0001753926-23-000287.txt : 20230317 0001753926-23-000287.hdr.sgml : 20230317 20230317170903 ACCESSION NUMBER: 0001753926-23-000287 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 34 CONFORMED PERIOD OF REPORT: 20230131 FILED AS OF DATE: 20230317 DATE AS OF CHANGE: 20230317 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Arax Holdings Corp CENTRAL INDEX KEY: 0001566243 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 990376721 STATE OF INCORPORATION: NV FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-185928 FILM NUMBER: 23743699 BUSINESS ADDRESS: STREET 1: 1185 AVENUE OF THE AMERICAS 3RD FLOOR CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: 646-768-8417 MAIL ADDRESS: STREET 1: 1185 AVENUE OF THE AMERICAS 3RD FLOOR CITY: NEW YORK STATE: NY ZIP: 10036 10-Q 1 g083452_10q.htm 10-Q
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U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended: January 31, 2023

 

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 333-185928

 

ARAX HOLDINGS CORP.

(Exact name of registrant as specified in its charter)

 

Nevada   99-0376721
(State or other jurisdiction of
Incorporation or organization)
  (IRS Employer
Identification No.)

 

30 N Gould Street
Sheridan, Wyoming 82801

(850) 254-1161

(Issuer’s telephone number including area code)

 

(Former name, former address, and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on
which registered
None   N/A   N/A

 

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 every Interactive Data File required to be submitted 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 such files). Yes ☒ 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
  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 ☒

 

State the number of shares outstanding of each of the issuer’s classes of common equity as of the latest practicable date. As of February 15, 2023, there were 12,553,807 common shares outstanding.

 

 

 

 

Arax Holdings Corp.

 

CONTENTS

 

PART 1 – FINANCIAL INFORMATION  
   
Item 1. – Financial Statements  
   
Condensed Balance Sheets (unaudited)
   
Condensed Statements of Operations (unaudited) 4
   
Condensed Statements of Stockholders’ Deficit (unaudited)  5
   
Condensed Statements of Cash Flows (unaudited)  6
   
Notes to Condensed Financial Statements (unaudited)  7
   
Item 2. – Management’s Discussion and Analysis of Financial Condition And Results of Operations  9
   
Item 3. – Quantitative and Qualitative Disclosures about Market Risk  10
   
Item 4. – Controls and Procedures  10
   
PART II - OTHER INFORMATION  12
   
Item 1A. – Risk Factors  12
   
Item 3. – Defaults Upon Senior Securities  12
   
Item 6. – Exhibits  12
   
SIGNATURES  13

 

2 

 

 

ARAX HOLDINGS CORP.
CONDENSED BALANCE SHEETS

 

             
    January 31,     October 31,  
    2023     2022  
    (Unaudited)        
ASSETS            
                 
Current Assets   $ 27,887     $  -  
Accounts receivable   $ 226,886          
Total assets   $ 254,773     $ 0  
                 
LIABILITIES AND STOCKHOLDERS’ DEFICIT                
                 
Current liabilities:                
Accrued expenses   $ 36,672     $ 116,869  
Derivative liabilities     1,058,440          
Due to related party     57,756          
Gain or loss     (10,561)       57,756  
Total current liabilities     1,142,307       174,625  
Long-term liabilities:                
Convertible Notes     254,030          
Total long term liabilities     254,030          
Total liabilities   $ 1,396,337     $ 174,625  
                 
Commitments and contingencies            
                 
Stockholders’ deficit:                
Preferred Stock Series A, par value $0.001, 10,000,000 shares authorized, 10,000,000 shares issued and outstanding as of January 31, 2022 and October 31, 2021     10,000       10,000  
Common stock, Par Value $0.001, 75,000,000 shares authorized, 10,335,924 issued and outstanding as of January 31, 2022 and October 31, 2021     10,335       10,335  
Additional paid-in capital     758,562       684,046  
Accumulated deficit     (1,920,461 )     (879,006 )
                 
Total stockholders’ deficit     (1,141,564 )     (174,625 )
                 
Total liabilities and stockholders’ deficit   $ 254,773     $ 0  

 

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

 

3 

 

 

ARAX HOLDINGS CORP.

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

 

               
   

Three Months Ended

January 31,

 
    2023     2022  
             
Revenue   $ 226,886     $  
                 
Operating expenses:                
  Administrative expenses     212,340       23,616  
             
Total operating expenses     212,340       23,616  
                 
Gain or loss from operations     14,546       (23,616 )
                 
Other gain or loss     1,047,879      
Gain or loss before provision for income taxes     (1,033,333     (23,616
Provision for income taxes            
                 
Net gain or loss   $ (1,033,333 )   $ (23,616 )
                 
Net income (loss) per common share, basic and diluted   $ (0.01 )   $ (0.00 )
                 
Weighted average shares outstanding, basic and diluted     10,335,924       10,335,924  

 

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

 

4 

 

 

ARAX HOLDINGS CORP.

CONDENSED STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE THREE MONTHS ENDED JANUARY 31, 2023 AND 2022

(unaudited)

 

                                           
    Convertible                       Additional              
    Preferred Stock           Common Stock           Paid-in     Accumulated     Stockholders’  
    Shares     Amount     Shares     Amount     Capital     Deficit     Deficit  
                                           
Balance, October 31, 2022     10,000,000     $ 10,000       10,335,924     $ 10,335     $ 684,046     $ (730,393 )   $ (174,625 )
Net loss                                   (148,613 )     (148,613 )
                                                         
Balance, January 31, 2023 (unaudited)     10,000,000     $ 10,000       10,335,924     $ 10,335     $ 758,562     $ (1,920,461 )   $ (1,141,564 )
                                                         
Balance, October 31, 2021         $       10,335,924     $ 10,335     $ 684,046     $ (730,393 )   $ (26,012 )
Net loss                                   (23,616 )     (23,616 )
                                                         
Balance, January 31, 2022 (unaudited)         $       10,335,924     $ 10,335     $ 684,046     $ (754,009 )   $ (49,628 )

 

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

 

5 

 

 

ARAX HOLDINGS CORP.

