Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Apr. 30, 2020 | May 27, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | WECONNECT Tech International, Inc. | |
Entity Central Index Key | 0001409175 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --07-31 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 593,610,070 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Interactive data current? | Yes | |
State of Incorporation | NV | |
Entity file number | 000-52879 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Apr. 30, 2020 | Jul. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 173 | $ 3,343 |
Account receivables | 6,341 | 11,957 |
Other receivables, deposits and prepayments | 22,702 | 54,050 |
Amount due from related parties | 8,642 | 829 |
Total Current Assets | 37,858 | 70,179 |
NON-CURRENT ASSETS | ||
Plant and equipment, net | 68,274 | 88,649 |
Total Non-Current Assets | 68,274 | 88,649 |
Total Assets | 106,132 | 158,828 |
Current Liabilities | ||
Accounts payable | 65,853 | 75,777 |
Other payables and accrued liabilities | 171,580 | 199,086 |
Amount due to related parties | 1,280,997 | 1,071,620 |
Current tax liabilities | 21,187 | 21,211 |
Total Current Liabilities | 1,539,617 | 1,367,694 |
NON-CURRENT LIABILITIES | ||
Deferred taxation | 9,015 | 9,449 |
Total Non-Current Liabilities | 9,015 | 9,449 |
Total Liabilities | 1,548,632 | 1,377,143 |
STOCKHOLDERS' EQUITY | ||
Common Stock 593,610,070 shares issued and outstanding at April 30, 2020 and July 31, 2019 | 593,610 | 593,610 |
Additional paid-in capital | 4,958,781 | 4,958,781 |
Accumulated loss | (6,803,196) | (6,535,337) |
Accumulated other comprehensive loss | (191,695) | (235,369) |
Total Stockholders' Equity | (1,442,500) | (1,218,315) |
Total Liabilities and Stockholders' Equity | $ 106,132 | $ 158,828 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Apr. 30, 2020 | Jul. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common Stock, Shares, Issued | 593,610,070 | 593,610,070 |
Common Stock, Shares, Outstanding | 593,610,070 | 593,610,070 |
Consolidated Statement Of Opera
Consolidated Statement Of Operation And Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 4,602 | $ 644 | $ 64,890 | $ 64,386 |
Cost of Revenue | 0 | (162) | (2) | (10,242) |
Gross Profit | 4,602 | 482 | 64,888 | 54,144 |
Other Income | 17,462 | 17 | 14,989 | 538 |
General and Administrative Expenses | (88,867) | (222,693) | (347,836) | (995,763) |
Loss Before Taxation | (66,803) | (222,194) | (267,859) | (941,081) |
Taxation | 0 | 0 | 0 | 0 |
Loss After Taxation | (66,803) | (222,194) | (267,859) | (941,081) |
Foreign Currency Translation Adjustment | 54,976 | 8,282 | 43,674 | 9,780 |
Total Comprehensive Loss for The Period | $ (11,827) | $ (213,912) | $ (224,185) | $ (931,301) |
Earnings Per Share | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted Average Number of Common Shares Outstanding Basic and Diluted | 593,610,070 | 593,610,070 | 593,610,070 | 593,610,070 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) | Common Stock | Additional Paid-In Capital | Donated Capital | Retained Earnings / Accumulated Deficit | Other Comprehensive Income / Loss | Total |
Beginning balance, shares at Jul. 31, 2018 | 593,610,070 | |||||
Beginning balance, value at Jul. 31, 2018 | $ 593,610 | $ 4,958,781 | $ 0 | $ (5,048,961) | $ (228,461) | $ 274,969 |
Net loss | (1,486,376) | (1,486,376) | ||||
Foreign currency translation adjustment | (6,908) | (6,908) | ||||
Ending balance, shares at Jul. 31, 2019 | 593,610,070 | |||||
Ending balance, value at Jul. 31, 2019 | $ 593,610 | 4,958,781 | 0 | (6,535,337) | (235,369) | (1,218,315) |
Net loss | (267,859) | (267,859) | ||||
Foreign currency translation adjustment | 43,674 | 43,674 | ||||
Ending balance, shares at Apr. 30, 2020 | 593,610,070 | |||||
Ending balance, value at Apr. 30, 2020 | $ 593,610 | $ 4,958,781 | $ 0 | $ (1,803,196) | $ (191,695) | $ (1,442,500) |
Consolidated Statement Of Cash
Consolidated Statement Of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (267,859) | $ (941,081) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Impairment | 0 | 302,134 |
Depreciation of plant and equipment | 16,489 | 20,634 |
Gain on disposal of PPE | (45) | (504) |
Unrealized exchange gain | (13,180) | (2,670) |
Changes in operating assets and liabilities: | ||
Account receivables | 5,131 | (1,735) |
Other receivables, deposits and prepayments | 29,235 | (15,345) |
Amount due to directors | 0 | (51,100) |
Amount due to related parties | 254,122 | 630,658 |
Account payables | (7,996) | 71,834 |
Other payables and accrued liabilities | (19,050) | (24,637) |
