Company Quick10K Filing
Quick10K
Wewin Group
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
S-1 2019-02-21 Public Filing
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
8-K 2019-06-10 Officers, Other Events, Exhibits
8-K 2019-01-07 Accountant, Accountant, Exhibits
8-K 2018-12-18 Other Events, Exhibits
8-K 2018-11-30 Shareholder Vote, Shareholder Vote, Exhibits
8-K 2018-09-13 Enter Agreement, Exhibits
8-K 2018-07-17 Enter Agreement, Control, Officers, Exhibits
8-K 2018-03-28 Accountant, Exhibits
IHRT iHeartMedia 1,175
FVTI Fortune Valley Treasures 308
DENR Discovery Energy 53
MPAY Mobetize 37
NWCN Network Cn 4
HHR Headhunter Group 0
PTCO Petrogas 0
TRPO Tropic International 0
XREE X Rail Entertainment 0
VGBT Vaulted Gold Bullion Trust 0
WWIN 2019-06-30
Part I-Financial Information
Item 1. Interim Financial Statements
Note 1 - Organization and Business Operations
Note 2 - Going Concern
Note 3 - Summary of Significant Accounting Policies
Note 4 - Prepaid Expense
Note 5 - Loan From An Unrelated Party
Note 6 - Due To Related Parties
Note 7 - Stockholders' Equity (Deficit)
Note 8 - Business Combination
Note 9 - Subsequent Events
Item 2. Management's Discussion and Analysis or Plan of Operation.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 ex31-1.htm
EX-31.2 ex31-2.htm
EX-32.1 ex32-1.htm

Wewin Group Earnings 2019-06-30

WWIN 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 form10-q.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-Q

 

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

 

For the Quarter ended June 30, 2019

 

Commission File Number: 333-209478

 

ALLYME GROUP, INC.

(Exact name of registrant as specified in its charter)

 

Nevada   n/a
(State of organization)   (I.R.S. Employer Identification No.)

 

10250 Constellation Blvd., Suite 100, Los Angeles, CA 90067

(Address of principal executive offices)

 

+1 (778) 888-2886 

Registrant’s telephone number, including area code

 

13-4832 Lazelle Ave., Terrace BC, Canada V8G 1T4

Former address if changed since last report

 

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months and (2) has been subject to such filing requirements for the past 90 days. [X] Yes [  ] No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 and 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). [X] Yes [  ] No

 

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

 

Large Accelerated Filer [  ] Accelerated Filer [  ]

Non-Accelerated Filer [  ]

 

(Do not check if a smaller reporting company)

Emerging Growth Company [  ]

Smaller Reporting Company [X]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ] No [X]

 

Securities registered under Section 12(g) of the Exchange Act:

 

Common Stock $.001 par value

 

There are 8,945,060 shares of common stock outstanding as of August 13, 2019.

 

 

 

 
 

 

TABLE OF CONTENTS

 

  PART I - FINANCIAL INFORMATION  
     
ITEM 1. INTERIM FINANCIAL STATEMENTS 3
ITEM 2. MANAGEMENT’S DISCUSSION OF OPERATIONS AND FINANCIAL CONDITION 15
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 17
ITEM 4. CONTROLS AND PROCEDURES 17
     
  PART II - OTHER INFORMATION  
     
ITEM 1. LEGAL PROCEEDINGS 17
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES 18
ITEM 3. DEFAULTS UPON SENIOR SECURITIES 18
ITEM 4. MINE SAFETY DISCLOSURES 18
ITEM 5. OTHER INFORMATION 18
ITEM 6. EXHIBITS 18
     
SIGNATURES 19

 

 2 
 

 

PART IFINANCIAL INFORMATION

 

ITEM 1. INTERIM FINANCIAL STATEMENTS

 

ALLYME GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   June 30, 2019   December 31, 2018 
    (Unaudited)      
ASSETS          
           
Current Assets          
Cash and cash equivalents  $20,009   $69,167 
Account receivable   3,571    - 
Prepaid expenses   2,156    14,767 
           
Total Assets  $25,735   $83,934 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current Liabilities          
Accounts payable and accrued liabilities  $34,832   $3,079 
Other Payable   4,235    9,717 
Loan from unrelated party   2,913    2,909 
Due to related parties   72,347    64,370 
           
