0001493152-20-020218.txt : 20201030 0001493152-20-020218.hdr.sgml : 20201030 20201030160037 ACCESSION NUMBER: 0001493152-20-020218 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 30 CONFORMED PERIOD OF REPORT: 20200930 FILED AS OF DATE: 20201030 DATE AS OF CHANGE: 20201030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Achison Inc CENTRAL INDEX KEY: 0001672571 STANDARD INDUSTRIAL CLASSIFICATION: [6221] IRS NUMBER: 472643986 STATE OF INCORPORATION: NY FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-56157 FILM NUMBER: 201277248 BUSINESS ADDRESS: STREET 1: 135-22 NORTHERN BLVD STREET 2: 2ND FL CITY: FLUSHING STATE: NY ZIP: 11354 BUSINESS PHONE: 9174705393 MAIL ADDRESS: STREET 1: 135-22 NORTHERN BLVD STREET 2: 2ND FL CITY: FLUSHING STATE: NY ZIP: 11354 10-Q 1 form10-q.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 10-Q

 

 

 

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2020

 

or

 

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______ to ______

 

Commission File Number 000-56157

 

Achison Inc

(Exact name of registrant as specified in its charter)

 

New York   47-2643986
(State or Other Jurisdiction   (I.R.S. Employer
of Incorporation or Organization)   Identification No.)

 

135-22 Norhern Blvd., 2nd Fl

Flushing, NY 11354

(Address of Principal Executive Offices) (Zip Code)

 

(917) 470-5393

(Registrant’s telephone number, including area code)

 

 

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

 

Securities registered pursuant to Section 12(b) of the Act: 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 [X] 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 [X] 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 [X] Smaller reporting company [X]
    Emerging growth company [X]

 

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 [X] No [  ]

 

As of October 29, 2020, the registrant had 29,995,000 shares of class A common stock outstanding.

 

 

 

 
 

 

TABLE OF CONTENTS

 

    PAGE
     
  Note about Forward-Looking Statements 3
     
  PART I - FINANCIAL INFORMATION
     
Item 1 Financial Statements 4
  Condensed Unaudited Balance Sheets as of September 30, 2020 and March 31, 2020 5
  Condensed Statements of Operations (Unaudited) for the three and six months ended September 30, 2020 and 2019 6
  Condensed Statements of Changes in Stockholders’ Equity (Unaudited) for the three and six months ended September 30, 2020 and 2019 7
  Condensed Statements of Cash Flows (Unaudited) for the six months ended September 30, 2020 and 2019 8
  Notes to Condensed Unaudited Financial Statements 9
Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operation 11
Item 3 Quantitative and Qualitative Disclosures About Market Risk 12
Item 4 Controls and Procedures 12
     
  PART II - OTHER INFORMATION  
     
Item 1 Legal Proceedings 12
Item 1A Risk Factors 12
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 12
Item 3 Defaults Upon Senior Securities 12
Item 4 Mine Safety Disclosures 12
Item 5 Other Information 12
Item 6 Exhibits 13
     

SIGNATURES

14
EXHIBIT INDEX 15

 

2
 

 

NOTE ABOUT FORWARD-LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in Part II, Item 1A, “Risk Factors” in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

 

We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

 

Unless expressly indicated or the context requires otherwise, the terms “Achison,” “company,” “we,” “us,” and “our” in this document refer to Achison Inc, a New York corporation.

 

3
 

 

PART I

ITEM 1. FINANCIAL STATEMENTS

 

ACHISON INC

 

INDEX TO FINANCIAL STATEMENTS

 

Condensed Unaudited Balance Sheets as of September 30, 2020 and March 31, 2020 5
   
Condensed Statements of Operations (Unaudited) for the three and six months ended September 30, 2020 and 2019 6
   
Condensed Statements of Changes in Stockholders’ Equity (Unaudited) for the three and six months ended September 30, 2020 and 2019 7
   
Condensed Statements of Cash Flows (Unaudited) for the six months ended September 30, 2020 and 2019 8
   
Notes to Condensed Unaudited Financial Statements 9 - 10

 

4
 

 

ACHISON INC

UNAUDITED CONDENSED BALANCE SHEETS

AS OF SEPTEMBER 30, 2020 AND MARCH 31, 2020

 

   September 30,   March 31, 
   2020   2020 
ASSETS          
CURRENT ASSETS          
Cash and cash equivalents  $28,352   $61,471 
Notes receivable, net   53,682    70,000 
Prepaid expense   6,000    - 
Total Current Assets   88,034    131,471 
           
TOTAL ASSETS  $88,034   $131,471 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
CURRENT LIABILITIES:          
Deferred revenue  $4,400   $- 
Total Current Liability   4,400    - 
Shareholder loans   71,000    71,000 
Total NonCurrent Liabilities   71,000    71,000 
Total liabilities  $75,400   $71,000 
           
