UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

x (Mark One)

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

 

For Quarterly Period Endedthe quarterly period ended September 30, 20192020

 

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 No. 333-219776

 

New Leap, Inc.CHENGDA TECHNOLOGY CO., LTD.

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

 

Delaware

 

37-1863750

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

8 Derech Hameshi St.,311-7, Tianyu Building, 11 Guangming Road

Ganne Tiqwa, Israel, 5591179Dongcheng District, Beijing, China 100051

(Address of principal executive offices,Principal Executive Offices, including zip code)

+86 (10) 65014177

(Registrant’s phonetelephone number, including area code +972-50-7844477code)

Not Applicable

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

Securities registered pursuant to Section 12(b) of the Act: None

 

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 ¨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 x NO ¨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, or an emerging growth company. See the definitions of "large“large accelerated filer," "accelerated” “accelerated filer," "smaller” “smaller reporting company"company,” and "emerging“emerging growth company"company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

x

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 x NO ¨: Yes ☒  No ☐

 

Securities registered pursuant to Section 12(b)As of the Act: None

Indicate the number ofNovember 13, 2020, there were 10,204,000 shares outstanding of each of the issuer’s classes of common stock, aspar value $0.0001, of the latest practicable date.Company issued and outstanding.

 

Class

Outstanding at November 4, 2019

Common Stock, $.0001 par value

10,204,000

 

 

CHENGDA TECHNOLOGY CO., LTD.

 

Quarterly Report on Form 10-Q

INDEXTABLE OF CONTENTS

 

Page No.

PART I - FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS:

Balance Sheet as of September 30, 2019 (unaudited) and December 31, 2018 (unaudited);

3

Statements of Operations for the nine and three months ended September 30, 2019 (unaudited) and for the nine and three months ended September 30, 2018 (unaudited);

4

Statements of Changes in Stockholders' Deficit for the six and three months ended September 30, 2019 (unaudited) and for the nine and three months ended September 30, 2018 (unaudited);

 

 

5Page

Cautionary  Note Regarding Forward-Looking Statements

3

PART I – FINANCIAL INFORMATION

 

 

Statement of Cash Flows for the nine months ended September 30, 2019 (unaudited) and for the nine months ended September 30, 2018 (unaudited)

7

Notes to Financial Statements (unaudited)

8

 

ITEM 2.Item 1.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSFinancial Statements

4

 

11

 

ITEM 3.Item 2.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKManagement’s Discussion and Analysis of Financial Condition and Results of Operations

10

 

13

 

ITEM 4.Item 3.

CONTROLS AND PROCEDURESQuantitative and Qualitative Disclosures about Market Risk

11

 

13

PART II - OTHER INFORMATION

 

ITEM 1.Item 4.

LEGAL PROCEEDINGSControl and Procedures

11

 

14

PART II – OTHER INFORMATION

 

ITEM 1A.Item 1.

RISK FACTORSLegal Proceedings

12

 

14

 

ITEM 2.Item 1A.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDSRisk Factors

12

 

14

 

ITEM 3.Item 2.

DEFAULTS UPON SENIOR SECURITIESUnregistered Sales of Equity Securities and Use of Proceeds

12

 

14

ITEM 5.

OTHER INFORMATION

14

 

ITEMItem 3.

Defaults Upon Senior Securities

12

Item 4.

Mine Safety Disclosures

12

Item 5.

Other Information

12

Item 6.

EXHIBITSExhibits

13

 

15

SIGNATURES

14

 

 
2

Table of Contents

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q (the “Report”), including, without limitation, statements under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,��� “will,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology. There can be no assurance that actual results will not materially differ from expectations. Such statements include, but are not limited to, any statements relating to our ability to consummate any acquisition or other business combination and any other statements that are not statements of current or historical facts. These statements are based on management’s current expectations, but actual results may differ materially due to various factors, including, but not limited to:

our ability to establish our business and implement our business plan;

acceptance of the healthcare products and services that we expect to market;

our ability to retain key employees;

adverse changes in general market conditions for the healthcare industry in China, including as a result of the COVID-19 pandemic;

our ability to continue as a going concern;

our future financing plans; and

our ability to adapt to changes in foreign, cultural, political and financial market conditions which could impair our future operations and financial performance.

The forward-looking statements contained in this Report are based on our current expectations and beliefs concerning future developments and their potential effects on us. Future developments affecting us may not be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. 

3

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS.

 

ITEM I — FINANCIAL STATEMENTS

Chengda Technology Co., Ltd.

(Formerly New Leap, Inc.)

