10-Q

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2017 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 Number: 000-52276

American Gene Engineer Corp. (Exact name of registrant as specified in its charter)

Delaware	27-3983637
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

521 Fifth Avenue, Suite 1712, New York, New York 10175 (Address of principal executive offices) (Zip Code)

(212) 292-4231 (Registrant’s telephone number, including area code)

None

(Former name of Registrant)

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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☒
(Do not check if a smaller reporting company)	Emerging growth company ☐

If an emerging growth company, indicate by checkmark if the registrant has not elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☒ No ☐

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:  100,000,000 shares of common stock issued and outstanding as of September 19, 2017. 

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Balance Sheets as of July 31, 2017 and October 31, 2016 (Unaudited)	F - 1
Statements of Operations for the Three and Nine Months Ended July 31, 2017 and 2016 (Unaudited)	F - 2
Statements of Cash Flows for theThree and Nine Months Ended July 31, 2017 and 2016 (Unaudited)	F - 3
Notes to Financial Statements (Unaudited)	F - 4
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	7
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	9
ITEM 4. CONTROLS AND PROCEDURES.	9
PART II – OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.	10
ITEM 1A. RISK FACTORS	10
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	10
ITEM 3. DEFAULTS UPON SENIOR SECURITIES	10
ITEM 4. MINE SAFETY DISCLOSURES	10
ITEM 5. OTHER INFORMATION	10
ITEM 6. EXHIBITS	11
SIGNATURES	12

ITEM 1. FINANCIAL STATEMENTS

American Gene Engineer Corp.

Balance Sheets

(unaudited)

	July 31, 2017			October 31, 2016
ASSETS
Current assets:
Cash and cash equivalents	$	893			$	308,541
Prepaid expense		158,530				92,357
Total current assets		159,423				400,898
Rent deposit		3,800				3,800
Total assets	$	163,223			$	404,698
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued expenses	$	19,339			$	15,966
Account payable – related party		-				2,858
Deferred revenue		568,000				568,000
Total liabilities		587,339				586,824
Stockholders’ deficit:
Common stock, $0.001 par value, 200,000,000 authorized, 100,000,000 share issued and outstanding,		100,000				100,000
Additional paid-in capital		247,375				230,614
Accumulated deficit		(771,491	)			(512,740	)
Total stockholders’ deficit		(424,116	)			(182,126	)
Total liabilities and  stockholders’ deficit	$	163,223			$	404,698

See accompanying notes to the financial statements.

F-1

American Gene Engineer Corp.

Statements of Operations

For the Three and Nine Months Ended July 31, 2017 and 2016

(Unaudited)

	For the Three Months			For the Three Months			For the Nine Months			For the Nine Months
	Ended			Ended			Ended			Ended
	July 31, 2017			July 31, 2016			July 31, 2017			July 31, 2016
Revenue
Revenue	$	-		$	-		$	-		$	-
Operating expenses:
General and administrative		80,751			23,963			258,751			72,455
Net loss	$	(80,751	)	$	(23,963	)	$	(258,751	)	$	(72,455	)
Net loss per share - basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted average number of shares outstanding during the period - basic and diluted		100,000,000			100,000,000			100,000,000			100,000,000

See accompanying notes to the financial statements.

F-2

American Gene Engineer Corp.

Statements of Cash Flows

For the Nine Months Ended July 31, 2017 and 2016

(Unaudited)

	July 31,			July 31,
	2017			2016
Cash flows from operating activities:
Net loss	$	(258,751	)	$	(72,455	)
Changes in operating assets and liabilities:
Prepaid expenses and other assets		(66,173	)		1,826
Accounts payable and accrued expenses		515			12,212
Deferred revenue		-			10,000
Net cash used in operating activities		(324,409	)		(48,417	)
Cash flows from financing activities:
Capital contribution from related party		16,761			49,030
Net cash provided by financing activities		16,761			49,030
Net increase (decrease) in cash and cash equivalents		(307,648	)		613
Cash and cash equivalents, beginning of period		308,541			9,549
Cash and cash equivalents, end of period	$	893		$	10,162
Supplemental cash flow disclosures:
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-

See accompanying notes to the financial statements.

F-3

American Gene Engineer Corp.

Notes to Financial Statements

NOTE 1 – ORGANIZATION

American Gene Engineer Corp. (the "Company") was incorporated in Delaware on November 15, 2010. The Company was established to provide professional consultation gene development, research, examination and studies.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING

BASIS OF PRESENTATION

The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) with respect to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These interim unaudited financial statements should be read in conjunction with the financial statements of the Company for the year ended October 31, 2016 and notes thereto contained elsewhere in the Annual Report on Form 10-K filed with the SEC on February 15, 2017.