Total Liabilities   114,327    80,075 
           
Stockholders’ Deficit          

Preferred stock, $0.001 par value 10,000,000 shares authorized;

none issued and outstanding at June 30, 2019 and December 31, 2018

   -    - 
Common stock, par value $0.001, 75,000,000 shares authorized 8,945,060 and 8,944,060 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively   8,945    8,944 
Additional paid in capital   160,678    154,865 
Subscription receivable   -    (2,000)
Accumulated deficit   (230,040)   (142,766)
Accumulated other comprehensive loss   2,101    1,495 
Total AllyMe Group Inc. deficit   (58,315)   20,538 
           
Non-controlling interest   (30,276)   (16,679)
Total stockholders’ deficit   (88,592)   3,859 
           
Total Liabilities and Stockholders’ Deficit  $25,735   $83,934 

 

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

 

 3 
 

 

ALLYME GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

 

   For the three months ended
June 30,
   For the six months ended
June 30,
 
   2019   2018   2019   2018 
                 
Revenue  $5,000   $-   $5,000   $- 
Cost of Revenues   -    -    -    - 
Gross Profit   5,000         5,000      
                     
Operating expenses   48,438    14,012    105,871    18,046 
                     
Operating Loss   (43,438)   (14,012)   (100,871)   (18,046)
                     
Loss before income taxes   (43,438)   (14,012)   (100,871)   (18,046)
                     
Income Tax Expense   -    -    -    - 
                     
Net loss  $(43,438)  $(14,012)  $(100,871)  $(18,046)
                     
Less: net loss attributable to non-controlling interest   (1,793)   -    (13,597)   - 
Net loss attributable to Allyme Group, Inc.  $(41,645)  $(14,012)  $(87,274)  $(18,046)
                     
Other comprehensive income                    
Foreign currency translation gain (loss)   (171)   -    606    - 
                     
Total Comprehensive Loss  $(41,816)  $(14,012)  $(86,668)  $(18,046)
                     
Comprehensive loss attributable to non-controlling interest   (1,793)   -    (13,597)   - 
Comprehensive loss attributable to Allyme Group, Inc.  $(40,023)  $(14,012)  $(73,071)  $(18,046)
                     
Loss per share - basic and diluted  $(0.00)  $(0.00)   (0.01)  $(0.00)
                     
Weighted average shares-basic and diluted   8,945,060    8,620,000    8,944,977    8,620,000 

 

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

 

 4 
 

 

ALLYME GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

   For the six months ended
June 30,
 
   2019   2018 
         
OPERATING ACTIVITIES          
Net loss  $(100,871)  $(18,046)
Changes in Operating Assets and Liabilities:          
Accounts payable and accrued liabilities   31,749    5,360 
Account receivable   (3,571)   - 
Prepaid expenses   12,761    5,001 
Other payable   (5,562)   - 
Net cash used in operating activities   (65,494)   (7,685)
           
FINANCING ACTIVITIES          
Payments for related party loans   7,977    5,020 
Shares issued for cash   7,814    - 
Net cash provided by financing activities   15,791    5,020 
           
Effect of exchange rate fluctuation on cash and cash equivalents   545    - 
           
Net decrease in cash   (49,158)   (2,665)
           
Cash, beginning of period   69,167    6,496 
           
Cash, end of period  $20,009   $3,831 
          
SUPPLEMENTAL DISCLOSURES:          
Cash paid during the period for:          
Income tax  $-   $- 
Interest  $-   $- 

 

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

 

 5 
 

 

ALLYME GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT

FOR THE QUARTER ENDED JUNE 30, 2019 AND 2018

(UNAUDITED)

 

       Additional   Shares           Accumulated Other       Stockholders’
Deficit and
 
   Common Stock   Paid-in   to be   Accumulated   Subscription   Comprehensive   Noncontrolling   Non Controlling 
   Shares   Amount   Capital   issued    Deficit   Receivable   Income    Interest   Interest 
                                     
Balance March 31, 2019   8,944,060   $8,944   $159,579   $1,100   $(188,395)  $-   $2,272   $(28,483)  $(44,983)
                                              
Issue common stock for cash   1,000    1    1,099    -    -    -    -    -    1,100 
Shares to be issued   -    -    -    (1,100)   -    -    -    -    (1,100)
Net loss   -    -    -    -    (43,438)   -    -    -    (43,438)
Minority interest for current year   -    -    -    -    1,793    -    -    (1,793)   - 
Foreign currency translation adjustment   -    -    -    -    -    -    (171)   -    (171)
                                              