CONDENSED STATEMENTS OF CASH FLOWS

(unaudited)

 

               
    Three Months Ended January 31,  
    2023     2022  
Cash flows from operating activities:                
Net loss   $ (1,033,333 )   $ (23,616 )
Adjustments to reconcile net loss to net cash used in
operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts receivable and prepaid expenses     (226,886)          
Expenses paid directly by related party             16,346  
Increase in operating liabilities:                
Accounts payable and accrued expenses     (80,197)       7,270  
Derivative liabilities increase     1,058,440          
Change in derivative interest     (10,561)          
Cash used in operating activities     (292,537)       0  
                 
Cash flows from investing activities:                
Cash used in investing activities            
                 
Cash flows from financing activities:                
Conversion of related party payable     66,394          
Proceeds from convertible notes     254,030        
Cash provided by financing activities     320,424        
                 
Net increase (decrease) in cash     27,887        
Cash, beginning of period            
                 
Cash, end of period   $ 27,887     $  
                 
Supplemental disclosures of cash flow information:                
Cash paid during the period for interest   $     $  
Cash paid during the period for income taxes   $     $  

 

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

 

6 

 

 

ARAX HOLDINGS CORP.

NOTES TO FINANCIAL STATEMENTS 

JANUARY 31, 2023 AND 2022

(Unaudited)

 

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Arax Holdings Corp. (the “Company”, “we”, “our” or “us”) was incorporated under the laws of the State of Nevada on February 23, 2012.

 

The Company has expanded operations in the blockchain logistics and software design industries. The Company has entered into consulting and design agreements from continuing business and is in the process of completing an acquisition of certain software technologies. The Company currently has revenue from continuing operations and expects to increase these revenues.

 

Management intends to explore and identify business opportunities within the U.S. and other countries, including a acquisition of an operating entities through a share swap, asset purchase or similar transaction. Our executives have experience in business consulting, although no assurances can be given that they can identify and implement a viable business strategy or that any such strategy will result in profits. Our ability to effectively identify, develop and implement a viable plan for our business may be hindered by risks and uncertainties which are beyond our control, including without limitation, the continued negative effects of the coronavirus pandemic on the U.S. and global economies.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited condensed financial statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and presented in accordance with accounting principles generally accepted in the United States of America (US GAAP).

 

The accompanying balance sheet at October 31, 2022, has been derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed financial statements as of January 31, 2023 and for the three months ended January 31, 2023 and 2022 have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions 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, and should be read in conjunction with the audited financial statements and related notes to the financial statements included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2022 as filed with the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all material adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been made to the condensed financial statements. The condensed financial statements include all material adjustments (consisting of normal recurring accruals) necessary to make the condensed financial statements not misleading as required by Regulation S-X Rule 10-01. Operating results for the three months ended January 31, 2023 are not necessarily indicative of the results that may be expected for the year ending October 31, 2023 or any future periods.

 

Going Concern

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial statements. The Company has incurred operating losses since its inception. As of January 31, 2023, the Company had a working capital deficit of $1,141,564 and an accumulated deficit of $920,461.

 

Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing including convertible debt financing. The Company will be required to continue to rely on various debt financing until its operations become profitable.

 

Use of Estimates

 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.

 

Cash and cash equivalents

 

The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. The Company has no cash equivalents.

 

Stock-based Compensation

 

The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.

 

7 

 

 

Net Loss per Share

 

Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. The Company has 100,000,000 and 0 shares issuable upon the conversion of preferred stock that were not included in the computation of dilutive loss per share because their inclusion is antidilutive for the three months ended January 31, 2022 and 2021, respectively.

 

 

NOTE 3 – EQUITY

 

The Company has authorized 10,000,000 shares of $0.001 par value, preferred stock. As of January 31, 2023 and October 31, 2022 there were 10,000,000 shares of preferred stock issued and outstanding.

 

The Company has authorized 75,000,000 shares of $0.001 par value, common stock. As of January 31, 2023 and October 31, 2022 there were 10,335,294 shares of common stock issued and outstanding.

 

The Company did not issue any equity securities during either of the three month periods ended January 31, 2023 and 2022. 

 

NOTE 4 – COMMITMENTS AND CONTINGENCIES

 

The Company did not have any contractual commitments of January 31, 2023 and October 31, 2022.

 

COVID-19

 

On March 11, 2020, the World Health Organization (“WHO”) declared the Covid-19 outbreak to be a global pandemic. In addition to the devastating effects on human life, the pandemic is having a negative ripple effect on the global economy, leading to disruptions and volatility in the global financial markets. Most US states and many countries have issued policies intended to stop or slow the further spread of the disease.

 

Covid-19 and the U. S’s response to the pandemic are significantly affecting the economy. There are no comparable events that provide guidance as to the effect the Covid-19 pandemic may have, and, as a result, the ultimate effect of the pandemic is highly uncertain and subject to change. We do not yet know the full extent of the effects on the economy, the markets we serve, our business, or our operations.

 

NOTE 5 – ADVANCES FROM RELATED PARTY

 

An entity controlled by the Company’s Chairman has advanced an aggregate of $33,608 and $33,608 to the Company as of January 31, 2023 and October 31, 2022, respectively. These funds were used to pay corporate expenses of the Company, and the payments were made directly to the vendors by this entity.

 

NOTE 6 – SUBSEQUENT EVENTS

 

In accordance with FASB ASC 855-10, Subsequent Events, the Company has analyzed its operations subsequent to January 31, 2023, to the date these consolidated financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these consolidated financial statements.

 

8 

 

 

Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

Overview

 

Arax Holdings Corp. (the “Company”, “we”, “our” or “us”) was incorporated under the laws of the State of Nevada on February 23, 2012. Our financial statements accompanying this Report have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. We have a minimal operating history and no revenues or earnings from operations. We have no significant assets or financial resources. We will, in all likelihood, sustain operating expenses without corresponding revenues for the immediate future.

 

Plan of Operation

 

The Company has expanded operations in the blockchain logistics and software design industries. The Company has entered into consulting and design agreements from continuing business and is in the process of completing an acquisition of certain software technologies. The Company currently has revenue from continuing operations and expects to increase these revenues as of the date of this Report.

