10-Q 1 star_10q.htm FORM 10-Q star_10q.htm

 

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

Mark One

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

 

For the quarterly period ended July 31, 2024

 

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

 

For the transition period from ______ to _______

 

COMMISSION FILE NO. 333-237681

 

Starguide Group, Inc.

(Exact name of registrant as specified in its charter)

 

Nevada

(State or other jurisdiction of incorporation)

 

5199

(Primary Standard Industrial Classification Code Number)

 

61-1817627

(IRS Employer Identification No.)

 

300 E 2nd St

Ste 1510 PMB 5010

RenoNV 89501

Tel: 702-664-0097

(Address and telephone number of registrant’s principal executive offices)

 

Indicate by checkmark whether the issuer: (1) has 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 past 90 days. Yes ☒     No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filed, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

 

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 to Section 7(a)(2)(B) of the Securities Act: 

 

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

 

Applicable Only to Issuer Involved in Bankruptcy Proceedings During the Preceding Five Years. N/A

 

Indicate by checkmark whether the issuer has filed all documents and reports required to be filed by Section 12, 13 and 15(d) of the Securities Exchange Act of 1934 after the distribution of securities under a plan confirmed by a court. Yes ☐     No ☐

 

Applicable Only to Corporate Registrants

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the most practicable date:

 

2,868,000 shares of common stock as of September 5, 2024.

 

 

 

 

 

STARGUIDE GROUP, INC.

 

 

 

 

 

 

 

 

PART I

FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

ITEM 1

Financial Statements (Unaudited)

 

3

 

ITEM 2

Management’s Discussion And Analysis Of Financial Condition And Results Of Operations

 

15

 

ITEM 3

Quantitative And Qualitative Disclosures About Market Risk

 

19

 

ITEM 4

Controls And Procedures

 

19

 

 

 

 

 

 

PART II

OTHER INFORMATION

 

 

 

 

 

 

 

 

ITEM 1

Legal Proceedings

 

20

 

ITEM 2

Unregistered Sales Of Equity Securities And Use Of Proceeds

 

20

 

ITEM 3

Defaults Upon Senior Securities

 

20

 

ITEM 4

Mine Safety Disclosures

 

20

 

ITEM 5

Other Information

 

20

 

ITEM 6

Exhibits

 

21

 

 

Signatures

 

22

 

 

 
2

Table of Contents

 

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

STARGUIDE GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JULY 31, 2024 AND JANUARY 31, 2024

(Unaudited) 

 

 

 

 July 31,

 

 

 January 31,

 

 

 

2024

 

 

2024

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$63

 

 

$41

 

Accounts receivable

 

 

-

 

 

 

120

 

Total current assets

 

 

63

 

 

 

161

 

 

 

 

 

 

 

 

 

 

Plant and equipment, net

 

 

1,815

 

 

 

2,085

 

Total Assets

 

$1,878

 

 

$2,246

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$8,851

 

 

$21,922

 

Accrued interest

 

 

3,655

 

 

 

1,379

 

Due to related parties

 

 

195,273

 

 

 

180,419

 

Convertible notes

 

 

85,837

 

 

 

48,861

 

Total Liabilities

 

 

293,616

 

 

 

252,581

 

 

 

 

 

 

 

 

 

 

Stockholders’ Deficit:

 

 

 

 

 

 

 

 

Common stock, $0.001 par value, 75,000,000 shares authorized; 2,868,000 shares issued and outstanding

 

 

2,868

 

 

 

2,868

 

Additional paid-in capital

 

 

35,839

 

 

 

35,839

 

Accumulated deficit

 

 

(296,702)

 

 

(259,592)

Accumulated other comprehensive loss

 

 

(3,704)

 

 

(2,446)

Total deficit attributed to Starguide Group, Inc.

 

 

(261,699)

 

 

(223,331)

Deficit attributed to non-controlling interest

 

 

(30,039)

 

 

(27,004)

Total Stockholders' Deficit

 

 

(291,738)

 

 

(250,335)

Total Liabilities and Stockholders' Deficit

 

$1,878

 

 

$2,246

 

 

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

 

 
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Table of Contents

 

STARGUIDE GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JULY 31, 2024 AND 2023

(Unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 31,

 

 

July 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$42

 

 

$1,399

 

 

$150

 

 

$3,185

 

Cost of Sales

 

 

9

 

 

 

-

 

 

 

43

 

 

 

-

 

Gross Profit

 

 

33

 

 

 

1,399

 

 

 

107

 

 

 

3,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

9,896

 

 

 

34,406

 

 

 

25,993

 

 

 

53,987

 

Management salaries - related party

 

 

5,999

 

 

 

-

 

 

 

11,999

 

 

 

1,152

 

Total operating expenses

 

 

15,895

 

 

 

34,406

 

 

 

37,992

 

 

 

55,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(15,862)

 

 

(33,007)

 

 

(37,885)

 

 

(51,954)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

4

 

 

 

14

 

 

 

7

 

 

 

404

 

Interest expense

 

 

(1,361)

 

 

-

 

 

 

(2,277)

 

 

-

 

Foreign exchange transaction gain

 

 

624

 

 

 

476

 

 

 

324

 

 

 

451

 

Total other income (expense)

 

 

(733)

 

 

490

 

 

 

(1,946)

 

 

855

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(16,595)

 

 

(32,517)

 

 

(39,831)

 

 

(51,099)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(16,595)

 

 

(32,517)

 

 

(39,831)

 

 

(51,099)

Less: Net loss attributable to non-controlling interest

 

 

(1,327)

 

 

(837)

 

 

(2,721)

 

 

(2,082)

Net loss attributable to Starguide Group, Inc.