STOCKHOLDERS’ EQUITY:          
Common stock ($0.001 par value, 30,000,000 shares authorized, 29,995,000 shares issued and outstanding as of September 30, 2020 and March 31, 2020)   29,995    29,995 
Additional Paid in Capital   160,230    160,230 
Accumulated Deficit   (177,591)   (129,754)
Total Stockholders’ Equity   12,634    60,471 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $88,034   $131,471 

 

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

 

5
 

 

ACHISON INC

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2020 AND 2019

 

  

For the three months ended

  

For the six months ended

 
   September 30,
2020
   September 30,
2019
   September 30,
2020
   September 30,
2019
 
                 
Revenue-service  $400   $-   $400   $- 
Cost of goods sold   300    -    300    - 
Gross Profit   100    -    100    - 
                     
Operating Expenses                    
                     
General and Administrative expenses   21,049    8,142    52,619    12,262 
                     
Total Operating Expenses   21,049    8,142    52,619    12,262 
                     
Other income(expense)                    
Loss from commodity trading   -    (121)   -    (2,010)
Interest and dividends   882    -    3,682    1 
Other income   -    -    1,000    - 
Total other income (expense), net   882    (121)   4,682    (2,009)
                     
Net loss  $(20,067)   (8,263)  $(47,837)  $(14,271)
                     
Loss per share, basic and diluted  $(0.00)  $(0.00)  $(0.00)  $(0.00)
                     
Weighted average number of shares outstanding, basic and diluted   29,995,000    14,602,692    29,995,000    12,293,846 

 

 

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

 

6
 

 

ACHISON INC

UNAUDITED CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDER’S EQUITY

FOR THE THREE AND THE SIX MONTHS ENDED SEPTEMBER 30, 2020 AND 2019

 

   Common
Shares
   Common
Stock
Amount
   Additional
Paid-in
Capital
   Accumulated
Deficit
   Total 
Balances, March 31, 2020   29,995,000   $29,995   $160,230   $(129,754)  $60,471 
Net loss   -    -    -    (27,770)   (27,770)
Balances, June 30, 2020   29,995,000    29,995    160,230    (157,524)   32,701 
Net loss   -    -    -    (20,067)   (20,067)
Balances, September 30, 2020   29,995,000   $29,995   $160,230   $(177,591)  $12,634 

 

   Common
Shares
   Common
Stock
Amount
   Additional
Paid-in
Capital
   Accumulated
Deficit
   Total 
Balances, March 31, 2019   9,985,000   $9,985   $80,140   $(70,643)  $19,482 
Net loss   -    -    -    (6,008)   (6,008)
Balances, June 30, 2019   9,985,000    9,985    80,140    (76,651)   13,474 
Shares issued for cash   10,010,000    10,010    90,090    -    100,100 
Shares issued for inventory and fixed asset   10,000,000    10,000    (10,000)   -    - 
Net loss   -    -    -    (8,263)   (8,263)
Balances, September 30, 2019   29,995,000   $29,995   $160,230   $(84,914)  $105,311 

 

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

 

7
 

 

ACHISON INC

UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS

FOR THE THREE AND THE SIX MONTHS ENDED SEPTEMBER 30, 2020 AND 2019

 

   For the six
months ended
September 30,
2020
  

For the six
months ended
September 30,
2019

(Restated)

 
CASH FLOWS FROM OPERATING ACTIVITIES          
Net loss  $(47,837)  $(14,270)
Adjustments to reconcile net loss to net cash used in operating activities:          
Accrued interest income on note receivable   (3,682)   - 
Prepaid expense   (6,000)   - 
Tax payable   -    (13,383)
Deferred revenue   4,400    - 
Net cash used in operating activities   (53,119)   (27,653)
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Proceeds from notes receivables   20,000    18,000 
Disposal of short-term investment   -    10,724 
Net cash provided by investing activities   20,000    28,724 
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Proceed from shareholder loans   -    36,000 
Cash from issuance of shares   -    100,100 
Net cash provided by financing activities   -    136,100 
           
Net increase (decrease) in Cash   (33,119)   137,171 
Cash at beginning of period:   61,471    4,141*
Cash at end of period:  $28,352   $141,312 
           
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION          
Interest expense  $   $ 
Tax expense  $     

 

* The balance is different with the audited financial statements filed in the 10K due to the fact that the Company restated its financial statements for the year ended March 31, 2019. The number presented here agreed with the restated financial statements.

 

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

 

8
 

 

ACHISON INC

NOTES TO THE FINANCIAL STATEMENTS

 

NOTE 1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Nature of Business

 

Achison Inc., the Company, incorporated in the State of New York on December 29, 2014.

 

On July 1, 2019 Lansdale Inc, the principal stockholder of the Company (“Seller”) and controlled by the Company’s prior President, Mr. Wanjun Xie, entered into a Stock Purchase Agreement (the “Agreement”) with Dazhong 368 Inc, (the “Buyer”), pursuant to which, a total of 9,000,000 shares of Common Stock of the Company were transferred to the Buyer, representing approximately 90% of the Company’s issued and outstanding shares of Common Stock, resulting in a change of the control of the Company. Mr. Dingshan Zhang was appointed as the President and CEO of the Company at the same date.