 

Management intends to explore and identify business opportunities within the U.S. and other countries, including a potential acquisition of an operating entity through a reverse merger, asset purchase or similar transaction. Our Chief Executive Officer has experience in business consulting, although no assurances can be given that he can identify and implement a viable business strategy or that any such strategy will result in profits. Our ability to effectively identify, develop and implement a viable plan for our business may be hindered by risks and uncertainties which are beyond our control, including without limitation, the continued negative effects of the coronavirus pandemic on the U.S. and global economies.

 

During the next 12-month period we anticipate incurring costs in connection with investigating, evaluating, and negotiating potential business combinations, filing SEC reports, and consummating an acquisition of an operating business.

 

Given our limited capital resources, we may consider a business combination with an entity which has recently commenced operations, is a developing company or is otherwise in need of additional funds for the development of new products or services or expansion into new markets or is an established business experiencing financial or operating difficulties and is in need of additional capital. Alternatively, a business combination may involve the acquisition of, or merger with, an entity which desires access to the U.S. capital markets.

 

As of the date of this Report, our management has continued to complete the acquisition of certain technologies and software businesses including the Core Business Holdings Group. This business and technology and any other target business that is selected may be financially unstable or in the early stages of development. In such event, we expect to be subject to numerous risks inherent in the business and operations of a financially unstable or early-stage entity. In addition, we may effect a business combination with an entity in an industry characterized by a high level of risk or in which our management has limited experience, and, although our management will endeavor to evaluate the risks inherent in a particular target business, there can be no assurance that we will properly ascertain or assess all significant risks.

 

Our management anticipates that we will likely only be able to effect one business combination due to our limited capital. This lack of diversification will likely pose a substantial risk in investing in the Company for the indefinite future because it will not permit us to offset potential losses from one venture or operating territory against gains from another. The risks we face will likely be heightened to the extent we acquire a business operating in a single industry or geographical region.

 

We anticipate that the selection of a business combination will be a complex and risk-prone process. Because of general economic conditions, including unfavorable conditions caused by the coronavirus pandemic, rapid technological advances being made in some industries and shortages of available capital, management believes that there are a number of firms seeking business opportunities at this time at discounted rates with which we will compete. We expect that any potentially available business combinations may appear in a variety of different industries or regions and at various stages of development, all of which will likely render the task of comparative investigation and analysis of such business opportunities extremely difficult and complicated. Once we have developed and begun to implement our business plan, management intends to fund our working capital requirements through a combination of our existing funds and future issuances of debt or equity securities. Our working capital requirements are expected to increase in line with the implementation of a business plan and commencement of operations.

 

We anticipate that we will incur operating losses in the next 12 months, principally costs related to our being obligated to file reports with the SEC. Our prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in their early stage of development.  Such risks for us include, but are not limited to, an evolving and unpredictable business model, recognition of revenue sources, and the management of growth. To address these risks, we must, among other things, develop, implement, and successfully execute our business and marketing strategy, respond to competitive developments, and attract, retain, and motivate qualified personnel. There can be no assurance that we will be successful in addressing such risks, and the failure to do so could have a material adverse effect on our business prospects, financial condition, and results of operations.

 

Limited Operating History; Need for Additional Capital

 

We cannot guarantee we will be successful in our business operations. We have generated minimal revenue since inception. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources.

 

If we are unable to meet our needs for cash from either our operations or possible alternative sources, then we may be unable to develop our operations.

 

Off-Balance Sheet Arrangements

 

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.

 

9 

 

 

Going Concern

 

The independent registered public accounting firm auditors’ report on our October 31, 2022 financial statements expressed an opinion that our capital resources as of the date of their Audit Report were not sufficient to sustain operations or complete our planned activities for the upcoming year. Our current lack of cash and limited resources raise substantial doubt about our ability to continue as a going concern. If we do not obtain additional funds, we may no longer be able to continue as a going concern and will cease operation which means that our shareholders will lose their entire investment.   

 

Critical Accounting Principles

 

The preparation of consolidated financial statements in accordance with US GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results can, and in many cases will, differ from those estimates. We have not identified any critical accounting policies.

 

Result of Operations

 

Three Months Ended January 31, 2023 Compared to the Three Months Ended January 31, 2022

 

We reported $226,886 and $0 revenue during the three months ending January 31, 2023 and 2022. We anticipate generating a slow growth in revenues during the current fiscal year ended October 31, 2023. Our net losses for the three month periods ended January 31, 2023 and 2022 were $23,616 and $12,721 respectively.

 

Our general and administrative expenses consist of professional fees and other costs incurred in connection with maintaining the Company’s filings with the Securities and Exchange Commission and the payment of vendors associated with the issuance and trading of the Company’s securities, such as transfer agent fees. These expenses were $1,033,333 and $23,616 for the three months ended January 31, 2023 and 2022, respectively.

 

Liquidity and Capital Resources

 

Based upon our current operations, we do not have sufficient working capital to fund our operations over the next 12 months. If we are able to complete the acquisition of Core Business Holdings Group, it is likely we will need capital as a condition of closing that acquisition. Because of the uncertainties, we cannot be certain as to how much capital we need to raise or the type of securities we will be required to issue. In connection with an acquisition, we will be required to issue a controlling block of our securities to the target’s shareholders which will be very dilutive. 

 

Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences, or privileges senior to our Common Stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.

 

In fiscal year ended October 31, 2022 the Company was dependent on an entity controlled by the Company’s Chairman for funds used to pay corporate expenses of the Company, and the payments were made directly to the vendors by this entity.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Market risk is the sensitivity of income or loss to changes in interest rates, foreign exchanges, commodity prices, equity prices, and other market-driven rates or prices. We are not presently engaged in any substantive commercial business. Accordingly, the risks associated with foreign exchange rates, commodity prices, and equity prices are not significant. Our debt obligations contain interest rates that are fixed and we do not enter into derivatives or other financial instruments for trading or speculative purposes.