ESTIMATES AND ASSUMPTIONS

Preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions.

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid short-term investments purchased with an original maturity of three months or less to be cash equivalents. These investments are carried at cost, which approximates fair value.

REVENUE RECOGNITION

The Company recognizes revenue only when (1) there is persuasive evidence of an arrangement with the customer; (2) delivery has occurred or services have been rendered; (3) amount due to the customer is fixed or determinable; and (4) collectability is reasonably assured. Advance payments from customers are deferred and recorded in deferred revenue. During the year ended October 31, 2016, the Company received $568,000 from customers for gene analysis reports to be provided by the Company. During the nine months ended July 31, 2017, the Company received no payments from customers for gene analysis to be provided by the Company.  Revenue will be recorded by the Company when the report is delivered. As of July 31, 2017, no service has been provided by the Company.

INCOME TAXES

An asset and liability approach is used for financial accounting and reporting for income taxes. Deferred income taxes arise from temporary differences between income tax and financial reporting and principally relate to recognition of revenue and expenses in different periods for financial and tax accounting purposes and are measured using currently enacted tax rates and laws. In addition, a deferred tax asset can be generated by net operating loss carryforwards (“NOLs”). If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized.

In the event the Company is charged interest or penalties related to income tax matters, the Company would record such interest as interest expense and would record such penalties as other expense in the statement of operations. No such charges have been incurred by the Company.  As of July 31, 2017, the Company has no accrued interest related to uncertain tax positions.

F-4

EARNINGS (LOSS) PER COMMON SHARE

Basic net earnings (loss) per common share are computed by dividing net earnings (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net earnings (loss) per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods when losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.

SUBSEQUENT EVENTS

The Company has evaluated all transactions from July 31, 2017 through the financial statement issuance date for subsequent event disclosure consideration and noted no significant subsequent event that needs to be disclosed.

NEW ACCOUNTING PRONOUNCEMENTS

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” The guidance requires a company to recognize revenue when it transfers promised services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those services and requires enhanced disclosures. The new guidance is effective for annual and interim periods beginning after December 15, 2016, and early adoption is not permitted. On July 9, 2015, the FASB approved the deferral of the effective date of the new revenue guidance by one year to annual reporting periods beginning after December 15, 2017, with early adoption being permitted for annual periods beginning after December 15, 2016. The Company is currently evaluating the new guidance.

There were various other accounting standard and interpretations issued recently, none of which are expected to have a material impact on our financial position, operations or cash flows.

NOTE 3 – GOING CONCERN

At July 31, 2017, the Company had a net working capital deficit of $427,916. The Company has suffered recurring losses and expects such losses to continue through at least fiscal year 2018. The Company expects to finance its operations primarily through contributions from its Chief Executive Officer and receipts from customer contracts. The Chief Executive Officer is not legally obligated to provide any financing.

There is no assurance that the Company will be able to obtain such additional capital.  Additionally, no assurance can be given that any such financing, if obtained, will be adequate to meet the Company’s ultimate capital needs and to support its growth.  If adequate capital cannot be obtained on a timely basis and on satisfactory terms, the Company’s operations would be materially negatively impacted.

As a result of the above discussed conditions, there exists substantial doubt about the Company’s ability to continue as a going concern.  The Company’s financial statements are presented on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.  The financial statements do not include any adjustments relating to the recoverability of the recorded assets or the classification of liabilities that may be necessary should it be determined that the Company is unable to continue as a going concern.

NOTE 4 – PREPAID EXPENSE

Prepaid expense consisted of the following at July 31, 2017 and October 31, 2016:

	July 31, 2017		October 31, 2016
Prepaid examination fee	$	108,280	$	90,007
Prepaid consulting fee to an affiliated company		50,000		-
Other		250		2,350
Total prepaid expense	$	158,530	$	92,357

  

On November 1, 2016, the Company entered into a service agreement with Asia Pacific Gene Engineering Co., an entity is controlled by the Company’s CEO’s son. Pursuant to the agreement, Asia Pacific Gene Engineering Co. will provide services to the Company’s customers, such as pre-exam consulting, testing result analyzing and post exam consulting for one year for a $200,000 service fee. The Company paid the $200,000 service fee in January 2017 and expensed $150,000 for the nine months ended July 31, 2017. During the nine months ended July 31, 2017, the Company also paid Asia Pacific Gene Engineering Co. $20,000 as a future testing fee, which was included in the prepaid examination fee.

F-5

NOTE 5 – RELATED PARTY TRANSACTIONS

As of July 31, 2017 and October 31, 2016, salary payable to the Company’s Chief Executive Officer was $nil and $2,858.

During the nine months ended July 31, 2017, the Company recorded $150,000 consulting expense and various other expenses and fees related to an agreement with Asia Pacific Gene Engineering Co., an affiliated company. See Note 4.

