Huaizhong Health (ADAD) 10-Q 16 Mar 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Jan. 31, 2016shares
Document And Entity Information
Entity Registrant Name	Adaiah Distribution Inc
Entity Central Index Key	1,593,204
Document Type	10-Q
Document Period End Date	Jan. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	141,000,000
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Jan. 31, 2016	Oct. 31, 2015
CURRENT ASSETS
Cash	$ 533	$ 2,491
Inventory
TOTAL CURRENT ASSETS	$ 533	$ 2,491
FIXED ASSETS
Furniture & Equipment	8,000	8,000
Accumulated Depreciation - F&E	(1,821)	(1,714)
Sewing Shop	16,940	16,940
Accumulated Depreciation - Sewing Shop	(1,588)	(1,482)
TOTAL FIXED ASSETS	21,531	21,744
TOTAL ASSETS	$ 22,064	$ 24,235
Current Liabilities:
Accounts Payable
Product Paid - Pending Shipment
Deferred Tax Liability	$ 3,894	$ 3,894
Loan Payable - Related Party	1,415	1,415
TOTAL LIABILITIES	5,309	5,309
STOCKHOLDERS' EQUITY
Common stock: authorized 750,000,000; $0.000035461 par value and $0.001 par value; 141,000,000 and 5,000,000 shares issued and outstanding at January 31, 2016 and October 31, 2015	5,000	5,000
Additional Paid-In Capital	39,000	39,000
Profit (loss) accumulated during the development stage	(27,245)	(25,074)
Total Stockholders' Equity	16,755	18,926
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 22,064	$ 24,235

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Jan. 31, 2016	Oct. 31, 2015
Balance Sheets Parenthetical
Common stock par value	$ 0.000035461	$ 0.001
Common stock shares authorized	750,000,000	750,000,000
Common stock shares issued	141,000,000	5,000,000
Common stock shares outstanding	141,000,000	5,000,000

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		29 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016
Sales:
Merchandise Sales	$ 9,008	$ 30,141	$ 206,154
Total Income	9,008	30,141	206,154
Cost of Goods Sold:
Pillow Purchases	$ 6,496	$ 31,131	140,869
Sales Commission			3,180
Total Cost of Goods Sold	$ 6,496	$ 31,131	144,049
Gross Profit	2,512	(991)	62,104
Operating Expenses:
General and administrative	4,698	20,220	85,462
Total Expenses	4,698	20,220	85,462
Income Before Income Tax	$ (2,185)	$ (21,211)	(23,357)
Provision for Income Tax			3,894
Interest Income	$ 0	$ 2	6
Net Income for Period	$ (2,185)	$ (21,209)	$ (27,245)
Net gain (loss) per share:
Basic and diluted	$ 0	$ (0.0042)	$ (0.0068)
Weighted average number of shares outstanding:
Basic and diluted	141,000,000	5,000,000	4,000,000