 

Prior to July of 2019 the Company primarily engaged in trading spot gold and silver in Singapore Markets, crypto currency and US equity stocks, however, the Company currently engages only in internet advertising through www.dazhong368.com (the “Website”) in the New York area and has plans to acquire a vineyard to distribute and sell wines in the future.

 

Basis of Preparation

 

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

 

Significant Accounting Policies

 

For a detailed discussion about the Company’s significant accounting policies, refer to note 1. Nature of business and summary of significant accounting policies in the Company’s financial statements included in Company’s March 31, 2020 Form 10-K. During the three months ended September 30, 2020, there were no significant changes made to the Company’s significant accounting policies.

 

A novel strain of coronavirus (COVID-19) was first identified in December 2019, and subsequently declared a global pandemic by the World Health Organization on March 11, 2020. As a result of the outbreak, many companies have experienced disruptions in their operations and in markets served. The Company is developing its business, thus our business is impacted by the outbreak of the COVID-19 in New York for the six months ended September 30, 2020. The full extent of the future impacts of COVID-19 on the Company’s operations is uncertain. A prolonged outbreak could have a material adverse impact on financial results and business operations of the Company, including the timing and ability of the Company to develop its business plan.

 

The Company has applied for Economic Injury Disaster Loans (“EIDL”) through the Small Business Administration (“SBA”) that were made available under the CARES Act passed by Congress in response to the COVID-19 pandemic at the end of March 2020. On May 5, 2020, the Company was approved for the advance in the EIDL program in the amount of $1,000, which does not have to be repaid and was recorded as other income in the accompanying condensed unaudited statements of operations.

 

9
 

 

Going Concern Assessment

 

The Company demonstrates adverse conditions that raise substantial doubt about the Company’s ability to continue as a going concern. These adverse conditions are negative financial trends, specifically cash outflow from operating activities, operating losses, accumulated deficit and other adverse key financial ratios.

 

Management’s plan to alleviate the substantial doubt about the Company’s ability to continue as a going concern include attempting to improve its business profitability, its ability to generate sufficient cash flow from its operations to meet its operating needs on a timely basis, obtain additional working capital funds from the majority shareholder and President of the Company to eliminate inefficiencies in order to meet its anticipated cash requirements. However, there can be no assurance that these plans and arrangements will be sufficient to fund the Company’s ongoing capital expenditures and other requirements.

 

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

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts and timing of revenues and expenses, the reported amounts and classification of assets and liabilities, and the disclosure of contingent assets and liabilities. Significant areas requiring the use of estimates are assessing the allowance of doubtful account, impairment of long-lived assets and recoverability of deferred tax assets. These estimates and assumptions are based on the Company’s historical results as well as management’s future expectations. The Company’s actual results may vary from those estimates and assumptions.

 

Reclassifications

 

Certain amounts from prior year financial statements have been reclassified to conform to the current year presentation. This reclassification has resulted in no changes to the Company’s financial position or results of operations presented.

 

NOTE 2. RELATED PARTY TRANSACTIONS

 

The Company has been provided office space by its President at no cost. The management determined that such cost is nominal and did not recognize the rent expense in its financial statements.

 

In August 2019, the Company borrowed $71,000 from the President of the Company, bearing no interest and due in December 2021.

 

NOTE 3 – NOTES RECEIVABLE

 

During the year ended March 31, 2020, the Company loaned to Northern Ifurniture Inc in the amount of $70,000 bearing 7% interest rate and due on December 2, 2020.

 

For the six months ended September 30, 2020, the interest income was in the amount of $3,682. On June 26, 2020, Northern Ifurniture Inc. repaid note receivable to the Company in the amount of $20,000.

 

NOTE 4 – RISKS AND UNCERTAINTIES

 

Concentration of Credit Risks

 

Financial instruments that potentially subject the Company to significant concentration of credit risk primarily consist of notes receivable. As of September 30, 2020 and March 31, 2020, the Company’s notes receivable were $50,000 and $70,000 outstanding from Northern Ifurniture Inc.

 

10
 

 

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

 

This Quarterly Report on Form 10-Q contains forward-looking statements, particularly those identified with the words, “anticipates,” “believes,” “expects,” “plans,” “intends,” “objectives,” and similar expressions. These statements reflect management’s best judgment based on factors known at the time of such statements. The reader may find discussions containing such forward-looking statements in the material set forth under “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” generally, and specifically therein under the captions “Liquidity and Capital Resources” as well as elsewhere in this Quarterly Report on Form 10-Q. Actual events or results may differ materially from those discussed herein. The forward-looking statements specified in the following information have been compiled by our management on the basis of assumptions made by management and considered by management to be reasonable. Our future operating results, however, are impossible to predict and no representation, guarantee, or warranty is to be inferred from those forward-looking statements. The assumptions used for purposes of the forward-looking statements specified in the following information represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. No assurance can be given that any of the assumptions relating to the forward-looking statements specified in the following information are accurate, and we assume no obligation to update any such forward-looking statements.