See Note 7 for contributions made by the Company’s Chief Executive Officer.

NOTE 6 – INCOME TAXES

At July 31, 2017, we had federal income tax net operating loss (“NOL”) carryforwards of approximately $772,000. The NOL carryforwards expire from fiscal year 2033 through 2037. The value of these carryforwards depends on our ability to generate taxable income. A change in ownership, as defined by federal income tax regulations, could significantly limit our ability to utilize our net operating loss carryforwards. Additionally, because federal tax laws limit the time during which the net operating loss carryforwards may be applied against future taxes, if we fail to generate taxable income prior to the expiration dates we may not be able to fully utilize the net operating loss carryforwards to reduce future income taxes. We have had cumulative losses and there is no assurance of future taxable income, therefore, valuation allowances have been recorded to fully offset the deferred tax asset at July 31, 2017 and October 31, 2016.

NOTE 7 – EQUITY

During the nine months ended July 31, 2017 and July 31, 2016, the Company’s president contributed cash of $16,761 and $49,030, respectively, to the Company.  

F-6

ITEM 2 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statements

This report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors”, that may cause our company’s or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are stated in United States dollars (US$) and are prepared in accordance with United States generally accepted accounting principles.

In this quarterly report, unless otherwise specified, all references to “common shares” refer to the common shares of our capital stock.

As used in this quarterly report, the terms “we”, “us”, “our”, “American Gene Engineer Corp.”, “the Company” means American Gene Engineer Corp., unless otherwise indicated.

Corporate Overview

American Gene Engineer Corp. (“Company”) was incorporated in the State of Delaware on November 15, 2010. We have no full-time employees and own no real estate or personal property. We were originally formed as a vehicle to seek the acquisition of, or merger with, an existing company which provides genetic testing and diagnostic services or alternatively to develop our own business in those or related market segments. In July 2016, we ceased to be a “shell company,” as defined under the Securities and Exchange Act, when we commenced our own business in the area of genetic testing and entered into contracts with two individuals in Taiwan, pursuant to which the Company will provide genetic testing of those individuals in Taiwan. The overall business objective of the Company is to provide professional consultation services in gene development, research, examination and studies.

There are a number of factors that raise substantial doubt about our ability to continue as a going concern. Such doubts include the fact (i) that we have not established any source of revenue to cover our operating costs; (ii) that we will engage in very limited activities without incurring any liabilities that must be satisfied in cash until a source of funding is secured; and (iii) that if we are unable to obtain revenue producing contracts or financing or if the revenue or financing we do obtain is insufficient to cover any operating losses we may incur, we may substantially curtail or terminate our operations.

Plan of Operation

The part of the business plan that we are currently implementing is to provide genetic testing services and genetic test analysis services to individuals. Genetic tests can be performed to determine genetic relationships to certain diseases, indicate possible future illness issues, and evaluate an individual’s response to therapy and medication. We currently focus on individualized RNA genetic testing (“RNA tests”). The Company provides RNA tests for both healthy individuals and individuals with specified health concerns. For healthy individuals, the RNA test is preventative. For individuals with special health concerns, the RNA tests can be used to determine the right treatment and medication for such individuals. Because we currently do not have our own clinics and clinical laboratories to perform the Preventative Tests and we do not have any professionals on staff who can analyze the test results, we have entered into arrangements with entities in Taiwan to conduct the Preventative Tests. We currently have entered into an arrangement with the Li Ren Yi Shi Jian Yan Suo (“Li Ren”) in Taipei, Taiwan, pursuant to which, Li Ren agreed to perform blood tests in Taipei, Taiwan.  We also entered into a Service Agreement with Pharmacogenomics Lab in Taiwan (“Pharmacogenomics”), pursuant to which, Pharmacogenomics agreed to conduct genetic tests on the blood samples provided by Li Ren.  Once the testing is completed, Asian Pacific Genetic Engineering Corp, an affiliate of the Company, will prepare the client reports analyzing the test results.  We are also currently in negotiation with selected physicians and genetic specialists to help us convey the test results to our customers.  In the future, we plan to establish our own clinics and laboratories in Taiwan where the patients can have their blood drawn and tested.  Currently we are planning to commence testing of client blood samples under those signed contracts in the fourth fiscal quarter of 2017.

7

In the early stage of development, prior to the establishment of its own laboratories, the Company will outsource the RNA tests and the analysis thereof. In the future, we plan to establish our own clinical laboratories to conduct the genetic tests and hire physicians as employees to analyze the testing results. We also plan to expand our business by identifying potential business partners in the DNA repairing industry. Although our current operation is in Taiwan, we plan to expand our operation globally by setting up subsidiaries and/or investing in the existing business in the foreign countries.