Balance June 30, 2019   8,945,060   $8,945   $160,678   $-   $(230,040)  $-   $2,101   $(30,276)  $(88,592)

 

       Additional   Shares         Accumulated Other      Stockholders’
Deficit and
 
   Common Stock   Paid-in   to be   Accumulated   Subscription   Comprehensive   Noncontrolling   Non Controlling 
   Shares   Amount   Capital   issued   Deficit   Receivable   Income   Interest   Interest 
                                     
Balance March 31, 2018   8,620,000   $8,620   $33,205   $-   $(76,145)  $-   $-   $-   $(34,320)
                                              
Net loss   -    -    -    -    (14,012)   -    -    -    (14,012)
                                              
Balance June 30, 2018   8,620,000   $8,620   $33,205   $-   $(90,157)  $-   $-   $-   $(48,332)

 

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

 

 6 
 

 

ALLYME GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT

FOR THE TWO QUARTERS ENDED JUNE 30, 2019 AND 2018

(UNAUDITED)

 

       Additional   Shares           Accumulated Other       Stockholders’
Deficit and
 
   Common Stock   Paid-in   to be   Accumulated   Subscription   Comprehensive   Noncontrolling   Non Controlling 
   Shares   Amount   Capital   issued   Deficit   Receivable   Income   Interest   Interest 
                                     
Balance December 31, 2018   8,944,060   $8,944   $154,865   $-   $(142,766)  $(2,000)  $1,495   $(16,679)  $3,859 
                                              
Issue common stock for cash   1,000    1    5,813    -    -    -    -    -    5,814 
Subscription receivable   -    -    -    -    -    2,000    -    -    2,000 
Net loss   -    -    -    -    (100,871)   -    -    -    (100,871)
Minority interest for current year   -    -    -    -    13,597    -    -    (13,597)   - 
Foreign currency translation adjustment   -    -    -    -    -    -    606    -    606 
                                              
Balance June 30, 2019   8,945,060   $8,945   $160,678   $-   $(230,040)  $-   $2,101   $(30,276)  $(88,592)

 

       Additional   Shares           Accumulated Other       Stockholders’
Deficit and
 
   Common Stock   Paid-in   to be   Accumulated   Subscription   Comprehensive   Noncontrolling   Non Controlling 
   Shares   Amount   Capital   issued   Deficit   Receivable   Income   Interest   Interest 
                                     
Balance December 31, 2017   8,620,000   $8,620   $33,205   $-   $(72,111)  $-   $-   $-   $(30,286)
                                              
Net loss   -    -    -    -    (18,046)   -    -    -    (18,046)
                                              
Balance June 30, 2018   8,620,000   $8,620   $33,205   $-   $(90,157)  $-   $-   $-   $(48,332)

 

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

 

7
 

 

ALLYME GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2019

(Unaudited)

 

NOTE 1 - ORGANIZATION AND BUSINESS OPERATIONS

 

Organization and Description of Business

 

AllyMe Group Inc. (“AllyMe US”, the “Company”, “we” or “us”) was incorporated under the laws of the State of Nevada on August 13, 2014 (“Inception”) and has adopted a December 31 fiscal year end. The Company provides consulting services in China principally focused on the business, marketing, financial consultancy and business modeling design and support.

 

Pursuant to an Agreement for the Purchase of Common Stock dated as of June 28, 2018, on July 17, 2018 Zilin Wang purchased 8,618,000 shares of Company Common Stock from Yonghua Kang (as representative of the seller). The shares purchased in this transaction represented 99.98% of the issued and outstanding shares of the Company. This resulted in a change of control of the Company.

 

Effective July 17, 2018, the Board of Directors accepted the resignation of Yonghua Kang as CEO and a director of the Company, Xinlong Liu as COO and a director of the Company, Huang Lei as Secretary of the Company, Aiyun Xu as CFO and a director of the Company, Shaochun Dong as a director of the Company and Dagen Cheng as a director of the Company and appointed Zilin Wang to serve as President, Secretary, Chief Executive Officer, Chief Financial Officer and Director until the next election of directors and appointment of officers or the appointment of his successor upon his resignation.