Net cash used in operating activities | (3,153) | (11,812) |
CASH FLOWS FROM INVESTING ACTIVITY | ||
Sales proceeds from disposal of plant and equipment | 73 | 2,087 |
Purchase of plant and equipment | 0 | (496) |
Net cash generated from investing activity | 73 | 1,591 |
CASH FLOWS FROM FINANCING ACTIVITY | ||
Net cash generated from financing activity | 0 | 0 |
Change in cash and cash equivalents | (3,080) | (10,221) |
Foreign currency translation adjustment | (90) | (222) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (3,170) | (10,443) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 3,343 | 14,159 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 173 | $ 3,716 |
1. Organization and Business Ba
1. Organization and Business Background | 9 Months Ended |
Apr. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Background | 1. Organization and Business Background WECONNECT Tech International Inc. was incorporated under the laws of the State of Nevada on April 25, 2007. For purposes of financial statements presentation, WECONNECT Tech International Inc. and its subsidiary are herein referred to as “the Company” or “We”. Our business office is located at 1st Floor, Block A, Axis Business Campus, No. 13A & 13B, Jalan 225, Section 51A, 46100 Petaling Jaya, Selangor, Malaysia. On June 8, 2018, we acquired approximately 99.662% equity interest of MIG Mobile Tech Bhd, a public limited company incorporated in Malaysia. MIG Mobile Tech Bhd is mainly engaged in e-commerce, online to offline marketplace and payment eco-system. The non-controlling interest remaining will be 0.338%. This transaction was accounted for as a transaction among entities under common control and the assets, liabilities, revenues, and expenses of MIG Mobile Tech Bhd were carried over to and combined with the Company at historical cost, and as if the transfer occurred at the beginning of the period. We have conducted our business through MIG Mobile Tech Bhd since the acquisition. Details of the Company’s subsidiary: No Company Name Place and date of incorporation Particulars of issued capital Principal activities 1 MIG Mobile Tech Bhd Malaysia Oct 1, 2015 50,000,000 of ordinary shares E-commerce, online to offline marketplace and payment eco-system |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 9 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The interim financial information referred to above has been prepared and presented in conformity with accounting principles generally accepted in the United States applicable to interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The interim financial information has been prepared on a basis consistent with prior interim periods and years and includes all disclosures that are necessary and required by applicable laws and regulations. This report on Form 10-Q should be read in conjunction with the Company’s financial statements and notes thereto included in the Company’s Form 10-K for the fiscal year ended July 31, 2019. In the opinion of management, all adjustments (consisting of normal and recurring accruals) considered necessary for fair presentation of the Company’s financial position, results of operations and cash flows have been included. Operating results for the nine months ended April 30, 2020, are not necessarily indicative of the results that may be expected for future quarters or the year ending July 31, 2020. Basis of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiary. All inter-company accounts and transactions have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to valuation of donated services and rent, fair value measurements and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Cash and Cash Equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. As of April 30, 2020, and July 31, 2019, the Company had $173 and $3,343 in cash and cash equivalents, respectively. Plant and Equipment Plant and equipment is stated at cost less accumulated depreciation and impairment. Depreciation of plant and equipment are calculated on the straight-line method over their estimated useful lives as follows: Classification Principal annual rate / Estimated useful lives Computer hardware and software 4 years Furniture and fittings 10 years Office equipment 5 years Telecommunication 2 years Renovation 10 years Signboard 5 years Security and alarm system 4 years Expenditures for maintenance and repairs are expenses as incurred. Inventories Inventories consisting of products available for sell, are stated at the lower of cost or market value. Cost of inventory is determined using the first-in, first-out (FIFO) method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of revenues