0001640334-23-000671.txt : 20230419 0001640334-23-000671.hdr.sgml : 20230419 20230419135422 ACCESSION NUMBER: 0001640334-23-000671 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 32 CONFORMED PERIOD OF REPORT: 20230228 FILED AS OF DATE: 20230419 DATE AS OF CHANGE: 20230419 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Fellazo Corp CENTRAL INDEX KEY: 0001659207 STANDARD INDUSTRIAL CLASSIFICATION: COMMERCIAL PRINTING [2750] IRS NUMBER: 000000000 STATE OF INCORPORATION: NV FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-208237 FILM NUMBER: 23829669 BUSINESS ADDRESS: STREET 1: T2-L8-3, LEVEL 8, IOI CITY TOWER TWO STREET 2: LEBUH IRC, IOI RESORT CITY CITY: PUTRAJAYA STATE: N8 ZIP: 62502 BUSINESS PHONE: 6017 998 9889 MAIL ADDRESS: STREET 1: T2-L8-3, LEVEL 8, IOI CITY TOWER TWO STREET 2: LEBUH IRC, IOI RESORT CITY CITY: PUTRAJAYA STATE: N8 ZIP: 62502 10-Q 1 fllz_10q.htm FORM 10-Q fllz_10q.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

(Mark One)

 

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

 

 

 

For the quarterly period ended February 28, 2023

 

or

 

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

 

 

 

For the transition period from ____________to ____________

 

Commission File Number 333-208237

 

FELLAZO CORP.

(Exact name of registrant as specified in its charter)

 

Nevada

 

30-0840869

(State or other jurisdiction of

incorporation or organization)

 

(IRS Employer

Identification No.)

 

T2-L8-3, Level 8IOI City Tower Two, Lebuh IRC,

 IOI Resort City62502 PutrajayaMalaysia 

 

43300

(Address of principal executive offices)

(Zip Code)

 

+6017 998 9889

(Registrant’s telephone number, including area code)

 

N/A

(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

None

None

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ NO ☐

 

Indicate by check mark whether the registrant has submitted electronically 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, a 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 ☒

 

Fellazo Corp has 86,264,000 Common shares issued and outstanding as of April 14, 2023.

 

 

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION

Item 1.

Financial Statements

3

Item 2.

Management’s Discussion and Analysis of Financial Condition or Plan of Operation

10

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

13

Item 4.

Controls and Procedures

13

PART II - OTHER INFORMATION

Item 1.

Legal Proceedings

15

Item 1A.

Risk Factors

15

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

15

Item 3.

Defaults Upon Senior Securities

15

Item 4.

Mine Safety Disclosures

15

Item 5.

Other Information

15

Item 6.

Exhibits

16

SIGNATURES

17

 

 
2

Table of Contents

 

PART I - FINANCIAL INFORMATION

 

 Item 1. Financial Statements

 

FELLAZO CORP.

Consolidated Balance Sheets

(Unaudited)

 

 

 

February 28,

 

 

August 31,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

 

$4,347

 

 

$9,055

 

Inventory

 

 

8,468

 

 

 

-

 

Deposit for purchases of inventory

 

 

-

 

 

 

11,818

 

Total Current Assets

 

 

12,815

 

 

 

20,873

 

TOTAL ASSETS

 

$12,815

 

 

$20,873

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND DEFICIT

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$31,823

 

 

$18,317

 

Due to related party

 

 

1,893,044

 

 

 

1,737,963

 

Total Current Liabilities

 

 

1,924,867

 

 

 

1,756,280

 

TOTAL LIABILITIES

 

 

1,924,867

 

 

 

1,756,280

 

Commitments and contingencies

 

 

-

 

 

 

-

 

Stockholders’ Deficit

 

 

 

 

 

 

 

 

Common stock, $0.001 par value, 1,000,000,000 shares authorized;

 

 

 

 

 

 

 

 

86,264,000 shares issued and outstanding

 

 

86,264

 

 

 

86,264

 

Additional paid-in capital

 

 

36,122

 

 

 

36,122

 

Accumulated deficit

 

 

(1,803,798)

 

 

(1,666,632)

Accumulated other comprehensive income

 

 

12,404

 

 

 

11,905

 

Total Fellazo Corp. Stockholders’ Deficit

 

 

(1,669,008)

 

 

(1,532,341)

Non-controlling interest

 

 

(243,044)

 

 

(203,066)

Total Deficit

 

 

(1,912,052)

 

 

(1,735,407)

TOTAL LIABILITIES AND DEFICIT

 

$12,815

 

 

$20,873

 

 

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

 

 
3

Table of Contents

 

FELLAZO CORP.

Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

 

 

 

Three months ended

 

 

Six months ended

 

 

 

February 28,

 

 

February 28,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenues

 

$21,562

 

 

$12,225

 

 

$31,811

 

 

$15,582

 

Revenues from related parties

 

 

-

 

 

 

-

 

 

 

-

 

 

 

8,669

 

Revenues total

 

 

21,562

 

 

 

12,225

 

 

 

31,811

 

 

 

24,251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Goods Sold

 

 

16,618

 

 

 

493

 

 

 

20,413

 

 

 

5,529

 

Cost of Goods Sold from related party

 

 

-

 

 

 

6,663

 

 

 

1,946

 

 

 

9,301

 

Cost of Goods Sold total

 

 

16,618

 

 

 

7,156

 

 

 

22,359

 

 

 

14,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

4,944

 

 

 

5,069

 

 

 

9,452

 

 

 

9,421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

$97,480

 

 

$92,032

 

 

$187,116

 

 

$184,329

 

 Total operating expenses

 

 

97,480

 

 

 

92,032

 

 

 

187,116

 

 

 

184,329

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(92,536)

 

 

(86,963)

 

 

(177,664)

 

 

(174,908)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before taxes

 

 

(92,536)

 

 

(86,963)

 

 

(177,664)

 

 

(174,908)

Provision for income tax

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net loss

 

 

(92,536)

 

 

(86,963)

 

 

(177,664)

 

 

(174,908)

Net loss attributable to the non-controlling interest

 

 

(20,718)

 

 

(21,609)

 

 

(40,498)

 

 

(43,768)

Net Loss Attributable to The Stockholders of Fellazo Corp.

 

$(71,818)

 

$(65,354)

 

$(137,166)

 

$(131,140)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation gain (loss)

 

 

1,984

 

 

 

(2,754)

 

 

1,019

 

 

 

3,062

 

Total comprehensive loss

 

 

(90,552)

 

 

(89,717)

 

 

(176,645)

 

 

(171,846)

Comprehensive Loss attributable to the non-controlling interest

 

 

(19,706)

 

 

(23,013)

 

 

(39,978)

 

 

(42,206)

Comprehensive Loss Attributable to The Stockholders of Fellazo Corp.

 

$(70,846)

 

$(66,704)

 

$(136,667)

 

$(129,640)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and dilutive net loss per common share

 

$(0.00)

 

$(0.00)

 

$(0.00)

 

$(0.00)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic and diluted

 

 

86,264,000

 

 

 

86,264,000

 

 

 

86,264,000

 

 

 

86,264,000

 

 

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

 

 
4

Table of Contents

 

FELLAZO CORP.