Results of Operation

Three months ended July 31, 2017 as Compared to three months ended July 31, 2016

We have not generated any revenue since inception. During the fiscal year ended October 31, 2016, we collected $456,000 (net of customer referral fees of $112,000) which has been deferred until such time as the services are provided.  For the three months ended July 31, 2017, 23 did not receive any amount for future services.

For the three months ended July 31, 2017, we incurred $80,751 in operating expenses as compared to $23,963 for the same period in 2016. Our operating expenses for the three months ended July 31, 2017 mainly included  service fee paid to one related party and fees paid to our third party professionals, including lawyers, accountants and auditors for the filing of periodic reports with SEC and other miscellaneous fees.

For the three months July 31, 2017 and 2016 we had net losses of $80,751 and $23,963, respectively, due to the payments of expenses as described above.

Nine Months Ended July 31, 2017 as Compared to Six Months Ended July 31, 2016

For the nine months ended July 31, 2017, we incurred $258,751 in operating expenses as compared to $72,455 for the same period in 2016. Our operating expenses for the nine months ended July 31, 2017 mainly included service fees of $150,000 paid to one related party and fees paid to our third party professionals, including lawyers, accountants and auditors for the audit and other miscellaneous fees.  Our operating expenses for the nine months ended July 31, 2016 mainly included accounting fees.

For the nine months ended July 31, 2017 and 2016 we had net losses of $258,751 and $72,455, respectively, due to the increase of expenses as described above.

For the nine months ended July 31, 2017, we did not receive any amounts for future services.

Liquidity and Capital Resources

As of July 31, 2017, we have no current source of revenue and had cash and cash equivalents of $893.  There is a substantial doubt regarding the Company’s ability to continue as a going concern.

Our expenses have been paid for with cash collected from customers in advance and funds provided by our Chief Executive Officer.

We anticipate that in order to fund our ongoing working capital requirements, we will need to use all of the remaining cash funds as well as seeking other sources of funding. We may need to raise additional capital through loans or additional investments from our initial shareholders, officers, directors, or third parties. None of the initial shareholders, officers or directors is under any obligation to advance funds or invest in, us. Accordingly, we may not be able to obtain additional financing. If we are unable to raise additional capital, we may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of our business plan, and controlling overhead expenses. We cannot provide any assurance that new financing will be available to us on commercially acceptable terms, if at all. These factors raise substantial doubt about our ability to continue as a going concern.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements, financings or other relationships with entities or other persons, also known as “special purpose entities.”

8

Critical Accounting Estimates

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. As such, in accordance with the use of accounting principles generally accepted in the United States of America, our actual realized results may differ from management’s initial estimates as reported. A summary of our significant accounting policies are detailed in the notes to the financial statements, which are an integral component of this analysis.

Significant Accounting Policies

The Company has defined a significant accounting policy as one that is both important to the portrayal of the Company’s financial condition and results of operations and requires management of the Company to make difficult, subjective or complex judgments. Estimates and assumptions about future events and their effects cannot be predicted with certainty. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments. These estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. 

We have identified the policies set forth in Note 2 to our financial statements as significant to our business operations and the understanding of our results of operations. The impact and any associated risks related to these policies on our business operations is discussed throughout Management’s Discussion and Analysis of Results of Operations and Financial Condition, where such policies affect our reported and expected financial results. In the ordinary course of business, we have made a number of estimates and assumptions relating to the reporting of results of operations and financial condition in the preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America. Actual results could differ significantly from those estimates under different assumptions and conditions. We believe that the discussion set forth in Note 2 to our financial statements addresses our most significant accounting policies, which are those that are most important to the portrayal of our financial condition and results of operations and require our most difficult, subjective and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act of 1934 are designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Our disclosure controls and procedures are also designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officer, to allow timely decisions regarding required disclosure. Our chief executive officer and chief financial officer have reviewed the effectiveness of our disclosure controls and procedures as of July 31, 2017 and, based on his evaluation, have concluded that the disclosure controls and procedures were not effective.

Management’s assessment identified several material weaknesses in our internal control over financial reporting. A “material weakness” is defined under SEC rules as a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of a company’s annual or interim financial statements will not be prevented or detected on a timely basis by the company’s internal controls.

9

Our management concluded that we had material weaknesses in our control environment and financial reporting process consisting of the following as of the Evaluation Date:

1) lack of design and implementation of a system of internal controls over financial reporting;

2) lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our Board of Directors, resulting in ineffective oversight in the establishment and monitoring of required internal control and procedures;

3) inadequate segregation of duties consistent with control objectives;

4) ineffective controls over period end financial disclosure and reporting processes; and

5) lack of accounting personnel with adequate experience and training.

