Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 31, 2021 | Mar. 22, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Advanced Biomedical Technologies Inc. | |
Entity Central Index Key | 0001385799 | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 70,224,850 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jan. 31, 2021 | Oct. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 8,491 | $ 201,664 |
Other receivables and prepaid expenses | 56,398 | 29,260 |
Inventory | 122,221 | 100,026 |
Total current assets | 187,110 | 330,950 |
NON-CURRENT ASSETS | ||
Property and equipment, cost | 593,036 | 552,423 |
Less: Accumulated depreciation | (470,746) | (446,949) |
Property and equipment, net | 122,290 | 105,474 |
Operating lease right-of-use assets | 22,392 | 32,802 |
Total non-current assets | 144,682 | 138,276 |
TOTAL ASSETS | 331,792 | 469,226 |
CURRENT LIABILITIES | ||
Other payables and accrued expenses | 1,687,519 | 1,942,316 |
Operating lease liabilities, current portion | 20,303 | 28,028 |
Due to directors | 311,127 | 308,031 |
Due to a stockholder | 892,664 | 880,108 |
Advances from related parties | 5,249,202 | 4,705,512 |
Total current liabilities | 8,160,815 | 7,863,995 |
NON-CURRENT LIABILITIES | ||
Operating lease liabilities, less current portion | 3,690 | 7,029 |
STOCKHOLDERS' DEFICIT | ||
Common stock, $0.00001 par value, 100,000,000 shares authorized, 70,224,850 issued and outstanding as of January 31, 2021 and October 31, 2020 | 702 | 702 |
Additional paid-in capital | 2,827,832 | 2,824,279 |
Stock-based compensation reserves | 12,702 | 8,160 |
Accumulated deficit | (10,428,408) | (10,256,364) |
Accumulated other comprehensive income/(loss) | (245,541) | 21,425 |
Total stockholders' deficit | (7,832,713) | (7,401,798) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 331,792 | $ 469,226 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2021 | Oct. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 70,224,850 | 70,224,850 |
Common stock, shares outstanding | 70,224,850 | 70,224,850 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Income Statement [Abstract] | ||
SALES | $ 47,233 | $ 60,501 |
Cost of sales | (10,147) | (33,127) |
Gross margin | 37,086 | 27,374 |
OPERATING EXPENSES | ||
General and administrative expenses | 38,645 | 54,285 |
Research and development | 66,806 | 56,780 |
Depreciation on property and equipment | 4,174 | 5,132 |
Depreciation on operating lease right-of-use assets | 11,561 | 10,822 |
Stock-based compensation expenses | 4,542 | |
Total Operating Expenses | 125,728 | 127,019 |
LOSS FROM OPERATIONS | (88,642) | (99,645) |
OTHER (EXPENSES) INCOME | ||
Government grants | 125,652 | |
Interest income | 74 | 5 |
Interest paid to a stockholder and related parties | (73,018) | (80,254) |
Interest on operating lease liabilities | (557) | (1,297) |
Imputed interest | (3,553) | (3,389) |
Other, net | (6,348) | (4,861) |
Total Other (Expenses) Income, net | (83,402) | 35,856 |
LOSS BEFORE TAXES | (172,044) | (63,789) |
Income tax expense | ||
NET LOSS | (172,044) | (63,789) |
Net loss attributable to non-controlling interests | ||
NET LOSS ATTRIBUTABLE TO ABMT COMMON STOCKHOLDERS | (172,044) | (63,789) |
OTHER COMPREHENSIVE LOSS | ||
Foreign currency translation loss | (266,966) | (100,290) |
Total other comprehensive loss | (266,966) | (100,290) |
COMPREHENSIVE LOSS ATTRIBUTABLE TO ABMT COMMON STOCKHOLDERS | $ (439,010) | $ (164,079) |
Net loss per share-basic and diluted - basic and diluted | $ 0 | $ 0 |
Weighted average number of shares outstanding during the period - basic | 70,224,850 | 69,874,850 |
Weighted average number of shares outstanding during the period - diluted | 70,298,275 | 69,874,850 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Stock-based Compensation Reserve [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Oct. 31, 2019 | $ 698 | $ 2,768,138 | $ (9,581,438) | $ 334,363 | $ (6,478,239) | |
Balance, shares at Oct. 31, 2019 | 69,874,850 | |||||
Effect of adoption of ASU 2016-02 | (2,926) | (2,926) | ||||
Imputed interest on advances from directors | 3,389 | 3,389 | ||||
Net loss for the year | (63,789) | (63,789) | ||||