 

$(15,268)

 

$(31,680)

 

$(37,110)

 

$(49,017)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$(16,595)

 

$(32,517)

 

$(39,831)

 

$(51,099)

Foreign currency adjustment

 

 

(3,738)

 

 

(836)

 

 

(1,572)

 

 

(1,498)

Total comprehensive loss

 

 

(20,333)

 

 

(33,353)

 

 

(41,403)

 

 

(52,597)

Less: Comprehensive loss attributable to noncontrolling interests

 

 

747

 

 

 

167

 

 

 

314

 

 

 

300

 

Net comprehensive loss attributed to stockholders of Starguide Group, Inc.

 

$(19,586)

 

$(33,186)

 

$(41,089)

 

$(52,297)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share

 

$(0.01)

 

$(0.01)

 

$(0.01)

 

$(0.02)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

2,868,000

 

 

 

2,868,000

 

 

 

2,868,000

 

 

 

2,868,000

 

 

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

 

 
4

Table of Contents

 

STARGUIDE GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

FOR THE SIX MONTHS ENDED JULY 31, 2024 AND 2023

(Unaudited)

 

Six Months Ended July 31, 2024

 

 

 

Common Stock

 

 

Additional

 

 

 

 

Accumulated

Other

 

 

 

 

 

Non-

 

 

Total

 

 

 

Number of Shares

 

 

Amount

 

 

Paid-in

Capital

 

 

Accumulated

Deficit

 

 

Comprehensive

Loss

 

 

Total

 

 

controlling

Interest

 

 

Stockholders'

Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance - January 31, 2024

 

 

2,868,000

 

 

$2,868

 

 

$35,839

 

 

$(259,592)

 

$(2,446)

 

$(223,331)

 

$(27,004)

 

$(250,335)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,733

 

 

 

1,733

 

 

 

433

 

 

 

2,166

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(21,842)

 

 

-

 

 

 

(21,842)

 

 

(1,394)

 

 

(23,236)

Balance - April 30, 2024

 

 

2,868,000

 

 

$2,868

 

 

$35,839

 

 

$(281,434)

 

$(713)

 

$(243,440)

 

$(27,965)

 

$(271,405)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,991)

 

 

(2,991)

 

 

(747)

 

 

(3,738)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(15,268)

 

 

-

 

 

 

(15,268)

 

 

(1,327)

 

 

(16,595)

Balance - July 31, 2024

 

 

2,868,000

 

 

$2,868

 

 

$35,839

 

 

$(296,702)

 

$(3,704)

 

$(261,699)

 

$(30,039)

 

$(291,738)

 

Six Months Ended July 31, 2023

 

 

 

Common Stock

 

 

Additional

 

 

 

 

 

Accumulated

Other

 

 

 

 

 

Non-

 

 

Total

 

 

 

Number of Shares

 

 

Amount

 

 

Paid-in

Capital

 

 

Accumulated

Deficit

 

 

Comprehensive

Loss

 

 

Total

 

 

controlling

Interest

 

 

Stockholders'

Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance - January 31, 2023

 

 

2,868,000

 

 

$2,868

 

 

$35,839

 

 

$(78,327)

 

$(175)

 

$(39,795)

 

$(5,356)

 

$(45,151)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(530)

 

 

(530)

 

 

(133)

 

 

(663)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(17,337)

 

 

-

 

 

 

(17,337)

 

 

(1,245)

 

 

(18,582)

Balance - April 30, 2023

 

 

2,868,000

 

 

$2,868

 

 

$35,839

 

 

$(95,664)

 

$(705)

 

$(57,662)

 

$(6,734)

 

$(64,396)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(669)

 

 

(669)

 

 

(167)

 

 

(836)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(31,680)

 

 

-

 

 

 

(31,680)

 

 

(837)

 

 

(32,517)

Balance - July 31, 2023

 

 

2,868,000

 

 

$2,868

 

 

$35,839

 

 

$(127,344)

 

$(1,374)

 

$(90,011)

 

$(7,738)

 

$(97,749)

 

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

 

 
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Table of Contents

 

STARGUIDE GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED JULY 31, 2024 AND 2023

(Unaudited)

 

 

 

 Six Months Ended

 

 

 

July 31,

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities

 

 

 

 

 

 

Net loss

 

$(39,831)

 

$(51,099)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

288

 

 

 

6,243

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

120

 

 

 

-

 

Prepaid expense

 

 

-

 

 

 

(852)

Accounts payable and accrued liabilities

 

 

(13,071)

 

 

6,830

 

Accrued interest

 

 

2,276

 

 

 

-

 

Management salary payable

 

