10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2018 

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to _________

SEC File No. 333-179082

VELT INTERNATIONAL GROUP INC.

(Exact name of registrant as specified in its charter)

Nevada	7371	27-5159463
(State or other jurisdiction of incorporation or organization)	(Primary Standard Industrial Classification Code Number)	(IRS I.D.)

1313 N Grand Ave. #16, Walnut, California	91789
(Address of principal executive offices)	(Zip Code)

Issuer’s telephone number: 626-262-7379

N/A

(Former name, former address and telephone number, if changed since last report)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 ☐ No ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting 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	☒
		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. ☐

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

As of August 10, 2018, there were 1,886,575 shares issued and outstanding of the registrant’s common stock.

VELT INTERNATIONAL GROUP INC. AND SUBSIDIARY

(formerly A & C United Agriculture Developing Inc.)

Unaudited Condensed Consolidated Financial Statements

For the nine months ended June 30, 2018 and 2017

Table of Contents

Unaudited Condensed Consolidated Balance Sheets	2
Unaudited Condensed Consolidated Statements of Operations	3
Unaudited Condensed Consolidated Statements of Cash Flows	4
Notes to Condensed Consolidated Financial Statements	5

1

VELT INTERNATIONAL GROUP INC. AND SUBSIDIARY

(formerly A & C United Agriculture Developing Inc.)

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30,			September 30,
	2018			2017
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	5,965		$	50,515
Accounts receivable		2,000			-
Escrow deposit		214,000			-
Total Current Assets		221,965			50,515
Noncurrent assets:
Property and equipment, net		6,673			-
Total Noncurrent Assets		6,673			-
TOTAL ASSETS	$	228,638		$	50,515
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Loans from shareholders	$	410,930		$	86,158
Accrued expenses		4,520			-
Total Current Liabilities		415,450			86,158
TOTAL LIABILITIES		415,450			86,158
COMMITMENTS AND CONTNGENCIES
Stockholders’ Deficit:
Common stock, $0.001 par value; 500,000,000 shares authorized; 1,886,575 shares issued and outstanding as of June 30, 2018 and September 30, 2017		1,887			1,887
Additional paid-in capital		1,020,563			1,020,563
Accumulated deficit		(1,209,261	)		(1,058,093	)
Accumulated other comprehensive loss		-			-
TOTAL STOCKHOLDERS’ DEFICIT		(186,811	)		(35,643	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	228,638		$	50,515

 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

VELT INTERNATIONAL GROUP INC. AND SUBSIDIARY

(formerly A & C United Agriculture Developing Inc.)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Nine Months Ended			Nine Months Ended			Three Months Ended			Three Months Ended
	June 30,			June 30,			June 30,			June 30,
	2018			2017			2018			2017
Revenues	$	17,048		$	854,839		$	2,000		$	297,932
Cost of good sold		-			712,580			-			231,073
Gross profit		17,048			142,259			2,000			66,859
Operating expenses:
Research and development		-			1,404			-			799
Selling, general and administrative expenses		129,992			240,892			34,853			81,033
Depreciation expense		705			4,081			369			1,360
Total operating expenses		130,697			246,377			35,222			83,192
Operating loss		(113,649	)		(104,118	)		(33,222	)		(16,333	)
Other income (loss), net		(37,520	)		74			(37,520	)		25
Loss before income taxes		(151,169	)		(104,044	)		(70,742	)		(16,308	)
Income tax expense		-			-			-			-
Net loss		(151,169	)		(104,044	)		(70,742	)		(16,308	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		-			(499	)		-			429
Other comprehensive income (loss)					(499	)					429
Comprehensive loss	$	(151,169	)	$	(104,543	)	$	(70,742	)	$	(15,879	)
Weighted average shares, basic and diluted		1,886,575			1,886,575			1,886,575			1,886,575
Net loss per common share, basic and diluted	$	(0.08	)	$	(0.06	)	$	(0.04	)	$	(0.01	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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VELT INTERNATIONAL GROUP INC. AND SUBSIDIARY

(formerly A & C United Agriculture Developing Inc.)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended			Nine Months Ended
	June 30,			June 30,
	2018			2017
Operating Activities:
Net loss	$	(151,169	)	$	(104,044	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation expense		705			4,081
Loss on cancellation of escrow contract		36,000			-
Changes in operating assets and liabilities:
Inventory		-			357,448
Accounts receivable		(2,000	)		(203,133	)
Prepaid expense		-			74,993
Accrues expenses		4,520			(64	)
Unearned income		-			(156,030	)
Accounts payable		-			27,747
Credit card payable		-			1,594
Net cash (used in) provided by operating activities		(111,944	)		2,592
Investing Activities:
Purchases of property and equipment		(7,378	)		-
Payment of escrow deposit		(250,000	)		-
Net cash used in investing activities		(257,378	)		-
Financing Activities:
Loans from shareholders		324,772			-
Repayment of loans from shareholders		-			(3,387	)
Net cash provided by (used in) financing activities		324,772			(3,387	)
Effect of exchange rate on cash		-			(499	)
Net decrease in cash and cash equivalents		(44,550	)		(1,294	)
Cash and cash equivalents at beginning of the period		50,515			114,508
Cash and cash equivalents at end of the period	$	5,965		$	113,214
SUPPLEMENTAL DISCLOSURE:
Interest paid	$	-		$	-
Income tax paid	$	-		$	-