Foreign currency translation gain (loss) | (100,290) | (100,290) | ||||
Balance at Jan. 31, 2020 | $ 698 | 2,771,527 | (9,648,153) | 234,073 | (6,641,855) | |
Balance, shares at Jan. 31, 2020 | 69,874,850 | |||||
Balance at Oct. 31, 2020 | $ 702 | 2,824,279 | 8,160 | (10,256,364) | 21,425 | (7,401,798) |
Balance, shares at Oct. 31, 2020 | 70,224,850 | |||||
Imputed interest on advances from directors | 3,553 | 3,553 | ||||
Stock-based compensation expenses | 4,542 | 4,542 | ||||
Net loss for the year | (172,044) | (172,044) | ||||
Foreign currency translation gain (loss) | (266,966) | (266,966) | ||||
Balance at Jan. 31, 2021 | $ 702 | $ 2,827,832 | $ 12,702 | $ (10,428,408) | $ (245,541) | $ (7,832,713) |
Balance, shares at Jan. 31, 2021 | 70,224,850 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss attributable to ABMT common stockholders | $ (172,044) | $ (63,789) |
Adjustments to reconcile net loss to cash used in operating activities | ||
Depreciation on property & equipment | 4,174 | 5,132 |
Depreciation on operating lease right-of-use assets | 11,561 | 10,822 |
Imputed interest | 3,553 | 3,389 |
Interest on operating lease liabilities | 557 | 1,297 |
Stock-based compensation expenses | 4,542 | |
Decrease (Increase) in: | ||
Inventory | (17,791) | 15,685 |
Other receivables and prepaid expenses | (27,684) | (9,351) |
Depreciation allocated to inventory | 1,715 | 153 |
Increase in: | ||
Other payables and accrued expenses | (323,400) | (15,198) |
Net cash used in operating activities | (514,817) | (51,860) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (18,192) | (525) |
Net cash used in investing activities | (18,192) | (525) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Due to a stockholder | 12,532 | 12,448 |
Due to directors | (8,398) | 13,748 |
Due to related parties | 343,852 | 40,640 |
Principal element of operating lease payments | (12,294) | (10,734) |
Interest element of operating lease payments | (557) | (1,297) |
Net cash provided by financing activities | 335,135 | 54,805 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 4,701 | 74 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (193,173) | 2,494 |
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD | 201,664 | 5,592 |
CASH AND CASH EQUIVALENTS AT THE END OF PERIOD | 8,491 | 8,086 |
Supplemental of cash flow information | ||
Interest income | 74 | 5 |
Other non cash items | ||
Interest expenses | $ 73,575 | $ 81,551 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | NOTE 1 BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain adjustments considered necessary to present fairly the Company’s financial position as of January 31, 2021, the consolidated results of operations for the three months ended January 31, 2021 and 2020 and consolidated statements of cash flows for the three months ended January 31, 2021 and 2020 on an accrual basis and in accordance with accounting principles generally accepted in the United States of America for interim financial information and rules and regulations of the SEC. The consolidated results for the three months ended January 31, 2021 are not necessarily indicative of the results to be expected for the entire fiscal year ending October 31, 2021. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes for the year ended October 31, 2020 appearing in the Company’s annual report on Form 10-K as filed with the Securities and Exchange Commission on January 29, 2021. The reporting currency of the Company is US dollar. |
Organization
Organization | 3 Months Ended |
Jan. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | NOTE 2 ORGANIZATION Advanced BioMedical Technologies, Inc. (fka “Geostar Mineral Corporation” or “Geostar”) (“ABMT”) was incorporated in Nevada on September 12, 2006. Shenzhen Changhua has been involved in the development of polymer screws, rods and binding wires for fixation on human fractured bones. The Company is currently involved in researching, manufacturing and conducting clinical trials on its products and intends to raise additional capital to produce and market its products commercially. The Company holds one Class III permit, one Class II permit and one Class I permit from