Condensed Unaudited Balance Sheets

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

 

$31

 

 

$1,494

 

Total Current Assets

 

 

31

 

 

 

1,494

 

Total Assets

 

$31

 

 

$1,494

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

 

Account payable to related party

 

$

 

 

$25,000

 

Other accounts payable

 

 

8,100

 

 

 

5,510

 

Promissory note payable to stockholder

 

 

 

 

 

39,490

 

Total Current Liabilities

 

 

8,100

 

 

 

70,000

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

 

8,100

 

 

 

70,000

 

Stockholders’ Deficit:

 

 

 

 

 

 

 

 

Preferred stock; $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding

 

 

 

 

 

 

Common stock; $0.0001 par value, 50,000,000 shares authorized, 10,204,000 shares issued and outstanding

 

 

10,204

 

 

 

10,204

 

Additional paid-in capital

 

 

227,274

 

 

 

126,475

 

Accumulated deficit

 

 

(245,547)

 

 

(205,185)

Total Stockholders’ Deficit

 

 

(8,069)

 

 

(68,506)

Total Liabilities and Stockholders’ Deficit

 

$31

 

 

$1,494

 

 

New Leap, Inc.

UNAUDITED BALANCE SHEETS

(Expressed in USD, except for the number of shares)

 

 

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$1,548

 

 

$21,007

 

 

 

 

 

 

 

 

 

 

Total Current assets

 

$1,548

 

 

$21,007

 

 

 

 

 

 

 

 

 

 

Total assets

 

$1,548

 

 

$21,007

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Account payable to related party

 

$25,000

 

 

$25,000

 

Other accounts payable

 

 

1,860

 

 

 

5,230

 

Promissory note payable to shareholder

 

 

36,381

 

 

 

19,943

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

$63,541

 

 

$50,173

 

Total Liabilities

 

$63,541

 

 

$50,173

 

Commitments and contingencies (Note 7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ Deficit:

 

 

 

 

 

 

 

 

Preferred stock; $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding

 

 

-

 

 

 

-

 

Common stock; $0.0001 par value, 50,000,000 shares authorized, 10,204,000 shares issued and outstanding respectively

 

$10,204

 

 

$10,204

 

Addition paid-in capital

 

 

117,025

 

 

 

88,675

 

Accumulated deficit

 

 

(189,222)

 

 

(128,045)

Total stockholder’s deficit

 

$(61,993)

 

$(29,166)

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ deficit

 

$1,548

 

 

$21,007

 

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

 

 
34

Table of Contents

Chengda Technology Co., Ltd.

(Formerly New Leap, Inc.)

Condensed Unaudited Statements of Operations

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General & administrative expenses

 

 

14,757

 

 

 

22,099

 

 

 

40,362

 

 

 

61,177

 

Total  operating expenses

 

 

14,757

 

 

 

22,099

 

 

 

40,362

 

 

 

61,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(14,757)

 

 

(22,099)

 

 

(40,362)

 

 

(61,177)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(14,757)

 

 

(22,099)

 

 

(40,362)

 

 

(61,177)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$(14,757)

 

$(22,099)

 

 

(40,362)

 

 

(61,177)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic & diluted net loss per share

 

*

 

 

*

 

 

*

 

 

 

(0.01)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares-basic and diluted

 

 

10,204,000

 

 

 

10,204,000

 

 

 

10,204,000

 

 

 

10,204,000

 

* Less than $0.01

 

New Leap, Inc.

UNAUDITED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)

(Expressed in USD, except for the number of shares)

 

 

Nine months ended

September 30,

 

 

Three months ended

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$-

 

 

$-

 

 

$-

 

 

$-

 

Cost of revenues

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Gross profit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General and Administrative expenses

 

 

61,177

 

 

 

39,002

 

 

 

22,099

 

 

 

12,468

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(61,177)

 

 

(39,002)

 

 

(22,099)

 

 

(12,468)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before provision for income taxes

 

 

(61,177)

 

 

(39,002)

 

 

(22,099)

 

 

(12,468)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net Loss

 

$(61,177)

 

$(39,002)

 

$(22,099)

 

$(12,468)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Comprehensive loss

 

$(61,177)

 

$(39,002)

 

$(22,099)

 

$(12,468)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share (Note 4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$(0.01)

 

$(0.00)

 

$(0.00)

 

$(0.00)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

10,204,000

 

 

 

10,204,000

 

 

 

10,204,000

 

 

 

10,204,000

 

 

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

 

 
45

Table of Contents

 

New Leap, Inc.

UNAUDITED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

(Expressed in USD, except for the number of shares)

Nine months ended September 30, 2019 and 2018

Chengda Technology Co., Ltd.

(Formerly New Leap, Inc.)