 

Item 4. Controls and Procedures

 

(a) Disclosure Controls and Procedures

 

As of January 31, 2023 being the end of the period covered by this Report, we carried out an evaluation required by Rule 13a-15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Company’s “disclosure controls and procedures” and “internal control over financial reporting” as of the end of the period covered by this Quarterly Report.

 

We maintain disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act that are designed to ensure that information required to be disclosed in our reports filed or submitted to the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms, and that information is accumulated and communicated to management, including the principal executive and financial officer as appropriate, to allow timely decisions regarding required disclosures. Our principal executive officer and principal financial officer evaluated the effectiveness of disclosure controls and procedures as of the end of the period covered by this quarterly report (the “Evaluation Date”), pursuant to Rule 13a- 15(b) under the Exchange Act. Based on that evaluation, our principal executive officer and principal financial officer concluded that, as of the Evaluation Date, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure, due to material weaknesses in our control environment and financial reporting process.

 

Our management, including our principal executive officer and principal financial officer, does not expect that our Disclosure Controls and internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision- making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management or board override of the control.

 

10 

 

 

The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.

 

Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

 

(b) Management’s Quarterly Report on Internal Control over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). In evaluating the effectiveness of our internal control over financial reporting, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control – Integrated Framework (2013). Internal control over financial reporting is a process designed 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 and includes those policies and procedures that (a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (b) provide reasonable assurance that transactions are recorded as necessary to permit the preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the Company are being made only in accordance with authorizations of the our management and directors; and (c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

 

Based on our evaluation under the framework described above, as of January 31, 2023, our management concluded that we had “material weaknesses” (as such term is defined below) in our control environment and financial reporting process consisting of the following as of the Evaluation Date:

 

1)       The Company does not have sufficient segregation of duties within accounting functions due to its limited staff and limited resources;

 

2)       The Company does not have an independent board of directors or an audit committee;

 

3)       The Company does not have written documentation of our internal control policies and procedures; and

 

4)       All of the Company’s financial reporting is conducted by a financial consultant.

 

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.

 

We plan to rectify these weaknesses by implementing an independent board of directors, establishing written policies and procedures for our internal control of financial reporting, and hiring additional accounting personnel at such time as we complete a reverse merger or similar business acquisition.

 

(c) Change in Internal Control over Financial Reporting

 

There were no significant changes to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during our first fiscal quarter that could materially affect, or are reasonably likely to materially affect, our internal control over financial reporting.

 

11 

 

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

None.

 

Item 1a. Risk Factors

 

We are a smaller reporting company and are not required to provide the information under this item pursuant to Regulation S-K.

 

Item 2. Unregistered Sales Of Equity Securities And Use Of Proceeds

 

In the three months ended January 31, 2023 the company issued $221,780 in two year convertible notes with a 10% interest and a variable conversion factor. These notes have the option to convert into restricted shares of common stock of the Company.

 

Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

Not Applicable.

 

Item 5. Other Information

 

None.

 

Item 6. Exhibits

 

31.1 Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2 Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1 Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2 Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS XBRL Instance Document
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101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

 

12 

 

 

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.

 

  Arax Holdings Corp
  (Registrant)
   
Date: March 17, 2023 By:  /s/ Ockert Loubser
   

Ockert Loubser, Chief Executive Officer (Principal Executive Officer)

 

  By:  /s/ Christopher Strachan
    Christopher Strachan, Chief Financial Officer (Principal Financial Officer)

 

13 

EX-31.1 2 g083452_ex31-1.htm EXHIBIT 31.1

 

EXHIBIT 31.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO EXCHANGE ACT RULE 13a-14(a)
(as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)

 

I, Ockert Loubser, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Arax Holdings 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 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 controls 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 officer 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 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.

 

Dated: March 17, 2023 By: /s/ Ockert Loubser
   

Ockert Loubser, Chief Executive Officer  

(Principal Executive Officer) 

 

 

EX-31.2 3 g083452_ex31-2.htm EXHIBIT 31.2

 

EXHIBIT 31.2

 

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO EXCHANGE ACT RULE 13a-14(a)
(as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)

 

I, Christopher Strachan, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Arax Holdings 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 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 controls 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 officer 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 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.

 

Dated: March 17, 2023 By: /s/ Christopher Strachan
   

Christopher Strachan, Chief Financial Officer  

(Principal Financial and Accounting Officer) 

 

 

EX-32.1 4 g083452_ex32-1.htm EXHIBIT 32.1

 

EXHIBIT 32.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

In connection with the Quarterly Report of Arax Holdings Corp. (the “Company”) on Form 10-Q for the quarter ended January 31, 2023 as filed with the Securities and Exchange Commission (the “Report”), Ockert Loubser, Chief Executive Officer of the Company, does hereby certify, pursuant to § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350), that to his 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.

 

March 17, 2023 /s/ Ockert Loubser
  Name: Ockert Loubser
  Title: Chief Executive Officer (Principal Executive Officer)
       

 [A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.]

 

 

EX-32.2 5 g083452_ex32-2.htm EXHIBIT 32.2

 

EXHIBIT 32.2

 

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO 18 U.S.C. 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

In connection with the Quarterly Report of Arax Holdings Corp. (the “Company”) on Form 10-Q for the quarter ended January 31, 2022 as filed with the Securities and Exchange Commission (the “Report”), Christopher Strachan, Chief Financial Officer and Principal Financial and Accounting Officer of the Company, does hereby certify, pursuant to § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350), that to his 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.

 

March 17, 2023 /s/ Christopher Strachan
  Christopher Strachan, Chief Financial Officer (Principal Financial and Accounting Officer)
       

 

[A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.]

 

 

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Oct. 31, 2022
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Accounts receivable 226,886  
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Derivative liabilities 1,058,440  
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Long-term liabilities:    
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Total long term liabilities 254,030  
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Jan. 31, 2022
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Change in derivative interest (10,561)  
Cash used in operating activities (292,537) 0
Cash flows from investing activities:    
Cash used in investing activities
Cash flows from financing activities:    
Conversion of related party payable 66,394  
Proceeds from convertible notes 254,030
Cash provided by financing activities 320,424
Net increase (decrease) in cash 27,887
Cash, beginning of period
Cash, end of period 27,887
Supplemental disclosures of cash flow information:    
Cash paid during the period for interest
Cash paid during the period for income taxes
XML 17 R7.htm IDEA: XBRL DOCUMENT v3.22.4
ORGANIZATION AND DESCRIPTION OF BUSINESS
3 Months Ended
Jan. 31, 2023
Accounting Policies [Abstract]  
ORGANIZATION AND DESCRIPTION OF BUSINESS

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Arax Holdings Corp. (the “Company”, “we”, “our” or “us”) was incorporated under the laws of the State of Nevada on February 23, 2012.

