0001520138-21-000797.txt : 20211215 0001520138-21-000797.hdr.sgml : 20211215 20211215170630 ACCESSION NUMBER: 0001520138-21-000797 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 39 CONFORMED PERIOD OF REPORT: 20211031 FILED AS OF DATE: 20211215 DATE AS OF CHANGE: 20211215 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Clancy Corp CENTRAL INDEX KEY: 0001681769 STANDARD INDUSTRIAL CLASSIFICATION: SOAP, DETERGENT, CLEANING PREPARATIONS, PERFUMES, COSMETICS [2840] IRS NUMBER: 000000000 STATE OF INCORPORATION: NV FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-213698 FILM NUMBER: 211494927 BUSINESS ADDRESS: STREET 1: 5348 VEGAS DRIVE CITY: LAS VEGAS STATE: NV ZIP: 89108 BUSINESS PHONE: 35722000341 MAIL ADDRESS: STREET 1: 5348 VEGAS DRIVE CITY: LAS VEGAS STATE: NV ZIP: 89108 10-Q 1 ccyc-20211031_10q.htm 10-Q
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

 

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

 

For the quarterly period ended October 31, 2021

 

OR

 

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

 

For the transition period from ________ to _________

 

Commission File Number: 333-213698

 

CLANCY CORP.
(Exact name of registrant as specified in its charter)

 

Nevada   30-0944559
(State or Other Jurisdiction of
Incorporation or Organization)
  (I.R.S. Employer
Identification No.)
     
2nd Floor, BYD, No. 56, Dongsihuan South Road,
Chaoyang District, Beijing, China
  100023
(Address of Principal Executive Offices)   (Zip Code)
     

+86-189-1098-4577
(Registrant’s telephone number, including area code)

 

n/a   n/a

 

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

 

Securities registered under Section 12(b) of the Exchange 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 ☒   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,” “non-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 x
Emerging growth company   

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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

 

As of December 13, 2021, there were 153,105,464 shares of common stock, $0.001 par value per share, outstanding.

 

 

-1-

 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

CLANCY CORP.

 

INDEX TO FINANCIAL STATEMENTS

 

  Page Number
CONSOLIDATED BALANCE SHEETS F-1
CONSOLIDATED STATEMENTS OF OPERATIONS F-2
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT F-3
CONSOLIDATED STATEMENT OF CASH FLOWS F-4
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS F-5 to F-9

-2-

CLANCY CORP.
CONSOLIDATED BALANCE SHEETS

 

ASSETS  October 31, 2021   July 31, 2021 
   (unaudited)   (audited) 
CURRENT ASSETS:          
Cash and cash equivalents  $8,812   $54,375 
Prepaid expense   15,124    15,260 
Business advances        
TOTAL CURRENT ASSETS   23,936    69,635 
OTHER ASSETS          
Deposit   15,022    14,860 
Operating lease right of use – building   97,260    112,515 
TOTAL ASSETS  $136,218   $197,010 
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
CURRENT LIABILITIES:          
Accounts payable  $33,343   $30,385 
Advances - Related Party   265,529    222,738 
Operating lease liability – current   74,878    72,648 
TOTAL CURRENT LIABILITIES   373,750    325,771 
Operating lease liability – non-current   1,911    3,292 
TOTAL LIABILITIES   375,661    329,063 
STOCKHOLDERS’ DEFICIT          
Common Stock, $0.001 par value, authorized 345,000,000 shares 153,105,464 shares issued and outstanding as of October 31, 2021 and July 31,2021   153,105    153,105 
Additional Paid in Capital   213,251    213,251 
Accumulated Other Comprehensive Loss   (3,684)   (2,489)
Accumulated Deficit   (602,115)   (495,920)
TOTAL STOCKHOLDERS’ DEFICIT   (239,443)   (132,053)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT  $136,218   $197,010 

 

See accompanying notes to the consolidated financial statements.

F-1

CLANCY CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
for the three months ended October 31, 2021 and 2020
(unaudited)

 

   2021   2020 
REVENUE  $   $7,927 
REVENUE- related party       6,589 
Cost of goods sold       19,255 
Gross loss       (4,739)
EXPENSES          
Research & development expense - software   70,481    39,531 
General and administrative expenses   35,719    25,254 
TOTAL OPERATING EXPENSES   106,200    64,785 
Other income (expense)          
Interest income   5     
NET LOSS FROM CONTINUING OPERATIONS   (106,195)   (69,524)
Provision for Income Taxes        
NET LOSS  $(106,195)  $(69,524)
Currency translation adjustment   (1,195)   (1,824)
COMPREHENSIVE LOSS  $(107,390)  $(71,348)
NET LOSS PER COMMON SHARE - BASIC & DILUTED  $(0.00)  $(0.02)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC & DILUTED   153,105,464    3,105,250 

 

 

See accompanying notes to the consolidated financial statements

F-2

CLANCY CORP.
STATEMENT OF CHANGES IN SHAREHOLDERS’ DEFICIT
for the three months ended October 31, 2021

 

                               
   Common Stock   Additional
Paid
   Accumulated
Other
Comprehensive
   Accumulated     
   Shares   Amount   In Capital   Loss   Deficit   TOTAL 
Balance, July 31, 2021 (audited)   153,105,464   $153,105   $213,251    (2,489)  $(495,920)  $(132,053)
                               
Net Loss                   (106,195)   (106,195)
Currency Translation Adjustment               (1,195)       (1,195)
                               
Balance, October 31, 2021 (unaudited)   153,105,464   $153,105   $213,251   $(3,684)  $(602,115)  $(239,443)
                               
CLANCY CORP.
STATEMENT OF CHANGES IN SHAREHOLDERS’ DEFICIT
for the three months ended October 31, 2020
 
   Common Stock   Additional
Paid
   Accumulated
Other
Comprehensive
   Accumulated     
   Shares   Amount   In Capital   Loss   Deficit   TOTAL 
Balance, July 31, 2020 (audited)   3,105,250   $3,105   $63,251       $(147,025)  $(80,669)
                               