Overview

 

Achison Inc. is a New York corporation formed on December 29, 2014.

 

On July 1, 2019 Lansdale Inc, the principal stockholder of the Company (“Seller”) and controlled by the Company’s prior President, Mr. Wanjun Xie, entered into a Stock Purchase Agreement (the “Agreement”) with Dazhong 368 Inc, (the “Buyer”), pursuant to which, among other things, Seller agreed to sell to the Buyer, and the Buyer agreed to purchase from Seller, a total of 9,000,000 shares of Common Stock of the Company of record and beneficially by Seller. The Purchased Shares represented approximately 90% of the Company’s issued and outstanding shares of Common Stock, resulting in a change of the control of the Company. Mr. Dingshan Zhang was appointed as the President and CEO of the Company at the same date.

 

Prior to July of 2019 the Company primarily engaged in trading spot gold and silver in Singapore Markets, crypto currency and US equity stocks, however, the Company currently engages only in internet advertising through www.dazhong368.com (the “Website”) in the New York area and has plans to acquire a vineyard to distribute and sell wines in the future.

 

Results of Operation for the three months ended September 30, 2020 and 2019

 

The Company generated revenue in the amount of $400 and $nil, respectively. During the three months ended September 30, 2020 and 2019, the Company incurred operating expenses of $21,049 and $8,142, respectively. The increase was due to the increase in professional fee for the three months ended September 30, 2020, compared with the same period of last year. For the three months ended September 30, 2020 and 2019, our net loss was $20,067 and $8,263, respectively. The increase in net loss was mainly due to the increase in operating expenses for the three months ended September 30, 2020, compared to 2019.

 

Results of Operation for the six months ended September 30, 2020 and 2019

 

During the six months ended September 30, 2020 and 2019, the Company generated revenue in the amount of $400 and $nil, respectively. During the six months ended September 30, 2020 and 2019, the Company incurred operating expenses of $52,619 and $12,262, respectively. The increase was due to the increase in professional fee for the six months ended September 30, 2020, compared with the same period of last year. For the six months ended September 30, 2020 and 2019, our net loss was $47,837 and $14,271, respectively. The increase in net loss was mainly due to the increase in operating expenses for the six months ended September 30, 2020, compared to 2019.

 

Equity and Capital Resources

 

As of September 30, 2020, we had an accumulated deficit of $177,591. As of September 30, 2020, we had cash of $28,352 and working capital of $83,634.

 

Going Concern Assessment

 

The Company demonstrates adverse conditions that raise substantial doubt about the Company’s ability to continue as a going concern. These adverse conditions are negative financial trends, specifically cash outflow from operating activities, operating losses, accumulated deficit and other adverse key financial ratios.

 

11
 

 

Management’s plan to alleviate the substantial doubt about the Company’s ability to continue as a going concern include attempting to improve its business profitability, its ability to generate sufficient cash flow from its operations to meet its operating needs on a timely basis, obtain additional working capital funds from the majority shareholder and the President of the Company to eliminate inefficiencies in order to meet its anticipated cash requirements. However, there can be no assurance that these plans and arrangements will be sufficient to fund the Company’s ongoing capital expenditures and other requirements.

 

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

 

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

 

The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires making estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. The estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

 

For a detailed discussion about the Company’s significant accounting policies, refer to note 1. Nature of business and summary of significant accounting policies in the Company’s financial statements included in Company’s March 31, 2020 Form 10-K. Management believes that the application of these policies on a consistent basis enables us to provide useful and reliable financial information about our operating results and financial condition.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

As a “small reporting company” we are not required to provide this information under this item pursuant to Regulation S-K.

 

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

As of the end of the period covered by this report on Form 10-Q, our President (principal executive officer) and our Chief Financial Officer performed an evaluation of the effectiveness of and the operation of our disclosure controls and procedures as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act. Based on that evaluation, our President and Chief Financial Officer each concluded that as of the end of the period covered by this report on Form 10-Q, our disclosure controls and procedures were not effective in timely alerting them to material information relating to Achison Inc required to be included in our Exchange Act filings.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or Rule 15d-15 under the Exchange Act that occurred during the quarter ended September 30, 2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

PART II

 

Item 1. Legal Proceedings.

 

None

 

Item 1A. Risk Factors.

 

As a “smaller reporting company”, we are not required to provide this information under this item pursuant to Regulation S-K.

 

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

 

None

 

Item 3. Defaults Upon Senior Securities

 

None

 

Item 4. Mine Safety Disclosures

 

It isn’t applicable.

 

Item 5. Other Information

 

None

 

12
 

 

Item 6. Exhibits

 

Exhibit

Number

  Description of Exhibit
31.1*   Certification of Chief Executive Officer pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a)
   
31.2*   Certification of Chief Financial Officer pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a)
   
32.1*   Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350
     
101.INS   XBRL Instance Document
     
101.SCH   XBRL Taxonomy Extension Schema Document
     
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document
     
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document
     
101.LAB   XBRL Taxonomy Extension Label Linkbase Document
     
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document

 

* Filed herewith.

