UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2022
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to ______________
Commission File No. 333-205571
EXSULAR FINANCIAL GROUP INC.
(Exact name of the small business issuer as specified in its charter)
Colorado | 46-2276094 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Room 1105, , 11/F Hip Kwan Commercial Building, No. 38 Pitt Street
Yau Ma Tei, KLN, Hong Kong
(Address of principal executive offices)
+852 29803711
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☐ No ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer” and “large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☐ | Smaller reporting company | ☒ |
Emerging growth company | ☒ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act: None
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☒ No ☐
There were shares of issuer’s Common Stock outstanding as of May 13, 2022.
TABLE OF CONTENTS
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FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q (“Form 10-Q”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new products or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties.
Forward-looking statements may include the words “may,” “could,” “will,” “estimate,” “intend,” “continue,” “believe,” “expect,” “desire,” “goal,” “should,” “objective,” “seek,” “plan,” “strive” or “anticipate,” as well as variations of such words or similar expressions, or the negatives of these words. These forward-looking statements present our estimates and assumptions only as of the date of this Form 10-Q. Except for our ongoing obligation to disclose material information as required by the federal securities laws, we do not intend, and undertake no obligation, to update any forward-looking statement. We caution readers not to place undue reliance on any such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes will likely vary materially from those indicated.
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PART I.
Item 1. Financial Statements.
Pursuant to “Chapter 17 CFR, Section 210.3-11-Financial Statements of an Inactive Registrant” (“Section 210.3-11”), This Quarterly Filing Of The Financial Statements of the Company Were Not Reviewed by the Company’s Independent Auditors
EXCSULAR FINANCIAL GROUP INC.
Index to Consolidated Financial Statements
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PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Exsular Financial Group, Inc.
Condensed Consolidated Balance Sheets
As of March 31, 2022, and December 31, 2021
March 31, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | - | $ | - | ||||
Prepaid Expenses | - | - | ||||||
Total current assets | - | - | ||||||
Total assets | $ | - | $ | - | ||||
Liabilities and Stockholders’ Deficit | ||||||||
Current liabilities | ||||||||
Accounts payable | - | |||||||
Accrued liabilities | 900 | - | ||||||
Notes payable, related parties | 95,486 | 87,480 | ||||||
Current liabilities | 96,386 | 87,480 | ||||||
Total liabilities | 96,386 | 87,480 | ||||||
Stockholders’ Deficit | ||||||||
Common stock, $ | par value; shares authorized; shares issued and outstanding as of March 31, 2022, and December 31, 20215,524 | 5,524 | ||||||
Additional paid-in capital | 62,378 | 62,378 | ||||||
Accumulated deficit | (164,288 | ) | (155,382 | ) | ||||
Total Stockholders’ Deficit | (96,386 | ) | (87,480 | ) | ||||
Total Liabilities and Stockholders’ Deficit | $ | - | $ | - |
See accompanying notes to unaudited condensed consolidated financial statements
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Exsular Financial Group, Inc.
Condensed Consolidated Statements of Operations
For the three months ended March 31, 2022 and 2021
(Unaudited)
For the three months ended March 31, | ||||||||
2022 | 2021 | |||||||
Revenues | ||||||||
Revenue | $ | - | $ | - | ||||
Total revenues | - | - | ||||||
Expenses: | ||||||||
Professional fees | 8,400 | 13,800 | ||||||
general and administrative | 506 | 1,438 | ||||||
Total operating expenses | 8,906 | 15,238 | ||||||
Provision for income taxes | – | – | ||||||
Net loss | $ | (8,906 | ) | $ | (15,238 | ) | ||
Net Loss per common share | ||||||||
Basic and diluted | $ | (0.00 | )* | $ | (0.00 | )* | ||
Weighted average shares outstanding | ||||||||
Basic and diluted | 5,524,400 | 5,524,400 |
* | denotes net loss per common share of less than $0.01 per share. |
See accompanying notes to unaudited condensed consolidated financial statements
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Exsular Financial Group, Inc.