Changes in internal control over financial reporting

During the three months ended July 31, 2017, there were no changes in our internal control over financial reporting identified in connection with the evaluation performed during the fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

We know of no material, active or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

ITEM 1A. RISK FACTORS

As of the date of this filing, there have been no material changes from the risk factors disclosed in Item 1A (Risk Factors) contained in our Form 10-K for the year ended October 31, 2016, filed with the SEC on February 15, 2017. We operate in a changing environment that involves numerous known and unknown risks and uncertainties that could materially affect out operations. The risks, uncertainties and other factors set forth in our Form 10-K for the year ended October 31, 2016, filed with the SEC on February 15, 2017, may cause our actual results, performances and achievements to be materially different from those expressed or implied by our forward-looking statements. If any of these risks or events occurs, our business, financial condition or results of operations may be adversely affected.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

10

ITEM 6. EXHIBITS

(3)	Articles of Incorporation and By-laws
3.1	Articles of Incorporation filed with the Secretary of State of the State of Delaware on November 15, 2010 (attached as an exhibit to our registration statement on Form 10 filed on June 13, 2014)
3.2	Bylaws (attached as an exhibit to our registration statement on Form 10 filed on June 13, 2014)
3.3	Amended and Restated Certificate of Incorporation filed with the Secretary of State of Delaware on February 21, 2014 (attached as an exhibit to our registration statement on Form 10 filed on June 13, 2014)
(10)	Material Contracts
10.1	Form of Subscription Agreement (attached as an exhibit to our registration statement on Form 10 filed on June 13, 2014)
10.2	Office Lease between Prime Office Centers 521, LLC and the Company dated March 13, 2014 (attached as an exhibit to our registration statement on Form 10 filed on August 11, 2014)
(31)	Section 302 Certification
31.1*	Certification Statement of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification Statement of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(32)	Section 906 Certification
32.1*	Certification Statement of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*	Certification Statement of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*	XBRL INSTANCE DOCUMENT
101.SCH*	XBRL TAXONOMY EXTENSION SCHEMA
101.CAL*	XBRL TAXONOMY EXTENSION CALCULATION LINKBASE
101.DEF*	XBRL TAXONOMY EXTENSION DEFINITION LINKBASE
101.LAB*	XBRL TAXONOMY EXTENSION LABEL LINKBASE
101.PRE*	XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE

*filed herewith

11

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

American Gene Engineer Corp.
	/s/ Ming Lin
	Ming Lin
	CEO, Principal Executive Officer, and Director
	Date:
	/s/ Han-Chen Lin
	Han-Chen Lin
	CFO, Principal Accounting Officer, and Director
	Date:

Date: September 19, 2017

12

EX-31.1

Exhibit 31.1

Certification of Principal Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

and Securities and Exchange Commission Release 34-46427

I, Ming Lin, certify that:

1. I have reviewed this quarterly report on Form 10-Q of American Gene Engineer Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) all deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: September 19, 2017

/s/ Ming Lin

Ming Lin

Principal Executive Officer

EX-31.2

Exhibit 31.2

Certification of Principal Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

and Securities and Exchange Commission Release 34-46427

I, Han-Chen Lin, certify that:

1. I have reviewed this quarterly report on Form 10-Q of American Gene Engineer Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) all deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: September 19, 2017

/s/ Han-Chen Lin

Han-Chen Lin

Principal Financial Officer and Principal
Accounting Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of American Gene Engineer Corp. (the "Company") on Form 10-Q for the quarter ended July 31, 2017 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Ming Lin, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: September 19, 2017

/s/ Ming Lin

Ming Lin

Principal Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of American Gene Engineer Corp. (the "Company") on Form 10-Q for the quarter ended July 31, 2017 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Han-Chen Lin, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: September 19, 2017

/s/ Han-Chen Lin

Han-Chen Lin

Principal Financial Officer and Principal
Accounting Officer

XML

Document and Entity Information - shares	9 Months Ended
	Jul. 31, 2017	Sep. 19, 2017
Document and Entity Information
Entity Registrant Name	AMERICAN GENE ENGINEER CORP
Entity Central Index Key	0001600784
Entity Filer Category	Smaller Reporting Company
Amendment Flag	false
Document Type	10-Q
Document Period End Date	Jul. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--10-31
Entity Common Stock, Shares Outstanding		100,000,000

XML

Balance Sheets - USD ($)	Jul. 31, 2017	Oct. 31, 2016
Current assets:
Cash and cash equivalents	$ 893	$ 308,541
Prepaid expense	158,530	92,357
Total current assets	159,423	400,898
Rent deposit	3,800	3,800
Total assets	163,223	404,698
Current liabilities:
Accounts payable and accrued expenses	19,339	15,966
Accounts payable - related party		2,858
Deferred revenue	568,000	568,000
Total liabilities	587,339	586,824
Stockholders' deficit:
Common stock, $0.001 par value, 200,000,000 authorized, 100,000,000 share issued and outstanding	100,000	100,000
Additional paid-in capital	247,375	230,614
Accumulated deficit	(771,491)	(512,740)
Total stockholders' deficit	(424,116)	(182,126)
Total liabilities and stockholders' deficit	$ 163,223	$ 404,698