 

13
 

 

SIGNATURES

 

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

 

 

  ACHISON INC
   
Date: October 30, 2020 /s/ Dingshan Zhang
  Dingshan Zhang, President
   
  (Principal Executive Officer)

 

Date: October 30, 2020 /s/ Dingshan Zhang
  Dingshan Zhang, Chief Financial Officer
   
  (Principal Financial and Accounting Officer)

 

14
 

 

EXHIBIT INDEX

 

Exhibit

Number

  Description of Exhibit
31.1*   Certification of Chief Executive Officer pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a)
   
31.2*   Certification of Chief Financial Officer pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a)
   
32.1*   Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350
     
101.INS   XBRL Instance Document
     
101.SCH   XBRL Taxonomy Extension Schema Document
     
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document
     
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document
     
101.LAB   XBRL Taxonomy Extension Label Linkbase Document
     
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document

 

* Filed herewith.

 

15

EX-31.1 2 ex31-1.htm

 

EXHIBIT 31.1

 

CERTIFICATION

 

I, Dingshan Zhang, certify that:

 

1. I have reviewed this report on Form 10-Q of Achison Inc;
   
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
   
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
   
4. 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)) for the registrant and have:

 

  a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
     
  b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
     
  c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     
  d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

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

 

  a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

  /s/ Dingshan Zhang
  Dingshan Zhang
  President (Principal Executive Officer)
  October 30, 2020

 

 
EX-31.2 3 ex31-2.htm

 

EXHIBIT 31.2

 

CERTIFICATION

 

I, Dingshan Zhang, certify that:

 

1. I have reviewed this report on Form 10-Q of Achison Inc;
   
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
   
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
   
4. 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)) for the registrant and have:

 

  a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
     
  b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
     
  c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     
  d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

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

 

  a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

  /s/ Dingshan Zhang
  Dingshan Zhang
  Chief Financial Officer
  October 30, 2020

 

 
EX-32.1 4 ex32-1.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 report of Achison Inc (the “Company”) on Form 10-Q for the period ending September 30, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned, in the capacities and on the dates indicated below, 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 his knowledge:

 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
   
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

  /s/ Dingshan Zhang
  Dingshan Zhang
  President (Principal Executive Officer)
  October 30, 2020
   
  /s/ Dingshan Zhang
  Dingshan Zhang
  Chief Financial Officer
  October 30, 2020

 