 

12,000

 

 

 

(4,000)

Net cash used in operating activities

 

 

(38,218)

 

 

(42,878)

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

 

 

 

Proceeds from issuance of convertible notes to non-affiliate

 

 

36,976

 

 

 

31,661

 

Proceeds from related parties

 

 

1,600

 

 

 

9,290

 

Net cash provided by financing activities

 

 

38,576

 

 

 

40,951

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

(336)

 

 

(187)

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

22

 

 

 

(2,115)

Cash and cash equivalents - beginning of period

 

 

41

 

 

 

2,933

 

Cash and cash equivalents - end of period

 

$63

 

 

$818

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow disclosures:

 

 

 

 

 

 

 

 

Cash paid for interest

 

$-

 

 

$-

 

Cash paid for income taxes

 

$-

 

 

$-

 

 

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

 

 
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Table of Contents

 

STARGUIDE GROUP, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JULY 31, 2024

 

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Starguide Group, Inc. was incorporated in the State of Nevada on February 21, 2017 and established a fiscal year end of January 31. We are still in the development stage and as of today we have no revenues, have minimal assets and have incurred losses since inception. We were formed to engage in the distribution of Indian traditional art and crafts from India to individuals and wholesalers around the world. As of today, we have not identified any party to sell our products. Initially, our sole officer and director, Vicky Sharma will market our products. We intend to hire salespersons with good knowledge and connections in our market. The salesperson’s job would be to find potential customers, and to set up agreements with them. We intend to focus on direct marketing efforts whereby our representative will directly contact. We plan to advertise our service and products on different websites and social networks using context ad. We plan to use internet catalogs and use many online marketing tools to direct traffic to our website and identify potential customers. In addition, we are going to issue monthly printed catalog and send it to our clients.

 

On May 16, 2022, Vicky Sharma, the previous majority shareholder of the Company, entered into a stock purchase agreement for the sale of 2,000,000 shares of Common Stock of the Company to Northeast International Holdings Limited.   

 

As a result of the acquisition, Northeast International Holdings Limited holds approximately 68% of the issued and outstanding shares of Common Stock of the Company, and as such it is able to unilaterally control the election of our board of directors, all matters upon which shareholder approval is required and, ultimately, the direction of our Company.

 

Also on May 16, 2022, the previous sole officer and director of the company, Vicky Sharma, resigned his positions with the Company. Upon such resignations, Lu Mei Xian was appointed as Chief Executive Officer, Treasurer and Secretary, and sole Director of the Company.

 

The Company intends to be an incubator of Software as a Service (Saas) startups and is in active discussions with multiple SaaS businesses. The Company’s goal is to identify and locate SaaS businesses with the potential to grow, and to bring them under the Starguide corporate umbrella.

 

On December 8, 2022, the Company acquired 80% shares in Live Investments Holdings, a corporation organized in Great Britain located in London, in exchange for sixteen thousand dollars ($16,000) on closing.  Live Investments Holdings Ltd. owns 100% of Live Lead Tech Ltd, a cloud-based lead generation software corporation organized in Great Britain located in London. As a result of the acquisition of a majority of the issued and outstanding shares of Live Investments Holdings Ltd, the Company have now assumed Live Investments Holdings Ltd’s business operations as a majority-owned subsidiary and on a consolidated basis.   

 

NOTE 2 – GOING CONCERN UNCERTAINTY

 

As reflected in the accompanying consolidated financial statements, the Company’s current liabilities exceeded its current assets by $293,553, has an accumulated deficit of $296,702 and shareholders’ deficit of $291,738 as of July 31, 2024. For the six months ended July 31, 2024, the Company suffered a net loss of $39,831 and negative operating cash flow of $38,218. These factors among others raise substantial doubt about our ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on the financial support from its major shareholder and its ability to raise additional capital and implement its business plan. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

Management believes that the current actions to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern. There are no assurances that additional funds will be available when needed from any source or, if available, will be available on terms that are acceptable to us.

 

 
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NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended July 31, 2024 are not necessarily indicative of the results that may be expected for the year ending January 31, 2025. Notes to the unaudited condensed interim consolidated financial statements that would substantially duplicate the disclosures contained in the audited financial statements for fiscal year 2024 have been omitted. This report should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended January 31, 2024 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on May 15, 2024.

 

Basis of Consolidation

 

These consolidated financial statements include the accounts of the Company and its 80% owned subsidiaries of Live Investments Holdings Ltd. which owns 100% of Live Lead Tech Ltd. All material intercompany balances and transactions have been eliminated.

 

Foreign Currency Translations

 

The Company’s functional and reporting currency is the U.S. dollar. The functional currency of Live Investments Holdings Ltd. and Live Lead Tech Ltd. is the Great British Pounds (GBP). All transactions initiated GBP are translated into U.S. dollars in accordance with ASC 830-30, Translation of Financial Statements,” as follows:

 

 

1)

Monetary assets and liabilities at the rate of exchange in effect at the balance sheet date.

 

 

 

 

2)

Equity at historical rates.

 

 

 

 

3)

Revenue and expense items at the average rate of exchange prevailing during the period.