 

The Company has expanded operations in the blockchain logistics and software design industries. The Company has entered into consulting and design agreements from continuing business and is in the process of completing an acquisition of certain software technologies. The Company currently has revenue from continuing operations and expects to increase these revenues.

 

Management intends to explore and identify business opportunities within the U.S. and other countries, including a acquisition of an operating entities through a share swap, asset purchase or similar transaction. Our executives have experience in business consulting, although no assurances can be given that they can identify and implement a viable business strategy or that any such strategy will result in profits. Our ability to effectively identify, develop and implement a viable plan for our business may be hindered by risks and uncertainties which are beyond our control, including without limitation, the continued negative effects of the coronavirus pandemic on the U.S. and global economies.

XML 18 R8.htm IDEA: XBRL DOCUMENT v3.22.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Jan. 31, 2023
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited condensed financial statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and presented in accordance with accounting principles generally accepted in the United States of America (US GAAP).

 

The accompanying balance sheet at October 31, 2022, has been derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed financial statements as of January 31, 2023 and for the three months ended January 31, 2023 and 2022 have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions 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, and should be read in conjunction with the audited financial statements and related notes to the financial statements included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2022 as filed with the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all material adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been made to the condensed financial statements. The condensed financial statements include all material adjustments (consisting of normal recurring accruals) necessary to make the condensed financial statements not misleading as required by Regulation S-X Rule 10-01. Operating results for the three months ended January 31, 2023 are not necessarily indicative of the results that may be expected for the year ending October 31, 2023 or any future periods.

 

Going Concern

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial statements. The Company has incurred operating losses since its inception. As of January 31, 2023, the Company had a working capital deficit of $1,141,564 and an accumulated deficit of $920,461.

 

Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing including convertible debt financing. The Company will be required to continue to rely on various debt financing until its operations become profitable.

 

Use of Estimates

 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.

 

Cash and cash equivalents

 

The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. The Company has no cash equivalents.

 

Stock-based Compensation

 

The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.

 

Net Loss per Share

 

Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. The Company has 100,000,000 and 0 shares issuable upon the conversion of preferred stock that were not included in the computation of dilutive loss per share because their inclusion is antidilutive for the three months ended January 31, 2022 and 2021, respectively.

 

XML 19 R9.htm IDEA: XBRL DOCUMENT v3.22.4
EQUITY
3 Months Ended
Jan. 31, 2023
Equity [Abstract]  
EQUITY

NOTE 3 – EQUITY

 

The Company has authorized 10,000,000 shares of $0.001 par value, preferred stock. As of January 31, 2023 and October 31, 2022 there were 10,000,000 shares of preferred stock issued and outstanding.

 

The Company has authorized 75,000,000 shares of $0.001 par value, common stock. As of January 31, 2023 and October 31, 2022 there were 10,335,294 shares of common stock issued and outstanding.

 

The Company did not issue any equity securities during either of the three month periods ended January 31, 2023 and 2022. 

XML 20 R10.htm IDEA: XBRL DOCUMENT v3.22.4
COMMITMENTS AND CONTINGENCIES
3 Months Ended
Jan. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 4 – COMMITMENTS AND CONTINGENCIES

 

The Company did not have any contractual commitments of January 31, 2023 and October 31, 2022.

 

COVID-19

 

On March 11, 2020, the World Health Organization (“WHO”) declared the Covid-19 outbreak to be a global pandemic. In addition to the devastating effects on human life, the pandemic is having a negative ripple effect on the global economy, leading to disruptions and volatility in the global financial markets. Most US states and many countries have issued policies intended to stop or slow the further spread of the disease.

 

Covid-19 and the U. S’s response to the pandemic are significantly affecting the economy. There are no comparable events that provide guidance as to the effect the Covid-19 pandemic may have, and, as a result, the ultimate effect of the pandemic is highly uncertain and subject to change. We do not yet know the full extent of the effects on the economy, the markets we serve, our business, or our operations.

XML 21 R11.htm IDEA: XBRL DOCUMENT v3.22.4
ADVANCES FROM RELATED PARTY
3 Months Ended
Jan. 31, 2023
Debt Disclosure [Abstract]  
ADVANCES FROM RELATED PARTY

NOTE 5 – ADVANCES FROM RELATED PARTY

 

An entity controlled by the Company’s Chairman has advanced an aggregate of $33,608 and $33,608 to the Company as of January 31, 2023 and October 31, 2022, respectively. These funds were used to pay corporate expenses of the Company, and the payments were made directly to the vendors by this entity.

XML 22 R12.htm IDEA: XBRL DOCUMENT v3.22.4
SUBSEQUENT EVENTS
3 Months Ended
Jan. 31, 2023
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 6 – SUBSEQUENT EVENTS

 

In accordance with FASB ASC 855-10, Subsequent Events, the Company has analyzed its operations subsequent to January 31, 2023, to the date these consolidated financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these consolidated financial statements.

XML 23 R13.htm IDEA: XBRL DOCUMENT v3.22.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
3 Months Ended
Jan. 31, 2023
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

 

The accompanying unaudited condensed financial statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and presented in accordance with accounting principles generally accepted in the United States of America (US GAAP).

 

The accompanying balance sheet at October 31, 2022, has been derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed financial statements as of January 31, 2023 and for the three months ended January 31, 2023 and 2022 have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions 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, and should be read in conjunction with the audited financial statements and related notes to the financial statements included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2022 as filed with the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all material adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been made to the condensed financial statements. The condensed financial statements include all material adjustments (consisting of normal recurring accruals) necessary to make the condensed financial statements not misleading as required by Regulation S-X Rule 10-01. Operating results for the three months ended January 31, 2023 are not necessarily indicative of the results that may be expected for the year ending October 31, 2023 or any future periods.