Condensed Consolidated Statements of Cash Flows
For the three months ended March 31, 2022 and 2021
(Unaudited)
For the three months ended March 31, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (8,906 | ) | $ | (15,238 | ) | ||
Changes in operating assets and liabilities: | ||||||||
Accounts and other receivables | - | - | ||||||
Accounts payable | - | - | ||||||
Accrued liabilities | 900 | 1,625 | ||||||
Due to related party | 8,006 | 13,613 | ||||||
Net cash used in operating activities | - | - | ||||||
Cash flows from investing activities: | ||||||||
Net cash provided by (used in) investing activities | – | – | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from the sale of common stock | - | - | ||||||
Payment to notes payable, related party | - | - | ||||||
Contributions to additional paid-in capital | - | - | ||||||
Net cash provided by financing activities | - | - | ||||||
Net increase (decrease) in cash and cash equivalents | - | - | ||||||
Cash and cash equivalents at beginning of period | - | - | ||||||
Cash and cash equivalents at end of period | $ | - | $ | - | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for interest | $ | – | $ | – | ||||
Cash paid during the period for income taxes | $ | – | $ | – | ||||
See accompanying notes to unaudited condensed consolidated financial statements
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Exsular Financial Group, Inc.
Condensed Consolidated Statements of Shareholders’ Equity (Deficit)
For the three ended March 31, 2022 and 2021
(Unaudited)
Common | Additional | |||||||||||||||||||
Stock | Paid-In | Deficit | ||||||||||||||||||
Shares | Amount | Capital | Accumulated | Total | ||||||||||||||||
Balance, December 31,2021 | 5,524,400 | 5,524 | 62,378 | (155,382 | ) | (87,480 | ) | |||||||||||||
Net loss and comprehensive loss | – | - | - | (8,906 | ) | (8,906 | ) | |||||||||||||
Balance, March 31, 2022 | 5,524,400 | 5,524 | 62,378 | (164,288 | ) | (96,386 | ) | |||||||||||||
Balance, December 31, 2020 | 5,524,400 | 5,524 | 62,378 | (126,050 | ) | (58,148 | ) | |||||||||||||
Net loss and comprehensive loss | – | - | - | (15,238 | ) | (15,238 | ) | |||||||||||||
Balance, March 31, 2021 | 5,524,400 | 5,524 | 62,378 | (141,288 | ) | (73,386 | ) |
See accompanying notes to unaudited condensed consolidated financial statements
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Exsular Financial Group, Inc.
Notes to the Unaudited Condensed Consolidated Financial Statements
March 31, 2021
Note 1 — Description of Business
Exsular Financial Group, Inc. (the “Company”) was incorporated in the state of Colorado on September 19, 2011. On March 20, 2013, we formed a wholly owned subsidiary company, Smile Producer, Inc., a Colorado corporation.
The Company had been engaged in the various businesses since its incorporation. The Company was not successful and discontinued the majority of its operation in February 2018. The Company is currently a public shell company seeking to create value for its shareholders by merging with another entity with experienced management and opportunities for growth in return for shares of our common stock.
Note 2 — Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. The Company currently has limited operations and has a stockholders deficit of $96,386 with an accumulated deficit of $164,288. The Company intends to find a merger target in the form of an operating entity. The Company cannot be certain that it will be successful in this strategy.
These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Note 3 — Summary of Significant Accounting Policies
The significant accounting policies followed by the Company for interim reporting are consistent with those included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and also in the notes to the annual consolidated financial statements for the year ended December 31, 2021. There were no material changes to our significant accounting policies during the interim period ended March 31, 2022.
Interim Financial Statements
The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (“GAAP”), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading.
In the opinion of management, the balance sheet as of December 31, 2021, which has been derived from audited consolidated financial statements, and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended March 31, 2022 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2022 or for any future period.
These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2021.
Recent Accounting Pronouncements
We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.
In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Company is currently evaluating the impact that ASU 2020-06 may have on its financial statements and related disclosures when adopted.
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Management believes that other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission do not have a material impact on the Company’s present or near future financial statements.