in the Statements of Operation and Comprehensive Income. Revenue Recognition Revenue recognized when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount of the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or receivable. a) Sales of goods Revenue from sales of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer. Revenue is measured at the fair value of the consideration received or receivable, net of discounts and taxes application to the revenue. b) Rendering of Services Revenue from rendering of services is measured by reference to the stage of completions of the transaction at the reporting date. c) Interest income Interest income is recognized using the effective interest method and accrued on a timely basis. Foreign Currencies Translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations. The functional currency of the Company is the United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the subsidiary maintains its books and record in a local currency, Malaysian Ringgit (“MYR” or “RM”), which is functional currency as being the primary currency of the economic environment in which the entity operates. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of other comprehensive income. The Company has not to, the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates for the respective years: As of and for the period ended 2020 2019 Period average MYR : US$1 exchange rate 4.2717 4.1257 Period end MYR : US$1 exchange rate 4.3260 4.1355 Fair Value of Financial Instruments The carrying value of the Company’s financial instruments: cash and cash equivalents, trade receivable, deposits and other receivables, amount due to related parties and other payables approximate at their fair values because of the short-term nature of these financial instruments. The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” ("ASC 820-10"), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Income Tax Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. There were no significant deferred tax items as of April 30, 2020 and July 31, 2019. The Company applied the provisions of ASC 740-10-50, Accounting for Uncertainty In Income Taxes or any given quarterly or annual period based, in part, upon the results of operations for the given period. At and July 31, 2019, management considered that the Company had no uncertain tax positions and will continue to evaluate for uncertain positions in the future. Basic and Diluted Net Income/(Loss) Per Share The Company calculates net income/(loss) per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income/(loss) per share is computed by dividing the net income/(loss) by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income/(loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive. Diluted earnings per share excludes all dilutive potential shares if their effect is anti-dilutive. As at April 30, 2020 and 2019, there were no potentially dilutive securities outstanding. Recent Accounting Pronouncements Management has considered all recent accounting pronouncements issued and their potential effect on our financial statements. The Company's management believes that these recent pronouncements will not have a material effect on the Company's condensed financial statements. |
3. Related Party Transactions
3. Related Party Transactions | 9 Months Ended |
Apr. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 3. Related Party Transactions During the nine months ended April 30, 2020, MIG Network & Consultancy Sdn Bhd (the “MIG Network and Consultancy”), a Malaysian company of which the Executive Directors of the Company are the major shareholders, advanced to the Company an aggregate amount of $235,215, or the equivalent of RM1,004,768, for working capital purposes. The advances were unsecured, interest free, and due on demand. As of April 30, 2020, and July 31, 2019, there were $ and $1,071,620 advances outstanding, respectively. For the For the April 30, 2020 April 30, 2019 Revenue generated from: East Cloud Sdn Bhd $ 16,470 $ – MIG O2O Berhad – 19,391 Creative Property Management Sdn Bhd 6,390 – MIG Network & Consultancy Sdn Bhd 15,042 8,483 WPAY International Berhad – 8,962 $ 37,902 $ 36,836 Payroll outsourcing charge back to: MIG O2O Berhad $ – $ 36,365 MIG Network & Consultancy Sdn Bhd 212 1,572 North Cloud Sdn Bhd – 18,225 $ 212 $ 56,162 Legal fee paid to MIG Network & Consultancy Sdn Bhd $ 6,700 $ 6,850 Rental paid to MIG Network & Consultancy Sdn Bhd $ 16,906 $ 58,503 April 30, July 31, 2019 Amount due from related parties: Creative Property Management Sdn Bhd $ 551 $ 829 MIG O2O Sdn Bhd 8,091 – $ 8,642 $ 829 Amount due to related parties: MIG Network & Consultancy Sdn Bhd $ 1,280.997 $ 1,071,620 MIG O2O Berhad – – $ 1,280,997 $ 1,071,620 |