Condensed Unaudited Statements of Cash Flows

 

 

 

For The Nine Months Ended

September 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$(40,362)

 

$(61,177)

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

 

 

 

 

 

 

 

 

Contributed services

 

 

24,570

 

 

 

28,350

 

 

 

 

 

 

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

 

2,590

 

 

 

(3,370)

Net cash used in operating activities

 

 

(13,202)

 

 

(36,197)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Advances from related parties

 

 

10,229

 

 

 

16,738

 

Capital contributions from stockholder

 

 

1,510

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by financing activities

 

 

11,739

 

 

 

16,738

 

 

 

 

 

 

 

 

 

 

Net decrease in cash

 

 

(1,463)

 

 

(19,459)

 

 

 

 

 

 

 

 

 

Cash, beginning of period

 

 

1,494

 

 

 

21,007

 

 

 

 

 

 

 

 

 

 

Cash, end of period

 

$31

 

 

$1,548

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forgiveness of promissory notes by stockholder

 

$49,719

 

 

 

 

Forgiveness of payable due to related party

 

$25,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid for interest expense

 

 

 

 

 

 

Cash paid for income tax

 

 

 

 

 

 

 

 

Common shares

 

 

Additional

paid-in

 

 

Accumulated

 

 

Total

shareholders'

 

 

 

Number

 

 

Amount

 

 

capital

 

 

deficit

 

 

deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2017

 

 

9,000,000

 

 

$9,000

 

 

$22,050

 

 

$(73,271)

 

$(42,221)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued shares

 

 

1,204,000

 

 

 

1,204

 

 

 

28,825

 

 

 

-

 

 

 

30,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholder contribution

 

 

-

 

 

 

-

 

 

 

28,350

 

 

 

-

 

 

 

28,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(39,002)

 

 

(39,002)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of September 30, 2018

 

 

10,204,000

 

 

$10,204

 

 

$79,225

 

 

$(112,273)

 

$(22,844)

 

 

Common shares

 

 

Additional

paid-in

 

 

Accumulated

 

 

Total

shareholders'

 

 

 

Number

 

 

Amount

 

 

capital

 

 

deficit

 

 

deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2018

 

 

10,204,000

 

 

$10,204

 

 

$88,675

 

 

$(128,045)

 

$(29,166)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholder contribution

 

 

-

 

 

 

-

 

 

 

28,350

 

 

 

-

 

 

 

28,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(61,177)

 

 

(61,177)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of September 30, 2019

 

 

10,204,000

 

 

$10,204

 

 

$117,025

 

 

$(189,222)

 

$(61,993)

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

 

5
Table of Contents

New Leap, Inc.

UNAUDITED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

(Expressed in USD, except for the number of shares)

Three months ended September 30, 2019 and 2018

 

 

Common shares

 

 

Additional

paid-in

 

 

Accumulated

 

 

Total

shareholders'

 

 

 

Number

 

 

Amount

 

 

capital

 

 

deficit

 

 

deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of June 30, 2018

 

 

10,204,000

 

 

$10,204

 

 

$69,775

 

 

$(99,805)

 

$(19,826)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholder contribution

 

 

-

 

 

 

-

 

 

 

9,450

 

 

 

-

 

 

 

9,450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(12,468)

 

 

(12,468)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of September 30, 2018

 

 

10,204,000

 

 

$10,204

 

 

$79,225

 

 

$(112,273)

 

$(22,844)

 

 

Common shares

 

 

Additional

paid-in

 

 

Accumulated

 

 

Total

shareholders'

 

 

 

Number

 

 

Amount

 

 

capital

 

 

deficit

 

 

deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of June 30, 2019

 

 

10,204,000

 

 

$10,204

 

 

$107,575

 

 

$(167,123)

 

$(49,344)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholder contribution

 

 

-

 

 

 

-

 

 

 

9,450

 

 

 

-

 

 

 

9,450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(22,099)

 

 

(22,099)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of September 30, 2019

 

 

10,204,000

 

 

$10,204

 

 

$117,025

 

 

$(189,222)

 

$(61,993)

The accompanying notes are an integral part of the financial statements.

 
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Chengda Technology Co., Ltd.

(Formerly New Leap, Inc.)

Condensed Unaudited Statements of Changes in Stockholders’ Equity

 

New Leap, Inc.

UNAUDITED STATEMENTS OF CASH FLOWS

(Expressed in USD, except forFor the number of shares) Nine Months ended September 30, 2020

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

amount

 

 

Additional paid-in capital

 

 

Accumulated Deficit

 

 

Total equity

 

Balance as of January 1, 2020

 

 

10,204,000

 

 

$10,204

 

 

$126,475

 

 

$(205,185)

 

$(68,506)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(40,362)

 

 

(40,362)

Contributions from stockholders

 

 

-

 

 

 

-

 

 

 

26,080

 

 

 

-

 

 

 

26,080

 

Forgiveness of related party loan

 

 

 

 

 

 

 

 

 

 

25,000

 

 

 

 

 

 

 

25,000

 

Forgiveness of stockholder’s promissory note

 

 

-

 

 

 

-

 

 

 

49,719

 

 

 

-

 

 

 

49,719

 

Balance as of September 30, 2020

 

 

10,204,000

 

 

$10,204

 

 

$227,274

 

 

$(245,547)

 

$(8,069)

 

 