Net Loss                   (69,524)   (69,524)
Currency Translation Adjustment               (1,824)       (1,824)
                               
Balance, October 31, 2020 (unaudited)   3,105,250   $3,105   $63,251    (1,824)  $(216,549)  $(152,017)

 

See accompanying notes to the consolidated financial statements

F-3

CLANCY CORP.
STATEMENT OF CASH FLOWS
for the three months ended October 31, 2021 and 2020
(unaudited)

 

   2021   2020 
OPERATING ACTIVITIES          
Net Loss  $(106,195)  $(69,524)
Adjustments to Reconcile Net Cash Used in Operating Activities:          
Lease Expense   16,508    15,437 
Research & Development Expense - Software       39,531 
Changes in Assets and Liabilities:          
Prepaid Expenses   297    137 
Accounts Payable   2,680    189 
Total Net Cash Used in Operating Activities   (86,710)   (14,230)
FINANCING ACTIVITIES          
Business Advances Received       83,348 
Repayment of Loan from a Related Party   41,017    (57,206)
Net Cash Provided by Financing Activities   41,017    26,142 
Effects Of Exchange Rate Changes On Cash   130    740 
NET INCREASE IN CASH   (45,564)   12,652 
CASH AT BEGINNING OF PERIOD   54,375    21,821 
CASH AT END OF PERIOD   8,812    34,473 
Supplemental Cash flow Information:          
Interest Paid  $   $ 
Taxes Paid  $   $ 
Supplemental Disclosure of Non Cash Lease Activity:          
Recognition of Right of use asset  $   $ 
Recognition of Lease liability  $   $ 

 

See accompanying notes to the consolidated financial statements.

F-4

CLANCY CORP.
NOTES TO THE FINANCIAL STATEMENTS
October 31, 2021
(unaudited)
 

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

 

Clancy Corp. (“the Company”) was incorporated on March 22, 2016 under the laws of the State of Nevada, USA. The Company initially was formed for the purpose of producing and selling handcrafted soaps.

 

On April 13, 2020, the Company registered Shanghai Clancy Enterprise Management Co., Ltd. (Shanghai Clancy) as a wholly foreign-owned entity and as a wholly owned subsidiary in Shanghai, China. Shanghai Clancy had no business activity from inception through October 31, 2021.

 

On April 24, 2020, Shanghai Clancy registered Beijing Clancy Information Technology Co., Ltd. (Beijing Clancy) in Beijing as its wholly-owned subsidiary and a second tier subsidiary of the Company.

 

From August 1, 2020 to April 30, 2021, the Company business centered on providing IT services to a small number of clients. Beginning in May 2021, the Company terminated its IT services and re-focused its business operations to business consulting services to small and median sized businesses. Management believes their prior business experience will enable them to assist small and medium sized companies improve their operating efficiencies. The Company will charge its clients based on their performance. Management believes the new business model will reduce internal overhead costs and potentially provide a larger market for its services.

 

NOTE 2 – MANAGEMENT PLANS

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. Although Beijing Clancy started business operation and had generated revenue for the three months ended October 31, 2021, the Company incurred loss, an accumulated deficit and experienced negative cash flow from operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Mr. Meng, the majority stockholder, Chief Executive Officer and sole director of Company, verbally has agreed to provide continued financial support to the Company.

 

The Company’s business objective for the next twelve month and beyond such time will be to expand business operations and increase revenue. The Company will focus on product management, digital marketing, refined user operations, performance optimization, after-sales service, etc. to provide customers with more convenient and high- quality service experience.

 

The Covid-19 pandemic presents novel challenges and a chaotic business environment globally. The duration and intensity of the impact of the Covid-19 to business entities differ geographically. Covid-19 has a limited impact on the Company’s activities since Shanghai Clancy has no activities and Beijing Clancy operations are limited to Beijing, PRC. The impact on the Company’s result of operation and the financial statements was immaterial as of October 31, 2021.

 

NOTE 3 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of Clancy Corp. and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation.

F-5

Fiscal year end

 

The Company’s year end is July 31.

 

Use of Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Income Taxes

 

Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

 

Revenue Recognition

 

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts. The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognizes revenue in accordance with that core principle by applying the following steps: Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

 

Cash and Cash Equivalents

 

Cash and cash equivalents consist of all cash balances and highly liquid investments with original maturities of three months or less. Because of short maturity of these investments, the carrying amounts approximate their fair values.

 

Concentration of Credit Risk

 

The Company is exposed to credit risk in the normal course of business, primarily related to cash and cash equivalents. A portion of the Company’s cash and cash equivalents are deposited with Industrial and Commercial Bank of China Limited in the PRC, which is not insured or otherwise protected. The Company had deposits of $23,693 as of October 31, 2021. The Company has not experienced any losses in such accounts in the PRC.

 

Leases

 

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. Finance leases are included in finance lease ROU assets and finance lease liabilities in the consolidated balance sheets.

 

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease and finance lease ROU assets and liabilities recognized at October 31, 2021 based on the present value of lease payments over the lease term discounted using the rate implicit in the lease. In cases where the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

F-6

The Company has elected not to recognize operating lease ROU assets and liabilities arising from short-term leases.

 

Reporting Currency and Translation

 

The financial statements of the Company’s foreign subsidiaries are measured using the local currency, Renminbi (“RMB”), as the functional currency; whereas the functional currency of Clancy Corp. and reporting currency of the Company is the United States dollar (“USD” or “$”).

 

The Company has operations in China where the local currency of RMB is used to prepare the consolidated financial statements which are translated into the Company’s reporting currency, U.S. dollars. The local currency of RMB is the functional currency for the operations outside the United States. Changes in the exchange rates between this currency and the Company’s reporting currency, are partially responsible for some of the periodic changes in the consolidated financial statements. Assets and liabilities of the Company’s foreign operations are translated into U.S. dollars at the spot rate in effect at the applicable reporting date. Revenues and expenses of the Company’s foreign operations are translated at the average exchange rate during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of accumulated other comprehensive income (loss) in stockholders’ deficit. Realized and unrealized transaction gains and losses generated by transactions denominated in a currency different from the functional currency of the applicable entity are recorded in general and administrative expense in the period in which they occur. For the three months period ended October 31, 2021 and 2020 there were no realized or unrealized transaction gains and losses generated by transactions denominated in a currency different from the functional currency of the applicable entities.

