945 
Accumulated deficit   (52,502)   (1,860,000)   (1,912,502)
Total stockholders' deficit   6,498         6,498 
Total liabilities and stockholders' equity  $12,526        $12,526 
                
    Three months ended April 30, 2018
    As Previously           
    Reported    Adjustment    As Restated 
Statement of Operations Data:               
Revenue  $10,893        $10,893 
Cost of sales   7,040         7,040 
Gross profit   3,853         3,853 
Total operating expenses   3,718         3,718 
Loss from operations   135         135 
Interest expense   16         16 
Total other expense   16         16 
Net (loss)   119         119 
Net loss per share-Basic and diluted  $—          $—   
                
    Six months ended April 30, 2018
    As Previously           
    Reported    Adjustment    As Restated 
Statement of Operations Data:               
Revenue  $22,668        $22,668 
Cost of sales   13,880         13,880 
Gross profit   8,788         8,788 
Total operating expenses   5,224         5,224 
Loss from operations   3,564         3,564 
Interest expense   32         32 
Total other expense   32         32 
Net (loss)   3,532         3,532 
Net loss per share-Basic and diluted  $—          $—   
                
    Six months ended April 30, 2018
    As Previously           
    Reported    Adjustment    As Restated 
Cash Flow Data:               
Net loss  $3,533        $3,533 
Depreciation   99         99 
Accrued interest   32         32 
Total cash used in operating activities  $3,664        $3,664 

 

18

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

   As of July 31, 2018
   As Previously      
   Reported  Adjustment  As Restated
Balance Sheet Data:         
Cash  $5,332        $5,304 
Total current assets   5,332         5,304 
Fixed assets   7,173         7,272 
Total assets   12,505         12,526 
Accounts payable and accrued expenses   373         357 
Promissory note payable   5,691         5,691 
Total liabilities   6,044         6,028 
Common stock   20,000    41,055    61,055 
Additional paid-in capital   39,000    1,818,945    1,857,945 
Accumulated deficit   (52,539)   (1,860,000)   (1,912,539)
Total stockholders' deficit   6,461         6,461 
Total liabilities and stockholders' equity  $12,505        $12,505 
                
    Three months ended July 31, 2018
    As Previously           
    Reported    Adjustment    As Restated 
Statement of Operations Data:               
Revenue  $13,775        $13,775 
Cost of sales   7,078         7,078 
Gross profit   6,697         6,697 
Total operating expenses   6,718         6,718 
Loss from operations   (21)        (21)
Interest expense   16         16 
Total other expense   16         16 
Net (loss)   (37)        (37)
Net loss per share-Basic and diluted  $—          $—   
                
    Nine months ended July 31, 2018
    As Previously           
    Reported    Adjustment    As Restated 
Statement of Operations Data:               
Revenue  $36,443        $36,443 
Cost of sales   20,958         20,958 
Gross profit   15,485         15,485 
Total operating expenses   11,942         11,942 
Loss from operations   3,543         3,543 
Interest expense   48         48 
Total other expense   48         48 
Net (loss)   3,495         3,495 
Net loss per share-Basic and diluted  $—          $—   
                
    Nine months ended July 31, 2018
    As Previously           
    Reported    Adjustment    As Restated 
Cash Flow Data:               
Net loss  $3,460        $3,460 
Depreciation   148         148 
Accounts payable   35         35 
Accrued interest   48         48 
Total cash used in operating activities  $3,691        $3,691 

 

19

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

   As of October 31, 2018
   As Previously      
   Reported  Adjustment  As Restated
Balance Sheet Data:         
Cash  $—          $—   
Total current assets   —           —   
Fixed assets   —           —   
Total assets   —           —   
Accounts payable and accrued expenses   4,889         4,889 
Promissory note payable   1,605         1,605 
Total liabilities   6,494         6,494 
Common stock   20,000    41,055    61,055 
Additional paid-in capital   39,000    1,818,945    1,857,945 
Accumulated deficit   (65,494)   (1,860,000)   (1,925,494)
Total stockholders' deficit   (6,494)        (6,494)
Total liabilities and stockholders' equity  $—          $—   
                
                
    Year ended October 31, 2018
    As Previously           
    Reported    Adjustment    As Restated 
Statement of Operations Data:               
Revenue  $36,443        $36,443 
Cost of sales   20,958         20,958 
Gross profit   15,485         15,485 
Total operating expenses   16,442         16,442 
Loss from operations   (957)        (957)
Impairment loss   8,439         8,439 
Interest expense   64         64 
Total other expense   8,503         8,503 
Net (loss)  $(9,460)       $(9,460)
Net loss per share-Basic and diluted  $—          $—   
                