STATEMENTS OF CHANGES IN SHAREH

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Gain (Deficit)	Total
Beginning Balance, Shares at Sep. 12, 2013
Beginning Balance, Amount at Sep. 12, 2013
Common Shares issued, Shares	4,000,000
Common Shares issued, Amount	$ 4,000			$ 4,000
Net gain (loss)			$ (12)	(12)
Beginning Balance, Shares at Oct. 31, 2013	4,000,000
Beginning Balance, Amount at Oct. 31, 2013	$ 4,000		$ (12)	$ 3,988
Beginning Balance, Shares at Sep. 12, 2013
Beginning Balance, Amount at Sep. 12, 2013
Net gain (loss)				$ (27,245)
Beginning Balance, Shares at Jan. 31, 2016	141,000,000
Beginning Balance, Amount at Jan. 31, 2016	$ 5,000	$ 39,000	$ (27,245)	16,755
Beginning Balance, Shares at Oct. 31, 2013	4,000,000
Beginning Balance, Amount at Oct. 31, 2013	$ 4,000		(12)	3,988
Net gain (loss)			22,722	22,722
Beginning Balance, Shares at Oct. 31, 2014	4,000,000
Beginning Balance, Amount at Oct. 31, 2014	$ 4,000		$ 22,710	26,710
Common Shares issued, Shares	1,000,000
Common Shares issued, Amount	$ 1,000	$ 39,000		40,000
Net gain (loss)			$ (47,784)	(47,784)
Beginning Balance, Shares at Oct. 31, 2015	5,000,000
Beginning Balance, Amount at Oct. 31, 2015	$ 5,000	39,000	(25,074)	18,926
25 for 1 forward stock split Nov 29, 2015	120,000,000
Issue to director Dec 2, 2015	16,000,000
Net gain (loss)			(2,185)	(2,185)
Beginning Balance, Shares at Jan. 31, 2016	141,000,000
Beginning Balance, Amount at Jan. 31, 2016	$ 5,000	$ 39,000	$ (27,245)	$ 16,755

Statements of Cash Flows

Statements of Cash Flows - USD ($)	3 Months Ended		29 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016
Operating activities:
Net Income	$ (2,185)	$ (21,209)	$ (27,245)
Changes in assets and liabilities:
Increase (decrease) in Inventory
Increase (decrease) in Accounts Payable
Increase (decrease) in Pending Shipment
Increase (decrease) in Deferred Tax Liability			$ 3,894
Net cash provided by operating activities	$ (2,185)	$ (21,209)	(23,351)
Financing activities:
Proceeds from issuance of common stock		40,000	44,000
Due to related party		111	1,415
Net cash provided by financing activities		$ 40,111	45,415
Investing activities:
Furniture and Equipment			(8,000)
Increase (decrease) Accum Depr - F&E	$ 107	$ 107	1,821
Sewing Shop			(16,940)
Increase (decrease) in Accum Depr - Sewing Shop	$ 106	$ 106	1,588
Net cash provided by investing activities	213	213	(21,531)
Net increase in cash	(1,972)	19,114	$ 533
Cash, beginning of period	2,505	7,927
Cash, end of period	$ 533	$ 27,042	$ 533
Cash paid during the period
Taxes
Interest

Organization and Basis of Prese

Organization and Basis of Presentation	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Note 1 - Organization and Basis of Presentation	Adaiah Distribution, Inc. (the "Company") is a for profit corporation established under the corporation laws in the State of Nevada, United States of America on September 12, 2013. The Company is in the development phase of its custom pillow distribution business. As such, the Company is subject to all risks inherent to the establishment of a start-up business enterprise. The accompanying unaudited interim financial statements of Adaiah Distribution, Inc. (the "Company") 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, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's Registration Statement on Form S-1 filed with the SEC. 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 interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the fiscal year ended October 31, 2015 as reported on Form 10-K have been omitted. Unless the context otherwise requires, all references to "Adaiah Distribution," "we," "us," "our" or the "company" are to Adaiah Distribution, Inc.

Significant Accounting Policies

Significant Accounting Policies and Recent Accounting Pronouncements	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Note 2 - Significant Accounting Policies and Recent Accounting Pronouncements	Use of Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles 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 period. Actual results could differ from those estimates. Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Fair Value of Financial Instruments ASC 825, "Disclosures about Fair Value of Financial Instruments", requires disclosure of fair value information about financial instruments. ASC 820, "Fair Value Measurements" defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of January 31, 2016. The respective carrying values of certain on-balance-sheet financial instruments approximate their fair values. These financial instruments include cash, accrued liabilities and notes payable. Fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair value. Basic and Diluted Loss Per Share The Company computes earnings (loss) per share in accordance with ASC 260-10-45 "Earnings per Share", which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings (loss) per share excludes all potential common shares if their effect is anti-dilutive. The Company has no potential dilutive instruments, and therefore, basic and diluted earnings (loss) per share are equal. Revenue Recognition The company follows the guidelines of ASC 605-15 for revenue recognition. Revenue is recognized when the product has been prepaid by the customer, shipped from either Adaiah Distribution or one of our vendors and the product has been delivered and signed for by the customer as evidenced by the shipping company. Customers are allowed to return the products within 30 days for a refund, if the packages are unopened. Income Taxes We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, "Income Taxes." Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. 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 the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. Recent Accounting Pronouncements The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company's results of operations, financial position or cash flow.