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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VELT INTERNATIONAL GROUP INC. AND SUBSIDIARY

(formerly A & C United Agriculture Developing Inc.)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - ORGANIZATION AND BUSINESS DESCRIPTION

Velt International Group Inc. (formerly A & C United Agriculture Developing Inc., or “Velt” or the “Company”) is a Nevada corporation formed on February 7, 2011. Our current principal executive office is located at 1313 N. Grand Ave. #16, Walnut, CA 91789. Tel: 626-262-7379. The Company’s common stock are currently traded on the Over the Counter Bulletin Board (“OTCQB”) under the symbol “VIGC”.

In addition to the U.S. operation, the Company established a subsidiary, A & C Agriculture Developing (Europe) AB (“A&C Europe” or the “Subsidiary”) in Stockholm, Sweden on October 24, 2013, which is located at Gamla Sodertaljevagen 134A, 141 70 Segeltorp, Sweden. On August 5, 2017, the Company sold all of its equity interest in the Subsidiary to the prior President of A&C Europe.

The Company has started to set up a completed and mature mobile application system (the “mobile app”) which supports third party payment function, online booking and other management functions. This mobile app allows users to get special discounts when the users purchase from merchants listed in the app through its online payment systems and will rely on big data management to create a large consumer base that will mostly connect with traditional retailers and some of the online stores.

The Board of the Directors approved the reverse stock split (the “stock split”) of the Company’s issued and outstanding common stock whereby each twenty shares of common stock will be converted into one share of common stock. The stock split became effective with the Financial Industry Regulatory Authority (“FINRA”) on May 21, 2018. All share and per share amounts in the financial statements and notes thereto have been restated for all periods presented to give retroactive effect to the stock split.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the unaudited interim financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. 

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Use of Estimates

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates, judgements and assumptions that affect certain amounts reported in the financial statements and footnotes. Accordingly, actual results could differ from those estimates.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued a new accounting standard update on revenue recognition from contracts with customers (Topic 606). The new guidance replaces all current GAAP guidance on this topic and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company elected to early adopt the new accounting standard on October 1, 2017 using the modified retrospective method, applied to those contracts which were not completed as of October 1, 2017. The adoption of Topic 606 did not have a material impact as of October 1, 2017 and therefore no cumulative adjustment was recorded.

Management believes that other than disclosed above, none of the recently issued accounting pronouncements will have a material impact on the consolidated financial statements. 

Concentration of Credit Risk

The Company maintains its cash in bank accounts which, at times, may exceed the federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash in bank.

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Cash and Cash Equivalents

The Company considers all highly-liquid investments with an original maturity of three months or less when purchased to be cash equivalents. As of June 30, 2018 and September 30, 2017, the Company had cash and cash equivalents of $5,965 and $50,515, respectively.

Earnings Per Share

Basic earnings per share is computed by dividing net income (loss) attribute to stockholders of common stock by the weighted-average number of common shares outstanding for the period. Diluted net earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding plus equivalent shares.

The Company only issued one type of shares, i.e., common shares and does not have any potentially dilutive instrument as of June 30, 2018 and 2017.

Property and equipment

Property and equipment are carried at cost and, less accumulated depreciation. Depreciation has been determined using a straight-line method over the estimated useful lives of the related assets, which are 5 years. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposal. The Company examines the possibility of decreases in the value of property and equipment when events or changes in circumstances reflect the fact that their recorded value may not be recoverable.

As of June 30, 2018, the Company’s property and equipment consists of computer equipment with a cost of $7,378 and accumulated depreciation of $705. During the nine months ended June 30, 2018 and 2017, the depreciation expenses were $705 and $4,081, respectively.

Revenue Recognition

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products and services. We enter into contracts that include products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers.

The Company’s contracts with customers may include multiple performance obligations. Revenue relating to agreements that provide more than one performance obligation is recognized based upon the relative fair value to the customer of each performance obligation as each obligation is earned. The Company derives its revenues the follows:

Mobile Apps:

Revenue from the mobile apps is recognized when control has transferred to the customer which typically occurs when the mobile apps either upon delivery of the key code to the customer or upon the deployment of the mobile app to the App Store.

Maintenance Services:

The Company offers maintenance and function improvements services related to the mobile apps for customers. Maintenance service is considered distinct and is recognized ratably over the maintenance term.

During the nine months ended June 30, 2018, the Company recognized revenue from the mobile apps and maintenance services in the amount of $15,084 and $2,000, respectively.

7

Going Concern Assessment

Pursuant to ASC 205-40-50, The Company’s financial statements are prepared using US GAAP applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company demonstrates adverse conditions that raise substantial doubt about the Company’s ability to continue as a going concern. These adverse conditions are negative financial trends, specifically negative working capital, recurring operating losses, accumulated deficit and other adverse key financial ratios.