the National Medical Products Administration of the PRC (“NMPA”), formally the China Food and Drug Administration (“CFDA”) and the State Food and Drug Administration (“SFDA”) of the PRC. The Company holds four patents issued by the State Intellectual Property Office of the P.R.C. (“SIPO”). Masterise Holdings Limited (“Masterise”) was incorporated in the British Virgin Islands on May 31, 2007 as an investment holding company and was then owned as to 63% by the spouse of Shenzhen Changhua’s 70% majority stockholder at the time and 37% by a third party corporation. On January 29, 2008, Masterise entered into a Share Purchase Agreement (“the Agreement”) with a stockholder of Shenzhen Changhua whereupon Masterise acquired 70% of Shenzhen Changhua for US$64,100 in cash. The acquisition was completed on February 25, 2008. As both Masterise and Shenzhen Changhua were under common control and management, the acquisition was accounted for as a reorganization of entities under common control. Accordingly, the operations of Shenzhen Changhua were included in the consolidated financial statements as if the transactions had occurred retroactively. On December 31, 2008, ABMT consummated a Share Exchange Agreement (“the Exchange Agreement”) with the stockholders of Masterise pursuant to which ABMT issued 50,000 shares of Common Stock to the stockholders of Masterise for 100% equity interest in Masterise. Concurrently, on December 31, 2008, a major stockholder of ABMT also consummated an Affiliate Stock Purchase Agreement (the “Affiliate Agreement”) with thirteen individuals including all the stockholders of Masterise, pursuant to which the major stockholder sold a total of 5,001,000 shares of ABMT’s common stock for a total aggregate consideration of $5,000, including 4,438,250 shares to the stockholders of Masterise. On consummation of the Exchange Agreement and the Affiliate Agreement, the 70% majority stockholder of Masterise became an 80.7% stockholder of ABMT. On March 13, 2009, the name of the Company was changed from Geostar Mineral Corporation to Advanced Biomedical Technologies, Inc. The merger of ABMT and Masterise was treated for accounting purposes as a capital transaction and recapitalization by Masterise (“the accounting acquirer”) and a re-organization by ABMT (“the accounting acquiree”). The financial statements have been prepared as if the re-organization had occurred retroactively. Accordingly, these financial statements include the following: (1) The balance sheet consisting of the net assets of the acquirer at historical cost and the net assets of the acquiree at historical cost. (2) The statement of operations including the operations of the acquirer for the periods presented and the operations of the acquiree from the date of the transaction. ABMT, Masterise and Shenzhen Changhua are hereinafter referred to as (“the Company”). |
Principles of Consolidation
Principles of Consolidation | 3 Months Ended |
Jan. 31, 2021 | |
Principles Of Consolidation | |
Principles of Consolidation | NOTE 3 PRINCIPLES OF CONSOLIDATION The accompanying condensed consolidated financial statements include the financial statements of ABMT and its wholly owned subsidiaries, Masterise and its 70% owned subsidiary, Shenzhen Changhua. The non-controlling interests in periods prior to 2012 represent the non-controlling stockholders’ 30% proportionate share of the results of Shenzhen Changhua. All significant inter-company balances and transactions have been eliminated in consolidation. |
Use of Estimates
Use of Estimates | 3 Months Ended |
