Nevada | 47-1017473 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer ☐ | Accelerated filer ☐ |
Non-accelerated filer ☐ | Smaller reporting company ☒ |
Emerging growth company ☐ |
Class | Outstanding at | |
Common Stock, $0.001 par value per share | 9,030,000 |
PART I. | FINANCIAL INFORMATION | 1 |
Item 1. | 1 | |
Item 2. | 14 | |
Item 3. | 17 | |
Item 4. | 17 | |
PART II. | OTHER INFORMATION | 18 |
Item 1. | 18 | |
Item 1A. | 18 | |
Item 2. | 18 | |
Item 3. | 18 | |
Item 4. | 18 | |
Item 5. | 18 | |
Item 6. | 19 | |
20 |
Financial Statements |
2017 | 2016 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and equivalents | $ | 3,292,672 | $ | 8,165 | ||||
Accounts receivable | 20,000 | - | ||||||
Interest receivable | 18,146 | - | ||||||
Notes receivable | 1,925,000 | - | ||||||
Deposit and prepaid expenses | 1,172,118 | 8,532 | ||||||
Total current assets | 6,427,936 | 16,697 | ||||||
NON-CURRENT ASSETS | ||||||||
Property and equipment, net | 14,051 | 2,258 | ||||||
Total non-current assets | 14,051 | 2,258 | ||||||
TOTAL ASSETS | $ | 6,441,987 | $ | 18,955 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable and accrued liabilities | $ | - | $ | 7,742 | ||||
Accounts payable - related parties | - | 27,405 | ||||||
Deferred revenue | 13,333 | - | ||||||
Other payables | 64,526 | - | ||||||
Interest payable | 14,312 | - | ||||||
Note payable | 6,869,818 | - | ||||||
Total current liabilities | 6,961,989 | 35,147 | ||||||
Total liabilities | 6,961,989 | 35,147 | ||||||
CONTINGENCIES AND COMMITMENTS | ||||||||
STOCKHOLDERS’ DEFICIT | ||||||||
Common stock, par value $0.001 per share, 75,000,000 shares authorized; 9,030,000 shares issued and outstanding | 9,030 | 9,030 | ||||||
Additional paid in capital | 83,552 | 31,770 | ||||||
Accumulated deficit | (612,584 | ) | (56,992 | ) | ||||
Total stockholders’ deficit | (520,002 | ) | (16,192 | ) | ||||
TOTAL LIABILITIES AND DEFICIT | $ | 6,441,987 | $ | 18,955 |
DECEMBER 31, 2016 | SEPTEMBER 30, 2016 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and equivalents | $ | 6,847,727 | $ | 8,165 | ||||
Prepaid expenses | 6,667 | 8,532 | ||||||
Total current assets | 6,854,394 | 16,697 | ||||||
NON-CURRENT ASSETS | ||||||||
Property and equipment, net | - | 2,258 | ||||||
Total non-current assets | - | 2,258 | ||||||
TOTAL ASSETS | $ | 6,854,394 | $ | 18,955 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable and accrued liabilities | $ | 3,204 | $ | 7,742 | ||||
Accounts payable - related parties | - | 27,405 | ||||||
Convertible note | 6,869,818 | - | ||||||
Total current liabilities | 6,873,022 | 35,147 | ||||||
Total liabilities | 6,873,022 | 35,147 | ||||||
CONTINGENCIES AND COMMITMENTS | ||||||||
STOCKHOLDERS’ DEFICIT | ||||||||
Common stock, par value $0.001 per share, 75,000,000 shares authorized; 9,030,000 shares issued and outstanding as of December 31, 2016 and September 30, 2016 | 9,030 | 9,030 | ||||||
Additional paid in capital | 66,885 | 31,770 | ||||||
Accumulated deficit | (94,543 | ) | (56,992 | ) | ||||
Total stockholders’ deficit | (18,628 | ) | (16,192 | ) | ||||
TOTAL LIABILITIES AND EQUITY | $ | 6,854,394 | $ | 18,955 |
SIX MONTHS ENDED MARCH 31, | THREE MONTHS ENDED MARCH 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenue | $ | - | $ | 14,325 | $ | - | $ | 7,825 | ||||||||
Cost of revenue | - | 4,026 | - | 2,076 | ||||||||||||
Gross profit | - | 10,299 | - | 5,749 | ||||||||||||
Operating expenses | ||||||||||||||||
General and administrative | 522,120 | 18,432 | 484,750 | 14,738 | ||||||||||||
Total operating expenses | 522,120 | 18,432 | 484,750 | 14,738 | ||||||||||||
Loss from operations | (522,120 | ) | (8,133 | ) | (484,750 | ) | (8,989 | ) | ||||||||
Non-operating expenses | ||||||||||||||||
Interest income | 18,146 | - | 18,146 | - | ||||||||||||
Interest expense | (57,821 | ) | - | (57,821 | ) | - | ||||||||||
Consulting income | 6,667 | - | 6,667 | - | ||||||||||||
Financial expense | (463 | ) | - | (282 | ) | - | ||||||||||
