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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 10-Q

 

 

 

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

 

For the quarterly period ended June 30, 2022

 

or

 

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

 

For the transition period from _________ to _________

 

Commission File Number. 033-20966

 

TRANS GLOBAL GROUP INC.

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

 

Delaware   88-0298190

(State or other jurisdiction

of incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

Rm 2701, Block A, Zhantao Technology Building, Minzhi Street, Shenzhen 518000, Guangdong Province, China

(Address of principal executive offices, including zip code)

 

+86 138 2338 3535

(Registrant’s phone number, including area code)

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

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

 

Title of each class   Trading Symbol   Name of each exchange on which registered
Common stock   TGGI   N/A

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒     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 filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” or an “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

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. Yes      No ☐

 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes ☒     No ☐

 

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

 

Class   Outstanding at August 12, 2022
Common Stock, $.0001 par value   20,665,578,306

 

 

 

 

 

 

TABLE OF CONTENTS

 

    Page
     
PART I FINANCIAL INFORMATION F-1
     
ITEM 1. FINANCIAL STATEMENTS: F-1
  Condensed Consolidated Balance Sheets as of June 30, 2022 (unaudited) and December 31, 2021 F-1
  Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2022 and 2021 (unaudited) F-2
  Condensed Consolidated Statement of Changes in Stockholders’ Deficit for the three and six months ended June 30, 2021 and 2021 (unaudited) F-3
  Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (unaudited) F-4
  Notes to the Condensed Consolidated Financial Statements F-5 – F-7
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 1
ITEM 3. QUANTITATIVE AND QUALITATIVED IS CLOSURES ABOUT MARKET RISK 3
ITEM 4. CONTROLS AND PROCEDURES 3
     
PART II OTHER INFORMATION 4
     
ITEM 1 LEGAL PROCEEDINGS 4
ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 4
ITEM 3 DEFAULTS UPON SENIOR SECURITIES 4
ITEM 4 MINE SAFETY DISCLOSURES 4
ITEM 5 OTHER INFORMATION 4
ITEM 6 EXHIBITS 4
  SIGNATURES 5

 

i

 

 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial statements

 

TRANS GLOBAL GROUP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2022 AND DECEMBER 31, 2021

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

 

           
   As of 
  

June 30,
2022

   December 31,
2021
 
   (Unaudited)   (Audited) 
LIABILITIES AND STOCKHOLDERS’ EQUITY          
CURRENT LIABILITIES          
Accrued liabilities   98,018    18,000 
Amount due to a director   85,244    60,170 
TOTAL CURRENT LIABILITIES   183,262    78,170 
           
TOTAL LIABILITIES  $183,262   $78,170 
           
STOCKHOLDERS’ DEFICIT          
Preferred stock, $0.0001 par value, 1,500,000 shares authorized, 20,000 and 220,000 shares issued and outstanding, June 30, 2022 and December 31, 2021, respectively   2    22 
Common stock, $0.0001 par value, 99,995,000,000 shares authorized, 20,665,578,306 and 8,665,578,306 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively   2,066,558    866,558 
Additional paid-in capital   -    215,523 
Accumulated deficit   (2,249,822)   (1,160,273)
TOTAL STOCKHOLDERS’ DEFICIT   (183,262)   (78,170)
           
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT  $-   $- 

  

See accompanying notes to the unaudited condensed consolidated financial statements.

 

F-1

 

 

 TRANS GLOBAL GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021

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

 

                     
  

Three months ended
June 30,

  

Six months ended
June 30,

 
   2022   2021   2022   2021 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
REVENUES  $    $    $-   $- 
COST OF REVENUES             -    - 
GROSS PROFIT             -    - 
                     
OPERATING EXPENSES                    
Audit fee   66,400    -    68,400    - 
Consulting expenses   3,000    2,468    5,234    12,468 
Edgar filing fee   5,003    -    5,003    - 
Franchise tax expenses   -    -    -    820 
Legal expenses   20,000    -    20,000    - 
OTC markets expenses   -    5,500    -    5,500 
Stock agency expenses   6,455    2,475    6,455    2,475 
TOTAL OPERATING EXPENSES   100,858    10,443    105,092    21,263 
                     