Going Concern

Going Concern

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial statements. The Company has incurred operating losses since its inception. As of January 31, 2023, the Company had a working capital deficit of $1,141,564 and an accumulated deficit of $920,461.

 

Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing including convertible debt financing. The Company will be required to continue to rely on various debt financing until its operations become profitable.

Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.

Cash and cash equivalents

Cash and cash equivalents

 

The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. The Company has no cash equivalents.

Stock-based Compensation

Stock-based Compensation

 

The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.

Net Loss per Share

Net Loss per Share

 

Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. The Company has 100,000,000 and 0 shares issuable upon the conversion of preferred stock that were not included in the computation of dilutive loss per share because their inclusion is antidilutive for the three months ended January 31, 2022 and 2021, respectively.

XML 24 R14.htm IDEA: XBRL DOCUMENT v3.22.4
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative)
3 Months Ended
Jan. 31, 2023
Entity Incorporation, State or Country Code NV
Arax Holdings Corp [Member]  
Entity Incorporation, State or Country Code NV
Entity incorporation date Feb. 23, 2012
XML 25 R15.htm IDEA: XBRL DOCUMENT v3.22.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)
3 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2023
Oct. 31, 2022
Accounting Policies [Abstract]        
Working capital deficit     $ 1,141,564  
Accumulated deficit     1,920,461 $ 879,006
Cash equivalents     $ 0  
Antidilutive net loss per share 100,000,000 0    
XML 26 R16.htm IDEA: XBRL DOCUMENT v3.22.4
EQUITY (Details Narrative) - $ / shares
Jan. 31, 2023
Oct. 31, 2022
Class of Stock [Line Items]    
Common stock, shares authorized 75,000,000 75,000,000
Common Stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, outstanding 10,335,924 10,335,924
Common stock shares, issued 10,335,924 10,335,924
Series A Preferred Stock [Member]    
Class of Stock [Line Items]    
Preferred stock, authorized 10,000,000 10,000,000
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, outstanding 10,000,000 10,000,000
Preferred stock, issued 10,000,000 10,000,000
XML 27 R17.htm IDEA: XBRL DOCUMENT v3.22.4
ADVANCES FROM RELATED PARTY (Details Narrative) - USD ($)
Jan. 31, 2023
Oct. 31, 2022
Debt Disclosure [Abstract]    
Advanced an aggregate $ 33,608 $ 33,608
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NV 99-0376721 30 N Gould Street Sheridan WY 82801 850 254-1161 Yes Yes Non-accelerated Filer true false false 12553807 27887 226886 254773 0 36672 116869 1058440 57756 -10561 57756 1142307 174625 254030 254030 1396337 174625 0.001 0.001 10000000 10000000 10000000 10000000 10000000 10000000 10000 10000 0.001 0.001 75000000 75000000 10335924 10335924 10335924 10335924 10335 10335 758562 684046 -1920461 -879006 -1141564 -174625 254773 0 226886 212340 23616 212340 23616 14546 -23616 1047879 -1033333 -23616 -1033333 -23616 -0.01 -0.00 10335924 10335924 10000000 10000 10335924 10335 684046 -730393 -174625 -148613 -148613 10000000 10000 10335924 10335 758562 -1920461 -1141564 10335924 10335 684046 -730393 -26012 -23616 -23616 10335924 10335 684046 -754009 -49628 -1033333 -23616 226886 -16346 -80197 7270 1058440 10561 -292537 0 66394 254030 320424 27887 27887 <p id="xdx_805_eus-gaap--BusinessDescriptionAndBasisOfPresentationTextBlock_zQ1dk6NUPF36" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1 – <span id="xdx_829_zqqU8EBXOiAd">ORGANIZATION AND DESCRIPTION OF BUSINESS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Arax Holdings Corp. (the “Company”, “we”, “our” or “us”) was incorporated under the laws of the State of <span id="xdx_904_edei--EntityIncorporationStateCountryCode_c20221101__20230131__srt--OwnershipAxis__custom--AraxHoldingsCorpMember_zbspRAWdcln6">Nevada</span> on <span id="xdx_904_edei--EntityIncorporationDateOfIncorporation_dd_c20221101__20230131__srt--OwnershipAxis__custom--AraxHoldingsCorpMember_z0CzrYym1h76" title="Entity incorporation date">February 23, 2012</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has expanded operations in the blockchain logistics and software design industries. The Company has entered into consulting and design agreements from continuing business and is in the process of completing an acquisition of certain software technologies. The Company currently has revenue from continuing operations and expects to increase these revenues.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management intends to explore and identify business opportunities within the U.S. and other countries, including a acquisition of an operating entities through a share swap, asset purchase or similar transaction. Our executives have experience in business consulting, although no assurances can be given that they can identify and implement a viable business strategy or that any such strategy will result in profits. Our ability to effectively identify, develop and implement a viable plan for our business may be hindered by risks and uncertainties which are beyond our control, including without limitation, the continued negative effects of the coronavirus pandemic on the U.S. and global economies.</span></p> NV 2012-02-23 <p id="xdx_809_eus-gaap--SignificantAccountingPoliciesTextBlock_zOu0WQWU7cl4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 2 – <span id="xdx_82D_z8YAGlYC7so7">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_849_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zs1lIXmMMnvd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_867_z5vJdvMnSRT8">Basis of Presentation</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying unaudited condensed financial statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and presented in accordance with accounting principles generally accepted in the United States of America (US GAAP).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying balance sheet at October 31, 2022, has been derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed financial statements as of January 31, 2023 and for the three months ended January 31, 2023 and 2022 have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions 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, and should be read in conjunction with the audited financial statements and related notes to the financial statements included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2022 as filed with the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all material adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been made to the condensed financial statements. The condensed financial statements include all material adjustments (consisting of normal recurring accruals) necessary to make the condensed financial statements not misleading as required by Regulation S-X Rule 10-01. Operating results for the three months ended January 31, 2023 are not necessarily indicative of the results that may be expected for the year ending October 31, 2023 or any future periods.