The Company did not generate sufficient revenues to cover its operating expense during the nine months ended June 30, 2018. The Company plans to loan from Mr. Chin Kha Foo who is the majority shareholder and the President of the Company to support the Company’s normal business operating. There is no assurance, however, that the Company will be successful in raising the needed capital and, if funding is available, that it will be available on terms acceptable to the Company.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue as a going concern.

NOTE 3 - RELATED PARTY TRANSACTIONS

Loans from shareholders

On May 24, 2018, the Company issued a promissory note of $249,975, bearing interest rate at 6% and due in twelve months, to Mr. Chin Kha Foo in exchange for cash. During the nine months ended June 30, 2018, the interest expense was $1,520.

The Company also borrowed loans with no interest and due on demand from the shareholders to support its operation. The outstanding balance, including promissory note, as of June 30, 2018 and September 30, 2017 were $410,930 and $86,158, respectively.

NOTE 4 - INCOME TAXES

The Company recorded no income tax expense or benefit during the nine months ended June 30, 2018 and 2017 since the Company incurred net operating losses and recorded a full valuation allowance against net deferred tax assets for all periods presented. As of June 30, 2018 and September 30, 2017, the aggregate balances of our gross unrecognized tax benefits were $198 thousand and $248 thousand, respectively, of which a valuation allowance recognized against the unrecognized tax benefits.

In December 2017, the Tax Reform Act was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21 % effective for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. The management does not believe that there will be any material impact on its consolidated financial statements as a result of the Tax Reform Act.

8

NOTE 5 - COMMITMENTS AND CONTINGENCIES

The Company has no commitment or contingency as of June 30, 2018.

NOTE 6 - COMMON STOCK

The Board of the Directors approved the stock split of the Company’s issued and outstanding common stock whereby each twenty shares of common stock will be converted into one share of common stock. The stock split became effective FINRA on May 21, 2018. Pursuant to the stock split, each issued and outstanding share of the common stock was exchanged for one-twentieth of a share. As a result, each stockholder now owns a reduced number of shares of the Company’s common stock. The number of the Company’s authorized shares of common stock was not affected by the stock split and the shares of common stock retain a par value of $0.001 per share.

NOTE 7 – escrow deposit

The Company borrowed a promissory note of $249,975 from Chin Kha Foo, the majority shareholder and the President of the Company, and then deposited a total amount of $250,000 in an escrow account for the purpose of purchasing a piece of land, valued at $1,750,000, from Anchor Alliance Development Inc., a California Corporation (“Anchor”). On June 20, 2018, the Company and Anchor agreed to cancel the transaction. The amount of $214,000 was recorded as escrow deposit, net of the loss on the cancellation of the escrow contract of $36,000, in the balance sheet as of June 30, 2018.

NOTE 8 - SUBSEQUENT EVENTS

On July 20, 2018, the escrow deposit of $214,000 was returned to the Company due to the cancellation of the escrow contract.

The Company has evaluated all other subsequent events through the date the financial statements were issued and determined that there were no other subsequent events or transactions that require recognition or disclosures in the financial statements.

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Item 2. Management’s Discussion and Analysis or Plan of Operation

The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes, and other financial information included in this Form 10-Q.

Our Management’s Discussion and Analysis contains not only statements that are historical facts, but also statements that are forward-looking. Forward-looking statements are, by their very nature, uncertain and risky. These risks and uncertainties include international, national, and local general economic and market conditions; our ability to sustain, manage, or forecast growth; our ability to successfully make and integrate acquisitions; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; change in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; the risk of foreign currency exchange rate; and other risks that might be detailed from time to time in our filings with the Securities and Exchange Commission.

Although the forward-looking statements in this Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.

Overview

Velt International Group Inc. (formerly A & C United Agriculture Developing Inc., or “Velt” or the “Company”) is a Nevada corporation formed on February 7, 2011. Our current principal executive office is located at 1313 N. Grand Ave. #16, Walnut, CA 91789. Tel: 626-262-7379.

On March 13, 2017, Yidan (Andy) Liu and Jun (Charlie) Huang, the principal stockholders of the Company (“Sellers”), entered into a Stock Purchase Agreement (the “Agreement”) with Chin Kha Foo, the assignee of Choa-Jung Lee, and his assigns (the “Buyers”). Pursuant to the Agreement, Sellers agreed to sell to the Buyers and the Buyers agreed to purchase from Sellers a total of 24,000,000 shares of common stock of the Company Purchased Shares, which represented approximately 64% of the Company’s issued and outstanding shares of common stock. As a result, the transaction led to a change of the control and the management team of the Company.

On August 5, 2017, the Company entered into a Stock Purchase Agreement (the “SPA”) to sell its equity interest in its subsidiary, A & C Agriculture Developing (Europe) AB, to its former officer. Although the sale was not arms-length, the Board believes the purchase price was reasonable and that it was at a price no less than it would receive from an independent third party.