Consolidated Statements of Changes in Stockholders’ Deficit

(Unaudited)

 

For the three and six months ended February 28, 2023

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Accumulated other

 

 

Non

 

 

 

 

 

 

Common Stock

 

 

paid in

 

 

Accumulated

 

 

comprehensive

 

 

controlling

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Income (loss)

 

 

Interest

 

 

Total

 

Balance, August 31, 2022

 

 

86,264,000

 

 

$86,264

 

 

$36,122

 

 

$(1,666,632)

 

$11,905

 

 

$(203,066)

 

$(1,735,407)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(65,348)

 

 

-

 

 

 

(19,780)

 

 

(85,128)

Foreign currency translation loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(473)

 

 

(492)

 

 

(965)

Balance, November 30, 2022

 

 

86,264,000

 

 

$86,264

 

 

$36,122

 

 

$(1,731,980)

 

$11,432

 

 

$(223,338)

 

$(1,821,500)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(71,818)

 

 

-

 

 

 

(20,718)

 

 

(92,536)

Foreign currency translation gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

972

 

 

 

1,012

 

 

 

1,984

 

Balance, February 28, 2023

 

 

86,264,000

 

 

$86,264

 

 

$36,122

 

 

$(1,803,798)

 

 

12,404

 

 

$(243,044)

 

$(1,912,052)

 

For the three and six months ended February 28, 2022

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Accumulated other

 

 

Non

 

 

 

 

 

 

Common Stock

 

 

paid in

 

 

Accumulated

 

 

comprehensive

 

 

controlling

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

loss

 

 

Interest

 

 

Total

 

Balance, August 31, 2021

 

 

86,264,000

 

 

$86,264

 

 

$36,122

 

 

$(1,403,624)

 

$(981)

 

$(133,370)

 

$(1,415,589)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(65,786)

 

 

-

 

 

 

(22,159)

 

 

(87,945)

Foreign currency translation gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,850

 

 

 

2,966

 

 

 

5,816

 

Balance, November 30, 2021

 

 

86,264,000

 

 

$86,264

 

 

$36,122

 

 

$(1,469,410)

 

$1,869

 

 

$(152,563)

 

$(1,497,718)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(65,354)

 

 

-

 

 

 

(21,609)

 

 

(86,963)

Foreign currency translation loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,350)

 

 

(1,404)

 

 

(2,754)

Balance, February 28, 2022

 

 

86,264,000

 

 

$86,264

 

 

$36,122

 

 

$(1,534,764)

 

$519

 

 

$(175,576)

 

$(1,587,435)

 

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

 

 
5

Table of Contents

 

FELLAZO CORP.

Consolidated Statements of Cash Flows

(Unaudited)

 

Six months ended

February 28,

2023

2022

Cash Flows from Operating Activities:

Net loss

$(177,664)$(174,908)

Adjustments to reconcile net loss to net cash used in operations:

Expenses paid by related party

173,426184,554

Changes in operating assets and liabilities:

Accounts receivable

-(572)

Prepaid

12,114(1,133)

Inventory

(8,702)-

Accounts payable and accrued liabilities

13,5177,366

Net Cash Provided by Operating Activities

12,69115,307

Cash Flows from Financing Activities:

Advances from related party

-51,335

Repayment to related party

(17,706)(69,314)

Net Cash Used in Financing Activities

(17,706)(17,979)

Effects on changes in foreign exchange rate

307(11)

Net change in cash

(4,708)(2,683)

Cash, beginning of period

9,0557,361

Cash, end of period

$4,347$4,678

Supplemental cash flow information

Interest paid

$-$-

Income taxes paid

$-$-

 

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

 

 
6

Table of Contents

 

FELLAZO CORP.

Notes to the Consolidated Financial Statements

As of and for the six months ended February 28, 2023

(Unaudited)

 

NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN

 

Fellazo Corp. (“the Company”, “we”, “us” or “our”) was incorporated in the State of Nevada on May 28, 2014.

 

The Company had commenced to be engaged in the industry of “Healthcare and Personal Wellness” products and related products. Activities include, but are not limited to, sourcing raw materials or partly or fully finished products, manufacturing, wholesale and trading of these products.

 

Going Concern Uncertainties

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.

 

As of February 28, 2023, the Company had an accumulated deficit of $1,803,798, and net loss of $177,664 for the six months ended February 28, 2023. Losses have principally occurred as a result of the substantial resources required for the general and administrative expenses associated with our operations. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders or external financing. Management believes the existing stockholders will provide the additional cash to meet the Company’s obligations as they become due. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations.

 

These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by U.S. GAAP for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended August 31, 2022.

 

Principles of Consolidation

 

The accompanying consolidated financial statements include the financial statements of the Company and its 49% owned subsidiary Fellazo Berhad (“FB”), an entity under common control. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

 

Variable Interest Entities

 

The Company holds both the power to direct the most significant activities of FB, as well as an economic interest in FB and, as such, is deemed to be the primary beneficiary or consolidator of FB. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity.

 

 
7

Table of Contents

 

Inventory

 

Inventory consists of products, such as bird-nests. All inventory is valued at the lower of cost or net realizable value. Cost is determined using a first-in first-out method.

 

Revenue recognition

 

The Company commenced its operation in mid-October 2019. At this initial stage, revenue is earned from the trading of raw bird-nests and durian paste to its customers.

 

The Company’s revenue recognition procedures consist of the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfils its obligations pursuant to each of its sales transactions:

 

·

Identify the contract with a customer;

·

Identify the performance obligations in the contract;

·

Determine the transaction price;

·

Allocate the transaction price to performance obligations in the contract; and

·

Recognize revenue as the performance obligation is satisfied.

 

The Company believes it is still in the initial stage of its operations, which started with the trading of raw bird-nests and with the recent addition of the product durian paste. Management is using this initial stage as exposure to the bird-nest business in order to learn and gain experience with our suppliers whom are bird-nest farmers or their agents, determination of quality of the raw materials, the process of raw bird-nest cleaning, the different classes of the raw materials and market for these clean bird-nest, and handling of durian paste as a food product.

 

Thus, at this initial stage we have not entered into any formal contract with our suppliers and purchasers, most of the suppliers and purchasers are known to our management or have been introduced to management by close business friends. The Company recognizes the revenue at a point in time when products are transferred to its customers, which also typically corresponds with the issuance of invoices to those customers. The Company has a single performance obligation which is completed when goods are physically transferred to its customers.

 

Cost of Goods Sold – Trading of Raw Bird-Nest

 

At the current stage of business operations, which management considers as exposure, gaining of knowledge and experience of the overall bird-nest and durian paste business, our Cost of goods sold only includes the actual cost of the raw bird-nests and durian paste purchased from suppliers.

 

Foreign Currency Translation

 

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations.

 

Exchange Rates

 

February 28,

2023

 

 

August 31,

2022

 

Spot rate RM : USD exchange rate

 

 

0.2228

 

 

 

0.2234

 

Average period RM : USD exchange rate

 

 

0.2290

 

 

 

0.2343

 

 

 
8

Table of Contents

 

Concentrations

 

During the six months ended February 28, 2023, and 2022, the Company had a concentration in demand for its products, as two customers comprised 100% of the Company’s sales in 2023; one costumer was 33% and the second customer 67%. Two customers comprised 96% of the Company’s sales in 2022: with one customer comprising 64% and a second customer 32%.

 

During the six months ended February 28, 2023, and 2022, the Company had a concentration in its products portfolio as one product comprised 100% of bird-nests.

 

During the six months ended February 28, 2023, and 2022, the Company had a concentration in supply of its products as one supplier provided 89% of the Company’s purchases in 2023, and 95% of Company’s purchases in 2022 were from two suppliers: one supplier was approximately 63% of purchases and the second supplier was approximately 32%.

 

Recent Accounting Pronouncements

 

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments Credit Losses —Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, which includes the Company’s accounts receivable. This ASU is effective for the Company for reporting periods beginning after December 15, 2022. The Company is currently assessing the potential impact that the adoption of this ASU will have on its consolidated financial statements.

 

NOTE 3 – DEPOSIT FOR PURCHASES OF INVENTORY

 

As of February 28, 2023, and August 31, 2022, the Company had $0 and $11,818, respectively for purchase deposit on bird-nests.