Property and Equipment

Property and Equipment	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Note 3 - Property and Equipment	Property and equipment consist of: January 31, 2016 October 31, 2015 Furniture & Equipment $ 8,000 $ 8,000 Sewing Shop $ 16,940 $ 16,940 Accumulated Depreciation $ (3,409 ) $ (3,196 ) $ 21,531 $ 21,744 Property, plant and equipment are stated at cost. The Company utilizes MACRS 200 DB HY – 7 years for furniture and fixture depreciation and ADS straight-line – 40 years for the sewing shop depreciation over the estimated useful lives of the assets.

Concentrations

Concentrations	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Note 4 - Concentrations	Sales are made without collateral and the credit-related losses are insignificant or non-existent. Accordingly, there is no provision made to include an allowance for doubtful accounts.

Legal Matters

Legal Matters	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Note 5 - Legal Matters	The Company has no known legal issues pending.

Debt

Debt	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Note 6 - Debt	Nikolay Titov, the Director and President of the Company, has from time to time loaned the Company funds for operational costs. The amount, $1,415 at January 31, 2016, is being carried as a loan payable. The loan is non-interest bearing, unsecured and due upon demand.

Capital Stock

Capital Stock	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Note 7 - Capital Stock	On October 28, 2013 the Company authorized 75,000,000 shares of commons stock with a par value of $0.001 per share. On October 28, 2013 the Company issued 4,000,000 shares of common stock for a purchase price of $0.001 per share to its sole director. The Company received aggregate gross proceeds of $4,000.00. In January 2015 a total of 1,000,000 shares were issued to a total of 30 shareholders for $.04 per share for total proceeds of $40,000. The shares were registered pursuant to a Registration Statement on Form S-1 as filed with the Securities and Exchange Commission that was declared effective on November 3, 2014. On November 29, 2015, the Company's board of directors elected by unanimous written consent to file Articles of Amendment to its Articles of Incorporation with the Nevada Secretary of State to (i) increase the Company's authorized number of shares of common stock from 75 million to 750 million, and (ii) increase the Company's total issued and outstanding shares of common stock by conducting a forward split of such shares at the rate of 25 shares for every one (1) share currently issued and outstanding (the "Forward Split"). On December 4, 2015, the Company filed such Articles of Amendment with the Nevada Secretary of State. The record date for the Forward Split is December 1, 2015. On December 4, 2015, the Company filed an Issuer Company-Related Action Notification Form with FINRA requesting that the aforementioned Forward Split be effected in the market. Such notification form is being reviewed by FINRA. On December 2, 2015, the Company by written consent of the Board of Directors approved the issuance to Mr. Nikolay Titov of 16,000,000 restricted shares of the Company's common stock in exchange for continued services as the sole member of the Board and the Company's sole executive officer. These shares are being issued subsequent to the stock split and increased the Company's total issued and outstanding shares following such stock split to 141 million shares. As of January 31, 2016 there were no outstanding stock options or warrants.

Income Taxes

Income Taxes	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Note 8 - Income Taxes	The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, "Income Taxes." Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. 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 the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Note 9 - Related Party Transactions	The Company's sole officer and director is involved in other business activities and may in the future, become involved in other business opportunities as they become available. The Company has a related party transaction involving a significant shareholder. The nature and details of the transaction are described in Note 6.