 

On September 13, 2018, the Company purchased 1,040,000 shares of common stock of AllyMe Groups, Inc., a Cayman Islands corporation (“AllyMe”) for a total consideration of $1,040. These shares comprised approximately 51% of the then issued and outstanding shares of common stock of AllyMe. AllyMe was formed on February 8, 2018 and is in the development stage. AllyMe issued 1,000,000 shares of common stock to Zilin Wang on April 13, 2018 for $100, which was received as of the reporting date. Zilin Wang was the principal shareholder of AllyMe and is also the principal shareholder of the Company.

 

On August 6, 2018, AllyMe established a wholly-owned subsidiary in China, China Info Technology Inc. (“China Info”).

 

On December 18, 2018, FINRA approved the change of the Company’s name from WeWin Group Corp to AllyMe Group, Inc. FINRA announced this change on its daily list on December 19, 2018 and the name change took effect at the open of business on December 20, 2018. The Company’s trading symbol will remain “WWIN.”

 

NOTE 2 – GOING CONCERN

 

The Company has incurred losses since inception (August 13, 2014) resulting in an accumulated deficit of $230,040 is as of June 30, 2019, and further losses are anticipated in the development of its business. Accordingly, there is substantial doubt about the Company’s ability to continue as a going concern. Management believes that the Company’s capital requirements will depend on many factors including the success of the Company’s development efforts and its efforts to raise capital. Management also believes the Company needs to raise additional capital for working capital purposes. There is no assurance that such financing will be available in the future. The conditions described above raise substantial doubt about our ability to continue as a going concern. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

8
 

 

The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from directors and, or, the private placement of common stock. However, there can be no assurances that management’s plans will be successful.

 

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Interim Financial Statements

 

The accompanying unaudited condensed interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and in accordance with the rules and regulations of the United States Securities and Exchange Commission with respect to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited interim financial statements should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2018.

 

Basis of Presentation

 

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The Company’s year-end is December 31.

 

Basis of consolidation

 

The unaudited consolidated financial statements include the financial statements of AllyMe US and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

 

On September 13, 2018, the Company purchased 1,040,000 shares of common stock of AllyMe for a total consideration of $1,040. These shares comprise approximately 51% of the then issued and outstanding shares of common stock of AllyMe.

 

The Combination of AllyMe US and AllyMe are considered business acquisition and the method used to present the transaction is the acquisition method. The acquisition method is a method of accounting for a merger of two businesses. The tangible assets and liabilities and operations of the acquired business were combined at their fair value of the acquisition date, which is the date when the acquirer gains control over the acquired company.

 

9
 

 

Zilin Wang is CEO and shareholder of both AllyMe US and AllyMe. So the combination is deemed as between related parties. The purchase price in excess of the assets acquired is booked as additional paid in capital.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. GAAP 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.

 

Non-controlling interests

 

Non-controlling interests represents the individual shareholder’s proportionate share of 49% of equity interest in AllyMe and its 100% owned subsidiary, China Info.

 

Foreign Currency Translation

 

The Company’s subsidiary China Info operates in China PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. Our financial statements are reported using U.S. Dollars. The results of operations and the statement of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income included in statement of changes in equity. Gains and losses from foreign currency transactions are included in the consolidated statement of income and comprehensive income.

 

The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report:

 

      June 30, 2019  
         
Period-end spot rate     US $1=RMB
6.8650
 
         
Average rate     US $1=RMB
6.7836
 

 

10
 

 

Cash

 

Cash includes cash on hand and on deposit at banking institutions as well as all liquid short-term investments with original maturities of 90 days or less. Cash amounted to $20,009 and $69,167 as of June 30, 2019 and December 31, 2018, respectively. The Company’s cash held in the PRC amounted to $18,404 and $53,722 as of June 30, 2019 and December 31, 2018, respectively and is not protected by FDIC insurance or any other similar insurance. The Company’s bank account in the United States amounted to $1,605 and $15,445 and is protected by FDIC insurance up to $250,000.

 

Revenue recognition

 

The Company adopted Accounting Standards Codification (“ASC”) 606. ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.