Nine months ended

September 30,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

Cash flow from operating activities:

 

 

 

 

 

 

Net loss

 

$(61,177)

 

$(39,002)

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Contributed services

 

 

28,350

 

 

 

28,350

 

 

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Increase (decrease) in account payables

 

 

(3,370)

 

 

(5,312)

Net cash used in operating activities

 

$(36,197)

 

$(15,964)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in investment activities

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

 

 

 

Common Stock Issued for cash

 

$-

 

 

$30,029

 

Promissory note from shareholder

 

 

16,738

 

 

 

1,591

 

Net cash provided by financing activities

 

$16,738

 

 

$31,620

 

 

 

 

 

 

 

 

 

 

NET CASH DECREASE IN CASH AND CASH EQUIVALENTS

 

 

(19,459)

 

 

15,656

 

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

 

 

21,007

 

 

 

7,954

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$1,548

 

 

$23,610

 

For the Three Months ended September 30, 2020

 

 

 

 Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

amount

 

 

Additional paid-in capital

 

 

Accumulated Deficit

 

 

Total equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of July 1, 2020

 

 

10,204,000

 

 

$10,204

 

 

$145,375

 

 

$(230,790)

 

$(75,211)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,757)

 

 

(14,757)

Contributions from stockholders

 

 

-

 

 

 

-

 

 

 

7,180

 

 

 

-

 

 

 

7,180

 

Forgiveness of related party loan

 

 

 

 

 

 

 

 

 

 

25,000

 

 

 

 

 

 

 

25,000

 

Forgiveness of stockholder’s promissory note

 

 

-

 

 

 

-

 

 

 

49,719

 

 

 

-

 

 

 

49,719

 

Balance as of September 30, 2020

 

 

10,204,000

 

 

$10,204

 

 

$227,274

 

 

$(245,547)

 

$(8,069)

The accompanying notes are an integral part of

For the financial statements.Nine Months ended September 30, 2019

 

 

 

 Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

amount

 

 

Additional paid-in capital

 

 

Accumulated Deficit

 

 

Total equity

 

Balance as of January 1, 2019

 

 

10,204,000

 

 

$10,204

 

 

$88,675

 

 

$(128,045)

 

$(29,166)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(61,177)

 

 

(61,177)

Contributions from stockholders

 

 

-

 

 

 

-

 

 

 

28,350

 

 

 

-

 

 

 

28,350

 

Balance as of September 30, 2019

 

 

10,204,000

 

 

$10,204

 

 

$117,025

 

 

$(189,222)

 

$(61,993)

For the Three Months ended September 30, 2019

 

 

 Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

amount

 

 

Additional paid-in capital

 

 

Accumulated Deficit

 

 

Total equity

 

Balance as of July 1, 2019

 

 

10,204,000

 

 

$10,204

 

 

$107,575

 

 

$(167,123)

 

$(49,344)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22,099)

 

 

(22,099)

Contributions from stockholders

 

 

-

 

 

 

-

 

 

 

9,450

 

 

 

-

 

 

 

9,450

 

Balance as of September 30, 2019

 

 

10,204,000

 

 

$10,204

 

 

$117,025

 

 

$(189,222)

 

$(61,993)

 
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Chengda Technology Co., Ltd.

(Formerly New Leap, Inc.)

Notes to the Condensed Financial Statements

September 30, 2020

 

New Leap, Inc.

  NOTES TO FINANCIAL STATEMENTS

  (USD, except number of shares)

NOTE 1  –  ORGANIZATIONALORGANIZATION AND GOING CONCERN:DESCRIPTION OF BUSINESS

 

Chengda Technology Co. Ltd., (formerly known as New Leap, Inc.) (the "Company") was formedincorporated on June 1, 2017 as a Delaware corporation. During 2017 the Company issued 9,000,000 shares of its common stock in consideration for a business plan at $0.001 per share. The Company has yet to start operational or research and development activities.

On August 12, 2020, pursuant to a Stock Purchase Agreement (the “SPA”) entered into by and between Xin Jiang (the “Purchaser”) and Itzhak Ostashinsky (the “Seller”), a controlling stockholder as well as Chief Executive Officer, Chief Financial Officer, President, Secretary and director of the Company, the Seller sold to the Purchaser 8,000,000 shares of common stock, par value $0.0001 per share, of the Company, representing 78.4% of the total issued and outstanding shares of common stock as of August 24, 2020, in consideration of $251,177 in cash from the Purchaser’s personal funds (the “Transaction”).  In connection with the Transaction, the Seller resigned as Chief Executive Officer, Chief Financial Officer, President, Secretary and director of the Company, effective immediately upon the consummation of the Transaction.  Xin Jiang was then appointed as Chief Executive Officer, Chief Financial Officer, President, Secretary and director of the Company. The Transaction resulted in a change in control of the Company.