Total non-operating income, net | (33,472 | ) | - | (33,291 | ) | - | ||||||||||
Loss before income tax | (555,592 | ) | (8,133 | ) | (518,041 | ) | (8,989 | ) | ||||||||
Income tax provision | - | - | - | - | ||||||||||||
Net loss | $ | (555,592 | ) | $ | (8,133 | ) | $ | (518,041 | ) | $ | (8,989 | ) | ||||
Basic and diluted weighted average shares outstanding | 9,030,000 | 5,500,000 | 9,030,000 | 5,500,000 | ||||||||||||
Basic and diluted net loss per share | $ | (0.06 | ) | $ | (0 | ) | $ | (0.06 | ) | $ | (0 | ) |
THREE MONTHS ENDED DECEMBER 31, | ||||||||
2016 | 2015 | |||||||
Revenue | $ | - | $ | 6,500 | ||||
Cost of revenue | - | 1,950 | ||||||
Gross profit | - | 4,550 | ||||||
Operating expenses | ||||||||
Compensation - officers | - | 1,050 | ||||||
General and administrative | 37,370 | 2,644 | ||||||
Total operating expenses | 37,370 | 3,694 | ||||||
Income (Loss) from operations | (37,370 | ) | 856 | |||||
Non-operating expenses | ||||||||
Financial expense | 181 | - | ||||||
Total non-operating expenses, net | 181 | - | ||||||
Income (loss) before income tax | (37,551 | ) | 856 | |||||
Income tax provision | - | - | ||||||
Net income (loss) | $ | (37,551 | ) | $ | 856 | |||
Basic weighted average shares outstanding | 9,030,000 | 5,500,000 | ||||||
Diluted weighted average shares outstanding | 9,677,157 | 5,500,000 | ||||||
Basic net income (loss) per share | $ | (0 | ) | $ | 0 | |||
Diluted net income (loss) per share | $ | (0 | ) | $ | 0 |
SIX MONTHS ENDED MARCH 31, | ||||||||
2017 | 2016 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (555,592 | ) | $ | (8,133 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation | 736 | 631 | ||||||
Amortization | 161,414 | - | ||||||
Capital contribution from officer’s salary | 16,667 | - | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (20,000 | ) | - | |||||
Prepaid expenses | (1,325,000 | ) | - | |||||
Interest receivable | (18,146 | ) | - | |||||
Deposit and prepaid expenses | 13,333 | - | ||||||
Other payables | 78,838 | - | ||||||
Accounts payable and accrued liabilities | - | (2,465 | ) | |||||
Accounts payable - related party | - | 6,000 | ||||||
Net cash used in operating activities | (1,647,749 | ) | (3,967 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Notes receivable | (1,925,000 | ) | - | |||||
Acquisition of fixed assets | (14,598 | ) | - | |||||
Net cash used in investing activities | (1,939,598 | ) | - | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Increase in paid in capital | 2,037 | - | ||||||
Proceeds from note | 6,869,818 | - | ||||||
Net cash provided by financing activities | 6,871,855 | - | ||||||
NET (DECREASE) INCREASE IN CASH AND EQUIVALENTS | 3,284,507 | (3,967 | ) | |||||
CASH AND EQUIVALENTS, BEGINNING OF PERIOD | 8,165 | 13,581 | ||||||
CASH AND EQUIVALENTS, END OF PERIOD | $ | 3,292,672 | $ | 9,614 | ||||
Supplemental cash flow data: | ||||||||
Income tax paid | $ | - | $ | - | ||||
Interest paid | $ | 43,508 | $ | - |
THREE MONTHS ENDED DECEMBER 31, | ||||||||
2016 | 2015 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income (loss) | $ | (37,551 | ) | $ | 856 | |||
Adjustments to reconcile income including noncontrolling interest to net cash provided by operating activities: | ||||||||
Depreciation | 189 | 316 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | - | (6,500 | ) | |||||
Prepaid expenses | - | (2,000 | ) | |||||
Accounts payable and accrued liabilities | (4,538 | ) | (7,915 | ) | ||||
Accounts payable - related party | - | 3,000 | ||||||
Net cash used in operating activities | (41,900 | ) | (12,243 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Net cash provided by (used in) investing activities | - | - | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Increase in paid in capital | 11,645 | - | ||||||
Proceeds from convertible note | 6,869,818 | - | ||||||
Net cash provided by financing activities | 6,881,462 | - | ||||||
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS | 6,839,562 | (12,243 | ) | |||||
CASH AND EQUIVALENTS, BEGINNING OF PERIOD | 8,165 | 13,581 | ||||||