 

The Company has assessed the impact of the guidance by performing the following five steps analysis:

 

Step 1: Identify the contract

Step 2: Identify the performance obligations

Step 3: Determine the transaction price

Step 4: Allocate the transaction price

Step 5: Recognize revenue

 

Earnings per Share

 

For the six months ended June 30, 2019 and 2018 there were no potentially dilutive debt or equity instruments issued or outstanding and any such shares would have been excluded from the computation because they would have been anti-dilutive as the Company incurred losses in these periods.

 

Income Taxes

 

The Company accounts for income taxes pursuant to FASB ASC 740 “Income Taxes”. Under ASC 740 deferred income taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carry-forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The provision for income taxes represents the tax expense for the period, if any, and the change during the period in deferred tax assets and liabilities. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

 

ASC 740 also provides criteria for the recognition, measurement, presentation and disclosure of uncertain tax positions. Under ASC 740, the impact of an uncertain tax position on the income tax return may only be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. At June 30, 2019 and December 31, 2018, there were no uncertain tax positions.

 

11
 

 

Stock-Based Compensation

 

As of June 30, 2019 and December 31, 2018, the Company has not issued any stock-based payments to its employees.

 

Stock-based compensation is accounted for at fair value in accordance with ASC 718, when applicable. To date, the Company has not adopted a stock option plan and has not granted any stock options.

 

Recent accounting pronouncements

 

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable.

 

NOTE 4 – PREPAID EXPENSE

 

Prepaid expense amounted to $2,156 and $14,767 as of June 30, 2019 and December 31, 2018, respectively. Prepaid expenses in 2019 and 2018 are mainly prepaid service fees.

 

NOTE 5 – LOAN FROM AN UNRELATED PARTY

 

Loan from an unrelated party amounted to $2,913 and $2,909 as of June 30, 2019 and December 31, 2018, respectively. Loan from an unrelated party are interest free, without collateral, and due on demand.

 

NOTE 6 - DUE TO RELATED PARTIES

 

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attain adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by 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.

 

As of June 30, 2019 and December 31, 2018, the amounts outstanding were $72,347 and $64,370. The advances were non-interest bearing, due upon demand and unsecured.

 

   June 30, 2019   December 31, 2018 
Zilin Wang (1)  $41,170   $42,724 
AllyMe Holding Inc. (2)   31,177    21,646 
Total due to related parties  $72,347   $64,370 

 

(1) Zilin Wang is the CEO and shareholder of the Company
   
(2) Zilin Wang is the prior CEO and prior shareholder of AllyMe Holding Inc.

 

12
 

 

NOTE 7 - STOCKHOLDERS’ EQUITY (DEFICIT)

 

The Company is authorized to issue 75,000,000 shares of common stock with a par value of $0.001 and 10,000,000 shares of preferred stock with a par value of $0.001. There is no preferred stock issued and outstanding as of June 30, 2019. There are 8,945,060 and 8,944,060 shares of common stock outstanding as of June 30, 2019 and December 31, 2018, respectively.

 

In August 2018, the Company received a deposit for 96,700 shares of common stock at $0.05 per share for total of $4,835 from 1 unrelated party. These shares have been issued as of reporting date.

 

In August 2018, the Company received a deposit for 260 shares of common stock at $0.5 per share for total of $130 from 1 unrelated party. These shares have been issued as of reporting date.

 

In September 2018, the Company received a deposit for 86,100 shares of common stock at $0.05 per share for total of $4,305 from 27 unrelated parties. These shares have been issued on October 8, 2018.

 

In September 2018, the Company received a deposit for 29,000 shares of common stock at $0.5 per share for total of $14,500 from 16 unrelated parties. These shares have been issued on October 8, 2018.

 

In October 2018, the Company received a deposit for 3,000 shares of common stock at $0.50 per share for total of $5,000 from 3 unrelated party. These shares have been issued on October 8, 2018.

 

In October 2018, the Company received a deposit for 10,000 shares of common stock at $0.05 per share for total of $500 from 1 unrelated party. These shares have been issued on October 30, 2018.

 

In October 2018, the Company received a deposit for 2,000 shares of common stock at $1.00 per share for total of $2,000 from 1 unrelated party. These shares have been issued on October 30, 2018.

 

In November 2018, the Company received a deposit for 42,000 shares of common stock at $1.00 per share for total of $42,000 from 5 unrelated parties. These shares have been issued in November 2018.