Effective November 6, 2020, the Company’s name was changed to “Chengda Technology Co., Ltd.” through the filing with the Secretary of State of the State of Delaware a Certificate of Amendment to the Certificate of Incorporation of the Company, which was approved by the Company’s Board of Directors. 

After the change in control, the Company plans to implement its new business plan. The Company plans to operate in the field of crowdfundinghealth-related products, with a focus on the developing and promoting selenium-infused mineral water and energy mattress. Also, the Company plans to run an online platform for investments in private U.S. companiesoffer health services, including health assessments, health consultations, and companies which are publicly traded in the U.S. (both domestic and foreign).health recoveries.  

 

In JanuaryThe Company is currently evaluating the optimal approaches to implement these plans, including through mergers and February, 2018acquisitions of health companies in China. Due to the dynamic nature and the global impact of the COVID-19 pandemic, the Company issuedcannot reasonably estimate the timeline to implement its business plan. Until the Company is able to implement its business plan, the Company will remain a total of 1,204,000 shares of its common stock to various investors at a price of $0.025 per share. The shares were issued pursuant to the Company’s registration statement on Form S-1 which was declared effective by the SEC on October 20, 2017.shell company.

NOTE 2 – GOING CONCERN

 

The accompanying unauditedcondensed financial statements have been prepared assuming thatin conformity with United States generally accepted accounting principles (“U.S. GAAP”), which contemplate continuation of the Company will continue as a going concern. As a start-up, the Company has not generated any revenues and has accumulated losses through September 30, 2020. The Company currently has suffered cumulative losseslimited working capital and negative cash flows from operations since inception. Untildoes not expect to generate revenues in the Company will achieve profitability and revenues, which is uncertain, it intends to finance its operation through the issuance of its shares.near term. These conditions give rise toraise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that may result from the outcome of this uncertainty.

 

Management anticipates that the Company will be dependent, for the near future, on additional financing to fund operating expenses, primarily loans and/or capital contribution from its principal stockholder. As the Company is a shell company, its operating expenses are limited. Management believes that the financing from its principal stockholder will provide it with the funding to continue as a going concern.

NOTE 23  –  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited interimcondensed financial statements have been preparedreflect all adjustments, consisting of only normal recurring items, which, in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission. Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited financial statements contain all the adjustmentsare necessary (consisting only of normal recurring adjustments) to present the financial positionfor a fair statement of the Company as of September 30, 2019 and the results of operations and cash flows for the periods presented. The results of operations for the threeperiods shown and nine months ended September 30, 2019 are not necessarily indicative of the operating results to be expected for the full fiscal year.year ending December 31, 2020. These unaudited condensed financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.2019.

 

Use of Estimates

 

The preparation of the financial statements in conformity with 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 dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods.period.  Actual results could differ from those estimates. The Company currently does not have significant estimates and assumptions. 

 

Recent Accounting Pronouncements

From time to time, the FASB or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codifications ("ASC") are communicated through issuance of an Accounting Standards Update. Unless otherwise discussed, we believe that the impact of recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on our financial statements upon adoption. Further, the new lease standard had no effect on the Company since the Company leases its office space from its sole officer and director at no charge.

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Fair Value Measurement

The Company discloses fair value measurements for financial and non-financial assets and liabilities measured at fair value. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

NOTE 3 – CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash, demand deposits and highly liquid investments with original maturities of three months or less. Cash and cash equivalents are carried at cost which approximates fair value.

NOTE 4 – EARNINGS (LOSS) PER SHARE

The basic loss per share is calculated by dividing the Company’s net loss available to common shareholders by the weighted average number of common shares during the year. The diluted loss per share is calculated by dividing the Company’s net loss available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Diluted earnings (loss) per share are the same as basic earnings (loss) per share due to the lack of dilutive items in the Company and the fact that the company has a loss.

NOTE 5 – OTHER ACCOUNTS PAYABLE

At September 30, 2019 the Company had "other accounts payable" at the amount of $1,860. That amount reflects payments due to service providers.

NOTE 6 – PROMISSORY NOTE PAYABLE TO SHAREHOLDER

 

The Company has an outstanding note payable provided byreviewed the major shareholderrecent accounting pronouncements and sole officer and director which is unsecured and bearsconcluded that they were either not applicable or had no interest. The note is payable upon demand.impact to the Company’s financial statements.

 

NOTE 74COMMITMENTS AND CONTINGENCIESSHARE CAPITAL

 

In June 2017,There were no transactions of common stock and preferred stock during the Company engaged a legal counsel in order to receive legal services concerning the registration statement to be filed with the Securitiesthree months and Exchange Commission ("SEC"). According to the agreement, the fees will be paid if and only upon receiving the first $25,000 from external investors following the effectiveness of the registration statement. Since this expense was probable it was recorded as a provision and as expenses amounting to $25,000 outstanding atnine months ended September 30, 2019. The legal counsel is considered to be a related party - see also Note 9. The legal counsel has agreed to postpone this payment for the time being given the financial condition of the Company.2020 and 2019, respectively.