XML

Balance Sheets (Parenthetical) - $ / shares	Jul. 31, 2017	Oct. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorizied	200,000,000	200,000,000
Common stock, shares issued	100,000,000	100,000,000
Common stock, shares outstanding	100,000,000	100,000,000

XML

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2017	Jul. 31, 2016	Jul. 31, 2017	Jul. 31, 2016
Revenue:
Revenue
Operating expenses:
General and administrative	80,751	23,963	258,751	72,455
Net loss	$ (80,751)	$ (23,963)	$ (258,751)	$ (72,455)
Net loss per share - basic and diluted	$ 0.00	$ 0.00	$ (0.00)	$ 0.00
Weighted average number of shares outstanding during the period - basic and diluted	100,000,000	100,000,000	100,000,000	100,000,000

XML

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Cash flows from operating activities:
Net loss	$ (258,751)	$ (72,455)
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(66,173)	1,826
Accounts payable and accrued expenses	515	12,212
Deferred revenue		10,000
Net cash used in operating activities	(324,409)	(48,417)
Cash flows from financing activities:
Capital contribution from related party	16,761	49,030
Net cash provided by financing activities	16,761	49,030
Net increase (decrease) in cash and cash equivalents	(307,648)	613
Cash and cash equivalents, beginning of period	308,541	9,549
Cash and cash equivalents, end of period	893	10,162
Supplemental cash flow disclosures:
Cash paid for interest
Cash paid for income taxes

XML

ORGANIZATION

9 Months Ended

Jul. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION

NOTE 1 – ORGANIZATION

American Gene Engineer Corp. (the "Company") was incorporated in Delaware on November 15, 2010. The Company was established to provide professional consultation gene development, research, examination and studies.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING

9 Months Ended

Jul. 31, 2017

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING

BASIS OF PRESENTATION

The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) with respect to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These interim unaudited financial statements should be read in conjunction with the financial statements of the Company for the year ended October 31, 2016 and notes thereto contained elsewhere in the Annual Report on Form 10-K filed with the SEC on February 15, 2017.

ESTIMATES AND ASSUMPTIONS

Preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions.

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid short-term investments purchased with an original maturity of three months or less to be cash equivalents. These investments are carried at cost, which approximates fair value.

REVENUE RECOGNITION

The Company recognizes revenue only when (1) there is persuasive evidence of an arrangement with the customer; (2) delivery has occurred or services have been rendered; (3) amount due to the customer is fixed or determinable; and (4) collectability is reasonably assured. Advance payments from customers are deferred and recorded in deferred revenue. During the year ended October 31, 2016, the Company received $568,000 from customers for gene analysis reports to be provided by the Company. During the nine months ended July 31, 2017, the Company received no payments from customers for gene analysis to be provided by the Company.  Revenue will be recorded by the Company when the report is delivered. As of July 31, 2017, no service has been provided by the Company.

INCOME TAXES

An asset and liability approach is used for financial accounting and reporting for income taxes. Deferred income taxes arise from temporary differences between income tax and financial reporting and principally relate to recognition of revenue and expenses in different periods for financial and tax accounting purposes and are measured using currently enacted tax rates and laws. In addition, a deferred tax asset can be generated by net operating loss carryforwards (“NOLs”). If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized.

In the event the Company is charged interest or penalties related to income tax matters, the Company would record such interest as interest expense and would record such penalties as other expense in the statement of operations. No such charges have been incurred by the Company.  As of July 31, 2017, the Company has no accrued interest related to uncertain tax positions.

EARNINGS (LOSS) PER COMMON SHARE

Basic net earnings (loss) per common share are computed by dividing net earnings (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net earnings (loss) per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods when losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.

SUBSEQUENT EVENTS

The Company has evaluated all transactions from July 31, 2017 through the financial statement issuance date for subsequent event disclosure consideration and noted no significant subsequent event that needs to be disclosed.

NEW ACCOUNTING PRONOUNCEMENTS

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” The guidance requires a company to recognize revenue when it transfers promised services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those services and requires enhanced disclosures. The new guidance is effective for annual and interim periods beginning after December 15, 2016, and early adoption is not permitted. On July 9, 2015, the FASB approved the deferral of the effective date of the new revenue guidance by one year to annual reporting periods beginning after December 15, 2017, with early adoption being permitted for annual periods beginning after December 15, 2016. The Company is currently evaluating the new guidance.