Prior to the change of the management team, the Company’s long-term goal was focus on solving some of the major challenges in China, such as pollution and food safety issues for the general public, as well as raising funds to grow the business. The Company has changed its focus to develop mobile application system (the “mobile app”) which supports third party payment, online booking and other management functions. This mobile app allows users to get special discounts when the users purchase from merchants listed in the mobile app through its online payment system.

The mobile app relies on big data management to create a large consumer base that mostly connects with traditional retailers and some of the online stores. Although internet consumption is very popular at present, the management believes that traditional offline businesses continue to have a very large market demand. This is because the traditional offline stores can directly bring visual senses to the customers and stimulate customer desires as well as consumer confidences.

The Board of the Directors approved the reverse split of the Company’s issued and outstanding common stock whereby each twenty shares of common stock will be converted into one share of common stock. The stock split became effective with the Financial Industry Regulatory Authority (“FINRA”) on May 21, 2018.

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The Company continues to look for other opportunities which could potentially increase the profits of the Company in the year of 2018.

Current Operational Activities

On December 6, 2017, the Company entered into a Mobile Application Development and Maintenance Agreement (the “Mobile Agreement”). Pursuant to the Mobile Agreement, the Company develops and designs a mobile application (the “Mobile App”) for a third-party company in Hong Kong. The Mobile App allows users to book airline ticket, train ticket and taxi cabs, play online games, facilitate payments for utilities and other services, and to facilitate shipping services and so forth.

We will continue to develop our customer resources in Asia and U.S. markets.

Results of Operations

For the nine months ended June 30, 2018 and 2017

Revenue

There was $17,048 and $854,839 revenue generated for the nine months ended June 30, 2018 and 2017. The decrease was attributable to the intentions to expand other business lines due to the change of the management team of the Company and the shrinking of the Company’s seed business.

Cost of Goods Sold

There was $nil and $712,580 cost of goods sold incurred for the nine months ended June 30, 2018 and 2017, respectively. The cost of goods sold decreased due to the different revenue stream.

Operating Expense 

Our expenses consist of selling, general and administrative expenses and depreciation expense as follows:

For the nine months ended June 30, 2018 and 2017, there was a total of $130,697 and $246,377 operating expenses, respectively. The decrease was primarily due to the limited operation activities incurred in this period.

11

Net Loss

We incurred net loss of $151,169 and $104,044 for the nine months ended June 30, 2018 and 2017.

For the three months ended June 30, 2018 and 2017

Revenue

There was $2,000 and $297,932 revenue generated for the three months ended June 30, 2018 and 2017. The decrease was attributable to the intentions to expand other business lines due to the change of the management team of the Company and the shrinking of the Company’s seed business.

Cost of Goods Sold

There was $nil and $231,073 cost of goods sold incurred for the three months ended June 30, 2018 and 2017, respectively. The cost of goods sold decreased due to the different revenue stream.

Operating Expense 

Our expenses consist of selling, general and administrative expenses and depreciation expense as follows:

For the three months ended June 30, 2018 and 2017, there was a total of $35,222 and $83,192 operating expenses, respectively. The decrease was primarily due to the change of control, leading to limited operation activities started.

Net Loss

We incurred net loss of $70,742 and $16,308 for the three months ended June 30, 2018 and 2017.

Taxation

On December 22, 2017, the United States Congress and the Administration have approved a bill reforming the US corporate income tax code which will reduce corporate tax rate from 35% to 21%. The rate reduction would generally take effect on January 1, 2018. The carrying value of our deferred tax assets is also determined by the enacted US corporate income tax rate. Consequently, any changes in the US corporate income tax rate will impact the carrying value of our deferred tax assets. The net effect of the tax reform enactment on financial statements is $nil for the nine months ended June 30, 2018.

Equity and Capital Resources

We have incurred losses for the nine months ended June 30, 2018 and 2017, and had an accumulated deficit of $1,209,261 as of June 30, 2018. As of June 30, 2018, we had cash of $5,965 and a negative working capital of $193,485, compared to cash of $50,515 and a negative working capital of $35,643 as of September 30, 2017. The decrease in the working capital was primarily due to loan from shareholders to disburse the operating expense or support the Company’s business.

We had no material commitments for capital expenditures as of June 30, 2018. We expect our expenses will continue to increase during the foreseeable future as a result of increased operational expenses and the development of potential business opportunities. However, we do not anticipate that the Company will generate revenue sufficient to cover its planned operating expenses in the foreseeable future, and we are dependent on the proceeds from future debt or equity investments to sustain our operations and implement our business plan. If we are unable to raise sufficient capital, we will be required to delay or forego some portion of our business plan, which would have a material adversely effect on our anticipated results from operations and financial condition. There is no assurance that we will be able to obtain necessary amounts of additional capital or that our estimates of our capital requirements will prove to be accurate. As of the date of this Report, we did not have any commitments from any source to provide such additional capital. Even if we are able to secure outside financing, it may not be available in the amounts or the times when we require. Furthermore, such financing would likely take the form of bank loans, private placement of debt or equity securities or some combination of these. The issuance of additional equity securities would dilute the stock ownership of current investors while incurring loans, leases or debt would increase our capital requirements and possible loss of valuable assets if such obligations were not repaid in accordance with their terms.