 

NOTE 4 – RELATED PARTY TRANSACTIONS

 

Our Management Agent, Swipypay Berhad (a company established in Malaysia) is 80% owned by our Director,Mr. Yap Kit Chuan. Total outstanding amount due to our Management Agent was $1,893,044 and $1,737,963 as of February 28, 2023, and August 31, 2022, respectively. The additional amount of $155,081 incurred in the six months ended February 28, 2023, consisted of operating expenses paid on behalf of the Company of $173,426 and repayment of $17,706. The difference was a result of a change of exchange rate.

 

During the six months ended February 28, 2023, and 2022, we purchased $1,946 and $9,301 worth of raw bird-nests from Swipypay Berhad (also an agent for bird-nest farmers), respectively.

 

Our Company does not own or lease any real property, and our registered office in Malaysia is provided by our Management Agent.

 

 
9

Table of Contents

 

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

 

FORWARD-LOOKING STATEMENTS

 

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

 

Our unaudited consolidated financial statements are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our consolidated financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.

 

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock.

 

As used in this quarterly report, the terms “we”, “us”, “our”, “our company” or “the Company” mean Fellazo Corp., and Fellazo Berhad, a Malaysian company, of which we own forty-nine percent (49%), unless otherwise indicated.

 

Overview of Corporate History

 

Fellazo Corp. was incorporated in the State of Nevada on May 28, 2014. The Company’s fiscal year end is August 31.

 

Overview of Current Business

 

The Company’s core business is “Healthcare and Personal Wellness” products - primarily bird-nest based, which includes manufacturing and retail (retail chain and online). With our expertise in online applications platforms, we will be developing an online network platform to market and sell our products, and will also create a system to source and purchase raw materials we require.

 

In mid of October 2019, the Company’s 49% subsidiary Fellazo Berhad (“FB”) started purchases of raw bird-nests directly from bird-nest farmers or their agents and re-sold them to bird-nest processors; wherever possible these raw bird-nests are delivered directly from the farmer to the processor, so that we would not have to maintain a facility to store these raw bird-nests at an early stage of our business development.

 

FB’s show factory had since moved to a new location after our Head-Office moved to Putrajaya, the Malaysian Government’s Federal Administrative Center. The new show factory is located within half an hour from our office and continues to be managed by our Management Agent, Swipypay Berhad.

 

Due to the continuous effects of the Covid-19 pandemic and the economic uncertainty, our operations are on bare minimum and any plan for expansion had been put on hold until the overall economic climate improves.

 

On April 1, 2021, Yap Kit Chuan, President, Director and owner of ninety-six percent (96%) of the issued and outstanding shares of Common Stock of the Company, agreed to transfer, to a number of business associates, up to approximately twenty-six million (26,000,000) shares of the Company’s Common Stock, representing thirty percent (30%) of the total issued and outstanding shares of Common Stock of the Company.

 

 
10

Table of Contents

 

On July 15, 2021, Yap Kit Chuan, agreed to increase the proposed transfers up to thirty-five million (35,000,000) shares, representing up to forty-one percent (41%) of the issued and outstanding shares of the Company’s Common Stock. The transfer occurred and was completed on August 6, 2021. The transfers were undertaken pursuant to Regulation S of the Securities Act of 1933, and the shares transferred will continue to carry a restrictive legend.

 

As of February 28, 2023, a total of thirty-eight million three hundred thirty-five thousand eight hundred seventy-three (38,335,873) shares have been transferred to 249 new and 9 existing Shareholders; Yap Kit Chuan still owns forty-seven million nine hundred twenty-eight thousand one hundred twenty-seven (47,928,127) shares.

 

Our office is located at T2-L8-3, Level 8, IOI City Tower Two, Lebuh IRC, IOI Resort City, 62502 Putrajaya, Malaysia. Our corporate website is http://fellazo.com.

 

We have never declared bankruptcy, been in receivership or involved in any kind of legal proceeding.

 

Results of Operations

 

The following summary of our results of operations should be read in conjunction with our financial statements included elsewhere in this quarterly report.

 

Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation. We expect we will require additional capital to meet our long-term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

 

Comparison of the three months ended February 28, 2023, and 2022

 

 

 

Three months ended

 

 

 

 

 

 

 

 

 

February 28,

 

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

Change

 

 

%

 

Revenue

 

$21,562

 

 

$12,225

 

 

$9,337

 

 

 

76%

Cost of Goods Sold

 

 

16,618

 

 

 

7,156

 

 

 

9,462

 

 

 

132%

General and administrative expenses

 

 

97,480

 

 

 

92,032

 

 

 

5,448

 

 

 

6%

Net loss

 

$92,536

 

 

$86,963

 

 

$5,573

 

 

 

6%

 

For the three months ended February 28, 2023, we had revenue of $21,562 and cost of goods sold of $16,618, as compared to $12,225 and $7,156 for the same period in 2022. The Company started with trading of raw bird-nests in fiscal year 2020 and it is an initial stage of our operations.

 

Our general and administrative expenses were $97,480 for the three months ended February 28, 2023, as compared to $92,032 for the same period in 2022. General and administrative expenses mainly consisted of management fees and payroll expenses.

 

Our net loss increased by $5,573 due to an increase in general administrative expenses.

 

Comparison of the six months ended February 28, 2023, and 2022

 

 

 

Six months ended

 

 

 

 

 

 

 

 

 

February 28,

 

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

Change

 

 

%

 

Revenue

 

$31,811

 

 

$24,251

 

 

$7,560

 

 

 

31%

Cost of Goods Sold

 

 

22,359

 

 

 

14,830

 

 

 

7,529

 

 

 

51%

General and administrative expenses

 

 

187,116

 

 

 

184,329

 

 

 

2,787

 

 

 

2%

Net loss

 

$177,664

 

 

$174,908

 

 

$2,756

 

 

 

2%

 

 
11

Table of Contents

 

For the six months ended February 28, 2023, we had revenue of $31,811 and cost of goods sold of $22,359, as compared to $24,251 and $14,830 for the same period in 2022. The Company started with trading of raw bird-nests in fiscal year 2020 and it is an initial stage of our operations.

 

Our general and administrative expenses were $187,116 for the six months ended February 28, 2023, as compared to $184,329 for the same period in 2022. General and administrative expenses mainly consisted of management fees and payroll expenses.

 

Our net loss increased by $2,756 due to an increase in general and administrative expenses.

 

Liquidity and Capital Resources

 

Working Capital

 

 

 

February 28,

 

 

August 31,

 

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

Change

 

 

%

 

Current assets

 

$12,815

 

 

$20,873

 

 

$(8,058)

 

(39%)

 

Current liabilities

 

$1,924,867

 

 

$1,756,280

 

 

$168,587

 

 

 

10%

Working capital deficiency

 

$(1,912,052)

 

$(1,735,407)

 

$(176,645)

 

 

10%

 

The Company’s current assets consist of cash of $4,347, and inventory of $8,468 at February 28, 2023, as compared to cash of $9,055 and deposit for purchases of inventory of $11,818 at August 31, 2022.

 

As at February 28, 2023, current liabilities consisted of accounts payable and accrued liabilities of $31,823 and due to a related party of $1,893,044, as compared to August 31, 2022, when liabilities consisted of accounts payable and accrued liabilities of $18,317 and due to a related party of $1,737,963. The increase in current liabilities is primarily due to the operating expenses paid by the related party.