OPERATING LOSS   (100,858)   (10,443)   (105,092)   (21,263)
                     
OTHER EXPENSES   -    -    -    - 
                     
LOSS BEFORE INCOME TAX   (100,858)   (10,443)   (105,092)   (21,263)
                     
INCOME TAX EXPENSE   -    -    -    - 
                     
NET LOSS  $(100,858)  $(10,443)  $(105,092)  $(21,263)
                     
Other comprehensive income                    
Foreign currency translation adjustment   -    -    -    - 
COMPREHENSIVE LOSS  $(100,858)  $(10,443)  $(105,092)  $(21,263)
                     
Net loss per share- Basic and diluted  $(0.00)  $(0.00)  $(0.00)  $(0.00)
                     
Weighted Average Number of shares outstanding   20,665,578,306    8,665,578,306    20,665,578,306    8,665,578,306 

  

See accompanying notes to the unaudited condensed consolidated financial statements.

 

F-2

 

  

TRANS GLOBAL GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021

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

 

For the three and six months ended June 30, 2022

 

                                    
   Preferred stock   Common stock   Additional         
   Number of
shares
   Amount   Number of
shares
   Amount   Paid-in
capital
   Accumulated deficit   Total equity 
Balance as of December 31, 2021 (Audited)   220,000   $22    8,665,578,306   $866,558   $215,523   $(1,160,273)  $(78,170)
 Conversion, series AA preferred stock converted into common stock   (200,000)   (20)   12,000,000,000    1,200,000    (215,523)   (984,457)   - 
Net loss   -    -    -    -    -    (4,234)   (4,234)
Balance as of March 31, 2022 (Unaudited)   20,000   $2    20,665,578,306   $866,558   $-   $(2,148,964)  $(82,404)
Net loss   -    -    -    -    -    (100,858)   (100,858)
Balance as of June 30, 2022 (Unaudited)   20,000   $2    20,665,578,306   $866,558   $-   $(2,249,822)  $(183,262)

 

For the three and six months ended June 30, 2021

 

   PREFERRED STOCK   COMMON STOCK   ADDITIONAL         
   Number of
shares
   Amount   Number of
shares
   Amount   PAID-IN
CAPITAL
   ACCUMULATED DEFICIT   TOTAL EQUITY 
Balance as of December 31, 2020 (Audited)   220,000   $22    8,665,578,306   $866,558   $215,523   $(1,111,335)  $(29,232)
Net loss   -    -    -    -    -    (10,820)   (10,820)
Balance as of March 31, 2021 (Unaudited)   220,000   $22    8,665,578,306   $866,558   $215,523   $(1,122,155)  $(40,052)
Net loss   -    -    -    -    -    (10,443)   (10,443)
Balance as of June 30, 2021 (Unaudited)   220,000   $22    8,665,578,306   $866,558   $215,523   $(1,132,598)  $(50,495()

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

F-3

 

 

 TRANS GLOBAL GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

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

 

           
  

Six months ended
June 30,

 
   2022   2021 
   (Unaudited)   (Unaudited) 
CASH FLOWS FROM OPERATING ACTIVITIES:          
           
Net loss  $(105,092)  $(21,263)
Changes in operating assets and liabilities:          
Accounts payable        1,243 
Accrued liabilities   80,018    - 
Net cash used in operating activities   (25,074)   (20,020)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Advanced from a director   25,074    20,020 
Net cash used in financing activities   25,074    20,020 
           
Effect of exchange rate changes on cash and cash equivalents   -    - 
           
Net change in cash and cash equivalents   -    - 
Cash and cash equivalents, beginning of period   -    - 
CASH AND CASH EQUIVALENTS, END OF PERIOD  $-   $- 
           
SUPPLEMENTAL CASH FLOWS INFORMATION          
Cash paid for income taxes  $-   $- 
Cash paid for interest paid  $-   $- 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

F-4

 

 

TRANS GLOBAL GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED JUNE 30, 2022

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

(Unaudited)

 