Off-Balance Sheet Arrangements 

We do not have any off-balance sheet arrangements that we are required to disclose pursuant to these regulations.

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Item 3. Quantitative and Qualitative Disclosure about Market Risk

Not applicable.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

The Company has established disclosure controls and procedures to ensure that information required to be disclosed in this quarterly report on Form 10-Q was properly recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms. The Company’s controls and procedures are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officer to allow timely decisions regarding required disclosure.

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) at March 31, 2018 based on the evaluation of these controls and procedures required by paragraph (b) of Rule 13a-15 or Rule 15d-15 under the Exchange Act. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer/Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer/Chief Financial Officer concluded that, at June 30, 2018, our disclosure controls and procedures were not effective.

Changes in Internal Control over Financial Reporting

There have been no changes in the Company’s internal control over financial reporting that occurred during the Company’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 2. Unregistered Sales of Equity Securities and Use of Proceed.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosure.

Not applicable.

Item 5. Other Information.

Not Applicable.

Item 6. Exhibits.

(a) Exhibits.

Exhibit No.	Document Description
31.1*	CERTIFICATION of CEO/CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302(a) OF THE SARBANES-OXLEY ACT OF 2002
32.1 *	CERTIFICATION of CEO/CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

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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.

Velt International Group Inc.,

a Nevada corporation

Title	Name	Date	Signature
Principal Executive Officer	Chin Kha Foo	August 10, 2018	/s/ Chin Kha Foo

In accordance with the Exchange Act, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

SIGNATURE	NAME	TITLE	DATE
/s/ Chin Kha Foo	Chin Kha Foo	Principal Executive Officer,	August 10, 2018
		Principal Financial Officer and Principal Accounting Officer

15

EXHIBIT INDEX

Exhibit No.	Document Description
31.1*	CERTIFICATION of CEO/CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302(a) OF THE SARBANES-OXLEY ACT OF 2002
32.1 *	CERTIFICATION of CEO/CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

16

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Chin Kha Foo, certify that:

1.	I have reviewed this report on Form 10-Q of Velt international Group Inc..;
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.	I am 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. 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 the registrant's board of directors (or persons performing the equivalent function):

a)	all significant 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.

	Velt International Group Inc.
Date: August 10, 2018	By:	/s/ Chin Kha Foo
		Chin Kha Foo
		Chief Executive Officer/Chief Financial 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

Pursuant to 18 U.S.C. § 1350, as adopted pursuant to Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned hereby certifies that the Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 of Velt International Group Inc. (the "Company") fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 and that the information contained in such Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	Velt International Group Inc.
Date: August 10, 2018	By:	/s/ Chin Kha Foo
		Chin Kha Foo
		Chief Executive Officer/Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Velt International Group Inc. and will be retained by Velt International Group Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2018	Aug. 10, 2018
Document And Entity Information
Entity Registrant Name	Velt International Group Inc.
Entity Central Index Key	0001539778
Document Type	10-Q
Trading Symbol	VIGC
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2018
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		1,886,575

XML

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 5,965	$ 50,515
Accounts receivable	2,000
Escrow deposit	214,000
Total Current Assets	221,965	50,515
Noncurrent assets:
Property and equipment, net	6,673
Total Noncurrent Assets	6,673
TOTAL ASSETS	228,638	50,515
Current liabilities:
Loans from shareholders	410,930	86,158
Accrued expenses	4,520
Total Current Liabilities	415,450	86,158
TOTAL LIABILITIES	415,450	86,158
COMMITMENTS AND CONTNGENCIES
STOCKHOLDERS' DEFICIT:
Common stock, $0.001 par value; 500,000,000 shares authorized; 1,886,575 shares issued and outstanding as of June 30, 2018 and September 30, 2017	1,887	1,887
Additional paid-in capital	1,020,563	1,020,563
Accumulated deficit	(1,209,261)	(1,058,093)
Accumulated other comprehensive loss
TOTAL STOCKHOLDERS' DEFICIT	(186,811)	(35,643)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 228,638	$ 50,515

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Sep. 30, 2017
Stockholders' Equity:
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	1,886,575	1,886,575
Common stock, shares outstanding	1,886,575	1,886,575

XML

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Consolidated Statements Of Operations And Comprehensive Loss
Revenues	$ 2,000	$ 297,932	$ 17,048	$ 854,839
Cost of good sold		231,073		712,580
Gross profit	2,000	66,859	17,048	142,259
Operating expenses:
Research and development		799		1,404
Selling, general and administrative expenses	34,853	81,033	129,992	240,892
Depreciation expense	369	1,360	705	4,081
Total operating expenses	35,222	83,192	130,697	246,377
Operating loss	(33,222)	(16,333)	(113,649)	(104,118)
Other income (loss), net	(37,520)	25	(37,520)	74
Loss before income taxes	(70,742)	(16,308)	(151,169)	(104,044)
Income tax expense
Net loss	(70,742)	(16,308)	(151,169)	(104,044)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		429		(499)
Other comprehensive income (loss)		429		(499)
Comprehensive loss	$ (70,742)	$ (15,879)	$ (151,169)	$ (104,543)
Weighted average shares, basic and diluted	1,886,575	1,886,575	1,886,575	1,886,575
Net loss per common share, basic and diluted	$ (0.04)	$ (0.01)	$ (0.08)	$ (0.06)