 

Cash Flows

 

 

 

Six months ended

 

 

 

 

 

 

February 28,

 

 

 

 

 

 

2023

 

 

2022

 

 

Change

 

Cash provided by operating activities

 

$12,691

 

 

$15,307

 

 

$(2,616)

Cash used in financing activities

 

 

(17,706)

 

 

(17,979)

 

 

273

 

Effects on changes in foreign exchange rate

 

 

307

 

 

 

(11)

 

 

318

 

Net change in cash

 

$(4,708)

 

$(2,683)

 

$(2,025)

 

Cash Flow from Operating Activities

 

Cash flows provided by operations was $12,691 during the six months ended February 28, 2023, compared with cash provided of $15,307 during the same period in 2022. The decrease in cash provided by operating activities is mainly due to a decrease in expenses paid by related party.

 

Cash Flow from Financing Activities

 

During the six months ended February 28, 2023, the Company repaid $17,706 to a related party. During the six months ended February 28, 2022, the Company received $51,335 from a related party and repaid $69,314 to a related party.

 

 
12

Table of Contents

 

Off-Balance Sheet Arrangements

 

We have no 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 stockholders.

 

Critical Accounting Policies and Estimates

 

Management’s discussion and analysis of our financial condition and results of operations are based upon our unaudited consolidated financial statements, which have been prepared in accordance with GAAP. We review the accounting policies used in reporting our financial results on a regular basis. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amount of assets, liabilities, net sales and expenses and related disclosure of contingent liabilities. We base our estimates on historical experience and on various other assumptions that we believe are reasonable for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Our actual results may differ materially from these estimates.

 

For a complete description of our critical accounting policies and estimates, refer to our 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission on December 13, 2022.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable to smaller reporting companies.

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of February 28, 2023. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms as a result of the following material weaknesses:

 

(1) Lack of a functioning audit committee and lack of a majority of outside Directors on the Company’s Board of Directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures;

 

(2) Inadequate segregation of duties consistent with control objectives;

 

(3) Insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of U.S. GAAP and SEC disclosure requirements; and

 

(4) Ineffective controls over period-end financial disclosure and reporting processes.

 

 
13

Table of Contents

 

The specific material weakness identified by our management was ineffective controls over certain aspects of the financial reporting process because of a lack of a sufficient complement of personnel with a level of accounting expertise, lack of an adequate supervisory review structure that is commensurate with our financial reporting requirements and inadequate segregation of duties. A “material weakness” is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements would not be prevented or detected on a timely basis.

 

We expect to be materially dependent upon third parties to provide us with accounting consulting services for the foreseeable future which we believe mitigates the impact of the material weaknesses discussed above. Until such time as we have a chief financial officer with the requisite expertise in U.S. GAAP, establish an audit committee and implement internal controls and procedures, there are no assurances that the material weaknesses and significant deficiencies in our disclosure controls and procedures will not result in errors in our financial statements which could lead to a restatement of those financial statements.

 

Changes in Internal Controls

 

There have been no changes in our internal controls over financial reporting identified in connection with the evaluation required by paragraph (d) of Securities Exchange Act Rule 13a-15 or Rule 15d-15 that occurred in the quarter ended February 28, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 
14

Table of Contents

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

As of the date of this Quarterly Report on Form 10-Q, we are not a party to any legal proceedings that could have a material adverse effect on the Company’s business, financial condition or operating results. Further, to the Company’s knowledge no such proceedings have been threatened against the Company.

 

Item 1A. Risk Factors

 

As a “smaller reporting company”, we are not required to provide the information required by this Item.

 

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

 

None.

 

Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

Not Applicable.

 

Item 5. Other Information

 

None.

 

 
15

Table of Contents

 

Item 6. Exhibits

 

The following exhibits are filed herewith or are incorporated by reference to exhibits previously filed with the SEC:

 

Incorporated by Reference

Exhibit No.

Title

Form

Exhibit

Filing Date

3.1

Articles of Incorporation

S-1

3.1

11/27/2015

3.2

Bylaws

S-1

3.2

11/27/2015

3.4

Certificate of Amendment to Articles of Incorporation, effective as of September 19, 2017

8-K

3.1

09/22/2017

10.1

 

Stock purchase agreement

10-Q

10.1

04/23/2019

31.1*

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

32.1*

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

101

 

Inline XBRL Document Set for the condensed consolidated financial statements and accompanying notes in Part I, Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q.

 

 

 

 

104

 

Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set.

 

 

 

 

 

___________

* Filed herewith

+ Furnished herewith.

 

 
16

Table of Contents

 

SIGNATURES

 

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

 

 

FELLAZO CORP.

 

(Registrant)

 

Dated: April 19, 2023

 

/s/ YAP KIT CHUAN

 

YAP KIT CHUAN

 

President, CEO, CFO, Treasurer,

Secretary and Chairman of the Board of Directors of the Company

 

(Principal Executive Officer, Principal Financial Officer

and Principal Accounting Officer)

 

 
17
EX-31.1 2 fllz_ex311.htm CERTIFICATION fllz_ex311.htm

EXHIBIT 31.1

 

CERTIFICATION

 

I, YAP KIT CHUAN, certify that:

 

1.

I have reviewed this quarterly report on Form 10-Q of Fellazo 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 control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we 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 fiscal year 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 the 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.

 

Date: April 19, 2023

By:

/s/ Yap Kit Chuan

 

 

 

YAP KIT CHUAN

 

 

President, CEO, CFO, Treasurer, Secretary and

Chairman of the Board of Directors of the Company

 

 

(Principal Executive Officer, Principal Financial Officer

and Principal Accounting Officer)

EX-32.2 3 fllz_ex321.htm CERTIFICATION fllz_ex321.htm

EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of FELLAZO CORP. for the quarter ended February 28, 2023, as filed with the Securities and Exchange Commission on the date hereof, the undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to best of my knowledge and belief:

 

 

(1)

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

 

(2)

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

 

Date: April 19, 2023

By:

/s/ Yap Kit Chuan

 

 

 

YAP KIT CHUAN

 

 

President, CEO, CFO, Treasurer, Secretary and

Chairman of the Board of Directors of the Company

 

 

(Principal Executive Officer, Principal Financial Officer

and Principal Accounting Officer)

 

 