                
    Year ended October 31, 2018
    As Previously           
    Reported    Adjustment    As Restated 
Cash Flow Data:               
Net loss  $(9,460)       $(9,460)
Depreciation   148         148 
Impairment loss   7,173         7,173 
Accounts payable   4,500         4,500 
Accrued interest   64         64 
Loan payable   (4,086)        (4,086)
Total cash used in operating activities  $(1,640)       $(1,640)

 

20

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

   As of January 31, 2019
   As Previously      
   Reported  Adjustment  As Restated
Balance Sheet Data:         
Cash  $—          $—   
Total current assets   —           —   
Fixed assets   —           —   
Total assets   —           —   
Accounts payable and accrued expenses   4,905         4,905 
Promissory note payable   1,605         1,605 
Total liabilities   6,510         6,510 
Common stock   20,000    41,055    61,055 
Additional paid-in capital   39,000    1,818,945    1,857,945 
Accumulated deficit   (65,510)   (1,860,000)   (1,925,510)
Total stockholders' deficit   (6,510)        (6,510)
Total liabilities and stockholders' equity  $—          $—   
                
                
    Three months ended January 31, 2019
    As Previously           
    Reported    Adjustment    As Restated 
Statement of Operations Data:               
Revenue  $—          $—   
Cost of sales   —           —   
Gross profit   —           —   
Total operating expenses   —           —   
Loss from operations   —           —   
Interest expense   16         16 
Total other expense   16         16 
Net (loss)   (16)        (16)
Net loss per share-Basic and diluted  $—          $—   
                
                
    Three months ended January 31, 2019
    As Previously           
    Reported    Adjustment    As Restated 
Cash Flow Data:               
Net loss  $(16)       $(16)
Depreciation   —           —   
Accrued interest   16         16 
Total cash used in operating activities  $—          $—   

 

21

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

   As of April 30, 2019
   As Previously      
   Reported  Adjustment  As Restated
Balance Sheet Data:         
Cash  $—          $—   
Total current assets   —           —   
Fixed assets   —           —   
Total assets   —           —   
Accounts payable and accrued expenses   4,921         4,921 
Promissory note payable   1,605         1,605 
Total liabilities   6,526         6,526 
Common stock   20,000    41,055    61,055 
Additional paid-in capital   39,000    1,818,945    1,857,945 
Accumulated deficit   (65,526)   (1,860,000)   (1,925,526)
Total stockholders' deficit   (6,526)        (6,526)
Total liabilities and stockholders' equity  $—          $—   
                
    Three months ended April 30, 2019
    As Previously           
    Reported    Adjustment    As Restated 
Statement of Operations Data:               
Revenue  $—          $—   
Cost of sales   —           —   
Gross profit   —           —   
Total operating expenses   —           —   
Loss from operations   —           —   
Interest expense   16         16 
Total other expense   16         16 
Net (loss)   (16)        (16)
Net loss per share-Basic and diluted  $—          $—   
                
    Six months ended April 30, 2019
    As Previously           
    Reported    Adjustment    As Restated 
Statement of Operations Data:               
Revenue  $—          $—   
Cost of sales   —           —   
Gross profit   —           —   
Total operating expenses   —           —   
Loss from operations   —           —   
Interest expense   32         32 
Total other expense   32         32 
Net (loss)   (32)        (32)
Net loss per share-Basic and diluted  $—          $—   
                
    Six months ended April 30, 2019
    As Previously           
    Reported    Adjustment    As Restated 
Cash Flow Data:               
Net loss  $(32)       $(32)
Depreciation   —           —   
Accrued interest   32         32 
Total cash used in operating activities  $—          $—   

 

22

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

   As of July 31, 2019
   As Previously      
   Reported  Adjustment  As Restated
Balance Sheet Data:         
Cash  $—          $—   
Total current assets   —           —   
Fixed assets   —           —   
Total assets   —           —   
Accounts payable and accrued expenses   7,187         7,187 
Promissory note payable   1,605         1,605 
Total liabilities   8,792         8,792 
Common stock   20,000    41,055    61,055 
Additional paid-in capital   39,000    1,818,945    1,857,945 
Accumulated deficit   (67,792)   (1,860,000)   (1,927,792)
Total stockholders' deficit   (8,792)        (8,792)
Total liabilities and stockholders' equity  $—          $—   
                