 

The exchange rates used to translate amounts in RMB to USD for the purposes of preparing the consolidated financial statements were as follows:

 

 

   October 31,
2021
   October 31,
2020
 
Period end USD: RMB exchange rate   6.39    6.69 
Average USD: RMB exchange rate   6.45    6.83 

 

Foreign Operations

 

All of the Company’s operations and assets are located in Beijing China. The Company may be adversely affected by possible political or economic events in this country. The effect of these factors cannot be accurately predicted.

 

Basic Income (Loss) Per Share

 

The Company computes income (loss) per share in accordance with FASB ASC 260 “Earnings per Share”. Basic income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. In the three months ended October 31, 2021 and 2020, there were no potentially dilutive equity instruments issued or outstanding.

 

Comprehensive Income

 

The Company follows Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 220, “Comprehensive Income,” in reporting comprehensive income. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. The Company has one item of other comprehensive loss, consisting of a currency translation adjustment of $1,195 for the three months ended October 31, 2021 compared to $1,824 for the three months ended October 31, 2020.

F-7

Financial Instrument

 

The carrying value of the Company’s short-term financial instruments, such as accounts payable and advances, approximates their fair values because of their short maturities.

 

Stock-Based Compensation

 

Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options.

 

Recently Adopted Accounting Pronouncements

 

As of October 31, 2021 and for the period then ended, there were no recently adopted accounting standards that had a material effect on the Company’s financial statements.

 

Recently Issued Accounting Pronouncements Not Yet Adopted

 

As of October 31, 2021, there was no recently issued accounting standards not yet adopted which would have a material effect on the Company’s consolidated financial statements.

 

NOTE 4 - OPERATING LEASE RIGHT-OF- USE ASSETS

 

As of October 31, 2021, the total operating lease Right of Use assets were $97,260. The total operating lease cost was $16,508 and $15,437 for the three-month period ended October 31, 2021 and 2020.

 

NOTE 5 - LEASE LIABILITIES- OPERATING LEASE

 

Future minimum lease payments under the operating lease as of October 31, 2021 are:

 

12 months ended October 31, 2021  $81,147 
12 months ended October 31, 2022    
12 months ended October 31, 2023    
Total Lease payments   81,147 
Less Imputed Interest   (4,358)
Net Lease liability  $76,789 

 

NOTE 6 - RELATED PARTY TRANSACTIONS

 

The Company’s major shareholder has orally agreed to loan funds to the Company for its operations on an as needed basis. For the three months ended October 31, 2021, the major shareholder loaned the Company $41,017 and for the three months ended October 31, 2020, the Company paid back to the major shareholder $57,206.

 

As of October 31, 2021 and July 31, 2021, the balance owing to a related party was $265,529 and $222,738, respectively. The loan was interest free and unsecured and had no stated terms of repayment.

 

NOTE 7 - RESEARCH AND DEVELOPMENT EXPENSE

 

The Company incurred significant expenses in research and development (R&D). For the three months ended October 31, 2021 and 2020, the R&D expenses were $70,481 and $39,531, respectively.

F-8

NOTE 8 - INCOME TAXES

 

Income tax expense was $0 for the three months ended October 31, 2021 and 2020.

 

As of July 31, 2021, the Company had no unrecognized tax benefits and, accordingly, the Company did not recognize interest or penalties during the three months ended October 31, 2021 related to unrecognized tax benefits. There was no accrual for uncertain tax positions as of October 31, 2021.

 

There is no income tax benefit for the losses for the three months ended October 31, 2021 and 2020, since management has determined that the realization of the net tax deferred asset is not assured and has created a valuation allowance for the entire amount of such benefits.

 

NOTE 9 - SUBSEQUENT EVENTS

 

Management has evaluated subsequent events through the date of filing the financial statements with the Securities and Exchange Commission, the date the financial statements were available to be issued. Management is not aware of any reportable events that occurred subsequent to the balance sheet date up to the date of filing this report.

F-9

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

 

Forward-Looking Statements

 

Certain statements made in this quarterly report on Form 10-Q are “forward-looking statements” in regard to the plans and objectives of management for future operations. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the registrant to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. The Company’s plans and objectives are based, in part, on assumptions involving the continued expansion of business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes its assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance the forward-looking statements included in this quarterly report will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the registrant or any other person that the objectives and plans of the registrant will be achieved.

 

Substantial risks exist with respect to an investment in the Company. These risks include but are not limited to, those factors discussed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2021, filed with the Securities and Exchange Commission (“Commission”) on November 12, 2021. More broadly, these factors include, but are not limited to:

 

We have incurred significant losses and expect to incur future losses;

 

Our current financial condition and immediate need for capital;

 

Potential significant dilution resulting from the issuance of new securities for any funding, debt conversion or any business combination; and

 

We are a “penny stock” company.

 

Description of Business

 

Clancy Corp. (“the Company”) was incorporated on March 22, 2016 under the laws of the State of Nevada, USA. The Company initially was formed for the purpose of producing and selling handcrafted soaps.

 

On April 13, 2020, the Company registered Shanghai Clancy Enterprise Management Co., Ltd. (Shanghai Clancy) as a wholly foreign-owned entity and as a wholly owned subsidiary in Shanghai, China. Shanghai Clancy had no business activity from inception through October 31, 2021.

 

On April 24, 2020, Shanghai Clancy registered Beijing Clancy Information Technology Co., Ltd. (Beijing Clancy) in Beijing as its wholly-owned subsidiary and a second tier subsidiary of the Company.