A signed original of this written statement required by Section 906, or other documents authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement 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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Entity Interactive Data Current Yes  
Entity Address Address Line 1 T2-L8-3, Level 8  
Entity Address Address Line 2 IOI City Tower Two, Lebuh IRC  
Entity Address Address Line 3 IOI Resort City  
Entity Address City Or Town 62502 Putrajaya  
Entity Address Postal Zip Code 43300  
City Area Code 6017  
Local Phone Number 998 9889  
Entity Address Country MY  
XML 10 R2.htm IDEA: XBRL DOCUMENT v3.23.1
Consolidated Balance Sheets - USD ($)
Feb. 28, 2023
Aug. 31, 2022
Current Assets    
Cash $ 4,347 $ 9,055
Inventory 8,468 0
Deposit for purchases of inventory 0 11,818
Total Current Assets 12,815 20,873
TOTAL ASSETS 12,815 20,873
Current Liabilities    
Accounts payable and accrued liabilities 31,823 18,317
Due to related party 1,893,044 1,737,963
Total Current Liabilities 1,924,867 1,756,280
TOTAL LIABILITIES 1,924,867 1,756,280
Commitments and contingencies 0 0
Stockholders' Deficit    
Common stock, $0.001 par value, 1,000,000,000 shares authorized;86,264,000 shares issued and outstanding 86,264 86,264
Additional paid-in capital 36,122 36,122
Accumulated deficit (1,803,798) (1,666,632)
Accumulated other comprehensive income 12,404 11,905
Total Fellazo Corp. Stockholders' Deficit (1,669,008) (1,532,341)
Non-controlling interest (243,044) (203,066)
Total Deficit (1,912,052) (1,735,407)
TOTAL LIABILITIES AND DEFICIT $ 12,815 $ 20,873
XML 11 R3.htm IDEA: XBRL DOCUMENT v3.23.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Feb. 28, 2023
Aug. 31, 2022
Consolidated Balance Sheets    
Common stock, shares par value $ 0.001 $ 0.001
Common stock, shares authorized 1,000,000,000 1,000,000,000
Common stock, shares issued 86,264,000 86,264,000
Common stock, shares outstanding 86,264,000 86,264,000
XML 12 R4.htm IDEA: XBRL DOCUMENT v3.23.1
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Feb. 28, 2023
Feb. 28, 2022
Feb. 28, 2023
Feb. 28, 2022
Consolidated Statements of Operations and Comprehensive Loss (Unaudited)        
Revenues $ 21,562 $ 12,225 $ 31,811 $ 15,582
Revenues from related parties 0 0 0 8,669
Revenues total 21,562 12,225 31,811 24,251
Cost of Goods Sold 16,618 493 20,413 5,529
Cost of Goods Sold from related party 0 6,663 1,946 9,301
Cost of Goods Sold total 16,618 7,156 22,359 14,830
Gross profit 4,944 5,069 9,452 9,421
Operating Expenses        
General and administrative expenses 97,480 92,032 187,116 184,329
Total operating expenses 97,480 92,032 187,116 184,329
Loss from operations (92,536) (86,963) (177,664) (174,908)
Loss before taxes (92,536) (86,963) (177,664) (174,908)
Provision for income tax 0 0 0 0
Net loss (92,536) (86,963) (177,664) (174,908)
Net loss attributable to the non-controlling interest (20,718) (21,609) (40,498) (43,768)
Net Loss Attributable to The Stockholders of Fellazo Corp. (71,818) (65,354) (137,166) (131,140)
Other comprehensive loss        
Foreign currency translation gain (loss) 1,984 (2,754) 1,019 3,062
Total comprehensive loss (90,552) (89,717) (176,645) (171,846)
Comprehensive Loss attributable to the non-controlling interest (19,706) (23,013) (39,978) (42,206)
Comprehensive Loss Attributable to The Stockholders of Fellazo Corp. $ (70,846) $ (66,704) $ (136,667) $ (129,640)
Basic and dilutive net loss per common share $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Weighted average number of common shares outstanding - basic and diluted 86,264,000 86,264,000 86,264,000 86,264,000
XML 13 R5.htm IDEA: XBRL DOCUMENT v3.23.1
Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - USD ($)
Total
Common Stock
Additional Paid-In Capital
Accumulated Deficit
Accumulated other comprehensive loss
Noncontrolling Interest
Balance, shares at Aug. 31, 2021   86,264,000        
Balance, amount at Aug. 31, 2021 $ (1,415,589) $ 86,264 $ 36,122 $ (1,403,624) $ (981) $ (133,370)
Net loss (87,945) 0 0 (65,786) 0 (22,159)
Foreign currency translation gain 5,816 0 0 0 2,850 2,966
Balance, amount at Nov. 30, 2021 (1,497,718) $ 86,264 36,122 (1,469,410) 1,869 (152,563)
Balance, shares at Nov. 30, 2021   86,264,000        
Balance, shares at Aug. 31, 2021   86,264,000        
Balance, amount at Aug. 31, 2021 (1,415,589) $ 86,264 36,122 (1,403,624) (981) (133,370)
Net loss (174,908)          
Foreign currency translation gain 3,062          
Balance, amount at Feb. 28, 2022 (1,587,435) $ 86,264 36,122 (1,534,764) 519 (175,576)
Balance, shares at Feb. 28, 2022   86,264,000        
Balance, shares at Nov. 30, 2021   86,264,000        
Balance, amount at Nov. 30, 2021 (1,497,718) $ 86,264 36,122 (1,469,410) 1,869 (152,563)
Net loss (86,963) 0 0 (65,354) 0 (21,609)
Foreign currency translation gain (2,754) 0 0 0 (1,350) (1,404)
Balance, amount at Feb. 28, 2022 (1,587,435) $ 86,264 36,122 (1,534,764) 519 (175,576)
Balance, shares at Feb. 28, 2022   86,264,000        
Balance, shares at Aug. 31, 2022   86,264,000        
Balance, amount at Aug. 31, 2022 (1,735,407) $ 86,264 36,122 (1,666,632) 11,905 (203,066)
Net loss (85,128) 0 0 (65,348) 0 (19,780)
Foreign currency translation gain (965) 0 0 0 (473) (492)
Balance, amount at Nov. 30, 2022 (1,821,500) $ 86,264 36,122 (1,731,980) 11,432 (223,338)
Balance, shares at Nov. 30, 2022   86,264,000        
Balance, shares at Aug. 31, 2022   86,264,000        
Balance, amount at Aug. 31, 2022 (1,735,407) $ 86,264 36,122 (1,666,632) 11,905 (203,066)
Net loss (177,664)          
Foreign currency translation gain 1,019          
Balance, amount at Feb. 28, 2023 (1,912,052) $ 86,264 36,122 (1,803,798) 12,404 (243,044)
Balance, shares at Feb. 28, 2023   86,264,000        
Balance, shares at Nov. 30, 2022   86,264,000        
Balance, amount at Nov. 30, 2022 (1,821,500) $ 86,264 36,122 (1,731,980) 11,432 (223,338)
Net loss (92,536) 0 0 (71,818) 0 (20,718)
Foreign currency translation gain 1,984 0 0 0 972 1,012
Balance, amount at Feb. 28, 2023 $ (1,912,052) $ 86,264 $ 36,122 $ (1,803,798) $ 12,404 $ (243,044)
Balance, shares at Feb. 28, 2023   86,264,000        
XML 14 R6.htm IDEA: XBRL DOCUMENT v3.23.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Feb. 28, 2023
Feb. 28, 2022
Cash Flows from Operating Activities:    
Net loss $ (177,664) $ (174,908)
Adjustments to reconcile net loss to net cash used in operations:    
Expenses paid by related party 173,426 184,554
Changes in operating assets and liabilities:    
Accounts receivable 0 (572)
Prepaid 12,114 (1,133)
Inventory (8,702) 0
Accounts payable and accrued liabilities 13,517 7,366
Net Cash Provided by Operating Activities 12,691 15,307
Cash Flows from Financing Activities:    
Advances from related party 0 51,335
Repayment to related party (17,706) (69,314)
Net Cash Used in Financing Activities (17,706) (17,979)
Effects on changes in foreign exchange rate 307 (11)
Net change in cash (4,708) (2,683)
Cash, beginning of period 9,055 7,361
Cash, end of period 4,347 4,678
Supplemental cash flow information    
Interest paid 0 0
Income taxes paid $ 0 $ 0
XML 15 R7.htm IDEA: XBRL DOCUMENT v3.23.1
ORGANIZATION DESCRIPTION OF BUSINESS AND GOING CONCERN
6 Months Ended
Feb. 28, 2023
ORGANIZATION DESCRIPTION OF BUSINESS AND GOING CONCERN  
ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN

NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN

 

Fellazo Corp. (“the Company”, “we”, “us” or “our”) was incorporated in the State of Nevada on May 28, 2014.

 

The Company had commenced to be engaged in the industry of “Healthcare and Personal Wellness” products and related products. Activities include, but are not limited to, sourcing raw materials or partly or fully finished products, manufacturing, wholesale and trading of these products.

 

Going Concern Uncertainties

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.

 

As of February 28, 2023, the Company had an accumulated deficit of $1,803,798, and net loss of $177,664 for the six months ended February 28, 2023. Losses have principally occurred as a result of the substantial resources required for the general and administrative expenses associated with our operations. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders or external financing. Management believes the existing stockholders will provide the additional cash to meet the Company’s obligations as they become due. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations.

 

These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern.

XML 16 R8.htm IDEA: XBRL DOCUMENT v3.23.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Feb. 28, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by U.S. GAAP for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended August 31, 2022.