    Three months ended July 31, 2019
    As Previously           
    Reported    Adjustment    As Restated 
Statement of Operations Data:               
Revenue  $—          $—   
Cost of sales   —           —   
Gross profit   —           —   
Total operating expenses   2,250         2,250 
Loss from operations   (2,250)        (2,250)
Interest expense   16         16 
Total other expense   16         16 
Net (loss)   (2,266)        (2,266)
Net loss per share-Basic and diluted  $—          $—   
                
    Nine months ended July 31, 2019
    As Previously           
    Reported    Adjustment    As Restated 
Statement of Operations Data:               
Revenue  $—          $—   
Cost of sales   —           —   
Gross profit   —           —   
Total operating expenses   2,250         2,250 
Loss from operations   (2,250)        (2,250)
Interest expense   48         48 
Total other expense   48         48 
Net (loss)   (2,298)        (2,298)
Net loss per share-Basic and diluted  $—          $—   
                
    Nine months ended July 31, 2019
    As Previously           
    Reported    Adjustment    As Restated 
Cash Flow Data:               
Net loss  $(2,298)       $(2,298)
Depreciation   —           —   
Accounts payable   2,298         2,298 
Accrued interest   48         48 
Total cash used in operating activities  $—          $—   

 

23

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

   As of October 31, 2019
   As Previously      
   Reported  Adjustment  As Restated
Balance Sheet Data:         
Cash  $—          $—   
Total current assets   —           —   
Fixed assets   —           —   
Total assets   —           —   
Accounts payable and accrued expenses   10,805         10,805 
Promissory note payable   1,605         1,605 
Total liabilities   11,258         11,258 
Common stock   20,000    41,055    61,055 
Additional paid-in capital   39,000    1,818,945    1,857,945 
Accumulated deficit   (70,258)   (1,860,000)   (1,930,258)
Total stockholders' deficit   (11,258)        (11,258)
Total liabilities and stockholders' equity  $—          $—   
                
                
    Year ended October 31, 2019
    As Previously           
    Reported    Adjustment    As Restated 
Statement of Operations Data:               
Revenue  $—          $—   
Cost of sales   —           —   
Gross profit   —           —   
Total operating expenses   4,700         4,700 
Loss from operations   (4,700)        (4,700)
Impairment loss   —           —   
Interest expense   64         64 
Total other expense   64         64 
Net (loss)  $(4,764)       $(4,764)
Net loss per share-Basic and diluted  $—          $—   
                
                
    Year ended October 31, 2019
    As Previously           
    Reported    Adjustment    As Restated 
Cash Flow Data:               
Net loss  $(4,764)       $(4,764)
Depreciation   —           —   
Impairment loss   —           —   
Accounts payable   4,700         4,700 
Accrued interest   64         64 
Loan payable   —           —   
Total cash used in operating activities  $—          $—   

 

24

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

   As of January 31, 2020
   As Previously      
   Reported  Adjustment  As Restated
Balance Sheet Data:         
Cash  $—          $—   
Total current assets   —           —   
Fixed assets   —           —   
Total assets   —           —   
Accounts payable and accrued expenses   12,216         12,216 
Promissory note payable   1,605         1,605 
Total liabilities   13,821         13,821 
Common stock   20,000    41,055    61,055 
Additional paid-in capital   39,000    1,818,945    1,857,945 
Accumulated deficit   72,821    (1,860,000)   (1,932,821)
Total stockholders' deficit   (13,821)        (13,821)
Total liabilities and stockholders' equity  $—          $—   
                
                
    Three months ended January 31, 2020
    As Previously           
    Reported    Adjustment    As Restated 
Statement of Operations Data:               
Revenue  $—          $—   
Cost of sales   —           —   
Gross profit   —           —   
Total operating expenses   2,547         2,547 
Loss from operations   (2,547)        (2,547)
Interest expense   16         16 
Total other expense   16         16 
Net (loss)   (2,563)        (2,563)
Net loss per share-Basic and diluted  $—          $—   
                
                
    Three months ended January 31, 2020
    As Previously           
    Reported    Adjustment    As Restated 
Cash Flow Data:               
Net loss  $(2,563)       $(2,563)
Depreciation   —           —   
Accounts payable   2,547         2,547 
Accrued interest   16         16 
Total cash used in operating activities  $—          $—   

 

