Document and Entity Information
Document and Entity Information - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Feb. 14, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | Exceed World, Inc. | |
Entity Central Index Key | 1,634,293 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity Well Known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $ 253,660 | |
Entity Common Stock Shares Outstanding | 20,000,000 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 13,357 | $ 46,295 |
Accounts receivable | 7,005 | 1,011 |
Inventories | 78,129 | 78,268 |
Prepaid expenses | 7,286 | 9,652 |
Total Current Assets | 105,777 | 135,226 |
Intangible assets, net | 644,558 | 656,828 |
Total assets | 750,335 | 792,054 |
Current Liabilities | ||
Accounts payable | 5,373 | 5,382 |
Due to related party | 158,960 | 159,243 |
Accrued expenses | 6,368 | 4,512 |
Total Current Liabilities | 170,701 | 169,137 |
Long-term notes payable | 488,151 | 489,019 |
Long-term notes payable – related party | 221,887 | 222,281 |
Total Liabilities | 880,739 | 880,437 |
Stockholders' Deficit | ||
Preferred stock ($.0001 par value, 20,000,000 shares authorized; none issued and outstanding as of December 31, 2017 and September 30, 2017) | ||
Common stock ($.0001 par value, 500,000,000 shares authorized, 20,000,000 shares issued and outstanding as of December 31, 2017 and September 30, 2017) | 2,000 | 2,000 |
Additional Paid In Capital | 10,517 | 10,517 |
Accumulated Deficit | (144,640) | (102,543) |
Accumulated other comprehensive income | 1,719 | 1,643 |
Total Stockholders' Deficit | (130,404) | (88,383) |
Total Liabilities & Stockholders' Deficit | $ 750,335 | $ 792,054 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2017 | Sep. 30, 2017 |
StockholdersEquity | ||
Preferred Stock Par Or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock Shares Authorized | 20,000,000 | 20,000,000 |
Preferred Stock Shares Issued | 0 | 0 |
Preferred Stock Shares Outstanding | 0 | 0 |
Common Stock Par Or Stated Value Per Share | $ 0.0001 | $ .0001 |
Common Stock Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock Shares Issued | 20,000,000 | 20,000,000 |
Common Stock Shares Outstanding | 20,000,000 | 20,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||
Revenues | $ 9,987 | $ 8,486 |
Cost of revenues | 28,522 | 5,658 |
Gross profit (loss) | (18,535) | 2,828 |
General and administrative expenses | 21,237 | 14,119 |
Total operating expenses | 21,237 | 14,119 |
Loss from operations | (39,772) | (11,291) |
Interest expense | 2,325 | |
Total other expense | 2,325 | |
Loss before tax | (42,097) | (11,291) |
Income tax expense | 410 | |
Net loss | (42,097) | (11,701) |
Net loss | (42,097) | (11,701) |
Other comprehensive income | ||
Foreign Currency Translation Adjustment | 76 | 4,781 |
Total comprehensive loss | $ (42,021) | $ (6,920) |
Basic and diluted net loss per common share | $ 0 | $ 0 |
Weighted Average Number of Common Shares Outstanding-Basic and Diluted | 20,000,000 | 120,219,780 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (42,097) | $ (11,701) |
Amortization of intangible assets | 11,083 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (5,985) | (8,486) |
Inventories | 5,657 | |
Accounts payable | ||
Prepaid expenses | 2,344 | 286 |
Accrued expenses | 1,861 | (256) |
Income tax payables | (363) | |
Net cash used in operating activities | (32,794) | (14,863) |
Effect of exchange rate changes on cash and cash equivalents | (144) | (4,199) |
Net Change in Cash and Cash Equivalents | (32,938) | (19,062) |
Cash and cash equivalents - beginning of period | 46,295 | 38,410 |
Cash and cash equivalents - end of period | 13,357 | 19,348 |
Stock cancellation | 38,000 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest paid | ||
Income taxes paid |
NOTE 1 - ORGANIZATION, DESCRIPT
NOTE 1 - ORGANIZATION, DESCRIPTION OF BUSINESS, AND BASIS OF PRESENTATION | 3 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | NOTE 1 - ORGANIZATION, DESCRIPTION OF BUSINESS, AND BASIS OF PRESENTATION Exceed World, Inc., formerly known as Brilliant Acquisition, Inc. (the “Company”), was incorporated under the laws of the State of Delaware on November 25, 2014. As of December 31, 2017, we operate through our wholly owned subsidiary, School TV Co., Ltd. (“School TV”), which is engaged in various business activities and industries including: - The sale and distribution of health related products; - The promotion of third party consumer goods and services; - RE/MAX business in Kanagawa, Okinawa and Tokyo. The accompanying unaudited consolidated financial statements of Exceed World, Inc. have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or the SEC, including the instructions to Form 10-Q and Regulation S-X. In the opinion of the management of the Company, all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the three month period, have been made. Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year. When used in these notes, the terms “Company”, “we”, “us” or “our” mean the Company. Certain information and note disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America has been omitted from these statements pursuant to such accounting principles and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements and should be read in conjunction with our consolidated financial statements for the year ended September 30, 2017, included in our Form 10-K. |