 

Principles of Consolidation

 

The accompanying consolidated financial statements include the financial statements of the Company and its 49% owned subsidiary Fellazo Berhad (“FB”), an entity under common control. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

 

Variable Interest Entities

 

The Company holds both the power to direct the most significant activities of FB, as well as an economic interest in FB and, as such, is deemed to be the primary beneficiary or consolidator of FB. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity.

Inventory

 

Inventory consists of products, such as bird-nests. All inventory is valued at the lower of cost or net realizable value. Cost is determined using a first-in first-out method.

 

Revenue recognition

 

The Company commenced its operation in mid-October 2019. At this initial stage, revenue is earned from the trading of raw bird-nests and durian paste to its customers.

 

The Company’s revenue recognition procedures consist of the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfils its obligations pursuant to each of its sales transactions:

 

·

Identify the contract with a customer;

·

Identify the performance obligations in the contract;

·

Determine the transaction price;

·

Allocate the transaction price to performance obligations in the contract; and

·

Recognize revenue as the performance obligation is satisfied.

 

The Company believes it is still in the initial stage of its operations, which started with the trading of raw bird-nests and with the recent addition of the product durian paste. Management is using this initial stage as exposure to the bird-nest business in order to learn and gain experience with our suppliers whom are bird-nest farmers or their agents, determination of quality of the raw materials, the process of raw bird-nest cleaning, the different classes of the raw materials and market for these clean bird-nest, and handling of durian paste as a food product.

 

Thus, at this initial stage we have not entered into any formal contract with our suppliers and purchasers, most of the suppliers and purchasers are known to our management or have been introduced to management by close business friends. The Company recognizes the revenue at a point in time when products are transferred to its customers, which also typically corresponds with the issuance of invoices to those customers. The Company has a single performance obligation which is completed when goods are physically transferred to its customers.

 

Cost of Goods Sold – Trading of Raw Bird-Nest

 

At the current stage of business operations, which management considers as exposure, gaining of knowledge and experience of the overall bird-nest and durian paste business, our Cost of goods sold only includes the actual cost of the raw bird-nests and durian paste purchased from suppliers.

 

Foreign Currency Translation

 

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations.

 

Exchange Rates

 

February 28,

2023

 

 

August 31,

2022

 

Spot rate RM : USD exchange rate

 

 

0.2228

 

 

 

0.2234

 

Average period RM : USD exchange rate

 

 

0.2290

 

 

 

0.2343

 

Concentrations

 

During the six months ended February 28, 2023, and 2022, the Company had a concentration in demand for its products, as two customers comprised 100% of the Company’s sales in 2023; one costumer was 33% and the second customer 67%. Two customers comprised 96% of the Company’s sales in 2022: with one customer comprising 64% and a second customer 32%.

 

During the six months ended February 28, 2023, and 2022, the Company had a concentration in its products portfolio as one product comprised 100% of bird-nests.

 

During the six months ended February 28, 2023, and 2022, the Company had a concentration in supply of its products as one supplier provided 89% of the Company’s purchases in 2023, and 95% of Company’s purchases in 2022 were from two suppliers: one supplier was approximately 63% of purchases and the second supplier was approximately 32%.

 

Recent Accounting Pronouncements

 

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments Credit Losses —Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, which includes the Company’s accounts receivable. This ASU is effective for the Company for reporting periods beginning after December 15, 2022. The Company is currently assessing the potential impact that the adoption of this ASU will have on its consolidated financial statements.

XML 17 R9.htm IDEA: XBRL DOCUMENT v3.23.1
DEPOSIT FOR PURCHASES OF INVENTORY
6 Months Ended
Feb. 28, 2023
DEPOSIT FOR PURCHASES OF INVENTORY  
DEPOSIT FOR PURCHASES OF INVENTORY

NOTE 3 – DEPOSIT FOR PURCHASES OF INVENTORY

 

As of February 28, 2023, and August 31, 2022, the Company had $0 and $11,818, respectively for purchase deposit on bird-nests.

XML 18 R10.htm IDEA: XBRL DOCUMENT v3.23.1
RELATED PARTY TRANSACTIONS
6 Months Ended
Feb. 28, 2023
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS

NOTE 4 – RELATED PARTY TRANSACTIONS

 

Our Management Agent, Swipypay Berhad (a company established in Malaysia) is 80% owned by our Director,Mr. Yap Kit Chuan. Total outstanding amount due to our Management Agent was $1,893,044 and $1,737,963 as of February 28, 2023, and August 31, 2022, respectively. The additional amount of $155,081 incurred in the six months ended February 28, 2023, consisted of operating expenses paid on behalf of the Company of $173,426 and repayment of $17,706. The difference was a result of a change of exchange rate.

 

During the six months ended February 28, 2023, and 2022, we purchased $1,946 and $9,301 worth of raw bird-nests from Swipypay Berhad (also an agent for bird-nest farmers), respectively.

 

Our Company does not own or lease any real property, and our registered office in Malaysia is provided by our Management Agent.

XML 19 R11.htm IDEA: XBRL DOCUMENT v3.23.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Feb. 28, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by U.S. GAAP for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended August 31, 2022.

Principles of Consolidation

The accompanying consolidated financial statements include the financial statements of the Company and its 49% owned subsidiary Fellazo Berhad (“FB”), an entity under common control. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

Variable Interest Entities

The Company holds both the power to direct the most significant activities of FB, as well as an economic interest in FB and, as such, is deemed to be the primary beneficiary or consolidator of FB. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity.

Inventory

Inventory consists of products, such as bird-nests. All inventory is valued at the lower of cost or net realizable value. Cost is determined using a first-in first-out method.

Revenue recognition

The Company commenced its operation in mid-October 2019. At this initial stage, revenue is earned from the trading of raw bird-nests and durian paste to its customers.

 

The Company’s revenue recognition procedures consist of the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfils its obligations pursuant to each of its sales transactions:

 

·

Identify the contract with a customer;

·

Identify the performance obligations in the contract;

·

Determine the transaction price;

·

Allocate the transaction price to performance obligations in the contract; and

·

Recognize revenue as the performance obligation is satisfied.

 

The Company believes it is still in the initial stage of its operations, which started with the trading of raw bird-nests and with the recent addition of the product durian paste. Management is using this initial stage as exposure to the bird-nest business in order to learn and gain experience with our suppliers whom are bird-nest farmers or their agents, determination of quality of the raw materials, the process of raw bird-nest cleaning, the different classes of the raw materials and market for these clean bird-nest, and handling of durian paste as a food product.

 

Thus, at this initial stage we have not entered into any formal contract with our suppliers and purchasers, most of the suppliers and purchasers are known to our management or have been introduced to management by close business friends. The Company recognizes the revenue at a point in time when products are transferred to its customers, which also typically corresponds with the issuance of invoices to those customers. The Company has a single performance obligation which is completed when goods are physically transferred to its customers.

Cost of Goods Sold - Trading of Raw Bird-Nest

At the current stage of business operations, which management considers as exposure, gaining of knowledge and experience of the overall bird-nest and durian paste business, our Cost of goods sold only includes the actual cost of the raw bird-nests and durian paste purchased from suppliers.

Foreign Currency Translation

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations.

 

Exchange Rates

 

February 28,

2023

 

 

August 31,

2022

 

Spot rate RM : USD exchange rate

 

 

0.2228

 

 

 

0.2234

 

Average period RM : USD exchange rate

 

 

0.2290

 

 

 

0.2343

 

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments Credit Losses —Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, which includes the Company’s accounts receivable. This ASU is effective for the Company for reporting periods beginning after December 15, 2022. The Company is currently assessing the potential impact that the adoption of this ASU will have on its consolidated financial statements.