 

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NOTE 8 – COMMON STOCK

Common Stock confers upon its holders the rights to receive notice to participate and vote in general meetings of the Company, and the right to receive dividends if declared. At September 30, 2019 and December 31, 2018 the Company had 10,204,000 common shares outstanding. The Company has 50,000,000 authorized common shares. During the fiscal year ended December 31, 2018 the Company issued 1,204,000 common shares at $0.025 per share to various shareholders pursuant to its S-1 registration statement that became effective on October 20, 2017. The expenseexpenses incurred by the former CEO and major shareholderstockholder, Itzhak Ostashinsk, on behalf of and for the benefit of the Company, for the nine months ended September 30, 20192020 and 20182019 amounted to $26,080 and $28,350, respectively. These amounts were recorded as capital contributions in each periodthese periods.

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NOTE 5 – PROMISSORY NOTE PAYABLE TO A STOCKHOLDER

Promissory notes payable represented loans advanced from the Company’s former major stockholder to support the operations of the Company. The note was interest free and to $37,800 in the year endeddue on demand. As at December 31, 2018 and2019, the outstanding balance under the note was $39,490. During the nine months ended September 30, 2020, an additional $10,229 was advanced from the former major stockholder to the Company. In August 2020, in connection with the Transaction, the former major stockholder forgave the promissory note payable with a cumulated balance of $49,719, which was recorded as a capital contribution to equity.the Company.

 

NOTE 9 –– TRANSACTION WITH6 – RELATED PARTY TRANSACTIONS

 

During the nine months ended September 30, 2020 and 2019, the Company had the following related party transactions:

 

A.

·

During the period from inception (June 1, 2017) and up to the balance sheet date the CEO and major shareholder devoted to the Company approximately 10 hours per week. The expense

Expense incurred by the former CEO and major shareholder on behalf of and for the benefit of the Company for the nine months ended September 30, 20192020 and September 30, 20182019 amounted to $26,080 and $28,350, in each period andrespectively. The expenses incurred by the former CEO on behalf of the Company for the three months ended September 30, 2020 and 2019 amounted to $9,450.were $7,180 and $9,450, respectively. These amounts were recorded as contribution tocapital contributions in equity.

 

 

 

 

B.

·

The services described in Note 7 are provided by

As at December 31, 2019, the Company had a related party. The related party ispayable balance of $25,000 due to the son of the former major shareholderstockholder. The balance was interest free and provides legal advicedue on demand. In August 2020, the $25,000 related party payable balance was forgiven by the related party in connection with the Transaction. Therefore, the forgiven amount was recorded as a capital contribution to the Company. As of September 30, 2019 and as of December 31, 2018 the liability amounted to $25,000 – see also Note 7.

C.The Company leases its office space from its sole officer and director at no charge.

D.As of September 30, 2019 and December 31, 2018 the company has an outstanding note payable to the sole officer and director. - See Note 6.

NOTE 7 – SUBSEQUENT EVENTS

 

NOTE 10 – SUBSEQUENT EVENTS

In October, 2019 the Company became subject to a "success fee" at the amount of $15,000Management has evaluated subsequent events pursuant to the termsrequirements of a consulting agreement. In accordance with ASC 855-10 we have analyzed our operations subsequent to September 30, 2019 toTopic 855, from the balance sheet date through the date thesewhen the financial statements were issued, and have determined that except for the above event, we do not have any materialno subsequent events occurred that would require adjustment to discloseor disclosure in thesethe financial statements.

 

 
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ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following discussion contains certainand analysis of our results of operations and financial condition should be read together with our unaudited financial statements that may be deemed “forward-looking statements” withinand the meaning of the Private Securities Litigation Reform Act of 1995. Such statements appear in a number of placesnotes thereto, which are included elsewhere in this Report including, without limitation, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These statements are not guarantees of future performance and involve risks, uncertainties and requirements that are difficult to predict or are beyond our control. Forward-looking statements speak only as of the date of this quarterly report. You should not put undue reliance on any forward-looking statements. We assume no responsibility to update the forward-looking statements contained in this quarterly reportAnnual Report on Form 10-Q. The following should also be read10-K for the year ended December 31, 2019 (the “Annual Report”) filed with SEC. Our financial statements have been prepared in conjunctionaccordance with generally accepted accounting principles in the unaudited Financial Statements and notes thereto that appear elsewhere in this report.United States (the “U.S. GAAP”).

 

Company Overview

 

Operations

New Leap, Inc., aWe were in the State of Delaware corporation, (“New Leap” “Company” “we,” “us,” or “our”) was incorporated on June 1, 2017. We are a development stage company and have extremely limited financial resources. We have not commenced operation nor have we established a source of equity or debt financing. Our financial statements include a note emphasizing the uncertainty of our ability to remain a going concern.