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating Activities:
Net loss	$ (151,169)	$ (104,044)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation expense	705	4,081
Loss on cancellation of escrow contract	36,000
Changes in operating assets and liabilities:
Inventory		357,448
Accounts receivable	(2,000)	(203,133)
Prepaid expense		74,993
Accrues expenses	4,520	(64)
Unearned income		(156,030)
Accounts payable		27,747
Credit card payable		1,594
Net cash (used in) provided by operating activities	(111,944)	2,592
Investing Activities:
Purchases of property and equipment	(7,378)
Payment of escrow deposit	(250,000)
Net cash used in investing activities	(257,378)
Financing Activities:
Loans from shareholders	324,772
Repayment of loans from shareholders		(3,387)
Net cash provided by (used in) financing activities	324,772	(3,387)
Effect of exchange rate on cash		(499)
Net decrease in cash and cash equivalents	(44,550)	(1,294)
Cash and cash equivalents at beginning of the period	50,515	114,508
Cash and cash equivalents at end of the period	5,965	113,214
SUPPLEMENTAL DISCLOSURE:
Interest paid
Income tax paid

XML

Organization and Business Description

9 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND BUSINESS DESCRIPTION

NOTE 1 - ORGANIZATION AND BUSINESS DESCRIPTION

Velt International Group Inc. (formerly A & C United Agriculture Developing Inc., or “Velt” or the “Company”) is a Nevada corporation formed on February 7, 2011. Our current principal executive office is located at 1313 N. Grand Ave. #16, Walnut, CA 91789. Tel: 626-262-7379. The Company’s common stock are currently traded on the Over the Counter Bulletin Board (“OTCQB”) under the symbol “VIGC”.

In addition to the U.S. operation, the Company established a subsidiary, A & C Agriculture Developing (Europe) AB (“A&C Europe” or the “Subsidiary”) in Stockholm, Sweden on October 24, 2013, which is located at Gamla Sodertaljevagen 134A, 141 70 Segeltorp, Sweden. On August 5, 2017, the Company sold all of its equity interest in the Subsidiary to the prior President of A&C Europe.

The Company has started to set up a completed and mature mobile application system (the “mobile app”) which supports third party payment function, online booking and other management functions. This mobile app allows users to get special discounts when the users purchase from merchants listed in the app through its online payment systems and will rely on big data management to create a large consumer base that will mostly connect with traditional retailers and some of the online stores.

The Board of the Directors approved the reverse stock split (the “stock split”) of the Company’s issued and outstanding common stock whereby each twenty shares of common stock will be converted into one share of common stock. The stock split became effective with the Financial Industry Regulatory Authority (“FINRA”) on May 21, 2018. All share and per share amounts in the financial statements and notes thereto have been restated for all periods presented to give retroactive effect to the stock split.

XML

Summary of Significant Accounting Policies

9 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the unaudited interim financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. 

Use of Estimates

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates, judgements and assumptions that affect certain amounts reported in the financial statements and footnotes. Accordingly, actual results could differ from those estimates.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued a new accounting standard update on revenue recognition from contracts with customers (Topic 606). The new guidance replaces all current GAAP guidance on this topic and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company elected to early adopt the new accounting standard on October 1, 2017 using the modified retrospective method, applied to those contracts which were not completed as of October 1, 2017. The adoption of Topic 606 did not have a material impact as of October 1, 2017 and therefore no cumulative adjustment was recorded.

Management believes that other than disclosed above, none of the recently issued accounting pronouncements will have a material impact on the consolidated financial statements. 

Concentration of Credit Risk

The Company maintains its cash in bank accounts which, at times, may exceed the federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash in bank.

Cash and Cash Equivalents

The Company considers all highly-liquid investments with an original maturity of three months or less when purchased to be cash equivalents. As of June 30, 2018 and September 30, 2017, the Company had cash and cash equivalents of $5,965 and $50,515, respectively.

Earnings Per Share

Basic earnings per share is computed by dividing net income (loss) attribute to stockholders of common stock by the weighted-average number of common shares outstanding for the period. Diluted net earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding plus equivalent shares.

The Company only issued one type of shares, i.e., common shares and does not have any potentially dilutive instrument as of June 30, 2018 and 2017.

Property and equipment

Property and equipment are carried at cost and, less accumulated depreciation. Depreciation has been determined using a straight-line method over the estimated useful lives of the related assets, which are 5 years. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposal. The Company examines the possibility of decreases in the value of property and equipment when events or changes in circumstances reflect the fact that their recorded value may not be recoverable.

As of June 30, 2018, the Company’s property and equipment consists of computer equipment with a cost of $7,378 and accumulated depreciation of $705. During the nine months ended June 30, 2018 and 2017, the depreciation expenses were $705 and $4,081, respectively.

Revenue Recognition

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products and services. We enter into contracts that include products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers.