 
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Significant areas requiring the use of estimates are assessing the allowance of doubtful account, impairment of long-lived assets and recoverability of deferred tax assets. These estimates and assumptions are based on the Company&#8217;s historical results as well as management&#8217;s future expectations. The Company&#8217;s actual results may vary from those estimates and assumptions.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Reclassifications</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain amounts from prior year financial statements have been reclassified to conform to the current year presentation. This reclassification has resulted in no changes to the Company&#8217;s financial position or results of operations presented.</p> 0.90 9000000 2021-12-12 70000 50000 20000 160230 160230 300 300 1000 0.07 2020-12-02 3682 The balance is different with the audited financial statements filed in the 10K due to the fact that the Company restated its financial statements for the year ended March 31, 2019. The number presented here agreed with the restated financial statements. 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Document and Entity Information - shares
6 Months Ended
Sep. 30, 2020
Oct. 29, 2020
Cover [Abstract]    
Entity Registrant Name Achison Inc  
Entity Central Index Key 0001672571  
Document Type 10-Q  
Document Period End Date Sep. 30, 2020  
Amendment Flag false  
Current Fiscal Year End Date --03-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Entity Shell Company true  
Entity Common Stock, Shares Outstanding   29,995,000
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2020  
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Condensed Balance Sheets (Unaudited) - USD ($)
Sep. 30, 2020
Mar. 31, 2020
CURRENT ASSETS    
Cash and cash equivalents $ 28,352 $ 61,471
Notes receivable, net 53,682 70,000
Prepaid expense 6,000
Total Current Assets 88,034 131,471
TOTAL ASSETS 88,034 131,471
CURRENT LIABILITIES:    
Deferred revenue 4,400
Total Current Liability 4,400
Shareholder loans 71,000 71,000
Total NonCurrent Liabilities 71,000 71,000
Total liabilities 75,400 71,000
STOCKHOLDERS' EQUITY:    
Common stock ($0.001 par value, 30,000,000 shares authorized, 29,995,000 shares issued and outstanding as of September 30, 2020 and March 31, 2020) 29,995 29,995
Additional Paid in Capital 160,230 160,230
Accumulated Deficit (177,591) (129,754)
Total Stockholders' Equity 12,634 60,471
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 88,034 $ 131,471
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Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Sep. 30, 2020
Mar. 31, 2020
Statement of Financial Position [Abstract]    
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 30,000,000 30,000,000
Common stock, shares issued 29,995,000 29,995,000
Common stock, shares outstanding 29,995,000 29,995,000
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Condensed Statements of Operations (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Income Statement [Abstract]        
Revenue-service $ 400 $ 400
Cost of goods sold 300 300
Gross Profit 100 100
Operating Expenses        
General and Administrative expenses 21,049 8,142 52,619 12,262
Total Operating Expenses 21,049 8,142 52,619 12,262
Other income(expense)        
Loss from commodity trading (121) (2,010)
Interest and dividends 882 3,682 1
Other income 1,000
Total other income (expense), net 882 (121) 4,682 (2,009)
Net loss $ (20,067) $ (8,263) $ (47,837) $ (14,271)
Loss per share, basic and diluted $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Weighted average number of shares outstanding, basic and diluted 29,995,000 14,602,692 29,995,000 12,293,846
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Condensed Statements of Changes in Stockholder's Equity (Unaudited) - USD ($)
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Total
Balance at Mar. 31, 2019 $ 9,985 $ 80,140 $ (70,643) $ 19,482
Balance, shares at Mar. 31, 2019 9,985,000      
Net loss (6,008) (6,008)
Balance at Jun. 30, 2019 $ 9,985 80,140 (76,651) 13,474
Balance, shares at Jun. 30, 2019 9,985,000      
Balance at Mar. 31, 2019 $ 9,985 80,140 (70,643) 19,482
Balance, shares at Mar. 31, 2019 9,985,000      
Net loss       (14,271)
Balance at Sep. 30, 2019 $ 29,995 160,230 (84,914) 105,311
Balance, shares at Sep. 30, 2019 29,995,000      
Balance at Jun. 30, 2019 $ 9,985 80,140 (76,651) 13,474
Balance, shares at Jun. 30, 2019 9,985,000      
Shares issued for cash $ 10,010 90,090 100,100
Shares issued for cash, shares 10,010,000      
Shares issued for inventory and fixed asset $ 10,000 (10,000)
Shares issued for inventory and fixed asset, shares 10,000,000      
Net loss     (8,263) (8,263)
Balance at Sep. 30, 2019 $ 29,995 160,230 (84,914) 105,311
Balance, shares at Sep. 30, 2019 29,995,000      
Balance at Mar. 31, 2020 $ 29,995 160,230 (129,754) 60,471
Balance, shares at Mar. 31, 2020 29,995,000      
Net loss (27,770) (27,770)
Balance at Jun. 30, 2020 $ 29,995 160,230 (157,524) 32,701
Balance, shares at Jun. 30, 2020 29,995,000      
Balance at Mar. 31, 2020 $ 29,995 160,230 (129,754) 60,471
Balance, shares at Mar. 31, 2020 29,995,000      
Net loss       (47,837)
Balance at Sep. 30, 2020 $ 29,995 160,230 (177,591) 12,634
Balance, shares at Sep. 30, 2020 29,995,000      
Balance at Jun. 30, 2020 $ 29,995 160,230 (157,524) 32,701
Balance, shares at Jun. 30, 2020 29,995,000      
Net loss (20,067) (20,067)
Balance at Sep. 30, 2020 $ 29,995 $ 160,230 $ (177,591) $ 12,634
Balance, shares at Sep. 30, 2020 29,995,000      
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Condensed Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Sep. 30, 2020
Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (47,837) $ (14,271)
Adjustments to reconcile net loss to net cash used in operating activities:    
Accrued interest income on note receivable (3,682)
Prepaid expense (6,000)
Tax payable (13,383)
Deferred revenue 4,400
Net cash used in operating activities (53,119) (27,653)
CASH FLOWS FROM INVESTING ACTIVITIES    
Proceeds from notes receivables 20,000 18,000
Disposal of short-term investment 10,724
Net cash provided by investing activities 20,000 28,724
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceed from shareholder loans 36,000
Cash from issuance of shares 100,100
Net cash provided by financing activities 136,100
Net increase (decrease) in Cash (33,119) 137,171
Cash at beginning of period: 61,471 4,141 [1]
Cash at end of period: 28,352 141,312
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
Interest expense
Tax expense
[1] The balance is different with the audited financial statements filed in the 10K due to the fact that the Company restated its financial statements for the year ended March 31, 2019. The number presented here agreed with the restated financial statements.
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Nature of Business and Summary of Significant Accounting Policies
6 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
Nature of Business and Summary of Significant Accounting Policies

NOTE 1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Nature of Business

 

Achison Inc., the Company, incorporated in the State of New York on December 29, 2014.

 

On July 1, 2019 Lansdale Inc, the principal stockholder of the Company (“Seller”) and controlled by the Company’s prior President, Mr. Wanjun Xie, entered into a Stock Purchase Agreement (the “Agreement”) with Dazhong 368 Inc, (the “Buyer”), pursuant to which, a total of 9,000,000 shares of Common Stock of the Company were transferred to the Buyer, representing approximately 90% of the Company’s issued and outstanding shares of Common Stock, resulting in a change of the control of the Company. Mr. Dingshan Zhang was appointed as the President and CEO of the Company at the same date.