 

Adjustments arising from such translations are deferred until realization and are included as a separate component of stockholders’ equity as a component of comprehensive income or loss. Therefore, translation adjustments are not included in determining net income (loss) but reported as other comprehensive income. Gains and losses from foreign currency transactions are included in earnings in the period of settlement.

 

 

 

Six Months Ended

 

 

Six Months Ended

 

 

 

July 31,

 

 

July 31,

 

 

 

2024

 

 

2023

 

Spot GBP: USD exchange rate

 

 

1.2843

 

 

 

1.2852

 

Average GBP: USD exchange rate

 

 

1.2680

 

 

 

1.2446

 

 

Use of Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles 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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

 
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Business Combinations

 

In accordance with ASC 805-10, “Business Combinations”, the Company accounts for all business combinations using the acquisition method of accounting. Under this method, assets and liabilities, including any remaining non-controlling interests, are recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of assets acquired, net of liabilities assumed, and non-controlling interests is recognized as goodwill. Certain adjustments to the assessed fair values of the assets, liabilities, or non-controlling interests made subsequent to the acquisition date, but within the measurement period, which is up to one year, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded in income. Any cost or equity method interest that the Company holds in the acquired company prior to the acquisition is re-measured to fair value at acquisition with a resulting gain or loss recognized in income for the difference between fair value and the existing book value. Results of operations of the acquired entity are included in the Company’s results from the date of the acquisition onward and include amortization expense arising from acquired tangible and intangible assets.

 

Cash and Cash Equivalents

 

Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had cash of $63 and $41 as of July 31, 2024 and January 31, 2024.

 

Reclassification

 

Certain amounts from prior period have been reclassified to conform to the current period presentation. These reclassifications had no impact on reported operating and net loss.

 

Accounts Receivable

 

Accounts receivable are recorded in accordance with ASC 310, “Receivables,” at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company does not currently have any amount recorded as an allowance for doubtful accounts. Based on management’s estimate and based on all accounts being current, the Company has not deemed it necessary to reserve for doubtful accounts at this time.

 

As of July 31, 2024 and January 31, 2024, the Company had accounts receivable of $0 and $120, respectively.

 

Related Parties

 

We follow ASC 850, “Related Party Disclosures”, for the identification of related parties and disclosure of related party transactions. (see Note 5)

 

Fair Value of Financial Instruments

 

The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures,” which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.

 

The estimated fair value of certain financial instruments, including accounts payable and accrued liabilities. are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk.

 

 
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ASC 820 defines fair value 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. ASC 820 also 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. ASC 820 describes three levels of inputs that may be used to measure fair value:

 

Level 1 -

quoted prices in active markets for identical assets or liabilities

 

 

Level 2 -

quoted prices for similar assets and liabilities in active markets or inputs that are observable

 

 

Level 3 -

inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

 

Revenue Recognition

 

The Company recognizes revenue in accordance with ASC 606,”Revenue Recognition” following the five steps procedure:

 

Step 1: Identify the contract(s) with customers

 

Step 2: Identify the performance obligations in the contract

 

Step 3: Determine the transaction price

 

Step 4: Allocate the transaction price to performance obligations

 

Step 5: Recognize revenue when the entity satisfies a performance obligation

 

The Company’s revenue derives from software product sales, advertising and direct product sales. During the six months ended July 31, 2024 and 2023, the Company recognized gross revenue of $150 and $3,185 and incurred cost of sales of $43 and $0, resulting in gross profit of $107 and $3,185, respectively.

 

Plant and Equipment

 

Plant and equipment are stated at cost. Depreciation is computed using the straight-line method. The depreciation and amortization methods are designed to amortize the cost of the assets over their estimated useful lives, in years, of the respective assets as follows:

 

Office Equipment

 

3 years

 

 

 

Computer Equipment

 

5 years

 

 

 

Computer Software

 

7 years

 

Maintenance and repairs are charged to expense as incurred. Improvements of a major nature are capitalized. At the time of retirement or other disposition of plant and equipment, the cost and accumulated depreciation are removed from the accounts and any gains or losses are reflected in income.

 

The long-lived assets of the Company are reviewed for impairment in accordance with ASC 360, “Property, Plant and Equipment,” whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. In the last financial year ended January 31, 2024, impairment loss on computer software of $69,841 was incurred. (Note 4)

 

 
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Impairment of tangible and intangible assets

 

Tangible and intangible assets (excluding goodwill) are assessed at each reporting date for indications that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company makes an estimate of the asset’s recoverable amount. The asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs of disposal and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or a group of assets exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the group of assets.

 

Goodwill

 

We allocate goodwill to reporting units based on the reporting unit expected to benefit from the business combination. We evaluate our reporting units on an annual basis and, if necessary, reassign goodwill using a relative fair value allocation approach. Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit.

 

Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The fair value of each reporting unit is estimated primarily through the use of a discounted cash flow methodology. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will occur, and determination of our weighted average cost of capital.

 

The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results, market conditions, and other factors. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for each reporting unit.

 

On December 8, 2022, the Company acquired 80% shares in Live Investments Holdings, which generated goodwill of $26,319. The Company has accounted for the transaction in accordance with ASC 805 “Business Combination.”