 

From August 1, 2020 to April 30, 2021, the Company business centered on providing IT services to a small number of clients. In May 2021, the Company ceased its IT services and re-focused its operations to provide marketing services to small and median sized businesses. Clancy is now a product marketing consulting firm that provides product marketing consulting services to clients. The Company will develop marketing programs and strategies in line with customer needs. Our marketing programs will provide clients with detailed analysis on the market data in their industry, including historical data. We also will assist clients expand their marketing communication channels including but not limited to advertisements in the business journals, electronical communication tools such as WeChat marketing programs, etc. We charge an agreed upon fee based on technical difficulties and the marketing reach of the programs.

-3-

Results of Operations

 

While we commenced limited operations during the first fiscal quarter last year, at the present time, the Company still is considered a shell company as defined in Rule 504 of the Act. One of our principal business objective for the next 12 months and beyond such time will be to achieve meaningful business operations. Alternatively, if we are unable to successfully develop our business, we may seek a combination with a business rather than immediate, short-term earnings. The Company will not restrict our potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business.

 

Revenues

 

For the three months ended October 31, 2021 and 2020, the company had revenues of $0 and 14,516, respectively. As mentioned above, we ceased our IT business in May 2021, and we have embarked on a new business model of providing marketing services to clients. We did not receive any revenues from our new business model during the current three month period. The revenues for the 2020 period were from our technology related business conducted through our WOFE, Shanghai Clancy and its subsidiary, Beijing Clancy, which business has now ceased.

 

Cost of Goods Sold

 

For the three month ended October 31, 2021 and 2020, the Company had cost of goods sold $0 and 19,255, respectively. Cost of goods sold includes salaries and benefits of IT technicians. The decrease in cost of goods sold is due to the termination of our IT business which ceased in May 2021. We did not have any cost of goods sold for our new business operations during the same period of the three months ended October 31, 2021.

 

Operating Expenses

 

For the three months ended October 31, 2021, the Company had total operating expenses of $106,200, consisting of $16,642 in lease expense, $19,077 in general and administrative expenses and $70,481 in research and development expense. These amounts compare with total operating expenses of $64,785, consisting of lease expense of $15,437 and general and administrative expense of $9,817 recorded in the three months ended October 31, 2020. The increase of $41,415 was due in large part to research and develop costs associated with our recent business developments.

 

Net Loss

 

For the three months ended October 31, 2021 and 2020, the Company had a net loss of $106,195 and $69,524, respectively, for the reasons discussed above.

 

Liquidity and Capital Resource

 

The Company had $8,812 and $54,375, respectively in cash and cash equivalents as of October 31, 2021 and July 31, 2021.

 

As of October 31, 2021 and July 31, 2021, the Company had working capital deficit of $349,814 and $256,136, respectively. The increase in working capital deficit was due to net loss for the current period.

 

The Company can provide no assurances that it can continue to satisfy its cash requirements for at least the next twelve months.

 

The following is a summary of the Company’s cash flows from operating and financing activities for the three months ended October 31, 2021 and 2020:

 

   Three Month
Ended
   Three
Month Ended
 
   October 31, 2021   October 31, 2020 
Total Net Cash Used by Operating Activities  $(86,710)  $(14,230)
Total Net Cash Provided by Financing Activities   41,017    26,142 
           
Effects of Exchange rate Changes on Cash   129    740 
Net Change in Cash  $(45,564)  $12,652 

-4-

Operating Activities

 

During the three month ended October 31, 2021, the Company had a net loss of $106,195 and after adjusting for lease expense, research and development expense, prepaid expense and increase in accounts payable, a net cash used in operating activities of $86,710 was recorded. By comparison, during the three month period ended October 31, 2020, the Company had a net loss of $69,524 and after adjusting for lease expense, research and development expense, prepaid expense and increase in accounts payable, the Company incurred net cash used in operating activities of $14,230.

 

Financing Activities

 

During the three months ended October 31, 2021, the Company received $41,017 in advances from the Company’s major shareholder, which resulted in $41,017 in total net cash provided by financing activities for the period. By comparison, during the three months ended October 31, 2020, the Company repaid $57,206 in advances from the Company’s majority shareholder offset by $83,348 in advances received from loans to two non-affiliates, which resulted in $26,142 in total net cash provided by financing activities for the period.

 

Our financial statements reflect the fact that we do not have enough revenue to cover expenses. We are at present under-capitalized. The Company is dependent upon the receipt of capital investment or other financing to fund its ongoing operations and to execute its business plan of seeking a combination with a private operating company. In addition, the Company is dependent upon certain related parties to provide continued funding and capital resources. If continued funding and capital resources are unavailable at reasonable terms, the Company may not be able to implement its plan of operations.

 

Off-Balance Sheet Arrangements

 

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

 

Contractual Obligations

 

None.

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

 

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

In connection with the preparation of this quarterly report, an evaluation was carried out by the Company’s management, with the participation of the principal executive officer and the principal financial officer, of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act (“Exchange Act”) as of October 31, 2021. Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Commission’s rules and forms, and that such information is accumulated and communicated to management, including the principal executive officer and the principal financial officer, to allow timely decisions regarding required disclosures.

 

Based on that evaluation, the Company’s management concluded, as of the end of the period covered by this report, that the Company’s disclosure controls and procedures were not effective in recording, processing, summarizing, and reporting information required to be disclosed, within the time periods specified in the Commission’s rules and forms, and that such information was not accumulated and communicated to management, including the principal executive officer and the principal financial officer, to allow timely decisions regarding required disclosures.

-5-

Management’s Report on Internal Control over Financial Reporting

 

Change in Internal Control over Financial Reporting

 

During the quarter ended October 31, 2021, there has been no changes in internal control over financial reporting that has materially affected or is reasonably likely to materially affect our internal control over financial reporting.

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

There are presently no material pending legal proceedings to which the Company, any executive officer, any owner of record or beneficially of more than five percent of any class of voting securities is a party or as to which any of its property is subject, and no such proceedings are known to the Company to be threatened or contemplated against it.

 

Item 1A. Risk Factors.

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

 

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

 

None.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not applicable to our Company.