There were various other accounting standard and interpretations issued recently, none of which are expected to have a material impact on our financial position, operations or cash flows.

XML

GOING CONCERN

9 Months Ended

Jul. 31, 2017

GOING CONCERN [Abstract]

GOING CONCERN

NOTE 3 – GOING CONCERN

At July 31, 2017, the Company had a net working capital deficit of $427,916. The Company has suffered recurring losses and expects such losses to continue through at least fiscal year 2018. The Company expects to finance its operations primarily through contributions from its Chief Executive Officer and receipts from customer contracts. The Chief Executive Officer is not legally obligated to provide any financing.

There is no assurance that the Company will be able to obtain such additional capital.  Additionally, no assurance can be given that any such financing, if obtained, will be adequate to meet the Company’s ultimate capital needs and to support its growth.  If adequate capital cannot be obtained on a timely basis and on satisfactory terms, the Company’s operations would be materially negatively impacted.

As a result of the above discussed conditions, there exists substantial doubt about the Company’s ability to continue as a going concern.  The Company’s financial statements are presented on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.  The financial statements do not include any adjustments relating to the recoverability of the recorded assets or the classification of liabilities that may be necessary should it be determined that the Company is unable to continue as a going concern.

XML

PREPAID EXPENSE

9 Months Ended

Jul. 31, 2017

Prepaid Expense and Other Assets, Current [Abstract]

PREPAID EXPENSE

NOTE 4 – PREPAID EXPENSE

Prepaid expense consisted of the following at July 31, 2017 and October 31, 2016:

	July 31, 2017		October 31, 2016
Prepaid examination fee	$	108,280	$	90,007
Prepaid consulting fee to an affiliated company		50,000		-
Other		250		2,350
Total prepaid expense	$	158,530	$	92,357

  

On November 1, 2016, the Company entered into a service agreement with Asia Pacific Gene Engineering Co., an entity is controlled by the Company's CEO's son. Pursuant to the agreement, Asia Pacific Gene Engineering Co. will provide services to the Company’s customers, such as pre-exam consulting, testing result analyzing and post exam consulting for one year for a $200,000 service fee. The Company paid the $200,000 service fee in January 2017 and expensed $150,000 for the nine months ended July 31, 2017. During the nine months ended July 31, 2017, the Company also paid Asia Pacific Gene Engineering Co. $20,000 as a future testing fee, which was included in the prepaid examination fee.

XML

RELATED PARTY TRANSACTIONS

9 Months Ended

Jul. 31, 2017

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 5 – RELATED PARTY TRANSACTIONS

As of July 31, 2017 and October 31, 2016, salary payable to the Company’s Chief Executive Officer was $nil and $2,858.

During the nine months ended July 31, 2017, the Company recorded $150,000 consulting expense and various other expenses and fees related to an agreement with Asia Pacific Gene Engineering Co., an affiliated company. See Note 4.

See Note 7 for contributions made by the Company’s Chief Executive Officer.

XML

INCOME TAXES

9 Months Ended

Jul. 31, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 6 – INCOME TAXES

At July 31, 2017, we had federal income tax net operating loss (“NOL”) carryforwards of approximately $772,000. The NOL carryforwards expire from fiscal year 2033 through 2037. The value of these carryforwards depends on our ability to generate taxable income. A change in ownership, as defined by federal income tax regulations, could significantly limit our ability to utilize our net operating loss carryforwards. Additionally, because federal tax laws limit the time during which the net operating loss carryforwards may be applied against future taxes, if we fail to generate taxable income prior to the expiration dates we may not be able to fully utilize the net operating loss carryforwards to reduce future income taxes. We have had cumulative losses and there is no assurance of future taxable income, therefore, valuation allowances have been recorded to fully offset the deferred tax asset at July 31, 2017 and October 31, 2016.

XML

EQUITY

9 Months Ended

Jul. 31, 2017

Stockholders' Equity Note [Abstract]

EQUITY

NOTE 7 – EQUITY

During the nine months ended July 31, 2017 and July 31, 2016, the Company’s president contributed cash of $16,761 and $49,030, respectively, to the Company.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING (Policies)

9 Months Ended

Jul. 31, 2017

Accounting Policies [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) with respect to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These interim unaudited financial statements should be read in conjunction with the financial statements of the Company for the year ended October 31, 2016 and notes thereto contained elsewhere in the Annual Report on Form 10-K filed with the SEC on February 15, 2017.

ESTIMATES AND ASSUMPTIONS

ESTIMATES AND ASSUMPTIONS

Preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions.

CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid short-term investments purchased with an original maturity of three months or less to be cash equivalents. These investments are carried at cost, which approximates fair value.