 

Prior to July of 2019 the Company primarily engaged in trading spot gold and silver in Singapore Markets, crypto currency and US equity stocks, however, the Company currently engages only in internet advertising through www.dazhong368.com (the “Website”) in the New York area and has plans to acquire a vineyard to distribute and sell wines in the future.

 

Basis of Preparation

 

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

 

Significant Accounting Policies

 

For a detailed discussion about the Company’s significant accounting policies, refer to note 1. Nature of business and summary of significant accounting policies in the Company’s financial statements included in Company’s March 31, 2020 Form 10-K. During the three months ended September 30, 2020, there were no significant changes made to the Company’s significant accounting policies.

 

A novel strain of coronavirus (COVID-19) was first identified in December 2019, and subsequently declared a global pandemic by the World Health Organization on March 11, 2020. As a result of the outbreak, many companies have experienced disruptions in their operations and in markets served. The Company is developing its business, thus our business is impacted by the outbreak of the COVID-19 in New York for the six months ended September 30, 2020. The full extent of the future impacts of COVID-19 on the Company’s operations is uncertain. A prolonged outbreak could have a material adverse impact on financial results and business operations of the Company, including the timing and ability of the Company to develop its business plan.

 

The Company has applied for Economic Injury Disaster Loans (“EIDL”) through the Small Business Administration (“SBA”) that were made available under the CARES Act passed by Congress in response to the COVID-19 pandemic at the end of March 2020. On May 5, 2020, the Company was approved for the advance in the EIDL program in the amount of $1,000, which does not have to be repaid and was recorded as other income in the accompanying condensed unaudited statements of operations.

 

Going Concern Assessment

 

The Company demonstrates adverse conditions that raise substantial doubt about the Company’s ability to continue as a going concern. These adverse conditions are negative financial trends, specifically cash outflow from operating activities, operating losses, accumulated deficit and other adverse key financial ratios.

 

Management’s plan to alleviate the substantial doubt about the Company’s ability to continue as a going concern include attempting to improve its business profitability, its ability to generate sufficient cash flow from its operations to meet its operating needs on a timely basis, obtain additional working capital funds from the majority shareholder and President of the Company to eliminate inefficiencies in order to meet its anticipated cash requirements. However, there can be no assurance that these plans and arrangements will be sufficient to fund the Company’s ongoing capital expenditures and other requirements.

 

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

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts and timing of revenues and expenses, the reported amounts and classification of assets and liabilities, and the disclosure of contingent assets and liabilities. Significant areas requiring the use of estimates are assessing the allowance of doubtful account, impairment of long-lived assets and recoverability of deferred tax assets. These estimates and assumptions are based on the Company’s historical results as well as management’s future expectations. The Company’s actual results may vary from those estimates and assumptions.

 

Reclassifications

 

Certain amounts from prior year financial statements have been reclassified to conform to the current year presentation. This reclassification has resulted in no changes to the Company’s financial position or results of operations presented.

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Related Party Transactions
6 Months Ended
Sep. 30, 2020
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 2. RELATED PARTY TRANSACTIONS

 

The Company has been provided office space by its President at no cost. The management determined that such cost is nominal and did not recognize the rent expense in its financial statements.

 

In August 2019, the Company borrowed $71,000 from the President of the Company, bearing no interest and due in December 2021.

XML 19 R9.htm IDEA: XBRL DOCUMENT v3.20.2
Notes Receivable
6 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Notes Receviable

NOTE 3 – NOTES RECEIVABLE

 

During the year ended March 31, 2020, the Company loaned to Northern Ifurniture Inc in the amount of $70,000 bearing 7% interest rate and due on December 2, 2020.

 

For the six months ended September 30, 2020, the interest income was in the amount of $3,682. On June 26, 2020, Northern Ifurniture Inc. repaid note receivable to the Company in the amount of $20,000.

XML 20 R10.htm IDEA: XBRL DOCUMENT v3.20.2
Risks And Uncertainties
6 Months Ended
Sep. 30, 2020
Risks and Uncertainties [Abstract]  
Risks And Uncertainties

NOTE 4 – RISKS AND UNCERTAINTIES

 

Concentration of Credit Risks

 

Financial instruments that potentially subject the Company to significant concentration of credit risk primarily consist of notes receivable. As of September 30, 2020 and March 31, 2020, the Company’s notes receivable were $50,000 and $70,000 outstanding from Northern Ifurniture Inc.

XML 21 R11.htm IDEA: XBRL DOCUMENT v3.20.2
Nature of Business and Summary of Significant Accounting Policies (Policies)
6 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
Nature of Business

Nature of Business

 

Achison Inc., the Company, incorporated in the State of New York on December 29, 2014.