 

Based on the Company’s analysis of goodwill as of January 31, 2024, the fair value of the reporting unit based on estimated future cash flow falls below its carrying value and shows negative recoverability, goodwill was fully impaired and impairment loss on goodwill of $26,319 was incurred. (Note 4)

 

Net Income (Loss) per Share

 

The Company computes basic and diluted net loss per share amounts in accordance with ASC Topic 260, “Earnings per Share.” Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the reporting period. Diluted loss per share reflects the potential dilution that could occur if convertible notes to issue common stock were converted resulting in the issuance of common stock that could share in the loss of the Company.

 

 
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For the six months ended July 31, 2024 and 2023, convertible notes were dilutive instruments and were not included in the calculation of diluted loss per share as their effect would be antidilutive:

 

 

 

July 31,

 

 

July 31,

 

 

 

2024

 

 

2023

 

 

 

(Shares)

 

 

(Shares)

 

Convertible note payable

 

 

858,370

 

 

 

316,610

 

 

As of July 31, 2024 and July 31, 2023, the total convertible shares from convertible notes totaling $85,837 and $31,661 issued to an unaffiliated party from July 31, 2023 through July 31, 2024 with conversion rate of $0.10 per shares was 858,370 shares and 316,610 shares. (Note 7)

 

Lease

 

The Company entered into an office lease agreement in Great Britain for an one-year term starting from December 2022 and expired in November 2023.

 

In accordance with ASC 842, “Leases, we determine if an arrangement is a lease at inception.

 

The office lease meets the definition of a short-term lease because the lease term is 12 months or less without an automatic extension clause. Consequently, consistent with Company’s accounting policy election, the Company does not recognize the right-of-use asset and the lease liability arising from this lease.

 

Recently Issued Accounting Pronouncements

 

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

 

Convertible note

 

In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt-Debt with “Conversion and Other Options” and ASC subtopic 815-40 “Hedging-Contracts in Entity’s Own Equity”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. ASU2020-06 removes from U.S. GAAP the separation models for (1) convertible debt with a cash conversion feature (“CCF”) and (2) convertible instruments with a beneficial conversion feature (“BCF”). With the adoption of ASU2020-06, entities will not separately present in equity an embedded conversion feature these debts. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years.

 

The Company has chosen to early adopt this standard on its year ended April 30, 2022 financial statements and did not record BCF on the issuance of convertible notes with conversion rate below the Company’s market stock price on the date of note issuance.

 

Credit losses

 

In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 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 periods within those fiscal years, of which is effective for the Company on April 1, 2023. The adoption of this standard did not have a material impact on the Company's financial statements.

 

 
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Table of Contents

 

NOTE 4 – PROPERTY AND EQUIPMENT

 

As of July 31, 2024 and January 31, 2024, the plant and equipment consisted of the following:

 

Cost

 

Office

Equipment

 

 

Computer

Equipment

 

 

Computer

Software

 

 

Total

 

January 31, 2023

 

$800

 

 

$2,800

 

 

$80,774

 

 

$84,374

 

Impairment

 

 

-

 

 

 

-

 

 

 

(83,349)

 

 

(83,349)

Foreign Exchange Adjustment

 

 

-

 

 

 

89

 

 

 

2,575

 

 

 

2,664

 

January 31, 2024

 

$800

 

 

$2,889

 

 

$-

 

 

$3,689

 

Foreign Exchange Adjustment

 

 

-

 

 

 

30

 

 

 

-

 

 

 

31

 

July 31, 2024

 

$800

 

 

$2,919

 

 

$-

 

 

$3,720

 

 

Accumulated Depreciation

 

Office

Equipment

 

 

Computer

Equipment

 

 

Computer

Software

 

 

Total

 

January 31, 2023

 

$669

 

 

$219

 

 

$284

 

 

$1,172

 

Additions

 

 

131

 

 

 

567

 

 

 

11,688

 

 

 

12,386

 

Impairment

 

 

-

 

 

 

-

 

 

 

(12,200)

 

 

(12,200)

Foreign Exchange Adjustment

 

 

-

 

 

 

18

 

 

 

228

 

 

 

246

 

January 31, 2024

 

$800

 

 

$804

 

 

$-

 

 

$1,604

 

Additions

 

 

-

 

 

 

288

 

 

 

-

 

 

 

288

 

Foreign Exchange Adjustment

 

 

-

 

 

 

12

 

 

 

-

 

 

 

12

 

July 31, 2024

 

$800

 

 

$1,105

 

 

$-

 

 

$1,905

 

 

Net book value

 

Office

Equipment

 

 

Computer

Equipment

 

 

Computer

Software

 

 

Total

 

January 31, 2023

 

$131

 

 

$2,581

 

 

$80,490

 

 

$83,202

 

January 31, 2024

 

$-

 

 

$2,085

 

 

$-

 

 

$2,085

 

July 31, 2024

 

$-

 

 

$1,814

 

 

$-

 

 

$1,815

 

 

During the year ended January 31, 2024, computer software of $69,841 was impaired.

