10-Q 1 upyy-20231130.htm FORM 10-Q UPAY
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended
November 30, 2023
 
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from ____to .
 
Commission File Number
333-212447
 
UPAY, Inc.
(Exact name of small business issuer as specified in its charter)
 
NEVADA
 
37-1793622
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
3010 LBJ Freeway, 12
th
Floor
Dallas, Texas 75234
(Address of principal executive offices)
 
(972) 888-6052
(Company’s telephone number, including area code)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes 
x
  No  
¨
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes 
x
  No 
¨
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
 
Large accelerated filer
¨
Accelerated filer
¨
 
Non-accelerated filer
¨
Smaller reporting company
x
 
Emerging Growth Company
x
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
¨
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
¨
  No 
x
 
The Company has
15,508,544
common shares outstanding as of January
22
, 2024

 
 
 

TABLE OF CONTENTS
 
 
 
Page
 
 
 
 
PART I — Financial Information
 
 
 
 
 
PART II — Other Information
6

 

2
 

UPAY, Inc.
Consolidated Financial Statements
(unaudited)
 
 
Index
 
 
Table of Contents
 
 
 
 
 
 
 
 
 
 
 
 

F-1
 
UPAY, INC.
Consolidated Balance Sheets
(Expressed in U.S. dollars)
 
 
 
November 30,
2023
 
 
 
 
February 28,
2023
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
845,985
 
 
$
662,991
 
Accounts receivable, net of allowance
 
 
75,954
 
 
 
68,447
 
Prepaid expenses and other current assets
 
 
4,848
 
 
 
1,564
 
 
 
 
 
 
 
 
 
 
Total Current Assets
 
 
926,787
 
 
 
733,002
 
 
 
 
 
 
 
 
 
 
Property and Equipment, Net (Note 4)
 
 
25,101
 
 
 
17,061
 
Right-of-use Assets, Net (Note 5)
 
 
23,319
 
 
 
39,905
 
Deposit (Note 12)
 
 
10,676
 
 
 
43,289
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
985,883
 
 
$
833,257
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$
665,377
 
 
$
760,613
 
Due to related parties (Note 6)
 
 
48,517
 
 
 
29,580
 
Taxes payable
 
 
 
 
 
4,766
 
Current portion of lease liabilities (Note 8)
 
 
19,841
 
 
 
22,133
 
Current portion of notes payable (Note 7)
 
 
52,135
 
 
 
52,143
 
Current portion of notes payable – Related party (Note 6)
 
 
251,000
 
 
 
251,000
 
 
 
 
 
 
 
 
 
 
Total Current Liabilities
 
 
1,036,870
 
 
 
1,120,235
 
 
 
 
 
 
 
 
 
 
Non-Current Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lease Liabilities (Note 8)
 
 
3,478
 
 
 
18,892
 
Notes Payable (Note 7)
 
 
76,165
 
 
 
76,157
 
 
 
 
 
 
 
 
 
 
Total Liabilities
 
 
1,116,513
 
 
 
1,215,284
 
 
 
 
 
 
 
 
 
 
Stockholders’
Deficit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding
 
 
 
 
 
 
 
 
Common Stock, $0.001 par value, 100,000,000 shares authorized; 15,508,544 shares and 17,190,211 shares issued and outstanding, respectively
 
 
 
 
15,508
 
 
 
17,190
 
Common Stock Issuable
 
 
404,999
 
 
 
13,334
 
Additional Paid-in Capital
 
 
916,790
 
 
 
535,275
 
Accumulated Deficit
 
 
(1,395,913
)
 
 
(886,998
)
Accumulated Other Comprehensive Loss
 
 
(72,014
)
 
 
(60,828
)
 
 
 
 
 
 
 
 
 
Total Stockholders’ Deficit
 
 
(130,630
)
 
 
(382,027
)
 
 
 
 
 
 
 
 
 
Total Liabilities and Stockholders’ Deficit
 
$
985,883
 
 
$
833,257
 
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.
 
F-2
 
UPAY, Inc.
Consolidated Statements of Operations and Comprehensive Income (Loss)
(Expressed in U.S. dollars)
(unaudited)
 
 
 
Three Months
 
 
Three Months
 
 
Nine Months
 
 
Nine Months
 
 
 
Ended
 
 
Ended
 
 
Ended
 
 
Ended
 
 
 
November 30,
 
 
November 30,
 
 
November 30,
 
 
November 30,
 
 
 
2023
 
 
2022
 
 
2023
 
 
2022
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
364,360
 
 
$
325,345
 
 
$
1,060,978
 
 
$
1,021,969
 
Cost of Revenue
 
 
(168,111
)
 
 
(146,037
)
 
 
(485,582
)
 
 
(417,188
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross Profit
 
 
196,249
 
 
 
179,308
 
 
 
575,396
 
 
 
604,781
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of right-of-use assets (Note 5)
 
 
 
 
 
2,176
 
 
 
888
 
 
 
7,162
 
Depreciation (Note 4)
 
 
2,528
 
 
 
11,327
 
 
 
15,718
 
 
 
33,802
 
General and administrative
 
 
491,141
 
 
 
157,420
 
 
 
1,050,402
 
 
 
613,985
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Expenses
 
 
493,669
 
 
 
170,923
 
 
 
1,067,008
 
 
 
654,949
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) Before Other Income (Expenses) and Income Taxes
 
 
(297,420
)
 
 
8,385
 
 
 
(491,612
)
 
 
(50,168
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Income (Expenses)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
 
3,048
 
 
 
600
 
 
 
6,054
 
 
 
1,277
 
Interest expense
 
 
(8,327
)
 
 
(8,169
)
 
 
(25,031
)
 
 
(24,576
)
Gain on settlement of lease (Note 8)
 
 
 
 
 
277
 
 
 
1,052
 
 
 
277
 
Gain on disposal of equipment
 
 
622
 
 
 
(1
)
 
 
622
 
 
 
17