 

On July 1, 2019 Lansdale Inc, the principal stockholder of the Company (“Seller”) and controlled by the Company’s prior President, Mr. Wanjun Xie, entered into a Stock Purchase Agreement (the “Agreement”) with Dazhong 368 Inc, (the “Buyer”), pursuant to which, a total of 9,000,000 shares of Common Stock of the Company were transferred to the Buyer, representing approximately 90% of the Company’s issued and outstanding shares of Common Stock, resulting in a change of the control of the Company. Mr. Dingshan Zhang was appointed as the President and CEO of the Company at the same date.

 

Prior to July of 2019 the Company primarily engaged in trading spot gold and silver in Singapore Markets, crypto currency and US equity stocks, however, the Company currently engages only in internet advertising through www.dazhong368.com (the “Website”) in the New York area and has plans to acquire a vineyard to distribute and sell wines in the future.

Basis of Presentation

Basis of Preparation

 

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

Significant Accounting Policies

Significant Accounting Policies

 

For a detailed discussion about the Company’s significant accounting policies, refer to note 1. Nature of business and summary of significant accounting policies in the Company’s financial statements included in Company’s March 31, 2020 Form 10-K. During the three months ended September 30, 2020, there were no significant changes made to the Company’s significant accounting policies.

 

A novel strain of coronavirus (COVID-19) was first identified in December 2019, and subsequently declared a global pandemic by the World Health Organization on March 11, 2020. As a result of the outbreak, many companies have experienced disruptions in their operations and in markets served. The Company is developing its business, thus our business is impacted by the outbreak of the COVID-19 in New York for the six months ended September 30, 2020. The full extent of the future impacts of COVID-19 on the Company’s operations is uncertain. A prolonged outbreak could have a material adverse impact on financial results and business operations of the Company, including the timing and ability of the Company to develop its business plan.

 

The Company has applied for Economic Injury Disaster Loans (“EIDL”) through the Small Business Administration (“SBA”) that were made available under the CARES Act passed by Congress in response to the COVID-19 pandemic at the end of March 2020. On May 5, 2020, the Company was approved for the advance in the EIDL program in the amount of $1,000, which does not have to be repaid and was recorded as other income in the accompanying condensed unaudited statements of operations.

Going Concern Assessment

Going Concern Assessment

 

The Company demonstrates adverse conditions that raise substantial doubt about the Company’s ability to continue as a going concern. These adverse conditions are negative financial trends, specifically cash outflow from operating activities, operating losses, accumulated deficit and other adverse key financial ratios.

 

Management’s plan to alleviate the substantial doubt about the Company’s ability to continue as a going concern include attempting to improve its business profitability, its ability to generate sufficient cash flow from its operations to meet its operating needs on a timely basis, obtain additional working capital funds from the majority shareholder and President of the Company to eliminate inefficiencies in order to meet its anticipated cash requirements. However, there can be no assurance that these plans and arrangements will be sufficient to fund the Company’s ongoing capital expenditures and other requirements.

 

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

Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts and timing of revenues and expenses, the reported amounts and classification of assets and liabilities, and the disclosure of contingent assets and liabilities. Significant areas requiring the use of estimates are assessing the allowance of doubtful account, impairment of long-lived assets and recoverability of deferred tax assets. These estimates and assumptions are based on the Company’s historical results as well as management’s future expectations. The Company’s actual results may vary from those estimates and assumptions.

Reclassifications

Reclassifications

 

Certain amounts from prior year financial statements have been reclassified to conform to the current year presentation. This reclassification has resulted in no changes to the Company’s financial position or results of operations presented.

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Nature of Business and Summary of Significant Accounting Policies (Details Narrative) - USD ($)
May 05, 2020
Jul. 02, 2019
CARES Act [Member] | Economic Injury Disaster Loans [Member]    
Other income $ 1,000  
Dazhong 368 Inc [Member]    
Share issue for acqusition of Achison   9,000,000
Ownership percentage by parent   90.00%
XML 23 R13.htm IDEA: XBRL DOCUMENT v3.20.2
Related Party Transactions (Details Narrative) - USD ($)
1 Months Ended
Aug. 31, 2019
Sep. 30, 2020
Mar. 31, 2020
Borrowings   $ 71,000 $ 71,000
President [Member]      
Borrowings $ 71,000    
Debt instrument matuirty date Dec. 12, 2021    
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Notes Receivable (Details Narrative) - Northern Ifurniture Inc [Member] - USD ($)
6 Months Ended 12 Months Ended
Jun. 26, 2020
Sep. 30, 2020
Mar. 31, 2020
Notes receivable   $ 50,000 $ 70,000
Interest rate     7.00%
Maturity date     Dec. 02, 2020
Interest income   $ 3,682  
Proceeds from repayment of note receviable $ 20,000    
XML 25 R15.htm IDEA: XBRL DOCUMENT v3.20.2
Risks And Uncertainties (Details Narrative) - USD ($)
Sep. 30, 2020
Mar. 31, 2020
Northern Ifurniture Inc [Member]    
Notes receivable $ 50,000 $ 70,000
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