</span></p> <p id="xdx_858_z3xTnj5SgUb9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_843_ecustom--GoingConcernPolicyTextBlock_z6NleBeU8zK7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_866_zaLDWqlIToA9">Going Concern</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial statements. The Company has incurred operating losses since its inception. As of January 31, 2023, the Company had a working capital deficit of $<span id="xdx_905_ecustom--WorkingCapitalDeficit_iNI_di_c20230131_z9alAtXOvznh" title="Working capital deficit">1,141,564</span> and an accumulated deficit of $<span id="xdx_90A_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_dixL_c20230131_zCNWjE8CBmag" title="Accumulated deficit::XDX::1920461"><span style="-sec-ix-hidden: xdx2ixbrl0299">920,461</span></span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing including convertible debt financing. The Company will be required to continue to rely on various debt financing until its operations become profitable.</span></p> <p id="xdx_859_z8BrxrlXuzIl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_846_eus-gaap--UseOfEstimates_zzHq3SS88gV7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_869_zFs1goz2yy34">Use of Estimates</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.</span></p> <p id="xdx_856_zufMGSaeBor2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_841_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zXT0P6yFTaZ9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_862_zWtl7yV2YWu5">Cash and cash equivalents</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. The Company has <span id="xdx_904_eus-gaap--CashEquivalentsAtCarryingValue_iI_do_c20230131_zsNKv4J4ayyj" title="Cash equivalents">no</span> cash equivalents.</span></p> <p id="xdx_859_z3vqtMcA1Emd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84E_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zKdKnQVNGxx6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_861_zgvK3XEVOwS8">Stock-based Compensation</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.</span></p> <p id="xdx_853_zQuYuFLoTBI" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"/> <p id="xdx_846_eus-gaap--EarningsPerSharePolicyTextBlock_z3Q69l4JxrTc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_863_zaiGrPrnnhRl">Net Loss per Share</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. The Company has <span id="xdx_903_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_uShares_c20211101__20220131_zFnEoCzjXmdi" title="Antidilutive net loss per share">100,000,000</span> and <span id="xdx_90C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_uShares_c20201101__20210131_zgQbte92zq57" title="Antidilutive net loss per share">0</span> shares issuable upon the conversion of preferred stock that were not included in the computation of dilutive loss per share because their inclusion is antidilutive for the three months ended January 31, 2022 and 2021, respectively.</span></p> <p id="xdx_852_zPoKFr0xEfW1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_849_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zs1lIXmMMnvd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_867_z5vJdvMnSRT8">Basis of Presentation</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying unaudited condensed financial statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and presented in accordance with accounting principles generally accepted in the United States of America (US GAAP).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying balance sheet at October 31, 2022, has been derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed financial statements as of January 31, 2023 and for the three months ended January 31, 2023 and 2022 have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions 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, and should be read in conjunction with the audited financial statements and related notes to the financial statements included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2022 as filed with the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all material adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been made to the condensed financial statements. The condensed financial statements include all material adjustments (consisting of normal recurring accruals) necessary to make the condensed financial statements not misleading as required by Regulation S-X Rule 10-01. Operating results for the three months ended January 31, 2023 are not necessarily indicative of the results that may be expected for the year ending October 31, 2023 or any future periods.</span></p> <p id="xdx_843_ecustom--GoingConcernPolicyTextBlock_z6NleBeU8zK7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_866_zaLDWqlIToA9">Going Concern</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial statements. The Company has incurred operating losses since its inception. As of January 31, 2023, the Company had a working capital deficit of $<span id="xdx_905_ecustom--WorkingCapitalDeficit_iNI_di_c20230131_z9alAtXOvznh" title="Working capital deficit">1,141,564</span> and an accumulated deficit of $<span id="xdx_90A_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_dixL_c20230131_zCNWjE8CBmag" title="Accumulated deficit::XDX::1920461"><span style="-sec-ix-hidden: xdx2ixbrl0299">920,461</span></span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing including convertible debt financing. The Company will be required to continue to rely on various debt financing until its operations become profitable.</span></p> -1141564 <p id="xdx_846_eus-gaap--UseOfEstimates_zzHq3SS88gV7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_869_zFs1goz2yy34">Use of Estimates</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.</span></p> <p id="xdx_841_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zXT0P6yFTaZ9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_862_zWtl7yV2YWu5">Cash and cash equivalents</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. The Company has <span id="xdx_904_eus-gaap--CashEquivalentsAtCarryingValue_iI_do_c20230131_zsNKv4J4ayyj" title="Cash equivalents">no</span> cash equivalents.</span></p> 0 <p id="xdx_84E_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zKdKnQVNGxx6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_861_zgvK3XEVOwS8">Stock-based Compensation</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.</span></p> <p id="xdx_846_eus-gaap--EarningsPerSharePolicyTextBlock_z3Q69l4JxrTc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_863_zaiGrPrnnhRl">Net Loss per Share</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. The Company has <span id="xdx_903_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_uShares_c20211101__20220131_zFnEoCzjXmdi" title="Antidilutive net loss per share">100,000,000</span> and <span id="xdx_90C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_uShares_c20201101__20210131_zgQbte92zq57" title="Antidilutive net loss per share">0</span> shares issuable upon the conversion of preferred stock that were not included in the computation of dilutive loss per share because their inclusion is antidilutive for the three months ended January 31, 2022 and 2021, respectively.