Jan. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | NOTE 4 USE OF ESTIMATES The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount 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. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Jan. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 5 RELATED PARTY TRANSACTIONS As of January 31, 2021 and October 31, 2020, the Company owed a stockholder $892,664 and $880,108 respectively which are unsecured and repayable on demand. Interests are charged at 7% per annum on the amount owed. As of January 31, 2021 and October 31, 2020, the Company owed four related parties a total of $5,249,202 and $4,705,512 respectively which are unsecured and repayable on demand. Interests are charged at 7% per annum on the amounts owed. Total interest expenses on advances from a stockholder and the related parties accrued for the three months ended January 31, 2021 and 2020 were $73,018 and $80,254 respectively. As of January 31, 2021 and October 31, 2020, the Company owed $311,127 and $308,031 respectively, to three directors for advances made on an unsecured basis, repayable on demand and interest free. Imputed interest charged at 5% per annum on the amounts owed to the directors is $3,553 and $3,389 for the three months ended January 31, 2021 and 2020 respectively. As of January 31, 2021 and October 31, 2020, the Company has contract liabilities of US$1,032,373 and US$1,343,281 with a company in which Mr. Chen Tie Jun has a significant equity interest. Sales for the quarter ended 31 January 2021 and 31 January 2020 to the related company amounted to US$47,233 and US$60,501 respectively. Sales for the three months ended January 31, 2021 and 2020 of US$47,233 and $60,501 respectively were made to a company in which Mr. Chen Tie Jun has a significant equity interest. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 6 COMMITMENTS AND CONTINGENCIES Leases Pursuant to ASC 842, the Company recognizes operating leases as right-of-use assets and lease liabilities as shown in the consolidated balance sheet. The Company has two operating leases with unrelated parties for factory space and director’s quarter in the P.R.C., which are non-cancelable and expiring on dates between 28 March 2021 and 30 April 2022, and do not include options to renew. The depreciable life of right-of use assets are limited by the term of leases. As of January 31, 2021, the Company has lease commitments as follows: For the year ending October 31, 2021 $ 17,423 2022 7,467 Total lease payment payables 24,890 Less: Interest element (897 ) Total lease liabilities 23,993 Lease liabilities current portion (20,303 ) Lease liabilities less current portion $ 3,690 In determining the lease liability and corresponding right-of-use asset for each lease, the Company calculated the present value of future lease payments using the Company’s incremental borrowing rate. The incremental borrowing rate was determined with reference to the interest rate applicable to borrowings from related parties disclosed in Note 4, Related Parties Transactions. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Jan. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 7 FAIR VALUE OF FINANCIAL INSTRUMENTS The Financial Accounting Standards Board (FASB) Codification Topic 825 (ASC Topic 825), “Disclosure About Fair Value of Financial Instruments,” requires certain disclosures regarding the fair value of financial instruments. The carrying amounts of other receivables and prepaid expenses, other payables and accrued liabilities and due to a stockholder, directors and related parties approximate their fair values because of the short-term nature of the instruments. The management of the Company is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial statements. |
Going Concern
Going Concern | 3 Months Ended |
Jan. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOTE 8 GOING CONCERN As reflected in the accompanying unaudited condensed consolidated financial statements, the Company has an accumulated deficit of $10,428,408 as of January 31, 2021 that includes a net loss of $172,044 for the three months ended January 31, 2021. As of January 31, 2021, the Company’s total current liabilities exceeded its total current assets by $7,973,705 and the Company used cash in operations of $514,817 for the three months ended on that date. These factors raise substantial doubt about its ability to continue as a going concern. In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying condensed consolidated balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to raise additional capital, obtain financing and succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management has taken the following steps to revise its operating and financial requirements, which it believes are sufficient to provide the Company with the ability to continue as a going concern. The Company is actively pursuing additional funding and strategic partners, which will enable the Company to implement its business plan. Management believes that these actions as successful will allow the Company to continue its operations through the next fiscal year. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Obligations of Operating Leases | As of January 31, 2021, the Company has lease commitments as follows: For the year ending October 31, 2021 $ 17,423 2022 7,467 Total lease payment payables 24,890 Less: Interest element (897 ) Total lease liabilities 23,993 Lease liabilities current portion (20,303 ) Lease liabilities less current portion $ 3,690 |
Organization (Details Narrative
Organization (Details Narrative) - USD ($) | Dec. 31, 2008 | Jan. 29, 2008 | May 31, 2007 | Jan. 31, 2021 |
Share Exchange Agreement [Member] | ABMT [Member] | ||||
Stock issued in acquisition, shares | 50,000 | |||
Equity method investment ownership percentage | 100.00% | |||
Majority Shareholders [Member] | ABMT [Member] | ||||
Ownership acquired | 80.70% | |||
Stock sold per affiliate agreement, shares | 5,001,000 | |||
Stock sold per affiliate agreement | $ 5,000 | |||
Majority Shareholders [Member] | Masterise [Member] | ||||
Ownership acquired | 70.00% | |||
Stock sold per affiliate agreement, shares | 4,438,250 | |||
Masterise [Member] | ||||
Ownership interest - majority stockholder | 63.00% | |||
Ownership interest - minority stockholder | 37.00% | |||
Masterise [Member] | ABMT [Member] | ||||
Equity method investment ownership percentage | 70.00% | |||
Masterise [Member] | Share Purchase Agreement [Member] | ||||
Ownership acquired | 70.00% | |||
Payment for acquisition | $ 64,100 | |||
Masterise [Member] | Majority Shareholders [Member] | ||||
Ownership acquired | 70.00% |
Principles of Consolidation (De
Principles of Consolidation (Details Narrative) - ABMT [Member] | Jan. 31, 2021 |
Masterise [Member] | |
Equity method investment ownership percentage | 70.00% |
Shenzhen Changhua [Member] | |
Ownership by non-controlling stockholders | 30.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Oct. 31, 2020 | |
Due to stockholder | $ 892,664 | $ 880,108 | |
Due to related parties | 5,249,202 | 4,705,512 | |
Interest expenses on advances from stockholder and related parties | 73,018 | $ 80,254 | |
Due to directors | 311,127 | 308,031 | |
Sales for related party | $ 47,233 | 60,501 | |
Four Related Parties [Member] | |||
Interest rate | 7.00% | ||
Stockholder [Member] | |||
Interest rate | 7.00% | ||
Three Directors [Member] | |||
Interest rate | 5.00% | ||
Director [Member] | |||
Amounts owed to directors | $ 3,553 | 3,389 | |
Mr. Chen Tie Jun [Member] | |||
Contract liabilities | 1,032,373 | $ 1,343,281 | |
Sales for related party | $ 47,233 | $ 60,501 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) | 3 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease, description | The Company has two operating leases with unrelated parties for factory space and director's quarter in the P.R.C., which are non-cancelable and expiring on dates between 28 March 2021 and 30 April 2022, and do not include options to renew. The depreciable life of right-of use assets are limited by the term of leases. |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Obligations of Operating Leases (Details) - USD ($) | Jan. 31, 2021 | Oct. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
2021 | $ 17,423 | |
2022 | 7,467 | |
Total lease payment payables | 24,890 | |
Less: Interest element | (897) | |
Total lease liabilities | 23,993 | |
Lease liabilities current portion | (20,303) | $ (28,028) |
Lease liabilities less current portion | $ 3,690 | $ 7,029 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 3 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Oct. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated deficit | $ (10,428,408) | $ (10,256,364) | |
Net loss | (172,044) | $ (63,789) | |
Working capital deficit | 7,973,705 | ||
Net cash generated used in in operating activities | $ (514,817) | $ (51,860) |