The Company’s contracts with customers may include multiple performance obligations. Revenue relating to agreements that provide more than one performance obligation is recognized based upon the relative fair value to the customer of each performance obligation as each obligation is earned. The Company derives its revenues the follows:

Mobile Apps:

Revenue from the mobile apps is recognized when control has transferred to the customer which typically occurs when the mobile apps either upon delivery of the key code to the customer or upon the deployment of the mobile app to the App Store.

Maintenance Services:

The Company offers maintenance and function improvements services related to the mobile apps for customers. Maintenance service is considered distinct and is recognized ratably over the maintenance term.

During the nine months ended June 30, 2018, the Company recognized revenue from the mobile apps and maintenance services in the amount of $15,084 and $2,000, respectively.

Going Concern Assessment

Pursuant to ASC 205-40-50, The Company’s financial statements are prepared using US GAAP applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company demonstrates adverse conditions that raise substantial doubt about the Company’s ability to continue as a going concern. These adverse conditions are negative financial trends, specifically negative working capital, recurring operating losses, accumulated deficit and other adverse key financial ratios.

The Company did not generate sufficient revenues to cover its operating expense during the nine months ended June 30, 2018. The Company plans to loan from Mr. Chin Kha Foo who is the majority shareholder and the President of the Company to support the Company’s normal business operating. There is no assurance, however, that the Company will be successful in raising the needed capital and, if funding is available, that it will be available on terms acceptable to the Company.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue as a going concern.

XML

Related Party Transactions

9 Months Ended

Jun. 30, 2018

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 3 - RELATED PARTY TRANSACTIONS

Loans from shareholders

On May 24, 2018, the Company issued a promissory note of $249,975, bearing interest rate at 6% and due in twelve months, to Mr. Chin Kha Foo in exchange for cash. During the nine months ended June 30, 2018, the interest expense was $1,520.

The Company also borrowed loans with no interest and due on demand from the shareholders to support its operation. The outstanding balance, including promissory note, as of June 30, 2018 and September 30, 2017 were $410,930 and $86,158, respectively.

XML

Income Taxes

9 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 4 - INCOME TAXES

The Company recorded no income tax expense or benefit during the nine months ended June 30, 2018 and 2017 since the Company incurred net operating losses and recorded a full valuation allowance against net deferred tax assets for all periods presented. As of June 30, 2018 and September 30, 2017, the aggregate balances of our gross unrecognized tax benefits were $198 thousand and $248 thousand, respectively, of which a valuation allowance recognized against the unrecognized tax benefits.

In December 2017, the Tax Reform Act was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21 % effective for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. The management does not believe that there will be any material impact on its consolidated financial statements as a result of the Tax Reform Act.

XML

Commitments and Contingencies

9 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 5 - COMMITMENTS AND CONTINGENCIES

The Company has no commitment or contingency as of June 30, 2018.

XML

Common Stock

9 Months Ended

Jun. 30, 2018

Equity [Abstract]

COMMON STOCK

NOTE 6 - COMMON STOCK

The Board of the Directors approved the stock split of the Company’s issued and outstanding common stock whereby each twenty shares of common stock will be converted into one share of common stock. The stock split became effective FINRA on May 21, 2018. Pursuant to the stock split, each issued and outstanding share of the common stock was exchanged for one-twentieth of a share. As a result, each stockholder now owns a reduced number of shares of the Company’s common stock. The number of the Company’s authorized shares of common stock was not affected by the stock split and the shares of common stock retain a par value of $0.001 per share.

XML

Escrow Deposit

9 Months Ended

Jun. 30, 2018

Escrow Deposit

ESCROW DEPOSIT

NOTE 7 – escrow deposit

The Company borrowed a promissory note of $249,975 from Chin Kha Foo, the majority shareholder and the President of the Company, and then deposited a total amount of $250,000 in an escrow account for the purpose of purchasing a piece of land, valued at $1,750,000, from Anchor Alliance Development Inc., a California Corporation (“Anchor”). On June 20, 2018, the Company and Anchor agreed to cancel the transaction. The amount of $214,000 was recorded as escrow deposit, net of the loss on the cancellation of the escrow contract of $36,000, in the balance sheet as of June 30, 2018.

XML

Subsequent Events

9 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 8 - SUBSEQUENT EVENTS

On July 20, 2018, the escrow deposit of $214,000 was returned to the Company due to the cancellation of the escrow contract.

The Company has evaluated all other subsequent events through the date the financial statements were issued and determined that there were no other subsequent events or transactions that require recognition or disclosures in the financial statements.

XML

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the unaudited interim financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. 

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates, judgements and assumptions that affect certain amounts reported in the financial statements and footnotes. Accordingly, actual results could differ from those estimates.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued a new accounting standard update on revenue recognition from contracts with customers (Topic 606). The new guidance replaces all current GAAP guidance on this topic and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company elected to early adopt the new accounting standard on October 1, 2017 using the modified retrospective method, applied to those contracts which were not completed as of October 1, 2017. The adoption of Topic 606 did not have a material impact as of October 1, 2017 and therefore no cumulative adjustment was recorded.