 

In December 2018, the Company issued 40,000 shares of common stock at $0.05 per share for total of $2,000 to 4 unrelated parties under the Company’s 2018 Employee, Director and Consultant Stock Plan. The money was received in 2019.

 

In January 2019, the Company received a deposit for 1,000 shares of common stock at $1.10 per share for total of $1,100 from 1 unrelated party. These shares have been issued in 2019.

 

The debt of $48,333 owed to prior shareholders was forgiven and accounted for as a contribution to additional paid in capital upon the change in control in July 2018.

 

13
 

 

NOTE 8 – BUSINESS COMBINATION

 

On September 13, 2018, the Company purchased 1,040,000 shares of common stock of AllyMe for a total consideration of $1,040. These shares comprise approximately 51% of the then issued and outstanding shares of common stock of AllyMe.

 

The Combination of AllyMe US and AllyMe are considered business acquisition and the method used to present the transaction is the acquisition method. The acquisition method is a method of accounting for a merger of two businesses. The tangible assets and liabilities and operations of the acquired business were combined at their market value of the acquisition date, which is the date when the acquirer gains control over the acquired company

 

The following table summarizes the consideration paid for AllyMe and the fair value amounts of assets acquired and liabilities assumed recognized at the acquisition date:

 

Purchase price   $ 1,040  
         
Cash   $ 10,702  
Total assets:   $ 10,702  
Less: liabilities assumed     (21,312 )
Net assets acquired     (10,610 )
Purchase price in excess of net assets acquired   $ 11,649  

 

Zilin Wang is CEO and shareholder of both AllyMe US and AllyMe. As a result, the combination is deemed as between related parties. The purchase price in excess of the assets acquired is booked as additional paid in capital.

 

AllyMe and its subsidiary China Info were both formed in 2018. No unaudited pro forma condensed combined statements of operations are presented to illustrate the estimated effects of the merger of AllyMe. by AllyMe US (the “Transaction”) on the historical results of operations of AllyMe.

 

NOTE 9 – SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to June 30, 2019 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.

 

14
 

 

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

 

FORWARD LOOKING STATEMENTS

 

Statements made in this Form 10-Q that are not historical or current facts are “forward-looking statements” made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the “Act”) and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “approximate” or “continue,” or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management’s best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

 

Overview of the Business

 

The Company was formed as a US corporation to use as a vehicle for providing consulting services, primarily in China. In the second half of 2018, AllyMe Group, Inc., Inc. (also referred to as “the Company”) commenced providing consulting services in China principally focused on the development of new-high-tech products marketing and retail sales. As of the date of this report, it has provided services to four (4) clients and has generated approximately $14,690 in revenues. The Company did not generate any revenues in the first six months of 2019. The Company intends to seek additional clients through direct marketing in China. The Company is currently in its early stages and there is no guarantee that it will be successful at any time in the near future or ever.

 

Ultimately, the Company seeks to provide management advisory services to business organizations worldwide. The Company intends to assist smaller developing companies in the development of business models and strategies. Beside China, the Company’s initial target markets include the United States. AllyMe offers business consultancy, marketing consultancy, financial consultancy and business modeling support to its client organizations. It also seeks to provide merger and acquisition consultancy.

 

Results of Operations

 

Three Months Ended June 30, 2019 Compared to June 30, 2018

 

The following table summarizes the results of our operations during the three months ended June 30, 2019 and 2018, respectively, and provides information regarding the dollar and percentage increase or (decrease) from the current three-month period to the prior three-month period:

 

Line Item  6/30/19   6/30/18   Increase
(Decrease)
   Percentage
Increase
(Decrease)
 
                 
Revenues  $5,000   $-   $-    Inf. 
Operating expenses   48,438    14,012    34,426    246%
Net loss   (43,438)   (14,012)   29,426    210%
Loss per share of common stock   (0.00)   (0.00)   (0.00)   n/a 

 

We recorded a net loss of $43,438 for the three months ended June 30, 2019 as compared with a net loss of $14,012 for the three months ended June 30, 2018 due primarily to an increase in general and administrative expense. The increase in expense resulted primarily from professional fees.