 

Depreciation expense for the six months ended July 31, 2024 and 2023 amounted to $288 and $6,243, respectively.

 

NOTE 5 – RELATED PARTY TRANSACTIONS

 

In support of the Company’s efforts and cash requirements, the Company has been relying on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by officers, directors, or shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note. These loans are due on demand and non-interest bearing.

 

During the six months ended July 31, 2024 and 2023, Northeast International Holdings Limited, majority shareholder of the Company upon the change of control on May 16, 2022, advanced $1,600 and $9,200 to the Company to support operating cost. As of July 31, 2024 and January 31, 2024, the amount due to the majority shareholder of the Company was $160,712 and $157,905, respectively.

 

 
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Table of Contents

 

During the six months ended July 31, 2024 and 2023, the Company incurred net management salary of $12,000 and $1,512. During the year ended January 31, 2024 and 2023, director of Live Investments Holding Ltd. advanced $1,000 and $3,165 to the Company to support operating cost. As of July 31, 2024 and January 31, 2024, the amount due to the director of Live Investments Holding Ltd. was $34,561 and $22,514, respectively.

 

As of July 31, 2024 and January 31, 2024, the total amount due to related parties was $195,273 and $180,419, respectively.

 

NOTE 6 – EQUITY

 

Authorized Stock

 

The Company’s authorized common stock consists of 75,000,000 shares at $0.001 par value.

 

Common Stock

 

As of July 31, 2024 and January 31, 2024, the issued and outstanding common stock was 2,868,000 shares.

 

NOTE 7 – CONVERTIBLE NOTES

 

On July 31, 2023, the Company issued a convertible note to a non-affiliate of $31,661 for payment of the Company’s three months ended July 31, 2023 operating expenses on behalf of the Company. The convertible note is due on demand, bears interest at 7.5% per annum and is convertible at $0.10 per share.

 

On October 31, 2023, the Company issued a convertible note to a non-affiliate of $8,600 for payment of the Company’s three months ended October 31, 2023 operating expenses on behalf of the Company. The convertible note is due on demand, bears interest at 7.5% per annum and is convertible at $0.10 per share.

 

On January 31, 2024, the Company issued a convertible note to a non-affiliate of $8,600 for payment of the Company’s three months ended January 31, 2024 operating expenses on behalf of the Company. The convertible note is due on demand, bears interest at 7.5% per annum and is convertible at $0.10 per share.

 

On April 30, 2024, the Company issued a convertible note to a non-affiliate of $22,126 for payment of the Company’s three months ended April 30, 2024 operating expenses on behalf of the Company. The convertible note is due on demand, bears interest at 7.5% per annum and is convertible at $0.10 per share.

 

On July 31, 2024, the Company issued a convertible note to a non-affiliate of $14,850 for payment of the Company’s three months ended July 31, 2024 operating expenses on behalf of the Company. The convertible note is due on demand, bears interest at 7.5% per annum and is convertible at $0.10 per share.

 

During the six months ended July 31, 2024 and 2023, the note interest was $2,277 and $0, respectively.

 

As of July 31, 2024 and January 31, 2024, the convertible note was $85,837 and $48,861, respectively.

 

NOTE 8 – SUBSEQUENT EVENTS

 

In accordance with ASC 855, “Subsequent Events,” the Company has analyzed its operations subsequent to July 31, 2024 to 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.

 

 
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Table of Contents

 

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

 

FORWARD LOOKING STATEMENTS

 

This quarterly report contains forward-looking statements. 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 that 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. 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 unaudited financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.

 

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock.

 

As used in this quarterly report, the terms “we, “us,” “our” and “our company” mean Starguide Group, Inc., unless otherwise indicated.

 

General Overview

 

Starguide Group, Inc. was incorporated in the State of Nevada on February 21, 2017 and established a fiscal year end of January 31. We are still in the development stage and as of today we have no revenues, have minimal assets and have incurred losses since inception. We were formed to engage in the distribution of Indian traditional art and crafts from India to individuals and wholesalers around the world. As of today, we have not identified any party to sell our products. Initially, our sole officer and director, Vicky Sharma will market our products. We intend to hire salespersons with good knowledge and connections in our market. The salesperson’s job would be to find potential customers, and to set up agreements with them. We intend to focus on direct marketing efforts whereby our representative will directly contact. We plan to advertise our service and products on different websites and social networks using context ad. We plan to use internet catalogs and use many online marketing tools to direct traffic to our website and identify potential customers. In addition, we are going to issue monthly printed catalog and send it to our clients.

 

On May 16, 2022, Vicky Sharma, the previous majority shareholder of the Company, entered into a stock purchase agreement for the sale of 2,000,000 shares of Common Stock of the Company to Northeast International Holdings Limited.   

 

As a result of the acquisition, Northeast International Holdings Limited holds approximately 68% of the issued and outstanding shares of Common Stock of the Company, and as such it is able to unilaterally control the election of our board of directors, all matters upon which shareholder approval is required and, ultimately, the direction of our Company.

 

Also on May 16, 2022, the previous sole officer and director of the company, Vicky Sharma, resigned his positions with the Company. Upon such resignations, Lu Mei Xian was appointed as Chief Executive Officer, Treasurer and Secretary, and sole Director of the Company.