Note 4 — Due to a Related Party
The Company does not have cash resource or bank account. The Company’s major shareholder pays the expenses for the company’s operations. For the three months ended March 31, 2022 and 2023, the major shareholder paid expense of $8,006 and $13,613, respectively. As of March 31, 2022 and December 31, 2021, the balances due to the major shareholder were $95,486 and $87,480, respectively. These advances from the major shareholder are unsecured, non-interest bearing and payable on demand. There are no written agreements for these advances.
Note 5 — Stockholder Equity
Common Stock
The Company is authorized to issue shares of common stock, par value $ per share. All shares of the Company’s common stock have equal rights and privileges with respect to voting, liquidation and dividend rights. Each share of Common Stock entitles the holder thereof to:
a) One non-cumulative vote for each share held of record on all matters submitted to a vote of the stockholders;
b) To participate equally and to receive any and all such dividends as may be declared by the Board of Directors out of funds legally available therefore; and
c) To participate pro rata in any distribution of assets available for distribution upon liquidation.
Stockholders have no pre-emptive rights to acquire additional shares of common stock or any other securities. Common shares are not subject to redemption and carry no subscription or conversion rights. All outstanding shares of common stock are fully paid and non-assessable.
As of March 31, 2022 and December 31, 2021, shares of common stock were issued and outstanding, respectively.
Note 6 — Subsequent Events
The Company has evaluated subsequent events through the date of the filing of these interim financial statements. Based on this evaluation, the Company did not identify any significant subsequent events that would be reportable.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Our Management’s Discussion and Analysis should be read in conjunction with our unaudited condensed consolidated financial statements and related notes thereto included elsewhere in this quarterly report.
Forward-Looking Statements
This quarterly report on Form 10-Q contains “forward-looking statements” that include information relating to future events, future financial performance, strategies, expectations, competitive environment, regulation and availability of resources. These forward-looking statements include, without limitation, statements regarding: proposed new products or services; our statements concerning litigation or other matters; statements concerning projections, predictions, expectations, estimates or forecasts for our business, financial and operating results and future economic performance; statements of management’s goals and objectives; trends affecting our financial condition, results of operations or future prospects; our financing plans or growth strategies; and other similar expressions concerning matters that are not historical facts. Words such as “may,” “will,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes” and “estimates,” and similar expressions, as well as statements in future tense, identify forward-looking statements.
Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
Overview
Exsular Financial Group, Inc. (“we, “us,” “our,” or the “Company”) was incorporated in the state of Colorado on September 19, 2011. On March 20, 2013, we formed a wholly owned subsidiary company, Smile Producer, Inc., a Colorado corporation.
The Company is currently a public shell company seeking to create value for its shareholders by merging with another entity with experienced management and opportunities for growth in return for shares of our common stock.
We have not yet generated sustained profits from our operations. Our independent accountants have expressed a “going concern” opinion on the consolidated financial statements for the year ended December 31, 2021. As of March 31, 2022, we had an accumulated deficit of $164,288 and a net working capital deficit of $96,386.
While our current burn rate is nominal, it is expected that our costs of operations will continue to exceed revenues, primarily due to the costs associated with being a public reporting company. Based upon our current business plan, we may continue to incur losses in the foreseeable future and there can be no assurances that we will ever establish profitable operations. These and other factors raise substantial doubt about our ability to continue as a going concern.
Critical Accounting Policies, Judgments and Estimates
Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The preparation of these consolidated financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimate that are reasonably likely to occur, could materially impact the consolidated financial statements. We believe that the following critical accounting policies reflect the more significant estimates and assumptions used in the preparation of the consolidated financial statements.
Revenue Recognition
The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, which requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.
Accounts receivable
The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. Our allowance for doubtful accounts is maintained to provide for losses arising from customers’ inability to make required payments. If there is deterioration of our customers’ credit worthiness and/or there is an increase in the length of time that the receivables are past due greater than the historical assumptions used, additional allowances may be required. As of March 31, 2022, and December 31, 2021, no allowance for doubtful accounts was deemed necessary.
Income Taxes
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 carryforwards. 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 on deferred tax assets is established when management considers it is more likely than not that some portion or all of the deferred tax assets will not be realized.