CASH AND EQUIVALENTS, END OF PERIOD | $ | 6,847,727 | $ | 1,338 | ||||
Supplemental cash flow data: | ||||||||
Income tax paid | $ | - | $ | - | ||||
Interest paid | $ | - | $ | - | ||||
Supplemental Disclosure of Non-Cash Financing Activities | ||||||||
Liabilities assumed by shareholders | $ | 23,470 | - |
(i) | Assumption as a going concern: Management assumes 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 |
(ii) | Valuation allowance for deferred tax assets: Management assumes that the realization of the Company’s net deferred tax assets resulting from its net operating loss (“NOL”) carry–forwards for Federal income tax purposes that may be offset against future taxable income was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by a full valuation allowance. Management made this assumption based on (a) the Company has incurred recurring losses, (b) general economic conditions, and (c) its ability to raise additional funds to support its daily operations by way of a public or private offering, among other factors; |
Level | 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. | |
Level | 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. | |
Level | 3 Pricing inputs that are generally observable inputs and not corroborated by market data. |
Building and workshops | 20 years |
Computer and office equipment | 5 years |
Office furniture | 7 years |
Decoration and renovation | 10 years |
10 years | |
Autos | 5 years |
Three months Ended December 31, | ||||||||
2016 | 2015 | |||||||
Net income (loss) | $ | (37,551 | ) | $ | 856 | |||
Weighted average shares outstanding - basic | 9,030,000 | 5,500,000 | ||||||
Effect of dilutive securities: | ||||||||
Convertible notes | 647,157 | - | ||||||
Weighted average shares outstanding – diluted | 9,677,157 | 5,500,000 | ||||||
Earnings (loss) per share – basic | $ | (0.00 | ) | $ | 0.00 | |||
Earnings (loss) per share – diluted | $ | (0.00 | ) | $ | 0.00 |
Estimated Useful Lives (Years) | December 31, 2016 | September 30, 2016 | Estimated Useful Lives (Years) | 2017 | 2016 | |||||||||||||||||
Computer equipment | 5 | $ | - | $ | 3,089 | 5 | $ | 1,852 | $ | 3,089 | ||||||||||||
Less accumulated depreciation | - | (1,556 | ) | (92 | ) | (1,556 | ) | |||||||||||||||
Computer equipment, net | - | 1,533 | 1,760 | 1,533 | ||||||||||||||||||
Office furniture | 7 | - | 1,289 | 7 | 12,746 | 1,289 | ||||||||||||||||
Less accumulated depreciation | - | (564 | ) | (455 | ) | (564 | ) | |||||||||||||||
Office furniture, net | - | 725 | 12,291 | 725 | ||||||||||||||||||
Total property and equipment, net | $ | - | $ | 2,258 | $ | 14,051 | $ | 2,258 |
For the Three Months Ended December 31, 2016 | For the Three Months Ended December 31, 2015 | March 31, 2017 | March 31, 2016 | |||||||||||||
President, Chief Executive Officer | $ | - | $ | 1,500 | $ | - | $ | 3,000 | ||||||||
Chief Financial Officer, Secretary and Treasurer | - | 1,500 | - | 3,000 | ||||||||||||
$ | - | * | $ | 3,000 | $ | - | $ | 6,000 |
December 31, 2016 | September 30, 2016 | March 31, 2017 | September 30, 2016 | |||||||||||||
Net deferred tax assets – Non-current: | ||||||||||||||||
Expected income tax benefit from NOL carry-forwards | $ | 23,398 | $ | 8,549 | $ | 133,635 | $ | 8,549 | ||||||||
Less valuation allowance | (23,398 | ) | (8,549 | ) | (133,635 | ) | (8,549 | ) | ||||||||
Deferred tax assets, net of valuation allowance | $ | - | $ | - | $ | - | $ | - |
March 31, 2017 | March 31, 2016 | |||||||
Federal statutory income tax expense (benefit) rate | (15.00 | )% | 15.00 | % | ||||
Effect of State income tax expense (benefit) rate to federal tax | 1.33 | % | - | % | ||||
State statutory income tax (benefit) rate | (8.84 | )% | - | % | ||||
Change in valuation allowance on net operating loss carry-forwards | 22.51 | % | (15.00 | )% | ||||
Effective income tax rate | 0.00 | % | 0.00 | % |
For the Three Months Ended December 31, 2016 | For the Three Months Ended December 31, 2015 | March 31, 2017 | March 31, 2016 | |||||||||||||