Management believes that other than disclosed above, none of the recently issued accounting pronouncements will have a material impact on the consolidated financial statements. 

Concentration of Credit Risk

Concentration of Credit Risk

The Company maintains its cash in bank accounts which, at times, may exceed the federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash in bank.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly-liquid investments with an original maturity of three months or less when purchased to be cash equivalents. As of June 30, 2018 and September 30, 2017, the Company had cash and cash equivalents of $5,965 and $50,515, respectively.

Earnings Per Share

Earnings Per Share

Basic earnings per share is computed by dividing net income (loss) attribute to stockholders of common stock by the weighted-average number of common shares outstanding for the period. Diluted net earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding plus equivalent shares.

The Company only issued one type of shares, i.e., common shares and does not have any potentially dilutive instrument as of June 30, 2018 and 2017.

Property and equipment

Property and equipment

Property and equipment are carried at cost and, less accumulated depreciation. Depreciation has been determined using a straight-line method over the estimated useful lives of the related assets, which are 5 years. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposal. The Company examines the possibility of decreases in the value of property and equipment when events or changes in circumstances reflect the fact that their recorded value may not be recoverable.

As of June 30, 2018, the Company’s property and equipment consists of computer equipment with a cost of $7,378 and accumulated depreciation of $705. During the nine months ended June 30, 2018 and 2017, the depreciation expenses were $705 and $4,081, respectively.

Revenue Recognition

Revenue Recognition

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products and services. We enter into contracts that include products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers.

The Company’s contracts with customers may include multiple performance obligations. Revenue relating to agreements that provide more than one performance obligation is recognized based upon the relative fair value to the customer of each performance obligation as each obligation is earned. The Company derives its revenues the follows:

Mobile Apps:

Revenue from the mobile apps is recognized when control has transferred to the customer which typically occurs when the mobile apps either upon delivery of the key code to the customer or upon the deployment of the mobile app to the App Store.

Maintenance Services:

The Company offers maintenance and function improvements services related to the mobile apps for customers. Maintenance service is considered distinct and is recognized ratably over the maintenance term.

During the nine months ended June 30, 2018, the Company recognized revenue from the mobile apps and maintenance services in the amount of $15,084 and $2,000, respectively.

Going Concern Assessment

Going Concern Assessment

Pursuant to ASC 205-40-50, The Company’s financial statements are prepared using US GAAP applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company demonstrates adverse conditions that raise substantial doubt about the Company’s ability to continue as a going concern. These adverse conditions are negative financial trends, specifically negative working capital, recurring operating losses, accumulated deficit and other adverse key financial ratios.

The Company did not generate sufficient revenues to cover its operating expense during the nine months ended June 30, 2018. The Company plans to loan from Mr. Chin Kha Foo who is the majority shareholder and the President of the Company to support the Company’s normal business operating. There is no assurance, however, that the Company will be successful in raising the needed capital and, if funding is available, that it will be available on terms acceptable to the Company.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue as a going concern.

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Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Summary of Significant Accounting Policies (Textual)
Cash and cash equivalents	$ 5,965	$ 113,214	$ 5,965	$ 113,214	$ 50,515	$ 114,508
Property and equipment, Cost	7,378		7,378
Accumulated depreciation	705		705
Depreciation expenses	$ 369	$ 1,360	705	$ 4,081
Recognized revenue from the mobile apps			15,084
Recognized revenue maintenance services			$ 2,000

XML

Related Party Transactions (Details) - USD ($)	9 Months Ended
	Jun. 30, 2018	May 24, 2018	Sep. 30, 2017
Related Party Transactions (Textual)
Loans from shareholders	$ 410,930		$ 86,158
Interest expense	$ 1,520
Promissory note [Member]
Related Party Transactions (Textual)
Loans from shareholders		$ 249,975
Bearing interest rate		6.00%

XML

Income Taxes (Details) - USD ($)	3 Months Ended	9 Months Ended
	Dec. 31, 2017	Jun. 30, 2018	Sep. 30, 2017
Income Taxes (Textual)
Corporate tax	35.00%	21.00%
Gross unrecognized tax benefits		$ 198,000	$ 248,000

XML

Common Stock (Details) - $ / shares	Jun. 30, 2018	Sep. 30, 2017
Common Stock (Textual)
Common stock, par value	$ 0.001	$ 0.001

XML

Escrow Deposit (Details) - USD ($)	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017
Escrow Deposit (Textual)
Loans from shareholders	$ 410,930		$ 86,158
Deposited amount	250,000
Land amount	1,750,000
Escrow deposit	214,000
Loss on cancellation escrow contract	36,000
Chin Kha Foo [Member]
Escrow Deposit (Textual)
Loans from shareholders	$ 249,975

XML

Subsequent Events (Details) - USD ($)	Jul. 20, 2018	Jun. 30, 2018	Sep. 30, 2017
Subsequent Events (Textual)
Escrow deposit		$ 214,000
Subsequent Event [Member]
Subsequent Events (Textual)
Escrow deposit	$ 214,000