NOTE 2 - SIGNIFICANT ACCOUNTING
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the financial statements of its wholly-owned subsidiary, School TV. Intercompany transactions are eliminated. USE OF ESTIMATES The presentation 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 disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The most significant estimates and assumptions made by management include going concern, allowance for doubtful accounts, valuation allowance on deferred income tax, inventory obsolescence and sales allowance. Operating results in the future could vary from the amounts derived from management's estimates and assumptions. FOREIGN CURRENCY TRANSLATION The Company maintains its books and record in its local currency, Japanese YEN (“JPY”), which is a functional currency as being the primary currency of the economic environment in which its operation is conducted. 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 statements of operations. The reporting currency of the Company is the United States Dollars (“US$”) and the accompanying consolidated financial statements have been expressed in US$. In accordance with ASC Topic 830-30, “Translation of Financial Statement”, assets and liabilities of the Company whose functional currency is not US$ are translated into US$, 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 are recorded as a separate component of accumulated other comprehensive income within the statements of shareholders’ equity. Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates: December 31, 2017 Current JPY: US$1 exchange rate 112.67 Average JPY: US$1 exchange rate 112.88 |
NOTE 3 - INCOME TAXES
NOTE 3 - INCOME TAXES | 3 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Income taxes | nOTE 3 - INCOME TAXES The Company conducts its major businesses in Japan and is subject to tax in this jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the local tax authority. National income tax in Japan is charged at 15% of a company’s assessable profit. The Company’s subsidiary, School TV, was incorporated in Japan and is subject to Japanese national income tax and city income tax at the applicable tax rates on the taxable income as reported in their Japanese statutory accounts in accordance with the relevant enterprises income tax laws applicable to foreign enterprises. School TV’s operation during the three months ended December 31, 2017 has resulted a net taxable loss, as such School TV was not subject to income tax for the three months ended December 31, 2017. The effective income tax rate of School TV is 0%. Deferred tax assets arise from net operating loss of $39,30 is fully allowed as the Company is not able to estimate future operating results due to limited operating history. The net operating loss carry forward will start to expire in the year 2026. For the three months ended December 31, 2016, income tax for School TV was $410. The effective tax rate of School TV is 15%. Exceed World, Inc., which acts as a holding company on a non-consolidated basis, does not plan to engage any business activities and current or future loss will be fully allowed. For the three months ended December 31, 2017 and 2016, respectively, Exceed World, Inc., as a holding company registered in the state of Delaware, has incurred net loss and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry forward has been fully reserved. |
NOTE 4 - GOING CONCERN
NOTE 4 - GOING CONCERN | 3 Months Ended |
Dec. 31, 2017 | |
Going Concern | |
Going Concern | NOTE 4 - GOING CONCERN The accompanying consolidated financial statements are prepared on a basis of accounting assuming that the Company is a going concern that contemplates realization of assets and satisfaction of liabilities in the normal course of business. For the three months ended December 31, 2017, the Company had generated net loss of $42,097 and negative cash flows from operations of $32,794. As of December 31, 2017, the Company had working deficit of $64,924. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. As a first priority, we plan to increase sufficient revenues for necessary working capital from our business. If we cannot generate sufficient revenues, we plan to borrow working capital from the director or parent company. |
NOTE 5 - RELATED PARTY TRANSACT
NOTE 5 - RELATED PARTY TRANSACTIONS DISCLOSURE | 3 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 5 - RELATED-PARTY TRANSACTIONS As of December 31, 2017 and September 30, 2017, the Company had $158,960 and $159,243, respectively, owed to Tomoo Yoshida, Chief Executive Officer and Chief Financial Officer of the Company, respectively. The advance is due on demand and bears no interest. On May 24, 2017, the Company borrowed JPY 25,000,000, or $223,534 from e-Learning Laboratory Co., Ltd., the beneficial owner of the Company, primarily for the payment to lease the regional franchise rights of the RE/MAX System. The loan matures on May 24, 2023 with an interest rate of 2% per annum. For the three months ended December 31, 2017, the interest expense related to this note payable was $1,107. For the three months ended December 31, 2017, e-Learning Laboratory Co. Ltd. provided 10 square meters of office space and 2 square meters of storage space to the Company free of charge. |