 

Item 5. Other Information.

 

None

 

Item 6. Exhibits.

 

Exhibit   Description
31.1   Certification of the Company’s Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
     
32.1   Certification of the Company’s Principal Executive Officer and Principal Financial pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002+
     
101.INS   XBRL INSTANCE DOCUMENT*
     
101.SCH   XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT*
     
101.CAL   XBRL TAXONOMY CALCULATION LINKBASE DOCUMENT*
     
101.DEF   XBRL TAXONOMY DEFINITION LINKBASE DOCUMENT*
     
101.LAB   XBRL TAXONOMY LABEL LINKBASE DOCUMENT*
     
101.PRE   XBRL TAXONOMY PRESENTATION LINKBASE DOCUMENT*

 

+In accordance with SEC Release 33-8238, Exhibit 32.1 is being furnished and not filed.

 

*Filed herewith.

-6-

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.

 

Date: December 15, 2021 CLANCY CORP.
   
  /s/ Xiangying Meng
  Xiangying Meng

-7-

EX-31.1 2 ccyc-20211031_10qex31z1.htm EX-31.1

Exhibit 31.1

 

Certification of the Company’s Principal Executive Officer and Principal Financial Officer

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

and Securities and Exchange Commission Release 34-46427

 

I, Xiangying Meng, certify that:

 

1. I have reviewed this report on Form 10-Q of Clancy Corp.;
2. Based on my knowledge, this quarterly 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 quarterly report;
3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods present in this quarterly report;
4. As the registrant’s sole certifying officer, 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 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 quarterly report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. As the registrant’s sole certifying officer, 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: December 15, 2021 

 

 
   
  /s/ Xiangying Meng
 

Xiangying Meng

Chief Executive Officer and Chief Financial Officer (Principal Executive Officer, Principal Financial Officer, and Principal Accounting Officer)

 

 

EX-32.1 3 ccyc-20211031_10qex32z1.htm EX-32.1

Exhibit 32.1

 

 

 

Certification of Principal Executive Officer and Principal Financial Officer

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 of Clancy Corp. (the “Company”) on Form 10-Q for the period ended October 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Xiangying Meng, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the 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: December 15, 2021 

  /s/ Xiangying Meng
 

Xiangying Meng

Chief Executive Officer and Chief Financial Officer (Principal Executive Officer, Principal Financial Officer, and Principal Accounting Officer)

 

 