</span></p> 100000000 0 <p id="xdx_806_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zwWmsyD8xZQl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 3 – <span id="xdx_821_zFQWyGeCmdU4">EQUITY</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has authorized <span id="xdx_900_eus-gaap--PreferredStockSharesAuthorized_iI_pid_uShares_c20230131__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z7Y6e4CHBns3" title="Preferred stock, authorized"><span id="xdx_909_eus-gaap--PreferredStockSharesAuthorized_iI_pid_uShares_c20221031__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zhRwyBdxoeh3" title="Preferred stock, authorized">10,000,000</span></span> shares of $<span id="xdx_90B_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_pid_uUSDPShares_c20221031__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zHXPQk8HE3sl" title="Preferred stock, par value (in dollars per share)"><span id="xdx_900_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_pid_uUSDPShares_c20230131__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zUGCt5fUauGg" title="Preferred stock, par value (in dollars per share)">0.001</span></span> par value, preferred stock. As of January 31, 2023 and October 31, 2022 there were <span id="xdx_909_eus-gaap--PreferredStockSharesOutstanding_iI_pid_uShares_c20230131__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z2Bs6Rhblsk3" title="Preferred stock, outstanding"><span id="xdx_90F_eus-gaap--PreferredStockSharesIssued_iI_pid_uShares_c20230131__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zRb1YhAEVpP5" title="Preferred stock, issued"><span id="xdx_909_eus-gaap--PreferredStockSharesOutstanding_iI_pid_uShares_c20221031__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zzNJ1akjPiRh" title="Preferred stock, outstanding"><span id="xdx_905_eus-gaap--PreferredStockSharesIssued_iI_pid_uShares_c20221031__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zHVfi1l2Lta3" title="Preferred stock, issued">10,000,000</span></span></span></span> shares of preferred stock issued and outstanding.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has authorized <span id="xdx_902_eus-gaap--CommonStockSharesAuthorized_iI_pid_uShares_c20230131_zll3LnHg4Pjg" title="Common stock, shares authorized"><span id="xdx_90F_eus-gaap--CommonStockSharesAuthorized_iI_pid_uShares_c20221031_zugByrYtlCe9" title="Common stock, shares authorized">75,000,000</span></span> shares of $<span id="xdx_905_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_uUSDPShares_c20230131_zBVRI7UJVbw3" title="Common Stock, Par or Stated Value Per Share"><span id="xdx_904_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_uUSDPShares_c20221031_zezcf9t44Kl6" title="Common Stock, par value (in dollars per share)">0.001</span></span> par value, common stock. As of January 31, 2023 and October 31, 2022 there were <span id="xdx_904_eus-gaap--CommonStockSharesOutstanding_iI_pid_dxL_uShares_c20221031_ztaTxyUmL4jk" title="Common stock, outstanding::XDX::10335924"><span id="xdx_906_eus-gaap--CommonStockSharesOutstanding_iI_pid_dxL_uShares_c20230131_zKVJSFHjBIaf" title="Common stock, outstanding::XDX::10335924"><span id="xdx_909_eus-gaap--CommonStockSharesIssued_iI_pid_dxL_uShares_c20221031_zDGGRQgtkVm3" title="Common stock shares, issued::XDX::10335924"><span id="xdx_902_eus-gaap--CommonStockSharesIssued_iI_pid_dxL_uShares_c20230131_zq1tdSKQtdzb" title="Common stock shares, issued::XDX::10335924"><span style="-sec-ix-hidden: xdx2ixbrl0342"><span style="-sec-ix-hidden: xdx2ixbrl0344"><span style="-sec-ix-hidden: xdx2ixbrl0346"><span style="-sec-ix-hidden: xdx2ixbrl0348">10,335,294</span></span></span></span></span></span></span></span> shares of common stock issued and outstanding.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company did not issue any equity securities during either of the three month periods ended January 31, 2023 and 2022. </span></p> 10000000 10000000 0.001 0.001 10000000 10000000 10000000 10000000 75000000 75000000 0.001 0.001 <p id="xdx_809_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zEFeSyn3bdbb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 4 – <span id="xdx_824_zH0aTaXvjbmk">COMMITMENTS AND CONTINGENCIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company did not have any contractual commitments of January 31, 2023 and October 31, 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">COVID-19</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On March 11, 2020, the World Health Organization (“WHO”) declared the Covid-19 outbreak to be a global pandemic. In addition to the devastating effects on human life, the pandemic is having a negative ripple effect on the global economy, leading to disruptions and volatility in the global financial markets. Most US states and many countries have issued policies intended to stop or slow the further spread of the disease.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Covid-19 and the U. S’s response to the pandemic are significantly affecting the economy. There are no comparable events that provide guidance as to the effect the Covid-19 pandemic may have, and, as a result, the ultimate effect of the pandemic is highly uncertain and subject to change. We do not yet know the full extent of the effects on the economy, the markets we serve, our business, or our operations.</span></p> <p id="xdx_80B_eus-gaap--DebtDisclosureTextBlock_zUDlSrKs7DV3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 5 – <span id="xdx_821_zkIb8sGYCxS4">ADVANCES FROM RELATED PARTY</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">An entity controlled by the Company’s Chairman has advanced an aggregate of $<span id="xdx_90B_eus-gaap--RelatedPartyTransactionDueFromToRelatedParty_iI_c20230131_zfxs9rrqnwz9" title="Advanced an aggregate">33,608</span> and $<span id="xdx_90E_eus-gaap--RelatedPartyTransactionDueFromToRelatedParty_iI_c20221031_zzWeiZCkE4qc">33,608</span> to the Company as of January 31, 2023 and October 31, 2022, respectively. These funds were used to pay corporate expenses of the Company, and the payments were made directly to the vendors by this entity.</span></p> 33608 33608 <p id="xdx_803_eus-gaap--SubsequentEventsTextBlock_zbyPX1Znofuf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 6 – <span id="xdx_820_zcpAHMwtQfuj">SUBSEQUENT EVENTS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In accordance with FASB ASC 855-10, <i>Subsequent Events</i>, the Company has analyzed its operations subsequent to January 31, 2023, to the date these consolidated financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these consolidated financial statements.</span></p> EXCEL 29 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx M4$L#!!0 ( !V)<58'04UB@0 +$ 0 9&]C4')O<',O87!P+GAM M;$V./0L",1!$_\IQO;=!P4)B0-!2L+(/>QLOD&1#LD)^OCG!CVX>;QA&WPIG M*N*I#BV&5(_C(I(/ !47BK9.7:=N')=HI6-Y #OGDK7A.YNJQ<&4GPZ4A!0W_J=0U[R;UEA_6\#MI7E!+ P04 M " =B7%6B^1)A>\ K @ $0 &1O8U!R;W!S+V-O&ULS9+! 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