Events After the Reporting Period

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Events After the Reporting Period

16. Events After the Reporting Period

There has not arisen in the interval between the end of the financial period and the date of these financial statements any other item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operation of the company, the results of those operations, or the state of affairs of the company, in future financial years except for:

(a) On July 18, 2022, the Board of Directors of Sincerity Applied Materials Holdings Corp.(“SINC”) received the formal resignation letter from its independent registered public accounting firm, SW Audit (Formerly ShineWing Australia) effective immediately.   SW Audit is a medium sized firm and are currently facing staff shortages and constraints being experienced in Australia because of the COVID-19 Global Pandemic and consequently are unable continue as SINC’s Statutory Auditor due to their inability to provide any certainty over when they could commence or complete SINC’s Statutory Audit.   SW Audit noted there are no other material reasons for our resignation and confirmed that there were no circumstances connected with their resignation which they considered should be brought to the attention of the members or creditors of the Company and that there has been no disagreement with Management or the Directors.   The company has started the process of selecting a replacement auditor.

(b) On August 20, 2020, the Group has entered into a stock purchase agreement with Simcor (Jiangsu) Materials Technology Ltd (SMTL), a company formed in the Peoples Republic of China with its registered address at No 67, Yanzhen East Rd, Niutang, Wujin, Changzhou, Jiangsu, China. SMTL will sell to the group 2,000,000 ordinary shares to the Group for a consideration of USD 2,500,000. SMTL also will issue and sell to the Group 5,000,000 ordinary shares for a consideration of USD 4,500,000.   The Group has issued a USD 7,000,000 promissory note to the shareholder of SMTL and assigned the debt to Infinity Fund LLC for the same amount of USD 7,000,000 subject to the granting of Section 3(a)(10) of the Securities Act of 1933 as described in Note 15(a).    At the date of this report, the transaction is still pending settlement. This is expected to close towards the end of August.