NOTE 1 – ORGANIZATION AND BUSINESS BACKGROUND

 

Trans Global Group, Inc. (the “Company”) was formed in the State of Delaware on December 31, 1993 as Teletek, Inc. On October, 2007, the Company changed its name to Trans Global Group, Inc., its current name. The Company’s purpose is to seek, investigate and, if such investigation warrants, acquire an interest in business opportunities presented to it by persons or firms who or which desire to seek the perceived advantages of an issuer who has complied with the Exchange Act. The Company will not restrict its search to any specific business, industry, or geographical location and the Company may participate in a business venture of virtually any kind or nature and we have not established any particular criteria upon which we consider a business opportunity. This discussion of the proposed business herein is purposefully general and is not meant to be restrictive of the Company’s virtually unlimited discretion to search for and enter into potential business opportunities. Management anticipates that it may be able to participate in only one potential business venture because the Company has nominal assets and limited financial resources.

 

The Company’s accounting year-end is December 31.

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with 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. Actual results could differ from those estimates.

 

Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented.

 

Income Taxes

 

The Company follows FASB ASC Subtopic 740, Income Taxes, for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled.

 

Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change.

 

F-5

 

 

TRANS GLOBAL GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED JUNE 30, 2022

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

(Unaudited)

 

Stock-based Compensation

 

The Company follows FASB ASC Subtopic 718, Stock Compensation, for accounting for stock-based compensation. The guidance requires that new, modified and unvested share-based payment transactions with employees, such as grants of stock options and restricted stock, be recognized in the consolidated financial statements based on their fair value at the grant date and recognized as compensation expense over their vesting periods. The Company also follows the guidance for equity instruments issued to consultants.

 

Basic Loss Per Share

 

FASB ASC Subtopic 260, Earnings Per Share, provides for the calculation of “Basic” and “Diluted” earnings per share. Basic earnings per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding for the period. All potentially dilutive securities have been excluded from the computations since they would be antidilutive. However, these dilutive securities could potentially dilute earnings per share in the future.

 

Cash and Cash Equivalents

 

Cash equivalents consist of highly liquid investments with maturities of three months or less when purchased. Cash and cash equivalents are on deposit with financial institutions without any restrictions. As of June 30, 2022 and December 31, 2021, cash equivalents amounted to $Nil and $Nil, respectively.

 

NOTE 3 - GOING CONCERN

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.

 

As reflected in the accompanying financial statements, the Company had accumulated losses as of June 30, 2022 of $2,249,822. These conditions among others, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include adjustments that might result from the outcome of this uncertainty.

 

The ability of the Company to continue as a going concern is dependent on the undertaking of its shareholders to provide continuing financial support to enable the Company to meet its liabilities as and when they fall due.

 

NOTE 4 - STOCKHOLDERS’ EQUITY

 

Authorized Capital Stock

 

Common Stock

 

The Company is authorized to issue 99,995,000,000 shares of common stock with a par value of $0.0001 per share. As of June 30, 2022, 20,665,578,306 shares were issued and outstanding.

 

Preferred Stock

 

The Company is authorized to issue 1,500,000 shares of preferred stock with a par value of $0.0001 per share. As of June 30, 2022, 20,000 shares of series B preferred stock were issued and outstanding.

 

F-6

 

 

TRANS GLOBAL GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED JUNE 30, 2022

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

(Unaudited)

 

Capital Stock Issued

 

On January 30, 2020, the Company exchanged 1,200,000 shares of old series AA preferred stock for 200,000 shares of new series AA preferred stock. On September 20, 2020, the Company issued 800,000,000 shares of common stock to VS Services, LLC for conversion of note and accrued interests. On September 22, 2020, the Company issued 20,000 series B preferred stock to Chen Ren. On March 7, 2022, 200,000 shares of series AA preferred stock were converted into 12,000,000,000 shares of common stock.

 

NOTE 5 - ACCRUED LIABILITIES

 

As of June 30, 2022, our accrued liabilities balance $98,018 represented the outstanding liabilities included the acquisition audit and legal fee of ZXG Holdings Limited, 10-Q review fee, FA consulting fee, edgar filing fee and share agency fee which were settled as of the filing date.