REVENUE RECOGNITION

REVENUE RECOGNITION

The Company recognizes revenue only when (1) there is persuasive evidence of an arrangement with the customer; (2) delivery has occurred or services have been rendered; (3) amount due to the customer is fixed or determinable; and (4) collectability is reasonably assured. Advance payments from customers are deferred and recorded in deferred revenue. During the year ended October 31, 2016, the Company received $568,000 from customers for gene analysis reports to be provided by the Company. During the nine months ended July 31, 2017, the Company received no payments from customers for gene analysis to be provided by the Company.  Revenue will be recorded by the Company when the report is delivered. As of July 31, 2017, no service has been provided by the Company.

INCOME TAXES

INCOME TAXES

An asset and liability approach is used for financial accounting and reporting for income taxes. Deferred income taxes arise from temporary differences between income tax and financial reporting and principally relate to recognition of revenue and expenses in different periods for financial and tax accounting purposes and are measured using currently enacted tax rates and laws. In addition, a deferred tax asset can be generated by net operating loss carryforwards (“NOLs”). If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized.

In the event the Company is charged interest or penalties related to income tax matters, the Company would record such interest as interest expense and would record such penalties as other expense in the statement of operations. No such charges have been incurred by the Company.  As of July 31, 2017, the Company has no accrued interest related to uncertain tax positions.

EARNINGS (LOSS) PER COMMON SHARE

EARNINGS (LOSS) PER COMMON SHARE

Basic net earnings (loss) per common share are computed by dividing net earnings (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net earnings (loss) per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods when losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

The Company has evaluated all transactions from July 31, 2017 through the financial statement issuance date for subsequent event disclosure consideration and noted no significant subsequent event that needs to be disclosed.

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” The guidance requires a company to recognize revenue when it transfers promised services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those services and requires enhanced disclosures. The new guidance is effective for annual and interim periods beginning after December 15, 2016, and early adoption is not permitted. On July 9, 2015, the FASB approved the deferral of the effective date of the new revenue guidance by one year to annual reporting periods beginning after December 15, 2017, with early adoption being permitted for annual periods beginning after December 15, 2016. The Company is currently evaluating the new guidance.

There were various other accounting standard and interpretations issued recently, none of which are expected to have a material impact on our financial position, operations or cash flows.

XML

PREPAID EXPENSE (Tables)

9 Months Ended

Jul. 31, 2017

Prepaid Expense and Other Assets, Current [Abstract]

Schedule of Prepaid Expenses

Prepaid expense consisted of the following at July 31, 2017 and October 31, 2016:

	July 31, 2017		October 31, 2016
Prepaid examination fee	$	108,280	$	90,007
Prepaid consulting fee to an affiliated company		50,000		-
Other		250		2,350
Total prepaid expense	$	158,530	$	92,357

XML

SUMMARY OF SIGNIFICANT ACCOUNTING (Details) - USD ($)	Jul. 31, 2017	Oct. 31, 2016
Accounting Policies [Abstract]
Accrued interest related to uncertain tax positions
Deferred revenue	$ 568,000	$ 568,000

XML

GOING CONCERN (Details)	Jul. 31, 2017 USD ($)
GOING CONCERN [Abstract]
Net working capital deficit	$ 427,916

XML

PREPAID EXPENSE (Details) - USD ($)	Jul. 31, 2017	Oct. 31, 2016
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid examination fee	$ 108,280	$ 90,007
Prepaid consulting fee to an affiliated company	50,000
Other	250	2,350
Total prepaid expense	$ 158,530	$ 92,357

XML

PREPAID EXPENSE (Narrative) (Details) - USD ($)	1 Months Ended	9 Months Ended
	Jan. 31, 2017	Jul. 31, 2017
Related Party Transaction [Line Items]
Service fee expense		$ 0
Affiliated Company [Member]
Related Party Transaction [Line Items]
Service fee paid to related party	$ 200,000
Service fee expense		150,000
Future testing fees		$ 20,000

XML

RELATED PARTY TRANSACTIONS (Details) - USD ($)	9 Months Ended
	Jul. 31, 2017	Oct. 31, 2016
Salary payable to chief executive officer		$ 2,858
Consulting expense	150,000
Service fee expense	0
Affiliated Company [Member]
Service fee expense	$ 150,000

XML

INCOME TAXES (Details) - Internal Revenue Service (IRS) [Member]	9 Months Ended
	Jul. 31, 2017 USD ($)
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 772,000
Earliest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards, expiration date	Dec. 31, 2033
Latest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards, expiration date	Dec. 31, 2037

XML

EQUITY (Details) - USD ($)	9 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Stockholders' Equity Note [Abstract]
Capital contributions from related party	$ 16,761	$ 49,030