 

Results from OperationsWe plan to operate in the field of health-related products, with a focus on the developing and promoting selenium-infused mineral water and energy mattress. In addition, we plan to offer health services, including health assessments, health consultations, and health recoveries.

 

Selling, We are currently evaluating the optimal approaches to implement these plans, including through mergers and acquisitions of health products or services companies in China. Due to the dynamic nature and the global impact of the COVID-19 pandemic, we cannot reasonably estimate the timeline to implement our business plans.

Results of Operations

Revenues

We did not generate any revenue for the three and nine months ended September 30, 2020 and 2019 and do not expect to generate any revenue until we implement our business plan. 

General and Administrative Expenses

  

Selling, general and administrative expenses forDuring the nine and three months ended September 30, 2020 and 2019, were $61,177we incurred $14,757 and $22,099 respectively, comparing to $39,002of general and $12,468 foradministrative expenses, respectively. During the nine and three months ended September 30, 2018,2020 and 2019, we incurred $40,362 and $61,177 of general and administrative expenses, respectively. TheOur general and administrative expenses were primarily consisted of auditor fees, officer’s contributed services byservice costs, professional fees and filing fees, which are routine costs associated with a public company for financial reporting requirements. The decrease in the CEOgeneral and professional services.administrative expenses in the nine months ended September 30, 2020 compared to the same period of last year was due to one-time expenses of approximately $22,000 incurred in 2019 in connection with obtaining DTC eligibility.

     

Going Concern

The future of our company is dependent upon our ability to implement our new business plans and initiatives and our ability to generate positive net profits from implementation of our business plans. Management plans to seek additional funding through either equity or debt financings from its principal stockholder to support its operations for the next twelve months. However, there is no assurance that such funds will be available or available on acceptable terms. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

Management anticipates that the Company will be dependent, for the near future, on additional financing to fund operating expenses, primarily loans and/or capital contribution from its principal stockholder. As the Company is a shell company, its operating expenses are limited. Management believes that the financing from its principal stockholder will provide it with the funding to continue as a going concern.

Liquidity and Capital Resources

 

The following is a summary of the Company'sCash Flows from Operating Activities

Net cash flows used in operating activities was $13,202 for the nine months ended September 30, 2020, compared to net cash used in operating activities of $36,197 for the same period of 2019, andrepresented a decrease of $22,995 in the net cash outflow in operating activities. This is due to the decrease of our net loss in nine months ended September 30, 2018:2020 compared to the same period of 2019.

 

 

 

Nine months

ended

September 30,

2019

 

 

Nine months

ended

September 30,

2018

 

Net Loss

 

$(61,177)

 

$(39,002)

Net cash used in operating activities

 

$(36,197)

 

$(15,964)

Net cash provided by financing activities

 

$16,738

 

 

$31,620

 

 
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Cash Flows from Financing Activities

For the nine months ended September 30, 2020, net cash generated by financing activities was $11,739, representing advances and capital contributions from the former major stockholder to support the operations of the Company. For the nine months ended September 30, 2019, net cash generated by financing activities was $16,738, representing advances from the former major stockholder to support the Company’s operations.

Commitments and Capital Expenditures

We presently have no material commitments for capital expenditures.  

Critical Accounting Policies Involving Management Estimates and Assumptions

 

Our resources to date have been funds paiddiscussion and analysis of our financial condition and results of operations is based on our behalf byfinancial statements. In preparing our major shareholder and CEO and funds raised under our registration statement, which became effective on October 20, 2017.

As a public entity we will incur ongoing expenses associated with professional fees for accounting, legal and a host of other expenses including annual reports and proxy statements, if required. We estimate that these costs will range up to $25,000 per year over the next few years and may be significantly higher if our business volume and transactional activity increases.

The Company may offer, at its discretion, shares of its common stock to settle professional fees. There can be no assurances, and we cannot predict the likelihood, that we will be able to settle any professional fees by issuing shares of our common stock.

As of September 30, 2019 we owed $63,541, $26,860 of which were in connection with professional services. The balance of $36,681 was owed to our major shareholder and chief executive officer for expenses incurred on behalf of the Company. There are no other significant liabilities at September 30, 2019.

Recently Issued Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might havein conformity with U.S. GAAP, we must make a material impact on its financial position or resultsvariety of operations.

Critical Accounting Policies

The preparation of financial statements and related notes requires us to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosuredisclosures. See Note 3 of contingent assets and liabilities.

An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the financial statements.

Financial Reporting Release No. 60 requires all companies to include a discussion of critical accounting policies or methods used in the preparation of financial statements. There are no critical policies or decisions that rely on judgments that are based on assumptions about matters that are highly uncertain at the time the estimate is made. Note 2 to theour interim financial statements included elsewhere in this report, includes a summary ofReport and the significant accounting policies and methods used inCompany’s Annual Report on Form 10-K for the preparation of our financial statements.year ended December 31, 2019.  