4. Stockholders' Equity
4. Stockholders' Equity | 9 Months Ended |
Apr. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 4. Stockholders’ Equity Common Stock As of April 30, 2020, and July 31, 2019, there are 593,610,070 shares of common stock issued and outstanding. Preferred Stock As of April 30, 2020, and July 31, 2019, there are no issued and outstanding preferred stocks. |
5. Subsequent Events
5. Subsequent Events | 9 Months Ended |
Apr. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 5. Subsequent Events In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after April 30, 2020 up through the date the Company presented these financial statements, except for the Share Exchange Agreement dated June 18, 2019, by and among WeConnect Tech International, Inc., OZ Seventy Five Holdings (M) Berhad and certain Investors which will expire on June 30, 2020. |
6. Commitments and Contingencie
6. Commitments and Contingencies | 9 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitment and Contingencies The Company entered into an agreement with Digiland Pte Ltd. on September 12, 2017, amounting to SGD$1,600,000 (approximately US$1,168,000) for eMobile Apps (User and Merchant) and Backed Admin Web Portal. The remaining cost to complete the eMobile Apps (User and Merchant) and Backed Admin Web Portal in future is approximately US$584,000. The Company and Digiland are parties to legal claims against each other, as more fully described in Note 7 Estimates When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. However, if the loss (or an additional loss in excess of the accrual) is at least a reasonable possibility and material, then the Company discloses an estimate of the possible loss or range of loss, if such estimate can be made or discloses that an estimate cannot be made. The assessments whether a loss is probable or a reasonable possibility, and whether the loss or a range of loss is estimable, often involve a series of complex judgments about future events. Management is often unable to estimate a range of reasonably possible loss, particularly where (i) the damages sought are substantial or indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel or unsettled legal theories or a large number of parties. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, therefore, no contingencies were provided as at April 30, 2020. |
7. Estimates
7. Estimates | 9 Months Ended |
Apr. 30, 2020 | |
Payables and Accruals [Abstract] | |
Estimates | 7. Estimates On November 12, 2018, MIG Mobile Tech Berhad, a subsidiary of the Company, filed a claim against Digiland Private Limited (“Digiland”) for breach of contract and misrepresentation arising from, among other things, Digiland’s failure to perform under its supplier contract with the Company. In its suit, MIG Mobile Tech Berhad is seeking a return of funds previously paid to Digiland in the amount of S$800,000 Singaporean Dollars (approximately US $584,000) together with a claim for damages to be assessed by the Singapore Court. Within the same suit, Digiland has filed a counterclaim against MIG Mobile Tech Berhad for the balance of the payment due to it under contract in the sum of S$800,000, together with a claim for damages to be assessed by the Singapore Court. In accordance with applicable accounting guidance, the Company records accruals for certain of its outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred, and the amount of loss can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual, as well as any developments that would make a loss contingency both probable and reasonably estimable. The Company discloses the amount of the accrual if the financial statements would be otherwise misleading, which was not the case for the three months ended April 30, 2020. When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. However, if the loss (or an additional loss in excess of the accrual) is at least a reasonable possibility and material, then the Company discloses an estimate of the possible loss or range of loss, if such estimate can be made or discloses that an estimate cannot be made. The assessments whether a loss is probable or a reasonable possibility, and whether the loss or a range of loss is estimable, often involve a series of complex judgments about future events. Management is often unable to estimate a range of reasonably possible loss, particularly where (i) the damages sought are substantial or indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel or unsettled legal theories or a large number of