 

The Company intends to be an incubator of Software as a Service (Saas) startups and is in active discussions with multiple SaaS businesses. The Company’s goal is to identify and locate SaaS businesses with the potential to grow, and to bring them under the Starguide corporate umbrella.

 

 
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Table of Contents

 

On December 8, 2022, the Company acquired 80% shares in Live Investments Holdings, a corporation organized in Great Britain located in London, in exchange for sixteen thousand dollars ($16,000) on closing.  Live Investments Holdings Ltd. owns 100% of Live Lead Tech Ltd, a cloud-based lead generation software corporation organized in Great Britain located in London. As a result of the acquisition of a majority of the issued and outstanding shares of Live Investments Holdings Ltd, the Company have now assumed Live Investments Holdings Ltd’s business operations as a majority-owned subsidiary and on a consolidated basis.   

 

Results of Operations

 

The following summary of our results of operations should be read in conjunction with our financial statements for the six months ended July 31, 2024 and 2023, which are included herein.

 

Three months ended July 31, 2024 compared to three months ended July 31, 2023

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

July 31,

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

 

Changes

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$42

 

 

$1,399

 

 

$(1,357)

 

(97

%) 

Cost of Sales

 

 

(9

 

 

-

 

 

 

(9

 

 

(100%)

Gross Profit

 

 

33

 

 

 

1,399

 

 

 

(1,366)

 

(98

%)

Operating Expenses

 

 

(15,895)

 

 

(34,406)

 

 

18,511

 

 

(54

%)

Other Income (Expense)

 

 

(733)

 

 

490

 

 

 

(1,223)

 

 

(250%)

Net Loss

 

$(16,595)

 

$(32,517)

 

$

15,922

 

 

(49

%)

 

The Company incurred net loss of $16,595 for the three months ended July 31, 2024 compared to a net loss of $32,517 for the three months ended July 31, 2023. The decrease in net loss during the three months ended April 30, 2024 was mainly due to a decrease in the operating expenses.

 

During the three months ended July 31, 2024 and 2023, the Company recognized gross revenue of $42 and $1,399 and incurred cost of sales of $9 and $0, resulting in gross profit of $33 and $1,399, respectively.

 

Our operating expenses for the three months ended July 31, 2024 were $15,895 compared to $34,406 for the three months ended July 31, 2023. The decrease in operating expenses was mainly due to a decrease in audit fees, rent expense and software costs.

 

Six months ended July 31, 2024 compared to six months ended July 31, 2023

 

 

 

Six Months Ended

 

 

 

 

 

 

 

 

 

July 31,

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

 

Changes

 

 

% 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$150

 

 

$3,185

 

 

$(3,035)

 

(95

%)

Cost of Sales

 

 

(43)

 

 

-

 

 

 

(43)

 

(100

%)

Gross Profit

 

 

107

 

 

 

3,185

 

 

 

(3,078)

 

(97

%)

Operating Expenses

 

 

(37,992)

 

 

(55,139)

 

 

17,147

 

 

(31

%)

Other Income (Expense)

 

 

(1,946)

 

 

855

 

 

 

(2,801)

 

(328

%)

Net Loss

 

$(39,831)

 

$(51,099)

 

$

11,268

 

 

(22

%)

 

 
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Table of Contents

 

The Company incurred net loss of $39,831 for the six months ended July 31, 2024 compared to a net loss of $51,099 for the six months ended July 31, 2023. The decrease in net loss during the six months ended July 31, 2024 was mainly due to a decrease in the operating expenses.

 

During the six months ended July 31, 2024 and 2023, the Company recognized gross revenue of $150 and $3,185 and incurred cost of sales of $43 and $0, resulting in gross profit of $107 and $3,185, respectively.

 

Our operating expenses for the six months ended July 31, 2024 were $37,992 compared to $55,139 for the six months ended July 31, 2023. The decrease in operating expenses was mainly due to a decrease in audit fees, rent expense and software costs.

 

Liquidity And Financial Condition

 

Working Capital

 

 

 

 As of

 

 

 As of

 

 

 

 

 

 

 

 

 

July 31,

 

 

January 31,

 

 

 

 

 

 

 

 

 

2024

 

 

2024

 

 

Changes

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

$63

 

 

$161

 

 

$(98)

 

(61%)

 

Current Liabilities

 

$

293,616

 

 

$252,581

 

 

$

41,035

 

 

 

16%

Working Capital Deficiency

 

$(293,553)

 

$(252,420)

 

$(41,133)

 

 

16%

 

Our total current assets as of July 31, 2024 were $63 as compared to total current assets of $161 as of January 31, 2024 due to a decrease in accounts receivable.

 

Our total current liabilities as of July 31, 2024 were $293,616 as compared to total current liabilities of $252,581 as of January 31, 2024. The increase was primarily due to an increase in convertible notes, amount due to related parties and accrued interest.

 

Our working capital deficit at July 31, 2024 was $293,553 as compared to working capital deficit of $252,420 as of January 31, 2024. The increase in working capital deficiency was mainly attributed to an increase in convertible notes, amount due to related parties and accrued interest.

