Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2018 | Aug. 14, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | Luckwel Pharmaceuticals Inc. | |
Entity Central Index Key | 1,567,098 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 143,376,000 | |
Trading Symbol | LWEL | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Current Assets | ||
Cash | $ 34,452 | $ 18,503 |
Total Assets | 34,452 | 18,503 |
Current Liabilities | ||
Other payable and accrued liabilities | 73,511 | 66,043 |
Due to officer | 350,591 | 81,757 |
Total Liabilities | 424,102 | 147,800 |
Stockholders' Deficit | ||
Common stock, $0.01 par value; 200,000,000 and 100,000,000 shares authorized; 143,376,000 and 18,376,000 shares issued and outstanding as of June 30, 2018 and March 31, 2018, respectively. | 1,433,760 | 183,760 |
Additional paid-in capital | 465,748 | 1,715,748 |
Accumulated other comprehensive income | 10 | 10 |
Accumulated deficit | (2,289,168) | (2,028,815) |
Total stockholders' deficit | (389,650) | (129,297) |
Total Liabilities and Stockholders' Deficit | $ 34,452 | $ 18,503 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Apr. 11, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | |||
Common stock, par value | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 200,000,000 | 200,000,000 | 100,000,000 |
Common stock, shares issued | 143,376,000 | 18,376,000 | |
Common stock, shares outstanding | 143,376,000 | 18,376,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||
General and administrative expenses | $ (220,356) | $ (157,859) |
Other Income | 3 | 563 |
Net Loss | $ (220,353) | $ (157,296) |
Net loss per share - basic and diluted | $ (0.002) | $ (0.009) |
Weighted average common shares - basic and diluted | 98,046,330 | 18,087,538 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flows from Operating Activities | ||
Net loss | $ (220,353) | $ (157,296) |
Adjustment to reconcile net loss to net cash used in operating activities: | ||
Prepaid expense and other current assets | (20,019) | |
Other payable and accrued liabilities | 7,468 | (844) |
Net cash flow used in operating activities | (212,885) | (178,159) |
Cash Flows from Investing Activities | ||
Cash Flows from Financing Activities | ||
Proceeds from issuance of common stock | 422,946 | |
Capital distribution | (40,000) | |
Proceeds from officer loans | 268,834 | 18,868 |
Net cash flow provided by financing activities | 228,834 | 441,364 |
Net increase in cash | 15,949 | 263,205 |
Cash, beginning of period | 18,503 | 29,413 |
Cash, End of Period | 34,452 | 292,618 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest expense | ||
Cash paid for income taxes | ||
Noncash financing activities | ||
Shares issued to officer for debt repayment | $ 327,504 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Note 1 – Organization and Basis of Presentation The accompanying condensed consolidated unaudited interim financial statements of Luckwel Pharmaceuticals Inc. (the “Company”, “we” or “our” and formerly known as “Luckycom Pharmaceuticals Inc.” and “Luckycom Inc.”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto of the Company contained in the Company’s Form 10-K filed with the SEC on July 13, 2018. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Organization and Description of Business The Company plans to acquire, develop, manufacture and market pharmaceutical medication. Luckycom Limited, a wholly-owned subsidiary of the Company, was incorporated in Hong Kong as Goldsans Capital (Hong Kong) Limited (“Goldsans”) on November 8, 2011. Goldsans name was changed to Wudor Capital Hong Kong Limited on May 22, 2012 and subsequently to Luckycom Limited on June 28, 2013. On December 13, 2017, the Company’s sole officer and director, and a shareholder, Mr. Kingrich Lee executed a Sold Note and Instrument of Transfer on behalf of Luckwel Pharmaceuticals Inc., pursuant to which the Company would sell to Ms. Lijian Li, Mr. Kingrich Lee’s sister, 10,000 shares of stock of the Company’s wholly-owned Hong Kong subsidiary, Luckycom Limited at a purchase price of HKD 1 (approximately $0.13) per share aggregating to HKD 10,000 (approximately $1,281). On the same date, the transaction was consummated with the payment of stamp duty to the Hong Kong tax department. On April 11, 2018, Luckwel Pharmaceuticals Inc. filed a Certificate of Amendment to the Articles of Incorporation to change its name from Luckycom Pharmaceuticals Inc. to Luckwel Pharmaceuticals Inc. and to increase the number of its authorized shares of common stock from 100,000,000 to 200,000,000 with an effective date of April 13, 2018. It then amended and restated its by-laws to reflect the new corporate name. Recent Accounting Pronouncements In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this Update also require certain disclosures about stranded tax effects. Public business entities should apply the amendments in ASU 2018-02 for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The Company is currently evaluating the impact of adopting ASU 2018-02 on its consolidated financial statements. In March 2018, the FASB issued ASU No. 2018-05, Income Tax (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. This update adds SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 118, which expresses the view of the staff regarding application of Topic 740, Income Taxes, in the reporting period that includes December 22, 2017 - the date on which the Tax Act was signed into law. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
Going Concern