parties. In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including a possible eventual loss, fine, penalty or business impact, if any. Prior to the filing of the its claims against Digiland, the Company recognized the amount of $596,912 in receivable, deposits and prepayments. The amount is being recognized as deposit because the development of the application-based software has not been materialized to-date. Subsequent to the filing of its claims, the Company has recognized a full impairment in the amount of $596,612. The Company is unable to ascertain the result of the legal proceedings as the proceedings are in the early stages and there is uncertainty arising from the development of the case. We expect that the aggregate range of reasonably possible losses, in excess of accruals established, if any, for such legal proceeding is likely to range from S$800,000 and upwards if Digiland prevails in its counterclaim against us. The estimated aggregate range of reasonably possible losses is based upon currently available information for those proceedings in which the Company is involved, taking into account the Company’s best estimate of such losses for those cases for which such estimate can be made. Those matters for which an estimate is not possible are not included within this estimated range. Therefore, such range represents what the Company believes to be an estimate of possible loss only for those matters meeting such criteria. It does not represent the Company’s maximum loss exposure. As the COVID-19 pandemic had seriously affected the economy and business environment worldwide, in view of the uncertainty on the recovery of the refund of deposit paid to Digiland and the prolong legal proceedings and the Company may not have the resources to continue pursue the case, the Company has decided to discontinue the proceedings on 17 th |
8. Significant Event
8. Significant Event | 9 Months Ended |
Apr. 30, 2020 | |
Significant Event | |
Significant Event | 8. Significant Event The Share Exchange Agreement dated June 18, 2019, by and among WeConnect Tech International, Inc., OZ Seventy Five Holdings (M) Berhad and certain Investors has been further extended to June 30, 2020. Extension Agreement dated December 27, 2019 was signed by the parties to the agreement. |
2. Summary of Significant Acc_2
2. Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The interim financial information referred to above has been prepared and presented in conformity with accounting principles generally accepted in the United States applicable to interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The interim financial information has been prepared on a basis consistent with prior interim periods and years and includes all disclosures that are necessary and required by applicable laws and regulations. This report on Form 10-Q should be read in conjunction with the Company’s financial statements and notes thereto included in the Company’s Form 10-K for the fiscal year ended July 31, 2019. In the opinion of management, all adjustments (consisting of normal and recurring accruals) considered necessary for fair presentation of the Company’s financial position, results of operations and cash flows have been included. Operating results for the nine months ended April 30, 2020, are not necessarily indicative of the results that may be expected for future quarters or the year ending July 31, 2020. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiary. All inter-company accounts and transactions have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to valuation of donated services and rent, fair value measurements and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. As of April 30, 2020, and July 31, 2019, the Company had $173 and $3,343 in cash and cash equivalents, respectively. |
Plant and Equipment | Plant and Equipment Plant and equipment is stated at cost less accumulated depreciation and impairment. Depreciation of plant and equipment are calculated on the straight-line method over their estimated useful lives as follows: Classification Principal annual rate / Estimated useful lives Computer hardware and software 4 years Furniture and fittings 10 years Office equipment 5 years Telecommunication 2 years Renovation 10 years Signboard 5 years Security and alarm system 4 years Expenditures for maintenance and repairs are expenses as incurred. |
Inventories | Inventories Inventories consisting of products available for sell, are stated at the lower of cost or market value. Cost of inventory is determined using the first-in, first-out (FIFO) method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of revenues in the Statements of Operation and Comprehensive Income. |