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NV 30-0944559 2nd Floor, BYD No. 56, Dongsihuan South Road Chaoyang District Beijing CN 100023 +86 189 1098-4577 Yes Yes Non-accelerated Filer true false true 153105464 8812 54375 15124 15260 23936 69635 15022 14860 97260 112515 136218 197010 33343 30385 265529 222738 74878 72648 373750 325771 1911 3292 375661 329063 0.001 0.001 345000000 345000000 153105464 153105464 153105464 153105464 153105 153105 213251 213251 -3684 -2489 -602115 -495920 -239443 -132053 136218 197010 7927 6589 19255 -4739 70481 39531 35719 25254 106200 64785 5 -106195 -69524 -106195 -69524 1195 1824 -107390 -71348 -0.00 -0.02 153105464 3105250 153105464 153105 213251 -2489 -495920 -132053 -106195 -106195 1195 1195 153105464 153105 213251 -3684 -602115 -239443 3105250 3105 63251 -147025 -80669 -69524 -69524 1824 1824 3105250 3105 63251 -1824 -216549 -152017 -106195 -69524 16508 15437 39531 297 137 2680 189 -86710 -14230 -83348 41017 -57206 41017 26142 130 740 -45564 12652 54375 21821 8812 34473 <p id="xdx_804_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock_zAZlPikaWa6d" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b><i>NOTE 1 – <span id="xdx_82B_zvWMY79uaG1g">ORGANIZATION AND NATURE OF BUSINESS</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">Clancy Corp. (“the Company”) was incorporated on March 22, 2016 under the laws of the State of Nevada, USA. The Company initially was formed for the purpose of producing and selling handcrafted soaps.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">On April 13, 2020, the Company registered Shanghai Clancy Enterprise Management Co., Ltd. (Shanghai Clancy) as a wholly foreign-owned entity and as a wholly owned subsidiary in Shanghai, China. Shanghai Clancy had no business activity from inception through October 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif; background-color: white">On April 24, 2020, Shanghai Clancy registered Beijing Clancy Information Technology Co., Ltd. (Beijing Clancy) in Beijing as its wholly-owned subsidiary and a second tier subsidiary of the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">From August 1, 2020 to April 30, 2021, the Company business centered on providing IT services to a small number of clients. Beginning in May 2021, the Company terminated its IT services and re-focused its business operations to business consulting services to small and median sized businesses. Management believes their prior business experience will enable them to assist small and medium sized companies improve their operating efficiencies. The Company will charge its clients based on their performance. Management believes the new business model will reduce internal overhead costs and potentially provide a larger market for its services.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_807_eus-gaap--SubstantialDoubtAboutGoingConcernTextBlock_zEJ4hbsblRz" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b><i>NOTE 2 – <span id="xdx_829_zEg2GXHy27T6">MANAGEMENT PLANS</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. Although Beijing Clancy started business operation and had generated revenue for the three months ended October 31, 2021, the Company incurred loss, an accumulated deficit and experienced negative cash flow from operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">Mr. Meng, the majority stockholder, Chief Executive Officer and sole director of Company, verbally has agreed to provide continued financial support to the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company’s business objective for the next twelve month and beyond such time will be to expand business operations and increase revenue. The Company will focus on product management, digital marketing, refined user operations, performance optimization, after-sales service, etc. to provide customers with more convenient and high- quality service experience.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Covid-19 pandemic presents novel challenges and a chaotic business environment globally. The duration and intensity of the impact of the Covid-19 to business entities differ geographically. Covid-19 has a limited impact on the Company’s activities since Shanghai Clancy has no activities and Beijing Clancy operations are limited to Beijing, PRC. The impact on the Company’s result of operation and the financial statements was immaterial as of October 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_809_eus-gaap--SignificantAccountingPoliciesTextBlock_zQNcF11eqJs2" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b><i>NOTE 3 – <span id="xdx_82A_z7AlOY03UQag">BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_844_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zjYYlxEBYoSc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_86F_zntPE91v7Ld1">Basis of Presentation</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of Clancy Corp. and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation.</span></p> <p id="xdx_845_eus-gaap--FiscalPeriod_zWXymlqOBDLk" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_86E_zYyStBrto7hk">Fiscal year end</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company’s year end is July 31.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_842_eus-gaap--UseOfEstimates_zgu5jk3lt75b" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_86D_zpWkrk44taj1">Use of Estimates</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_843_eus-gaap--IncomeTaxPolicyTextBlock_zR4s1FcAi5tc" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_86F_z0xFdh6ueJCl">Income Taxes</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_84C_eus-gaap--RevenueRecognitionPolicyTextBlock_zCKGzm06tTk5" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_861_z2FjazXLkCOl">Revenue Recognition</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts. The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognizes revenue in accordance with that core principle by applying the following steps: Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_84A_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zyRZaqRpNGQi" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_86A_znNCHCCoXDtk">Cash and Cash Equivalents</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">Cash and cash equivalents consist of all cash balances and highly liquid investments with original maturities of three months or less. Because of short maturity of these investments, the carrying amounts approximate their fair values.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_84D_eus-gaap--ConcentrationRiskCreditRisk_zLdz5M58Jfnh" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_860_zlUayfXR1fKk">Concentration of Credit Risk</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company is exposed to credit risk in the normal course of business, primarily related to cash and cash equivalents. A portion of the Company’s cash and cash equivalents are deposited with Industrial and Commercial Bank of China Limited in the PRC, which is not insured or otherwise protected. The Company had deposits of $<span id="xdx_903_eus-gaap--DueFromBanks_iI_c20211031_zkBxeP4e4Sq3">23,693</span> as of October 31, 2021. The Company has not experienced any losses in such accounts in the PRC.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_846_eus-gaap--RevenueRecognitionLeases_zWRnVTgKYOYa" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline">Leases</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. Finance leases are included in finance lease ROU assets and finance lease liabilities in the consolidated balance sheets.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease and finance lease ROU assets and liabilities recognized at October 31, 2021 based on the present value of lease payments over the lease term discounted using the rate implicit in the lease. In cases where the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company has elected not to recognize operating lease ROU assets and liabilities arising from short-term leases.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_84D_eus-gaap--ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock_zFdBxKOnONG" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline">Reporting Currency and Translation</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The financial statements of the Company’s foreign subsidiaries are measured using the local currency, Renminbi (“RMB”), as the functional currency; whereas the functional currency of Clancy Corp. and reporting currency of the Company is the United States dollar (“USD” or “$”).