25

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

   As of April 30, 2020
   As Previously      
   Reported  Adjustment  As Restated
Balance Sheet Data:         
Cash  $—          $—   
Total current assets   —           —   
Fixed assets   —           —   
Total assets   —           —   
Accounts payable and accrued expenses   16,970         16,970 
Promissory note payable   1,605         1,605 
Total liabilities   18,575         18,575 
Common stock   220,000    41,055    261,055 
Additional paid-in capital   (156,855)   2,434,800    2,277,945 
Accumulated deficit   (81,720)   (2,475,855)   (2,557,575)
Total stockholders' deficit   (18,575)        (18,575)
Total liabilities and stockholders' equity  $—          $—   
                
                
    Three months ended April 30, 2020
    As Previously           
    Reported    Adjustment    As Restated 
Statement of Operations Data:               
Revenue  $—          $—   
Cost of sales   —           —   
Gross profit   —           —   
Total operating expenses   8,883         8,883 
Loss from operations   (8,883)        (8,883)
Interest expense   16         16 
Loss from debt conversion   —      615,855    615,855 
Total other expense   16         615,871 
Net (loss)   (8,899)   615,855    (624,754)
Net loss per share-Basic and diluted  $—          $—   
                
                
    Six months ended April 30, 2020
    As Previously           
    Reported    Adjustment    As Restated 
Statement of Operations Data:               
Revenue  $—          $—   
Cost of sales   —           —   
Gross profit   —           —   
Total operating expenses   11,430         11,430 
Loss from operations   (11,430)        (11,430)
Interest expense   32         32 
Loss from debt conversion   —      615,855    615,855 
Total other expense   32         615,887 
Net (loss)   (11,462)   615,855    (627,317)
Net loss per share-Basic and diluted  $—          $—   

 

26

 
 

QUEST MANAGEMENT, INC.

Notes to Unaudited Condensed Financial Statements

July 31, 2020

 

  Six months ended April 30, 2020
  As Previously      
  Reported  Adjustment  As Restated
Cash Flow Data:         
Net loss  $(11,462)   615,855   $(627,317)
Depreciation   —           —   
Debt conversion for common stock   4,145    —      4,145 
Loss on debt conversion        615,855    615,855 
Accounts payable   7,285         7,285 
Accrued interest   32         32 
Total cash used in operating activities  $—          $—   

 

27

 
 
 
 

 

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors” and the risks set out below, any of which may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

 

Forward looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and we undertake no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

 

Our financial statements are stated in United States dollars ($US) and are prepared in accordance with United States Generally Accepted Accounting Principles.

 

In this report, unless otherwise specified, all references to "common stock" refer to the common shares in our capital stock.

 

As used in this annual report, the terms "we", "us", "our", “Quest" and “Quest Management” mean Quest Management Inc., unless the context clearly requires otherwise.

 

Results of Operations

 

 

Our revenues for the three months ended July 31, 2020 and 2019 were $0 for both periods, respectively. Our cost of goods sold for the three months ended July 31, 2020 and 2019 was $0, resulting in gross profit of $0 for both periods, respectively. Our operating expenses for the three months ended July 31, 2020 and 2019 were $9,112 and $2,250 resulting in net income (loss) of $(20,918) and $(2,266), respectively.

 

Our revenues for the nine months ended July 31, 2020 and 2019 were $0 for both periods, respectively. Our cost of goods sold for the nine months ended July 31, 2020 and 2019 was $0, resulting in gross profit of $0 for both periods, respectively. Our operating expenses for the nine months ended July 31, 2020 and 2019 were $20,542 and $2,250 resulting in net income (loss) of $(648,235) and $(2,298), respectively.

 

 

The following table provides selected financial data about our Company for the period from the date of incorporation through July 31, 2020. For detailed financial information, see the financial statements included in this report.

 

                Balance Sheet Data:    7/31/2020 
                 Cash  $0 
                 Total assets  $0 
                 Total liabilities  $27,704 
                 Stockholder’s equity   $(27,704)

 

28

 

Plan of Operation for the next 12 months

 

Our cash balance is $0 as of July 31, 2020. We do not believe that our cash balance is sufficient to fund our limited levels of operations beyond one year’s time unless additional revenues are generated.

 

Our independent registered public accountant has issued a going concern opinion. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we generate additional revenue sufficient to maintain operations or obtain additional capital to pay our bills. There is no assurance we will ever reach that stage.