Concentrations

During the six months ended February 28, 2023, and 2022, the Company had a concentration in demand for its products, as two customers comprised 100% of the Company’s sales in 2023; one costumer was 33% and the second customer 67%. Two customers comprised 96% of the Company’s sales in 2022: with one customer comprising 64% and a second customer 32%.

 

During the six months ended February 28, 2023, and 2022, the Company had a concentration in its products portfolio as one product comprised 100% of bird-nests.

 

During the six months ended February 28, 2023, and 2022, the Company had a concentration in supply of its products as one supplier provided 89% of the Company’s purchases in 2023, and 95% of Company’s purchases in 2022 were from two suppliers: one supplier was approximately 63% of purchases and the second supplier was approximately 32%.

 

Recent Accounting Pronouncements

 

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments Credit Losses —Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, which includes the Company’s accounts receivable. This ASU is effective for the Company for reporting periods beginning after December 15, 2022. The Company is currently assessing the potential impact that the adoption of this ASU will have on its consolidated financial statements.

XML 20 R12.htm IDEA: XBRL DOCUMENT v3.23.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
6 Months Ended
Feb. 28, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Schedule of foreign currency translation

Exchange Rates

 

February 28,

2023

 

 

August 31,

2022

 

Spot rate RM : USD exchange rate

 

 

0.2228

 

 

 

0.2234

 

Average period RM : USD exchange rate

 

 

0.2290

 

 

 

0.2343

 