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company has operations in China where the local currency of RMB is used to prepare the consolidated financial statements which are translated into the Company’s reporting currency, U.S. dollars. The local currency of RMB is the functional currency for the operations outside the United States. Changes in the exchange rates between this currency and the Company’s reporting currency, are partially responsible for some of the periodic changes in the consolidated financial statements. Assets and liabilities of the Company’s foreign operations are translated into U.S. dollars at the spot rate in effect at the applicable reporting date. Revenues and expenses of the Company’s foreign operations are translated at the average exchange rate during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of accumulated other comprehensive income (loss) in stockholders’ deficit. Realized and unrealized transaction gains and losses generated by transactions denominated in a currency different from the functional currency of the applicable entity are recorded in general and administrative expense in the period in which they occur. For the three months period ended October 31, 2021 and 2020 there were no realized or unrealized transaction gains and losses generated by transactions denominated in a currency different from the functional currency of the applicable entities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_892_eus-gaap--ScheduleOfForeignExchangeContractsStatementOfFinancialPositionTableTextBlock_z0ZTDsyOnQ6e" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The exchange rates used to translate amounts in RMB to USD for the purposes of preparing the consolidated financial statements were as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span id="xdx_8B7_zs8mJcPJgHZi" style="display: none">Schedule of exchange rates</span><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <table cellpadding="0" cellspacing="0" id="xdx_884_ecustom--DisclosureSummaryOfSignificantAccountingPoliciesDetailsAbstract_zw2lc0wrFC5i" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)"> <tr style="vertical-align: bottom"> <td style="padding-right: 0; white-space: nowrap; padding-left: 0"> </td><td style="padding-right: 0; font-weight: bold; padding-bottom: 1.5pt; padding-left: 0"> </td> <td colspan="2" id="xdx_490_20211031_zeaVNWdfXII4" style="border-bottom: Black 1.5pt solid; padding-right: 0; white-space: nowrap; font-weight: bold; text-align: center; padding-left: 0">October 31, <br/> 2021</td><td style="padding-right: 0; padding-bottom: 1.5pt; font-weight: bold; padding-left: 0"> </td><td style="padding-right: 0; font-weight: bold; padding-bottom: 1.5pt; padding-left: 0"> </td> <td colspan="2" id="xdx_498_20201031_zy906pps6tFi" style="border-bottom: Black 1.5pt solid; padding-right: 0; white-space: nowrap; font-weight: bold; text-align: center; padding-left: 0">October 31, <br/> 2020</td><td style="padding-right: 0; padding-bottom: 1.5pt; font-weight: bold; padding-left: 0"> </td></tr> <tr id="xdx_406_eus-gaap--ForeignCurrencyExchangeRateRemeasurement1_iI_dp_uPure_hus-gaap--IntercompanyForeignCurrencyBalanceByDescriptionAxis__custom--PeriodEndRMBUSDExchangeRateMember_zKCSZVJUgYvi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-right: 0; width: 74%; text-align: justify; padding-left: 0">Period end USD: RMB exchange rate</td><td style="padding-right: 0; width: 3%; padding-left: 0"> </td> <td style="padding-right: 0; width: 1%; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; width: 8%; text-align: right; padding-left: 0">6.39</td><td style="padding-right: 0; white-space: nowrap; width: 1%; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; width: 3%; padding-left: 0"> </td> <td style="padding-right: 0; width: 1%; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; width: 8%; text-align: right; padding-left: 0">6.69</td><td style="padding-right: 0; white-space: nowrap; width: 1%; text-align: left; padding-left: 0"> </td></tr> <tr id="xdx_404_eus-gaap--ForeignCurrencyExchangeRateRemeasurement1_iI_dp_uPure_hus-gaap--IntercompanyForeignCurrencyBalanceByDescriptionAxis__custom--PeriodAverageRMBUSDExchangeRateMember_zNNF1PVsnG9a" style="vertical-align: bottom; background-color: White"> <td style="padding-right: 0; text-align: justify; padding-left: 0">Average USD: RMB exchange rate</td><td style="padding-right: 0; padding-left: 0"> </td> <td style="padding-right: 0; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; text-align: right; padding-left: 0">6.45</td><td style="padding-right: 0; white-space: nowrap; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; padding-left: 0"> </td> <td style="padding-right: 0; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; text-align: right; padding-left: 0">6.83</td><td style="padding-right: 0; white-space: nowrap; text-align: left; padding-left: 0"> </td></tr> </table> <p id="xdx_8A9_zjKgTmuDbEae" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_846_ecustom--ForeignOperationsPolicyTextBlock_zxNBWoHsF6ic" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_86C_zskuF5cAHtq8">Foreign Operations</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">All of the Company’s operations and assets are located in Beijing China. The Company may be adversely affected by possible political or economic events in this country. The effect of these factors cannot be accurately predicted.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_841_eus-gaap--EarningsPerSharePolicyTextBlock_zkmjB3JjbV4h" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_862_zGLGy7V2WxTg">Basic Income (Loss) Per Share</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company computes income (loss) per share in accordance with FASB ASC 260 “Earnings per Share”. Basic income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. In the three months ended October 31, 2021 and 2020, there were no potentially dilutive equity instruments issued or outstanding.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_842_eus-gaap--ComprehensiveIncomePolicyPolicyTextBlock_zgGaUr9Fo8Vb" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_863_zP8oV5VV8eS3">Comprehensive Income</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company follows Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 220, “Comprehensive Income,” in reporting comprehensive income. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. The Company has one item of other comprehensive loss, consisting of a currency translation adjustment of $<span id="xdx_902_eus-gaap--OtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentTax_c20210801__20211031_zJxVacpJiDS1">1,195</span> for the three months ended October 31, 2021 compared to $<span id="xdx_905_eus-gaap--OtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentTax_c20200801__20201031_zgu1DkgAoMgj">1,824</span> for the three months ended October 31, 2020.</span></p> <p id="xdx_844_eus-gaap--FairValueOfFinancialInstrumentsPolicy_z1EpWH0qAY0c" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_868_z3GehmqMiJv8">Financial Instrument</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The carrying value of the Company’s short-term financial instruments, such as accounts payable and advances, approximates their fair values because of their short maturities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_84D_eus-gaap--ShareBasedCompensationOptionAndIncentivePlansPolicy_zKZwYZ5lL0o2" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_867_zni1HK0K4P5d">Stock-Based Compensation</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_844_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_z4y1Z5rNgUHf" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_86C_zzoI3ktrpxNc">Recently Adopted Accounting Pronouncements</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">As of October 31, 2021 and for the period then ended, there were no recently adopted accounting standards that had a material effect on the Company’s financial statements.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline">Recently Issued Accounting Pronouncements Not Yet Adopted</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">As of October 31, 2021, there was no recently issued accounting standards not yet adopted which would have a material effect on the Company’s consolidated financial statements.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_844_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zjYYlxEBYoSc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_86F_zntPE91v7Ld1">Basis of Presentation</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of Clancy Corp. and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation.</span></p> <p id="xdx_845_eus-gaap--FiscalPeriod_zWXymlqOBDLk" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_86E_zYyStBrto7hk">Fiscal year end</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company’s year end is July 31.