NOTE 6 - LONG-TERM NOTES PAYABL
NOTE 6 - LONG-TERM NOTES PAYABLE | 3 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long Term Notes Payable | NOTE 6 - LONG-TERM NOTE PAYABLE On May 22, 2017, the Company entered into a loan agreement to borrow JPY 55,000,000, or $492,436 from Mr. Toshihiro Hirai, the CEO of Actcall Inc., the 100% owner of Kidding Co., for the initial payment required upon the execution of the RE/MAX Regional Franchise Agreement entered on July 7, 2017. The loan matures on May 31, 2022 with an interest rate of 1% per annum. For the three months ended December 31, 2017, the interest expense related to this note payable was $1,218. |
NOTE 7 - INTANGIBLE ASSETS, NET
NOTE 7 - INTANGIBLE ASSETS, NET | 3 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | NOTE 7 - INTANGIBLE ASSETS, NET The following table presents the detail of intangible assets: 12/31/2017 9/30/2017 Franchise rights Gross carrying value $ 666,193 $ 667,378 Less: accumulated amortization total 21,635 10,550 Franchise rights, net 644,558 656,828 |
NOTE 8 - COMMITMENTS
NOTE 8 - COMMITMENTS | 3 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | NOTE 8 – COMMITMENTS Under the lease of franchise rights, the Company is subjected to the following potential payment commitments: (1) membership fee in the amount of JPY42,000 (approximately $400) per year per sales associate operating under the RE/MAX brokerage office franchised from the Company (“RE/MAX Office”); (2) monthly ongoing fees comprised of monthly fixed fees, in the amount of JPY60,000 (approximately $500) per RE/MAX Office, and monthly percentage fees, in the amount of 3% of the commission the Company charges from the RE/MAX Office; (3) monthly advertising fee of JPY10,000 (approximately $100) per RE/MAX Office; and (4) unconditional monthly fixed technology fee of JPY10,000 (approximately $100) per leased franchise right. The membership fee and monthly fixed fee are subjected to increase in every two years, and the monthly advertising fee is subjected to increase upon request and negotiation. As of December 31, 2017, the Company has not had any RE/MAX Office or sales associate, and was not subject to any non-cancellable payments. |
NOTE 9 - CONCENTRATIONS
NOTE 9 - CONCENTRATIONS | 3 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentrations | NOTE 9 – CONCENTRATIONS Concentration of revenues For the three months ended December 31, 2017, the Company generated revenue from two customers in relation to its RE/MAX business in the amount of $2,840 and $6,761, accounting for 28% and 68% of the total revenues, respectively. For the three months ended December 31, 2016, the Company sold health products in the amount of $8,486 to a major customer which accounts for 100% of the total revenues. Concentration of accounts receivable As of December 31, 2017, the Company has accounts receivable in the amount of $6,774 from a customer which accounts for 97% of the total accounts receivable, As of December 31, 2016, the Company has accounts receivable in the amount of $7,968 from a customer which accounts for 100% of the total accounts receivable. |
NOTE 2. SUMMARY OF SIGNIFICANT
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the financial statements of its wholly-owned subsidiary, School TV. Intercompany transactions are eliminated. |
Use of Estimates | USE OF ESTIMATES The presentation 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 disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The most significant estimates and assumptions made by management include going concern, allowance for doubtful accounts, valuation allowance on deferred income tax, inventory obsolescence and sales allowance. Operating results in the future could vary from the amounts derived from management's estimates and assumptions. |
Foreign Currency Translation | FOREIGN CURRENCY TRANSLATION The Company maintains its books and record in its local currency, Japanese YEN (“JPY”), which is a functional currency as being the primary currency of the economic environment in which its operation is conducted. 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 statements of operations. The reporting currency of the Company is the United States Dollars (“US$”) and the accompanying consolidated financial statements have been expressed in US$. In accordance with ASC Topic 830-30, “Translation of Financial Statement”, assets and liabilities of the Company whose functional currency is not US$ are translated into US$, 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 are recorded as a separate component of accumulated other comprehensive income within the statements of shareholders’ equity. Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates: December 31, 2017 Current JPY: US$1 exchange rate 112.67 Average JPY: US$1 exchange rate 112.88 |