XML 21 R13.htm IDEA: XBRL DOCUMENT v3.23.1
ORGANIZATION DESCRIPTION OF BUSINESS AND GOING CONCERN (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Feb. 28, 2023
Nov. 30, 2022
Feb. 28, 2022
Nov. 30, 2021
Feb. 28, 2023
Feb. 28, 2022
Aug. 31, 2022
ORGANIZATION DESCRIPTION OF BUSINESS AND GOING CONCERN              
Net loss $ (92,536) $ (85,128) $ (86,963) $ (87,945) $ (177,664) $ (174,908)  
Accumulated deficit $ (1,803,798)       $ (1,803,798)   $ (1,666,632)
XML 22 R14.htm IDEA: XBRL DOCUMENT v3.23.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
Feb. 28, 2023
Aug. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES    
Spot rate RM : USD exchange rate 0.2228 0.2234
Average period RM : USD exchange rate 0.2290 0.2343
XML 23 R15.htm IDEA: XBRL DOCUMENT v3.23.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)
6 Months Ended
Feb. 28, 2023
Feb. 28, 2022
Ownership percentage 49.00%  
Purchase [Member]    
Concentration credit risk percentage 89.00%  
One Supplier [Member] | Purchase [Member]    
Concentration credit risk percentage 89.00% 63.00%
Two Supplier [Member] | Purchase [Member]    
Concentration credit risk percentage 95.00% 32.00%
Sales [Member]    
Concentration credit risk percentage 100.00%  
Sales [Member] | Two customer [Member]    
Concentration credit risk percentage 67.00% 32.00%
One customer [Member] | Sales [Member]    
Ownership percentage 100.00%  
Concentration credit risk percentage 33.00% 64.00%
XML 24 R16.htm IDEA: XBRL DOCUMENT v3.23.1
DEPOSIT FOR PURCHASES OF INVENTORY (Details Narrative) - USD ($)
Feb. 28, 2023
Aug. 31, 2022
DEPOSIT FOR PURCHASES OF INVENTORY    
Purchase deposits on bird nests $ 0 $ 11,818
XML 25 R17.htm IDEA: XBRL DOCUMENT v3.23.1
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)
6 Months Ended
Feb. 28, 2023
Feb. 28, 2022
Aug. 31, 2022
Ownership percentage hold by yap 49.00%    
Due to related party $ 1,893,044   $ 1,737,963
Repayment to related party 17,706 $ 69,314  
Swipypay Berhad [Member]      
Purchased raw bird nest $ 1,946 $ 9,301  
Mr Yap Kit Chuan [Member]      
Ownership percentage hold by yap 80.00%    
Additional amount incurred $ 155,081    
Operating expenses paid by related party 173,426    
Repayment to related party $ 17,706    
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(“the Company”, “we”, “us” or “our”) was incorporated in the State of Nevada on May 28, 2014.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company had commenced to be engaged in the industry of “Healthcare and Personal Wellness” products and related products. Activities include, but are not limited to, sourcing raw materials or partly or fully finished products, manufacturing, wholesale and trading of these products.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Going Concern Uncertainties</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">As of February 28, 2023, the Company had an accumulated deficit of $1,803,798, and net loss of $177,664 for the six months ended February 28, 2023. Losses have principally occurred as a result of the substantial resources required for the general and administrative expenses associated with our operations. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders or external financing. Management believes the existing stockholders will provide the additional cash to meet the Company’s obligations as they become due. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern.</p> -1803798 -177664 <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong>NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Basis of Presentation</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by U.S. GAAP for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended August 31, 2022.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Principles of Consolidation</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The accompanying consolidated financial statements include the financial statements of the Company and its 49% owned subsidiary Fellazo Berhad (“FB”), an entity under common control. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Variable Interest Entities</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company holds both the power to direct the most significant activities of FB, as well as an economic interest in FB and, as such, is deemed to be the primary beneficiary or consolidator of FB. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><em><strong>Inventory</strong></em></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Inventory consists of products, such as bird-nests. All inventory is valued at the lower of cost or net realizable value. Cost is determined using a first-in first-out method.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Revenue recognition</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company commenced its operation in mid-October 2019. At this initial stage, revenue is earned from the trading of raw bird-nests and durian paste to its customers.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company’s revenue recognition procedures consist of the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfils its obligations pursuant to each of its sales transactions:</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><table cellpadding="0" style="border-spacing:0;font-size:10pt;width:100%"><tbody><tr style="height:15px"><td style="width:4%;"/><td style="width:4%;vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px"><span style="font-family:symbol">·</span></p></td><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Identify the contract with a customer;</p></td></tr><tr style="height:15px"><td/><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px"><span style="font-family:symbol">·</span></p></td><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Identify the performance obligations in the contract;</p></td></tr><tr style="height:15px"><td/><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px"><span style="font-family:symbol">·</span></p></td><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Determine the transaction price;</p></td></tr><tr style="height:15px"><td/><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px"><span style="font-family:symbol">·</span></p></td><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Allocate the transaction price to performance obligations in the contract; and</p></td></tr><tr style="height:15px"><td/><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px"><span style="font-family:symbol">·</span></p></td><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Recognize revenue as the performance obligation is satisfied.</p></td></tr></tbody></table><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company believes it is still in the initial stage of its operations, which started with the trading of raw bird-nests and with the recent addition of the product durian paste. Management is using this initial stage as exposure to the bird-nest business in order to learn and gain experience with our suppliers whom are bird-nest farmers or their agents, determination of quality of the raw materials, the process of raw bird-nest cleaning, the different classes of the raw materials and market for these clean bird-nest, and handling of durian paste as a food product.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Thus, at this initial stage we have not entered into any formal contract with our suppliers and purchasers, most of the suppliers and purchasers are known to our management or have been introduced to management by close business friends. The Company recognizes the revenue at a point in time when products are transferred to its customers, which also typically corresponds with the issuance of invoices to those customers. The Company has a single performance obligation which is completed when goods are physically transferred to its customers.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Cost of Goods Sold – Trading of Raw Bird-Nest</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">At the current stage of business operations, which management considers as exposure, gaining of knowledge and experience of the overall bird-nest and durian paste business, our Cost of goods sold only includes the actual cost of the raw bird-nests and durian paste purchased from suppliers.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Foreign Currency Translation</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%"><tbody><tr style="height:15px"><td style="BORDER-BOTTOM: 1px solid;vertical-align:bottom;"><p style="font-size:10pt;font-family:times new roman;margin:0px"><strong>Exchange Rates</strong></p></td><td style="white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>February 28,</strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>2023</strong></p></td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>August 31,</strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>2022</strong></p></td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Spot rate RM : USD exchange rate</p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.2228</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.2234</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Average period RM : USD exchange rate</p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.2290</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.2343</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr></tbody></table><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em><span style="text-decoration:underline">Concentrations</span></em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">During the six months ended February 28, 2023, and 2022, the Company had a concentration in demand for its products, as two customers comprised 100% of the Company’s sales in 2023; one costumer was 33% and the second customer 67%. Two customers comprised 96% of the Company’s sales in 2022: with one customer comprising 64% and a second customer 32%.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">During the six months ended February 28, 2023, and 2022, the Company had a concentration in its products portfolio as one product comprised 100% of bird-nests.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">During the six months ended February 28, 2023, and 2022, the Company had a concentration in supply of its products as one supplier provided 89% of the Company’s purchases in 2023, and 95% of Company’s purchases in 2022 were from two suppliers: one supplier was approximately 63% of purchases and the second supplier was approximately 32%.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em><span style="text-decoration:underline">Recent Accounting Pronouncements</span></em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments Credit Losses —Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, which includes the Company’s accounts receivable. This ASU is effective for the Company for reporting periods beginning after December 15, 2022. The Company is currently assessing the potential impact that the adoption of this ASU will have on its consolidated financial statements.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by U.S. GAAP for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended August 31, 2022.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The accompanying consolidated financial statements include the financial statements of the Company and its 49% owned subsidiary Fellazo Berhad (“FB”), an entity under common control. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.</p> 0.49 <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company holds both the power to direct the most significant activities of FB, as well as an economic interest in FB and, as such, is deemed to be the primary beneficiary or consolidator of FB. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Inventory consists of products, such as bird-nests. All inventory is valued at the lower of cost or net realizable value. Cost is determined using a first-in first-out method.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company commenced its operation in mid-October 2019. At this initial stage, revenue is earned from the trading of raw bird-nests and durian paste to its customers.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company’s revenue recognition procedures consist of the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfils its obligations pursuant to each of its sales transactions:</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><table cellpadding="0" style="border-spacing:0;font-size:10pt;width:100%"><tbody><tr style="height:15px"><td style="width:4%;"/><td style="width:4%;vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px"><span style="font-family:symbol">·</span></p></td><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Identify the contract with a customer;</p></td></tr><tr style="height:15px"><td/><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px"><span style="font-family:symbol">·</span></p></td><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Identify the performance obligations in the contract;</p></td></tr><tr style="height:15px"><td/><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px"><span style="font-family:symbol">·</span></p></td><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Determine the transaction price;</p></td></tr><tr style="height:15px"><td/><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px"><span style="font-family:symbol">·</span></p></td><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Allocate the transaction price to performance obligations in the contract; and</p></td></tr><tr style="height:15px"><td/><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px"><span style="font-family:symbol">·</span></p></td><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Recognize revenue as the performance obligation is satisfied.</p></td></tr></tbody></table><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company believes it is still in the initial stage of its operations, which started with the trading of raw bird-nests and with the recent addition of the product durian paste. Management is using this initial stage as exposure to the bird-nest business in order to learn and gain experience with our suppliers whom are bird-nest farmers or their agents, determination of quality of the raw materials, the process of raw bird-nest cleaning, the different classes of the raw materials and market for these clean bird-nest, and handling of durian paste as a food product.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Thus, at this initial stage we have not entered into any formal contract with our suppliers and purchasers, most of the suppliers and purchasers are known to our management or have been introduced to management by close business friends. The Company recognizes the revenue at a point in time when products are transferred to its customers, which also typically corresponds with the issuance of invoices to those customers. The Company has a single performance obligation which is completed when goods are physically transferred to its customers.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">At the current stage of business operations, which management considers as exposure, gaining of knowledge and experience of the overall bird-nest and durian paste business, our Cost of goods sold only includes the actual cost of the raw bird-nests and durian paste purchased from suppliers.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%"><tbody><tr style="height:15px"><td style="BORDER-BOTTOM: 1px solid;vertical-align:bottom;"><p style="font-size:10pt;font-family:times new roman;margin:0px"><strong>Exchange Rates</strong></p></td><td style="white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>February 28,</strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>2023</strong></p></td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>August 31,</strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>2022</strong></p></td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Spot rate RM : USD exchange rate</p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.2228</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.2234</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Average period RM : USD exchange rate</p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.2290</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.2343</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr></tbody></table> <table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%"><tbody><tr style="height:15px"><td style="BORDER-BOTTOM: 1px solid;vertical-align:bottom;"><p style="font-size:10pt;font-family:times new roman;margin:0px"><strong>Exchange Rates</strong></p></td><td style="white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>February 28,</strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>2023</strong></p></td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>August 31,</strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>2022</strong></p></td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Spot rate RM : USD exchange rate</p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.2228</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.2234</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;"><p style="font-size:10pt;font-family:times new roman;margin:0px">Average period RM : USD exchange rate</p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.2290</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.2343</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr></tbody></table> 0.2228 0.2234 0.2290 0.2343 <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">During the six months ended February 28, 2023, and 2022, the Company had a concentration in demand for its products, as two customers comprised 100% of the Company’s sales in 2023; one costumer was 33% and the second customer 67%. Two customers comprised 96% of the Company’s sales in 2022: with one customer comprising 64% and a second customer 32%.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">During the six months ended February 28, 2023, and 2022, the Company had a concentration in its products portfolio as one product comprised 100% of bird-nests.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">During the six months ended February 28, 2023, and 2022, the Company had a concentration in supply of its products as one supplier provided 89% of the Company’s purchases in 2023, and 95% of Company’s purchases in 2022 were from two suppliers: one supplier was approximately 63% of purchases and the second supplier was approximately 32%.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em><span style="text-decoration:underline">Recent Accounting Pronouncements</span></em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments Credit Losses —Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, which includes the Company’s accounts receivable. This ASU is effective for the Company for reporting periods beginning after December 15, 2022. The Company is currently assessing the potential impact that the adoption of this ASU will have on its consolidated financial statements.</p> 1 0.33 0.67 0.64 0.32 1 0.89 0.95 0.63 0.32 <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments Credit Losses —Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, which includes the Company’s accounts receivable. This ASU is effective for the Company for reporting periods beginning after December 15, 2022. The Company is currently assessing the potential impact that the adoption of this ASU will have on its consolidated financial statements.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong>NOTE 3 – DEPOSIT FOR PURCHASES OF INVENTORY</strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">As of February 28, 2023, and August 31, 2022, the Company had $0 and $11,818, respectively for purchase deposit on bird-nests.</p> 0 11818 <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong>NOTE 4 – RELATED PARTY TRANSACTIONS</strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Our Management Agent, Swipypay Berhad (a company established in Malaysia) is 80% owned by our Director,Mr. Yap Kit Chuan. Total outstanding amount due to our Management Agent was $1,893,044 and $1,737,963 as of February 28, 2023, and August 31, 2022, respectively. The additional amount of $155,081 incurred in the six months ended February 28, 2023, consisted of operating expenses paid on behalf of the Company of $173,426 and repayment of $17,706. The difference was a result of a change of exchange rate.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">During the six months ended February 28, 2023, and 2022, we purchased $1,946 and $9,301 worth of raw bird-nests from Swipypay Berhad (also an agent for bird-nest farmers), respectively.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Our Company does not own or lease any real property, and our registered office in Malaysia is provided by our Management Agent.</p> 0.80 1893044 1737963 155081 173426 17706 1946 9301 EXCEL 27 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx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