 

Going Concern

Our independent registered public accounting firm, which audited our financial statements as of December 31, 2018 and for the period then ended has raised substantial doubt about our ability to continue as a going concern. Therefore, it is possible that even if we keep costs to a minimum we may not be able to continue operations for the next 12 months.

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Off-Balance Sheet Arrangements

 

We do not have not entered into any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources and would be considered material to investors. 

Contractual Obligations

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

 

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.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 Not applicable.

 

ITEM 4.CONTROLS AND PROCEDURES.PROCEDURES

 

Evaluation of Disclosure Controls and Procedures 

We conducted an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. The term "disclosure controls and procedures", as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as amended ("Exchange Act"), meansprocedures are controls and other procedures of a company that are designed to ensure that information required to be disclosed by the company in theour reports it filesfiled or submitssubmitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC`sSEC’s rules and forms. Disclosure controls and procedures also include, without limitation, controls and procedures designed to ensure that information required to be disclosed by ain company in the reports that it filesfiled or submitssubmitted under the Exchange Act is accumulated and communicated to the company's management, including itsour principal executive officer and principal financial officers, or persons performing similar functions, as appropriate,officer, to allow timely decisions regarding required disclosure.

 

Based on thisAs required by Rules 13a-15 and 15d-15 under the Exchange Act, our principal executive officer and principal financial officer carried out an evaluation of the effectiveness of the design and operation of our Chief Executive Officerdisclosure controls and Chief Financial Officer concludedprocedures as of September 30, 2019,2020. Based upon their evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures are(as defined in Rules 13a-15 (e) and 15d-15 (e) under the Exchange Act) were not effective at a reasonable assurance level and are designed to provide reasonable assurance that the controls and procedures will meet their objectives due to the following material weaknesses, described below. However, it should be noted that the designwhich are indicative of any systemmany small companies with limited resources: (i) lack of proper segregation of duties and risk assessment process; (ii) lack of formal documentation in internal controls is based in part upon certain assumptions about the likelihoodover financial reporting; and (iii) lack of future events,independent directors and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.an audit committee. 

 

Changes in Internal Control over Financial Reporting

 

There were no changes in the Company’s internal control over financial reporting that occurred since December 31, 2018during the quarter ended September 30, 2020 that have materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

 
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PART II - OTHER INFORMATION

 

PART II -- OTHER INFORMATION

ItemITEM 1. Legal Proceedings.

To the best of our knowledge, the Company is not a party to any legal proceeding or litigation. 

Item 1A. Risk Factors.

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

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

There were no sales of unregistered equity securities during the period covered by this report on Form 10-Q. Our registration statement on Form S-1, file number 333-219776, became effective on October 20, 2017 and then again on June 12, 2019 following the filing of a post-effective amendment to the registration statement. The offering pursuant to this registration statement was terminated on April 20, 2018. Proceeds raised in the offering are used for general expenses.

Item 3. Defaults upon Senior Securities.

None. 

Item 5. Other Information.LEGAL PROCEEDINGS.

 

None.

 

ITEM 1A.RISK FACTORS.

Not applicable

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5.OTHER INFORMATION.

None.

 
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ITEM 6.EXHIBITS.

 

Item 6. Exhibits.The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report.

 

No.

Description of Exhibit

313.1*

Certificate of Amendment to Certificate of Incorporation, incorporated herein by reference Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on November 6, 2020.

31.1*

Certification of President pursuantPrincipal Executive Officer and Principal Financial Officer Pursuant to Securities Exchange Act Rule 13a-14Rules 13a-14(a) and 15d-14.15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1**

32

Certification of the Company’s ChiefPrincipal Executive Officer and ChiefPrincipal Financial Officer pursuantPursuant to 18 U.S.C. Section 1350, as Adoptedadopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.2002

101.INS **101.INS*

 

XBRL Instance Document

101.SCH ** 101.CAL*

XBRL Taxonomy Extension Schema Document 

101.CAL ** 

XBRL Taxonomy Extension Calculation Linkbase Document

101.SCH*

XBRL Taxonomy Extension Schema Document

101.DEF **101.DEF*

 

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*

101.LAB ** 

XBRL Taxonomy Extension LabelLabels Linkbase Document

101.PRE*

101.PRE ** 

XBRL Taxonomy Extension Presentation Linkbase Document

___________ 

*Filed herewith

* XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections. *Furnished 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.

 

 

NEW LEAP, INC.

CHENGDA TECHNOLOGY CO., LTD.

Date: November 4, 201913, 2020

By:

/s/ Itzhak OstashinskyXin Jiang

 

Itzhak OstashinskyName:

Xin Jiang

Title:

Chief Executive Officer, President and Chief Financial Officer and President

16

(Principal Executive Officer and Principal Financial and Accounting Officer)

 

14