 

15
 

 

Six Months Ended June 30, 2019 Compared to June 30, 2018

 

The following table summarizes the results of our operations during the six months ended June 30, 2019 and 2018, respectively, and provides information regarding the dollar and percentage increase or (decrease) from the current six-month period to the prior six-month period:

 

Line Item  6/30/19   6/30/18   Increase
(Decrease)
   Percentage
Increase
(Decrease)
 
                 
Revenues  $5,000   $-   $5,000    Inf. 
Operating expenses   105,871    18,046    87,825    487%
Net loss   (100,871)   (18,046)   82,825    459%
Loss per share of common stock   (0.01)   (0.00)   (0.01)   inf. 

 

We recorded a net loss of $100,871 for the six months ended June 30, 2019 as compared with a net loss of $18,046 for the six months ended June 30, 2018 due primarily to an increase in general and administrative expense. The increase in expense resulted primarily from professional fees.

 

Liquidity and Capital Resources

 

As of June 30, 2019, we had total assets of $25,735, a negative working capital deficit of $88,592 and an accumulated negative deficit of $230,040. Our operating activities used -$65,494 in cash for the six months ended June 30, 2019, while our operations used $7,685 cash in the six months ended June 30, 2018. We had $5,000 revenues in the six months ended June 30, 2019, while we had no revenues in the last year same period.

 

Management believes that the Company’s cash on hand will be sufficient to fund all Company obligations and commitments for the next twelve months. Historically, we have depended on loans from our principal shareholders and their affiliated companies to provide us with working capital as required. There is no guarantee that such funding will be available when required and there can be no assurance that our stockholders, or any of them, will continue making loans or advances to us in the future.

 

At June 30, 2019, the Company had loans and advances from a related party shareholder in the aggregate amount of $72,347, which represents amounts loaned to the Company to pay the Company’s expenses of operation. These advances are payable on demand.

 

Off Balance Sheet Arrangements

 

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity or capital expenditures or capital resources that is material to an investor in our securities.

 

Seasonality

 

Our operating results are not affected by seasonality.

 

Inflation

 

Our business and operating results are not affected in any material way by inflation.

 

Critical Accounting Policies

 

The Securities and Exchange Commission issued Financial Reporting Release No. 60, “Cautionary Advice Regarding Disclosure About Critical Accounting Policies” suggesting that companies provide additional disclosure and commentary on their most critical accounting policies. In Financial Reporting Release No. 60, the Securities and Exchange Commission has defined the most critical accounting policies as the ones that are most important to the portrayal of a company’s financial condition and operating results and require management to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. The nature of our business generally does not call for the preparation or use of estimates. Due to the fact that the Company does not have any operating business, we do not believe that we do not have any such critical accounting policies.

 

16
 

 

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

 

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act), as of June 30, 2019. Based on this evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures are not effective to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that our disclosure and controls are not designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) lack of a functioning audit committee, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (2) inadequate segregation of duties consistent with control objectives; (3) ineffective controls over period end financial disclosure and reporting processes and (4) lack of timely communications with vendors and proper accrual of expenses.

Management believes that the material weaknesses set forth in items (2), (3) and (4) above did not have an effect on our financial results. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.

 

Changes in Internal Control Over Financial Reporting

 

There were no changes (including corrective actions with regard to significant deficiencies or material weaknesses) in our internal controls over financial reporting that occurred during the three months ended June 30, 2019 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

There are no legal proceedings which are pending or have been threatened against us or any of our officers, directors or control persons of which management is aware.

 

ITEM 1A. RISK FACTORS

 

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.

 

17
 

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES

 

Except as may have previously been disclosed on a current report on Form 8-K or a quarterly report on Form 10-Q, we have not sold any of our securities in a private placement transaction or otherwise during the past three years.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

Not applicable.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

None.

 

ITEM 5. OTHER INFORMATION

 

None.

 

ITEM 6. EXHIBITS

 

Exhibit No.   Description
     
31.1   Certification of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
31.2   Certification of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
32.1   Certification of Principal Executive Officer and Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
101.INS   XBRL Instance Document
101.SCH   XBRL Taxonomy Extension Schema Document
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF   XBRL Taxonomy Extension definition Linkbase Document
101.LAB   XBRL Taxonomy Extension Label Linkbase Document
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document

 

18
 

 

SIGNATURES

 

In accordance with 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.

 

  ALLYME GROUP, INC.
 
Date: August 19, 2019 By /s/ Zicheng Wang
    Zicheng Wang
    Director, CEO, CFO, President and Treasurer

 

19