Revenue Recognition | Revenue Recognition Revenue recognized when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount of the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or receivable. a) Sales of goods Revenue from sales of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer. Revenue is measured at the fair value of the consideration received or receivable, net of discounts and taxes application to the revenue. b) Rendering of Services Revenue from rendering of services is measured by reference to the stage of completions of the transaction at the reporting date. c) Interest income Interest income is recognized using the effective interest method and accrued on a timely basis. |
Foreign Currency Translation | Foreign Currencies Translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations. The functional currency of the Company is the United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the subsidiary maintains its books and record in a local currency, Malaysian Ringgit (“MYR” or “RM”), which is functional currency as being the primary currency of the economic environment in which the entity operates. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of other comprehensive income. The Company has not to, the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates for the respective years: As of and for the period ended 2020 2019 Period average MYR : US$1 exchange rate 4.2717 4.1257 Period end MYR : US$1 exchange rate 4.3260 4.1355 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of the Company’s financial instruments: cash and cash equivalents, trade receivable, deposits and other receivables, amount due to related parties and other payables approximate at their fair values because of the short-term nature of these financial instruments. The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” ("ASC 820-10"), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
Income Tax | Income Tax Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. There were no significant deferred tax items as of April 30, 2020 and July 31, 2019. The Company applied the provisions of ASC 740-10-50, Accounting for Uncertainty In Income Taxes or any given quarterly or annual period based, in part, upon the results of operations for the given period. At and July 31, 2019, management considered that the Company had no uncertain tax positions and will continue to evaluate for uncertain positions in the future. |
Basic and Diluted Net Income (Loss) Per Share | Basic and Diluted Net Income/(Loss) Per Share The Company calculates net income/(loss) per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income/(loss) per share is computed by dividing the net income/(loss) by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income/(loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive. Diluted earnings per share excludes all dilutive potential shares if their effect is anti-dilutive. As at April 30, 2020 and 2019, there were no potentially dilutive securities outstanding. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Management has considered all recent accounting pronouncements issued and their potential effect on our financial statements. The Company's management believes that these recent pronouncements will not have a material effect on the Company's condensed financial statements. |
1. Organization and Business _2
1. Organization and Business Background (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Subsidiary | Details of the Company’s subsidiary: No Company Name Place and date of incorporation Particulars of issued capital Principal activities 1 MIG Mobile Tech Bhd Malaysia Oct 1, 2015 50,000,000 of ordinary shares E-commerce, online to offline marketplace and payment eco-system |
2. Summary of Significant Acc_3
2. Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of plant and equipment | Classification Principal annual rate / Estimated useful lives Computer hardware and software 4 years Furniture and fittings 10 years Office equipment 5 years Telecommunication 2 years Renovation 10 years Signboard 5 years Security and alarm system 4 years |
Schedule of exchange rate of foreign currencies translation | Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates for the respective years: As of and for the period ended 2020 2019 Period average MYR : US$1 exchange rate 4.2717 4.1257 Period end MYR : US$1 exchange rate 4.3260 4.1355 |
3. Related Party Transactions (