 

NOTE 6 - AMOUNT DUE TO A DIRECTOR

 

The amount due is unsecured, interest-free with no fixed payment term, for working capital purpose.

 

NOTE 7 - RELATED PARTY TRANSACTIONS

 

None.

 

NOTE 8 - SUBSEQUENT EVENTS

 

On August 8, 2022, the Company has completed the acquisition of ZXG Holdings Limited. The Company is going to generate revenue primarily from the sales of beverages directly to agents, wholesalers and end users, and planning to developing and optimizing our online platform and offline channel.

 

F-7

 

 

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

 

The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this 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 Report. Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles. 

 

Results of Operation

 

For the three months ended June 30, 2022

 

During the three months ended June 30, 2022 and 2021, we generated no revenues. Our operating expenses for the same periods were comprised of operating expenses of $100,858 and $10,443, respectively, resulting in net loss of $100,858 for the three months ended June 30, 2022 compared to a net loss of $$10,443 for the three months ended June 30, 2021. Our operating expenses consisted of mainly professional fees for the three months ended June 30, 2022 and 2021, respectively. The increase of operating expenses was mainly due to the professional fees for the acquisition of ZXG Holdings Limited.

 

For the six months ended June 30, 2022

 

During the six months ended June 30, 2022 and 2021, we generated no revenues. Our operating expenses for the same periods were comprised of operating expenses of $105,092 and $21,263, respectively, resulting in net loss of $105,092 for the six months ended June 30, 2022 compared to a net loss of $$21,263 for the six months ended June 30, 2021. Our operating expenses consisted of mainly professional fees for the six months ended June 30, 2022 and 2021, respectively. The increase of operating expenses was mainly due to the professional fees for the acquisition of ZXG Holdings Limited.

 

Our total assets as of June 30, 2022 were $Nil.

 

As of June 30, 2022, the Company had 20,665,578,306 shares of common stock issued and outstanding.

 

On January 30, 2020, the Company exchanged 1,200,000 shares of old series AA preferred stock for 200,000 shares of new series AA preferred stock. On September 20, 2020, the Company issued 800,000,000 shares of common stock to VS Services, LLC for conversion of note and accrued interests. On September 22, 2020, the Company issued 20,000 shares of series B preferred stock to Chen Ren. On March 7, 2022, 200,000 shares of series AA preferred stock were converted into 12,000,000,000 shares of common stock.

 

Liquidity and Capital Resources

 

As of June 30, 2022, we had cash and cash equivalents of $Nil. We have a negative operating cash flows of $25,074 and our working capital has been and will continue to be significant. As a result, we depend substantially on our previous financing activities to provide us with the liquidity and capital resources we need to meet our working capital requirements and to make capital investments in connection with ongoing operations. The Company expects its current capital resources to meet our basic operating requirements for approximately twelve months.

 

Operating Activities

 

For the six months periods ended June 30, 2022 and 2021, net cash used in operating activities was $25,074 and $20,020, respectively. Such increase was primarily due to the acquisition professional fee of ZXG Holdings Limited.

 

Investing Activities

 

For the six months periods ended June 30, 2022 and 2021, net cash provided by investing activities was $Nil and $Nil, respectively.

 

1

 

 

Financing Activities

 

For the six months periods ended June 30, 2022 net cash provided by financing activities was $25,074 and $20,020, respectively. Such increase was a result of more advances from the related parties.

 

The Company’s financial statements have been prepared on a going-concern basis which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company’s liquidity and capital needs relate primarily to working capital and other general corporate requirements. The Company’s operations do not currently provide cash flow. To date, the Company has funded its operations by advances from related parties. The business will require significant amounts of capital in the near term to sustain operations and make the investments it needs to continue operations and execute its longer-term business plan.