Going Concern

Going Concern	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Note 10 - Going Concern	The accompanying financial statements and notes have been prepared assuming that the Company will continue as a going concern. For the period from inception (September 12, 2013) to January 31, 2016, the Company generated $206,154 in revenues and a net gain (loss) from operations of $(27,245). The Company's ability to continue as a going concern is dependent upon the Company's ability to generate sufficient revenues to operate profitably or raise additional capital through debt financing and/or through sales of common stock. Management plans to fund operations of the Company through the proceeds from the recent offering of common stock pursuant to a Registration Statement on Form S-1, private placements of restricted securities or the issuance of stock in lieu of cash for payment of services until such a time as profitable operations are achieved. There are no written agreements in place for such funding or issuance of securities and there can be no assurance that such will be available in the future. Management believes that this plan provides an opportunity for the Company to continue as a going concern. The failure to achieve the necessary levels of profitability or obtain the additional funding would be detrimental to the Company.

Subsequent Events

Subsequent Events	3 Months Ended
	Jan. 31, 2016
Notes to Financial Statements
Note 11 - Subsequent Events	The Company has evaluated events subsequent to the date these financial statements have been issued to assess the need for potential recognition or disclosure in this report. Such events were evaluated through the date these financial statements were available to be issued. Based upon this evaluation, it was determined that no subsequent events occurred that require recognition or disclosure in the financial statements.

Significant Accounting Polici18

Significant Accounting Policies and Recent Accounting Pronouncements (Policies)	3 Months Ended
	Jan. 31, 2016
Significant Accounting Policies And Recent Accounting Pronouncements Policies
Use of Estimates and Assumptions	The preparation of financial statements in conformity with generally accepted accounting principles 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 period. Actual results could differ from those estimates. Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.
Cash and Cash Equivalents	The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
Fair Value of Financial Instruments	ASC 825, "Disclosures about Fair Value of Financial Instruments", requires disclosure of fair value information about financial instruments. ASC 820, "Fair Value Measurements" defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of January 31, 2016. The respective carrying values of certain on-balance-sheet financial instruments approximate their fair values. These financial instruments include cash, accrued liabilities and notes payable. Fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair value.
Basic and Diluted Loss Per Share	The Company computes earnings (loss) per share in accordance with ASC 260-10-45 "Earnings per Share", which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings (loss) per share excludes all potential common shares if their effect is anti-dilutive. The Company has no potential dilutive instruments, and therefore, basic and diluted earnings (loss) per share are equal.
Revenue Recognition	The company follows the guidelines of ASC 605-15 for revenue recognition. Revenue is recognized when the product has been prepaid by the customer, shipped from either Adaiah Distribution or one of our vendors and the product has been delivered and signed for by the customer as evidenced by the shipping company. Customers are allowed to return the products within 30 days for a refund, if the packages are unopened.
Income Taxes	We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, "Income Taxes." Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. 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 the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.
Recent Accounting Pronouncements	The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company's results of operations, financial position or cash flow.

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Jan. 31, 2016
Property And Equipment Tables
Property and equipment	Property and equipment consist of: January 31, 2016 October 31, 2015 Furniture & Equipment $ 8,000 $ 8,000 Sewing Shop $ 16,940 $ 16,940 Accumulated Depreciation $ (3,409 ) $ (3,196 ) $ 21,531 $ 21,744

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Jan. 31, 2016	Oct. 31, 2015
Property And Equipment Details
Furniture & Equipment	$ 8,000	$ 8,000
Sewing Shop	16,940	16,940
Accumulated Depreciation	(3,409)	(3,196)
Property and equipment net	$ 21,531	$ 21,744

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)	Jan. 31, 2016	Oct. 31, 2015
Debt Details Narrative
Loan Payable - Related Party	$ 1,415	$ 1,415

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	3 Months Ended		29 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Oct. 31, 2015
Going Concern Details Narrative
Net loss from operations	$ (27,245)		$ (27,245)	$ (25,074)
Total Income	$ 9,008	$ 30,141	$ 206,154