 

Over the next twelve months we plan to engage in the following activities to expand our business operations:

                 
Accounting/Auditing and Legal       $ 35,000      
Office and Administration       $ 5,000      
Working Capital       $ 5,000      
                 
Total Expenses       $ 45,000      

 

 

Accounting/Auditing & Legal: Expenses for accounting will go primarily toward the preparation of financial statements. Expenses for auditing will go to our auditor for our year end audits and quarterly reviews. Expenses for legal fees will go primarily to our lawyer to ensure that all our filings are in order and we are in compliance with different regulatory authorities.

 

Office and Administration: This will be the cost of purchasing small office equipment such as a computer, printer/scanner/copier/fax, expenses such as telephone, electricity, office supplies, etc.

 

Working Capital: Items not accounted for elsewhere or that are difficult to predict such as bank fees, entertainment, software products and office equipment.

 

Liquidity and Capital Resources

 

At July 31, 2020 the Company had $0 in cash and there were outstanding liabilities of $27,704. Our director has agreed, verbally, to continue to loan the company funds for operating expenses in a limited scenario, but he has no legal obligation to do so.

 

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 investors.

 

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Smaller reporting companies are not required to provide the information required by this item.

 

29

 
 

 

 

ITEM 4.     CONTROLS AND PROCEDURES.

 

Evaluation of Disclosure Controls and Procedures

 

Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by our company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our management carried out an evaluation under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 ("Exchange Act").  Based upon that evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures were not effective as of March 31, 2020, due to the material weaknesses resulting from the Board of Directors not currently having any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K, and controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. 

 

Changes in Internal Control over Financial Reporting

 

Our management has also evaluated our internal control over financial reporting, and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of our last evaluation.

 

The Company is not required by current SEC rules to include, and does not include, an auditor's attestation report. The Company's registered public accounting firm has not attested to Management's reports on the Company's internal control over financial reporting.

 

30

 
 

 

 

PART II. OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

On December 2, 2019, one of the Company’s shareholders made a motion and application to be appointed as custodian of the Company based on prior management abandoning its responsibilities to continue making filings at the Nevada Secretary of State’s office and for failing to hold a shareholders’ meeting in over 6 years and otherwise failing to keep current in its obligations to the Company.  Upon motion and application to the District Court, Clark County Nevada, the Court granted the shareholder’s request and the shareholder was appointed as custodian for the Company (“Custodian”). As Custodian of the Company, the shareholder was ordered to file an amendment to the Company’s articles of incorporation which was filed in conformity with N.R.S. 78.347(4) and the shareholder was ordered to have the Company’s charter reinstated in Nevada, to notice and hold a shareholder meeting; to provide a report to the Court of the actions taken at the shareholder meeting; to identify and name a new registered agent in the State of Nevada; to reinstate the Company in the State of Nevada; and the Custodian. In addition to the aforementioned items set forth in the Order Appointing the Custodian, the Custodian was given the power and authority to take any action it deemed reasonable and for the benefit of the Company and its shareholders.  The Custodian is now in the process of meeting all of the requirements set forth in the Court Order and filing a motion to terminate its services.  Upon granting the motion, the Court will issue an Order acknowledging that the Custodian has performed all of the duties that had been required of it and the management of the Company will revert exclusively to the officers and directors appointed by the Custodian.

 

There were no other legal proceedings threatened or otherwise. 

 

ITEM 1A. RISK FACTORS

 

Smaller reporting companies are not required to provide the information required by this item.

 

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

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFTEY DISCLOSURES

 

N/A

 

ITEM 5. OTHER INFORMAION

 

None.

 

31

 
 

 

 

ITEM 6.     EXHIBITS.

 

The following exhibits are included with this quarterly filing. Those marked with an asterisk and required to be filed hereunder, are incorporated by reference and can be found in their entirety in our Registration Statement on Form S-1, filed under SEC File Number 333-201215, at the SEC website at www.sec.gov:

 

 

Exhibit

Number

 

 

Description

3.1   Articles of Incorporation*
3.2   Bylaws*
31.1   Sec. 302 Certification of Principal Executive Officer
31.2   Sec. 302 Certification of Principal Financial Officer
32.1   Sec. 906 Certification of Principal Executive Officer
32.2   Sec. 906 Certification of Principal Financial Officer
101   Interactive data files pursuant to Rule 405 of Regulation S-T

 

 

 

 

32

 

 
 

 

 

 

 

 

 

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.

 

 

 

  QUEST MANAGEMENT INC.
  (Registrant)
     
Dated: February 9, 2021 By: /s/ Andrew Birnbaum
    Andrew Birnbaum
    (Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer and Sole Director)