 

As of June 30, 2022 we had cash of $Nil and there were outstanding liabilities of $183,262. The working capital deficits were $183,262 as of June 30, 2022. These factors raise substantial doubt about our ability to continue as a going concern as discussed in the footnotes to our financial statements. To continue as a going concern the Company will have to obtain financing in the near term to meet the needs of our on-going operations, generate future revenue from operations and/or obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they come due. In order to implement its business plan, management’s plan includes raising capital by equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. If we issue equity or equity equivalents to raise additional funds, our existing stockholders will experience dilution and the new holders of securities may have rights, preferences and privileges senior to those of our existing stockholders. Management also cannot provide any assurance that unforeseen circumstances will not increase the need for the Company to raise additional capital on an immediate basis. There can be no assurance that we will be able to continue to raise funds if at all, or on terms acceptable to the Company in which case the Company may be unable to continue its operations or to meet its obligations. If adequate capital is not available when needed, we will be required to significantly modify our business plan or cease operations.

 

Chen Ren, our Chief Executive Officer, is financing our operations by making advances of funds to cover our expenses. The advances are repayable upon demand and the obligations do not bear interest. We expect that Chen Ren will continue to fund our operations until he sells his interest in the Company, and that we will continue to require additional financing to maintain our existence as a shell company for the next twelve months. Our management is not required to fund our operations by any contract or other obligation. In the event that we undertake to complete an acquisition that requires financing, we will likely depend on an outside source for such financing. However, we have not identified any debt or equity financing sources that can be relied upon to provide such financing.

 

It is unlikely that we will be able to raise financing through a public offering of debt or equity.

 

On March 11, 2020 the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containments and mitigation measures worldwide. The Company is monitoring this closely, and although operations have not been materially affected by the coronavirus outbreak to date, the ultimate severity of the outbreak is uncertain. Operations of the Company are ongoing. Further the uncertain nature of the spread of COVID-19 globally may impact our business operations due to the quarantine of employees, customers, and third-party service providers.

 

Off-balance Sheet Arrangements

 

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.

 

Recent accounting pronouncements

 

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

 

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

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

 

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

Disclosure controls and procedures are controls and other procedures designed to ensure that information required to be disclosed in our reports filed or submitted 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 in our reports filed or submitted under the Exchange Act is accumulated and communicated to our Certifying Officer or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

 

We conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of June 30, 2022. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2022, our disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.

 

Material Weakness in Internal Control Over Financial Reporting

 

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management to conclude that, as of June 30, 2022, our disclosure controls and procedures were not effective: (i) lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (ii) inadequate segregation of duties consistent with control objectives; and (iii) ineffective controls over period end financial disclosure and reporting processes. Because a material weakness in the Company’s internal controls over financial reporting existed as of June 30, 2022 and has not been remediated, the Company’s disclosure controls and procedures were not effective as of June 30, 2022.

 

In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we plan to initiate, the following series of measures in connection with identifying an operating business to acquire and when funds are available to us:

 

1. We plan to appoint one or more outside directors to our board of directors who would be appointed to an audit committee resulting in a fully functioning audit committee who will undertake oversight in the establishment and monitoring of required internal controls and procedures.
   
2. We plan to create a position to segregate duties consistent with control objectives and will increase our personnel resources and technical accounting expertise within the accounting function.
   
3. We plan to prepare written policies and procedures for accounting and financial reporting to establish a formal process to close our books monthly on an accrual basis and account for all transactions, including equity and debt transactions.

 

We anticipate that we will, at least partially, begin to implement these initiatives in the current fiscal year.

 

This Report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting and none is required.

 

Changes in Internal Control over Financial Reporting

 

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

 

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PART II — OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

We know of no materials, active or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceedings or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any beneficial shareholder are an adverse party or has a material interest adverse to us.

 

Item 1A. Risk Factors.

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

None.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

Item 5. Other Information.

 

None.

 

ITEM 6. Exhibits

 

Exhibit No.   Description
31.1   Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1   Certification of Chief Executive Officer 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 Linkbase Document
101.LAB   Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE   Inline XBRL Taxonomy Extension Presentation Linkbase Document
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

*Filed herewith.

 

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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.

 

    TRANS GLOBAL GROUP INC.
    (Name of Registrant)
     
Date: August 12, 2022 By: /s/ Chen Ren
  Title:

Chief Executive Officer

Chief Financial Officer

Director

 

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