Going Concern | 3 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | Note 2 – Going Concern The Company has no source of revenues and need additional cash resources to maintain the operations. The Company has a working capital deficit of $389,650, has incurred losses since inception of $2,289,168, and have not yet received any revenue from sales of products or services. These factors raise substantial doubt about its ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on its ability to raise additional capital or obtain necessary debt financing. The Company is presently dependent on its controlling shareholder to provide us funding for its daily operation and expenses, including professional fee and fees charged by regulators, although he is under no obligation to do so. The Company has $34,452 in cash as of June 30, 2018 and believes that the expenses over the next 12 months from the issuance date of this report will be approximately $300,000. This estimate may change significantly depending on the nature of the future business activities and the ability to raise capital from shareholders or other sources. The Company intends to meet the cash requirements for the next 12 months from the issuance date of the condensed consolidated financial statements through a combination of debt and equity financing by way of private placements, friends, family and business associates. The Company currently did not have any arrangements in place to complete any private placement financings and there is no assurance that the Company will be successful in completing any such financings on terms that will be acceptable to it. The Company anticipates that Mr. Kingrich Lee, the Chief Executive Office, will spearhead the financing efforts. If we do not have sufficient working capital to pay our operating costs for the next 12 months, we will require additional funds to pay our legal, accounting and other fees associated with our Company and our filing obligations under United States federal securities laws, as well as to pay our other accounts payable generated in the ordinary course of our business. Once these costs are accounted for, we will focus on the following activities: 1. Establish a management team to work on the pharmaceutical operations in US and Asia. In particular, our goal is to submit an abbreviated new drug application (“ANDA”) with the US Food and Drug Administration for our generic drugs. 2. Implement manufacturing and sales of the newly-acquired hypertension and cholesterol drugs, namely WELVASC, WELTOR and WEDUET. Any failure to raise money will have the effect of delaying the timeframes in the business plan as set forth above, and the Company may have to push back the dates of such activities. The condensed consolidated financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred losses and further losses are anticipated as a result of the development of business which raises substantial doubt about the Company’s ability to continue as a going concern within the next twelve months from the issuance date of the condensed consolidated financial statements. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining financing necessary to meet the Company’s obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and loans from directors and/or private placement of the Company’s common stock. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 3 – Related Party Transactions The Company’s sole officer and director, and a shareholder, Mr. Kingrich Lee, loaned an aggregate of $268,834 and $18,868 to the Company during the three months ended June 30, 2018 and 2017, respectively. Mr. Kingrich Lee is owed an aggregate amount of $350,591 and $81,757 as of June 30, 2018 and March 31, 2018, respectively. The amounts are unsecured, non-interest bearing and due on demand. On May 3, 2018, the Company entered into an Intellectual Property Sale and Purchase Agreement (the “Agreement”) with Luckwel Asia Limited (the “Seller”, formerly known as Essential Choice Ventures Ltd), an entity under common control of Mr. Kingrich Lee to purchase from the Seller the intellectual property rights to five drugs, comprising three generic medicines used to treat hypertension and high cholesterol and two advanced drug candidates - KL008 for treatment of hypertension and KL009 for treatment of high cholesterol in various stages of being developed and manufactured (the “Transaction”).Pursuant to the terms of the Agreement, the Company would pay the Seller on closing (i) US$40,000 and (ii) issue an aggregate 125,000,000 restricted shares of its common stock, par value $0.01. The Transaction closed on May 3, 2018. The Company recorded the carrying value of the intellectual property as nil in the Seller’s record, $40,000 as capital distribution to the Seller and recorded the par value of the common stock as additional paid-in capital, which was due to the Transaction being regarded as an equity transaction because both parties were under common control. |
Capital Stock
Capital Stock | 3 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Capital Stock | Note 4 – Capital Stock As of June 30, 2018, the Company had 143,376,000 shares of common stock issued and outstanding. During the three months ended June 30, 2018, the Company issued in aggregate of 125,000,000 restricted shares of its common stock to Luckwel Asia Limited. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 5 – Subsequent Event The Company has evaluated subsequent events through the issuance of the condensed consolidated financial statements and no subsequent event is identified. |
Organization and Basis of Pre11
Organization and Basis of Presentation (Details Narrative) - USD ($) | Dec. 13, 2017 | Jun. 30, 2018 | Apr. 11, 2018 | Mar. 31, 2018 |
Common stock, shares authorized | 200,000,000 | 200,000,000 | 100,000,000 | |
Mrs. Lijian Li [Member] | ||||
Sale of stock | 10,000 | |||
Purchase price of share | $ 0.13 | |||
Sale of stock, value | $ 1,281 | |||
Mrs. Lijian Li [Member] | HKD [Member] | ||||
Purchase price of share | $ 1 | |||
Sale of stock, value | $ 10,000 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 3 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Working capital deficit | $ 389,650 | |||
Accumulated deficit | 2,289,168 | $ 2,028,815 | ||
Cash | 34,452 | $ 18,503 | $ 292,618 | $ 29,413 |
Issuance of Equity | $ 300,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | May 03, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 |
Proceeds from officer and director loan | $ 268,834 | $ 18,868 | ||
Due to officer | $ 350,591 | $ 81,757 | ||
Payment to seller | $ 40,000 | |||
Number restricted shares of common stock, shares | 125,000,000 | 125,000,000 | ||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Intellectual property carrying value | $ 0 | |||
Capital distribution | 40,000 | |||
Restricted Stock [Member] | ||||
Common stock, par value | $ 0.01 | |||
Mr. Kingrich Lee [Member] | ||||
Proceeds from officer and director loan | 268,834 | $ 18,868 | ||
Due to officer | $ 350,591 | $ 81,757 |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) - shares | May 03, 2018 | Jun. 30, 2018 | Mar. 31, 2018 |
Equity [Abstract] | |||
Common stock, shares issued | 143,376,000 | 18,376,000 | |
Common stock, shares outstanding | 143,376,000 | 18,376,000 | |
Number restricted shares of common stock, shares | 125,000,000 | 125,000,000 |