 

Cash Flows

 

 

 

Six Months Ended

 

 

 

 

 

 

 

 

 

July 31,

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

 

Changes

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows used in operating activities

 

$(38,218)

 

$(42,878)

 

$4,660

 

 

(11

%)

Cash flows used in investing activities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Cash flows provided by financing activities

 

 

38,576

 

 

 

40,951

 

 

 

(2,375)

 

(6

%)

Effect of exchange rate changes on cash

 

 

(336)

 

 

(187)

 

 

(149)

 

 

80%

Net changes in cash

 

$22

 

 

$(2,114)

 

$2,136

 

 

(101

%)

 

 
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Operating Activities

 

Net cash used in operating activities was $38,218 for the six months ended July 31, 2024 compared with net cash used in operating activities of $42,878 during the six months ended July 31, 2023.

 

During the six months ended July 31, 2024, the net cash used in operating activities was attributed to net loss of $39,831 reduced by depreciation of $288 and net changes in operating assets and liabilities of $1,325.

 

During the three months ended July 31, 2023, the net cash used in operating activities was attributed to net loss of $51,099 reduced by depreciation of $6,243 and net changes in operating assets and liabilities of $1,978.

 

Investing Activities

 

We did not have any investing activities during the six months ended July 31, 2024 and 2023.

 

Financing Activities

 

During the three months ended July 31, 2024 and 2023, net cash from financing activities was $38,576 and $40,951, respectively. During the six months ended July 31, 2024, we received proceeds from issuance of convertible note to a non-affiliate of $36,976 and proceeds from related parties of $1,600. During the six months ended July 31, 2023, we received proceeds from issuance of convertible note to a non-affiliate of $31,661 and proceeds from related parties of $9,290.

 

Going Concern

 

As reflected in the accompanying consolidated financial statements, the Company’s current liabilities exceeded its current assets by $293,553, has an accumulated deficit of $296,702 and shareholders’ deficit of $291,738 as of July 31, 2024. For the six ended July 31, 2024, the Company suffered a net loss of $39,831 and negative operating cash flow of $38,218. These factors among others raise substantial doubt about our ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on the financial support from its major shareholder and its ability to raise additional capital and implement its business plan. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

Management believes that the current actions to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern. There are no assurances that additional funds will be available when needed from any source or, if available, will be available on terms that are acceptable to us.

 

Off-Balance Sheet Arrangements

 

As of the date of this Quarterly Report, 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 are material to investors.

 

Critical Accounting Policies

 

The preparation of financial statements in accounting principles generally accepted 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 period. A change in managements’ estimates or assumptions could have a material impact on our financial condition and results of operations during the period in which such changes occurred. Actual results could differ from those estimates. Our financial statements reflect all adjustments that management believes are necessary for the fair presentation of their financial condition and results of operations for the periods presented. 

 

 
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Recent Accounting Pronouncements

 

Management has considered all recent accounting pronouncements issued. Our company’s management believes that these recent pronouncements will not have a material effect on our financial statements.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk 

 

As a “smaller reporting company,” we are not required to provide the information required by this Item.

 

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. 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 Exchange Act as of July 31, 2024. 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 July 31, 2024.

 

Changes in Internal Control Over Financial Reporting

 

During the period covered by this report there were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

Limitations on the Effectiveness of Internal Controls

 

Our management do not expect that our disclosure controls and procedures or our internal control over financial reporting are or will be capable of preventing or detecting all errors or all fraud. Any control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements, due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns may occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risk.

 

 
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Table of Contents

 

PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings 

 

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

 

Item 1A. Risk Factors 

 

As a “smaller reporting company,” we 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 Safety Disclosures 

 

Not applicable.

 

Item 5. Other Information 

 

None 

 

 
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Table of Contents

 

Item 6. Exhibits

 

Exhibits:

 

31.1

 

Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a)

 

 

 

32.1

 

Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002

 

 

 

101.INS

 

Inline XBRL Instance Document

 

 

 

101.SCH

 

Inline XBRL Taxonomy Extension Schema Document

 

 

 

101.CAL

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document

 

 

 

101.DEF

 

Inline XBRL Taxonomy Extension Definition Document

 

 

 

101.LAB

 

Inline XBRL Taxonomy Extension Label Linkbase Document

 

 

 

101.PRE

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document

 

 

 

104

 

Inline Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

 
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Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

 

 

STARGUIDE GROUP, INC.

 

 

 

 

Dated: September 13, 2024

By:

/s/Lu ei Xian

 

 

Lu Mei Xian

 

 

 

President, Chief Executive Officer,

 

 

 

Chief Financial Officer, Treasurer,

Secretary and Director

 

 

 

(Principal Executive Officer,

Principal Financial Officer and

 

 

 

Principal Accounting Officer)

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Dated: September 13, 2024

/s/Lu Mei Xian

 

 

Lu Mei Xian

 

 

 

President, Chief Executive Officer,

 

 

 

Chief Financial Officer, Treasurer,

Secretary and Director

 

 

 

(Principal Executive Officer,

Principal Financial Officer and

Principal Accounting Officer)

 

 

 
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