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Tax benefits from an uncertain tax position are only recognized if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. Interest and penalties related to unrecognized tax benefits are recorded as incurred as a component of income tax expense. The Company has not recognized any tax benefits from uncertain tax positions for any of the reporting periods presented.
The Company accounts for income taxes in interim periods in accordance with FASB ASC 740-270, “Interim Reporting.” The Company has determined an estimated annual effective tax rate. The rate will be revised, if necessary, as of the end of each successive interim period during the Company’s fiscal year to its best current estimate. The estimated annual effective tax rate is applied to the year-to-date ordinary income (or loss) at the end of the interim period.
Results of Operations for the Three Months Ended March 31, 2022 compared to the Three Months Ended March 31, 2021
During the three months ended March 31, 2022, we generated revenues of $0, the same as during the three months ended March 31, 2021, as the Company ceased its operations of its subsidiary Smile Producer Inc.
Operating expenses, including general and administrative expenses, during the three months ended March 31, 2022 were $8,906, compared to $15,238 during the three months ended March 31, 2021.
The decrease of $6,332 in operating expenses during the three months ended March 31, 2022, compared with the same period during 2021 was primarily due to the decrease of professional services for the SEC filing.
During the three months ended March 31, 2022, the Company incurred net loss of $8,906, compared to net loss of $15,238 during the three months ended March 31, 2021. The decrease in the net loss of $6,332 for the three months ended March 31, 2021, was due to the decrease of professional services for the SEC filings.
Liquidity and Capital Resources
As of March 31, 2022 and December 31, 2021, we had a cash balance of $0. As we explained earlier, the Company does not keep a bank account and the major shareholder funds the Company’s operations.
Operating Activities
Net cash used in operating activities was $0 during the three months ended March 31, 2022 and 2021. During the three months ended March 31, 2022, the major shareholder paid $8,006 for the Company’s operations, compared to the same period during 2021; the major shareholder paid $13,613. The decrease of $5,607 was due to the decrease of the activities in SEC filing preparations.
Investing Activities
We neither generated nor used cash in investing activities during the three months ended March 31, 2022 and 2021.
Financing Activities
We neither generated nor used cash in financing activities during the three months ended March 31, 2022 and 2021.
Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. The Company currently has limited operations and has a stockholders deficit of $96,386 with an accumulated deficit of $164,288. The Company intends to find a merger target in the form of an operating entity. The Company cannot be certain that it will be successful in this strategy.
These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Off Balance Sheet Arrangements
We have not entered into any off-balance sheet arrangements.
Inflation
We do not believe that inflation has had in the past or will have in the future any significant negative impact on our operations.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS.
Not Applicable.
ITEM 4. CONTROLS AND PROCEDURES.
Evaluation of Disclosure Controls and Procedures
We carried out an evaluation of the effectiveness of disclosure controls and procedures as of the end of the period covered by this report under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934. Based on that evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures as of March 31, 2022 were not effective to ensure that information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. The term “disclosure controls and procedures,” as defined under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Notwithstanding the identified material weaknesses, management believes the financial statements included in this quarterly report on Form 10-Q fairly represent in all material respects our financial condition, results of operations and cash flows at and for the periods presented in accordance with U.S. GAAP.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or Rule 15d-15 under the Exchange Act that occurred during the three months ended March 31, 2022, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART II
ITEM 1. LEGAL PROCEEDINGS.
There are no legal proceedings against the Company and the Company is unaware of any proceedings contemplated against it.
Item 1A. Risk Factors.
In accordance with the requirements of Form 10-Q, the Company, as a smaller reporting company, is not required to make the disclosure under this item.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
None
Item 3. Defaults Upon Senior Securities.
None
Item 4. Mine Safety Disclosures.
None
Item 5. Other Information.
None
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Item 6. Exhibits.
(a) Exhibits.
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SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
EXSULAR FINANCIAL GROUP INC. | |
Date: May 13, 2022 | /s/ Seng Yeap Kok |
Seng Yeap Kok, President and CEO (Principal Executive Officer) | |
Date: May 13, 2022 | /s/ Chew Chye Lau |
Chew Chye Lau, CFO (Chief Financial Officer) |
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EXHIBIT INDEX
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