Federal statutory income tax expense (benefit) rate | (15.00 | )% | 15.00 | % | (15.00 | )% | 15.00 | % | ||||||||
Effect of State income tax expense (benefit) rate to federal tax | 1.33 | % | - | % | 1.33 | % | - | % | ||||||||
State statutory income tax (benefit) rate | (8.84 | )% | - | % | (8.84 | )% | - | % | ||||||||
Change in valuation allowance on net operating loss carry-forwards | 22.51 | % | (15.00 | )% | 22.51 | % | (15.00 | )% | ||||||||
Effective income tax rate | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
For the Three Months Ended December 31, 2016 | For the Three Months Ended December 31, 2015 | Increase (Decrease) | ||||||||||
Compensation - officers | $ | - | $ | 1,050 | $ | (1,050 | ) | |||||
General and administrative | 37,370 | 2,644 | 34,726 | |||||||||
$ | 37,370 | $ | 3,694 | $ | 33,676 |
2017 | 2016 | Increase (Decrease) | ||||||||||
General and administrative | $ | 484,750 | $ | 14,738 | $ | 470,012 | ||||||
$ | 484,750 | $ | 14,738 | $ | 470,012 |
2017 | 2016 | |||||||
President, Chief Executive Officer | $ | - | $ | 1,500 | ||||
Chief Financial Officer, Secretary and Treasurer | - | 1,500 | ||||||
$ | - | $ | 3,000 |
For the Three Months Ended December 31, 2016 | For the Three Months Ended December 31, 2015 | |||||||
President, Chief Executive Officer | $ | - | $ | 1,500 | ||||
Chief Financial Officer, Secretary and Treasurer | - | 1,500 | ||||||
$ | - | * | $ | 3,000 |
2017 | 2016 | Increase (Decrease) | ||||||||||
General and administrative | $ | 522,120 | $ | 18,432 | $ | 503,688 | ||||||
$ | 522,120 | $ | 18,432 | $ | 503,688 |
2017 | 2016 | |||||||
President, Chief Executive Officer | $ | - | $ | 3,000 | ||||
Chief Financial Officer, Secretary and Treasurer | - | 3,000 | ||||||
$ | - | $ | 6,000 |
As of | As of | As of | As of | |||||||||||||
December 31, | September 30, | March 31, | September 30, | |||||||||||||
2016 | 2016 | 2017 | 2016 | |||||||||||||
Total current assets | $ | 6,854,394 | $ | 16,697 | $ | 6,427,936 | $ | 16,697 | ||||||||
Total current liabilities | (6,873,022 | ) | (35,147 | ) | (6,961,989 | ) | (35,147 | ) | ||||||||
Working capital (deficiency) | $ | (18,628 | ) | $ | (18,450 | ) | ||||||||||
Working capital deficiency | $ | (534,053 | ) | $ | (18,450 | ) |
For the Three Months Ended December 31, 2016 | For the Three Months Ended December 31, 2015 | |||||||
Net cash used in operating activities | $ | (41,900 | ) | $ | (12,243 | ) | ||
Net cash used in investing activities | - | - | ||||||
Net cash provided by financing activities | 6,881,462 | - | ||||||
Net increase (decrease) in cash | $ | 6,839,562 | $ | (12,243 | ) |
For the Six Months Ended March 31, 2017 | For the Six Months Ended March 31, 2016 | |||||||
Net cash used in operating activities | $ | (1,647,749 | ) | $ | (3,967 | ) | ||
Net cash used in investing activities | (1,939,598 | ) | - | |||||
Net cash provided by financing activities | 6,871,855 | - | ||||||
Net increase (decrease) in cash | $ | 3,284,507 | $ | (3,967 | ) |
Quantitative and Qualitative Disclosures about Market Risk |
Evaluation of Disclosure Controls and Procedures |
Item 1. |
Item 1A. |
Item 2. |
Item 3. |
Item 4. |
Item 5. |
Item 6. |
Exhibit No. | Description | |
3.1 | Articles of Incorporation. Incorporated by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on March 24, 2015. | |
3.2 | Bylaws. Incorporated by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on March 24, 2015. | |
10.1 | ||
10.2 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101.INS | XBRL Instance Document* | |
101.SCH | XBRL Schema Document* | |
101.CAL | XBRL Calculation Linkbase Document* | |
101.DEF | XBRL Definition Linkbase Document* | |
101.LAB | XBRL Label Linkbase Document* | |
101.PRE | XBRL Presentation Linkbase Document* |
* | filed herewith |
FUSE ENTERPRISES INC. | ||
By: | /s/ | |
Chief Executive Officer | ||
(Principal Executive Officer) | ||
By: | /s/ Choon Kang Roy | |
Choon Kang Roy | ||
Chief Financial Officer | ||
(Principal Financial and Accounting Officer) | ||