3. Related Party Transactions (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | For the For the April 30, 2020 April 30, 2019 Revenue generated from: East Cloud Sdn Bhd $ 16,470 $ – MIG O2O Berhad – 19,391 Creative Property Management Sdn Bhd 6,390 – MIG Network & Consultancy Sdn Bhd 15,042 8,483 WPAY International Berhad – 8,962 $ 37,902 $ 36,836 Payroll outsourcing charge back to: MIG O2O Berhad $ – $ 36,365 MIG Network & Consultancy Sdn Bhd 212 1,572 North Cloud Sdn Bhd – 18,225 $ 212 $ 56,162 Legal fee paid to MIG Network & Consultancy Sdn Bhd $ 6,700 $ 6,850 Rental paid to MIG Network & Consultancy Sdn Bhd $ 16,906 $ 58,503 April 30, July 31, 2019 Amount due from related parties: Creative Property Management Sdn Bhd $ 551 $ 829 MIG O2O Sdn Bhd 8,091 – $ 8,642 $ 829 Amount due to related parties: MIG Network & Consultancy Sdn Bhd $ 1,280.997 $ 1,071,620 MIG O2O Berhad – – $ 1,280,997 $ 1,071,620 |
1. Organization and Business _3
1. Organization and Business Background (Details) | 9 Months Ended |
Apr. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Name | MIG Mobile Tech Bhd |
Place of incorporation | Malaysia |
Date of incorporation | Oct. 1, 2015 |
Particulars of issued capital | 50,000,000 ordinary shares of RM1 each |
Principal activities | E-commerce, online to offline marketplace and payment eco-system |
1. Organization and Business _4
1. Organization and Business Background (Details Narrative) | Apr. 30, 2020 |
MIG Mobile Tech Bhd [Member] | |
Equity interest | 99.662% |
2. Summary of Significant Acc_4
2. Summary of Significant Accounting Policies (Details - Estimated useful lives) | 9 Months Ended |
Apr. 30, 2020 | |
Computer hardware and software [Member] | |
Estimated useful lives | 4 years |
Furniture and fittings [Member] | |
Estimated useful lives | 10 years |
Office Equipment [Member] | |
Estimated useful lives | 5 years |
Telecommunication [Member] | |
Estimated useful lives | 2 years |
Renovation [Member] | |
Estimated useful lives | 10 years |
Signboard [Member] | |
Estimated useful lives | 5 years |
Security and alarm system [Member] | |
Estimated useful lives | 4 years |
2. Summary of Significant Acc_5
2. Summary of Significant Accounting Policies (Details - Exchange rates) | 9 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Accounting Policies [Abstract] | ||
Period-end exchange rate | 4.3260 | 4.1355 |
Period average exchange rate | 4.2717 | 4.1257 |
2. Summary of Significant Acc_6
2. Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 9 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Jul. 31, 2019 | Jul. 31, 2018 | |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 173 | $ 3,716 | $ 3,343 | $ 14,159 |
Accumulated deficit | $ (6,803,196) | $ (6,535,337) | ||
Antidilutive shares | 0 | 0 |
3. Related Party Transactions_2
3. Related Party Transactions (Details) - USD ($) | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Jul. 31, 2019 | |
Revenue from related parties | $ 37,902 | $ 36,836 | |
Payroll outsourcing charge back | 212 | 56,162 | |
Legal fee paid | 6,700 | 6,850 | |
Rental paid | 16,906 | 58,503 | |
Amount due from related parties | 8,642 | 829 | |
Amount due to related parties | 1,280,997 | 1,071,620 | |
East Cloud Sdn Bhd [Member] | |||
Revenue from related parties | 16,470 | 0 | |
MIG O2O Berhad [Member] | |||
Revenue from related parties | 0 | 19,391 | |
Payroll outsourcing charge back | 0 | 36,365 | |
Amount due from related parties | 8,091 | $ 0 | |
Amount due to related parties | 8,561 | 0 | |
Creative Property Management [Member] | |||
Revenue from related parties | 6,390 | 0 | |
Amount due from related parties | 551 | 829 | |
MIG Network & Consultancy [Member] | |||
Revenue from related parties | 15,042 | 8,483 | |
Payroll outsourcing charge back | 212 | 172 | |
Legal fee paid | 6,700 | 6,850 | |
Rental paid | 16,906 | 58,503 | |
Amount due to related parties | 1,280,997 | $ 1,071,620 | |
WPAY International Berhad [Member] | |||
Revenue from related parties | 0 | 8,962 | |
North Cloud Sdn Bhd [Member] | |||
Payroll outsourcing charge back | $ 0 | $ 18,225 |
3. Related Party Transactions_3
3. Related Party Transactions (Details Narrative) | 9 Months Ended | ||
Apr. 30, 2020USD ($) | Apr. 30, 2020MYR (RM) | Jul. 31, 2019USD ($) | |
Amount due to related parties | $ 1,280,997 | $ 1,071,620 | |
MIG Network & Consultancy [Member] | |||
Advances from related party | $ 235,215 | ||
MIG Network & Consultancy [Member] | M Y R | |||
Advances from related party | RM | RM 1,004,768 |
4. Stockholders' Equity (Detail
4. Stockholders' Equity (Details Narrative) - shares | Apr. 30, 2020 | Jul. 31, 2019 |
Equity [Abstract] | ||
Preferred Stock issued | 0 | |
Preferred Stock outstanding | 0 | |
Common Stock issued | 593,610,070 | 593,610,070 |
Common Stock outstanding | 593,610,070 | 593,610,070 |