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_842_eus-gaap--UseOfEstimates_zgu5jk3lt75b" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_86D_zpWkrk44taj1">Use of Estimates</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_843_eus-gaap--IncomeTaxPolicyTextBlock_zR4s1FcAi5tc" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_86F_z0xFdh6ueJCl">Income Taxes</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_84C_eus-gaap--RevenueRecognitionPolicyTextBlock_zCKGzm06tTk5" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_861_z2FjazXLkCOl">Revenue Recognition</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts. The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognizes revenue in accordance with that core principle by applying the following steps: Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_84A_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zyRZaqRpNGQi" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_86A_znNCHCCoXDtk">Cash and Cash Equivalents</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">Cash and cash equivalents consist of all cash balances and highly liquid investments with original maturities of three months or less. Because of short maturity of these investments, the carrying amounts approximate their fair values.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_84D_eus-gaap--ConcentrationRiskCreditRisk_zLdz5M58Jfnh" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_860_zlUayfXR1fKk">Concentration of Credit Risk</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company is exposed to credit risk in the normal course of business, primarily related to cash and cash equivalents. A portion of the Company’s cash and cash equivalents are deposited with Industrial and Commercial Bank of China Limited in the PRC, which is not insured or otherwise protected. The Company had deposits of $<span id="xdx_903_eus-gaap--DueFromBanks_iI_c20211031_zkBxeP4e4Sq3">23,693</span> as of October 31, 2021. The Company has not experienced any losses in such accounts in the PRC.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> 23693 <p id="xdx_846_eus-gaap--RevenueRecognitionLeases_zWRnVTgKYOYa" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline">Leases</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. Finance leases are included in finance lease ROU assets and finance lease liabilities in the consolidated balance sheets.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease and finance lease ROU assets and liabilities recognized at October 31, 2021 based on the present value of lease payments over the lease term discounted using the rate implicit in the lease. In cases where the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company has elected not to recognize operating lease ROU assets and liabilities arising from short-term leases.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_84D_eus-gaap--ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock_zFdBxKOnONG" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline">Reporting Currency and Translation</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The financial statements of the Company’s foreign subsidiaries are measured using the local currency, Renminbi (“RMB”), as the functional currency; whereas the functional currency of Clancy Corp. and reporting currency of the Company is the United States dollar (“USD” or “$”).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company has operations in China where the local currency of RMB is used to prepare the consolidated financial statements which are translated into the Company’s reporting currency, U.S. dollars. The local currency of RMB is the functional currency for the operations outside the United States. Changes in the exchange rates between this currency and the Company’s reporting currency, are partially responsible for some of the periodic changes in the consolidated financial statements. Assets and liabilities of the Company’s foreign operations are translated into U.S. dollars at the spot rate in effect at the applicable reporting date. Revenues and expenses of the Company’s foreign operations are translated at the average exchange rate during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of accumulated other comprehensive income (loss) in stockholders’ deficit. Realized and unrealized transaction gains and losses generated by transactions denominated in a currency different from the functional currency of the applicable entity are recorded in general and administrative expense in the period in which they occur. For the three months period ended October 31, 2021 and 2020 there were no realized or unrealized transaction gains and losses generated by transactions denominated in a currency different from the functional currency of the applicable entities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_892_eus-gaap--ScheduleOfForeignExchangeContractsStatementOfFinancialPositionTableTextBlock_z0ZTDsyOnQ6e" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The exchange rates used to translate amounts in RMB to USD for the purposes of preparing the consolidated financial statements were as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span id="xdx_8B7_zs8mJcPJgHZi" style="display: none">Schedule of exchange rates</span><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <table cellpadding="0" cellspacing="0" id="xdx_884_ecustom--DisclosureSummaryOfSignificantAccountingPoliciesDetailsAbstract_zw2lc0wrFC5i" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)"> <tr style="vertical-align: bottom"> <td style="padding-right: 0; white-space: nowrap; padding-left: 0"> </td><td style="padding-right: 0; font-weight: bold; padding-bottom: 1.5pt; padding-left: 0"> </td> <td colspan="2" id="xdx_490_20211031_zeaVNWdfXII4" style="border-bottom: Black 1.5pt solid; padding-right: 0; white-space: nowrap; font-weight: bold; text-align: center; padding-left: 0">October 31, <br/> 2021</td><td style="padding-right: 0; padding-bottom: 1.5pt; font-weight: bold; padding-left: 0"> </td><td style="padding-right: 0; font-weight: bold; padding-bottom: 1.5pt; padding-left: 0"> </td> <td colspan="2" id="xdx_498_20201031_zy906pps6tFi" style="border-bottom: Black 1.5pt solid; padding-right: 0; white-space: nowrap; font-weight: bold; text-align: center; padding-left: 0">October 31, <br/> 2020</td><td style="padding-right: 0; padding-bottom: 1.5pt; font-weight: bold; padding-left: 0"> </td></tr> <tr id="xdx_406_eus-gaap--ForeignCurrencyExchangeRateRemeasurement1_iI_dp_uPure_hus-gaap--IntercompanyForeignCurrencyBalanceByDescriptionAxis__custom--PeriodEndRMBUSDExchangeRateMember_zKCSZVJUgYvi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-right: 0; width: 74%; text-align: justify; padding-left: 0">Period end USD: RMB exchange rate</td><td style="padding-right: 0; width: 3%; padding-left: 0"> </td> <td style="padding-right: 0; width: 1%; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; width: 8%; text-align: right; padding-left: 0">6.39</td><td style="padding-right: 0; white-space: nowrap; width: 1%; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; width: 3%; padding-left: 0"> </td> <td style="padding-right: 0; width: 1%; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; width: 8%; text-align: right; padding-left: 0">6.69</td><td style="padding-right: 0; white-space: nowrap; width: 1%; text-align: left; padding-left: 0"> </td></tr> <tr id="xdx_404_eus-gaap--ForeignCurrencyExchangeRateRemeasurement1_iI_dp_uPure_hus-gaap--IntercompanyForeignCurrencyBalanceByDescriptionAxis__custom--PeriodAverageRMBUSDExchangeRateMember_zNNF1PVsnG9a" style="vertical-align: bottom; background-color: White"> <td style="padding-right: 0; text-align: justify; padding-left: 0">Average USD: RMB exchange rate</td><td style="padding-right: 0; padding-left: 0"> </td> <td style="padding-right: 0; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; text-align: right; padding-left: 0">6.45</td><td style="padding-right: 0; white-space: nowrap; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; padding-left: 0"> </td> <td style="padding-right: 0; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; text-align: right; padding-left: 0">6.83</td><td style="padding-right: 0; white-space: nowrap; text-align: left; padding-left: 0"> </td></tr> </table> <p id="xdx_8A9_zjKgTmuDbEae" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_892_eus-gaap--ScheduleOfForeignExchangeContractsStatementOfFinancialPositionTableTextBlock_z0ZTDsyOnQ6e" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The exchange rates used to translate amounts in RMB to USD for the purposes of preparing the consolidated financial statements were as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span id="xdx_8B7_zs8mJcPJgHZi" style="display: none">Schedule of exchange rates</span><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <table cellpadding="0" cellspacing="0" id="xdx_884_ecustom--DisclosureSummaryOfSignificantAccountingPoliciesDetailsAbstract_zw2lc0wrFC5i" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)"> <tr style="vertical-align: bottom"> <td style="padding-right: 0; white-space: nowrap; padding-left: 0"> </td><td style="padding-right: 0; font-weight: bold; padding-bottom: 1.5pt; padding-left: 0"> </td> <td colspan="2" id="xdx_490_20211031_zeaVNWdfXII4" style="border-bottom: Black 1.5pt solid; padding-right: 0; white-space: nowrap; font-weight: bold; text-align: center; padding-left: 0">October 31, <br/> 2021</td><td style="padding-right: 0; padding-bottom: 1.5pt; font-weight: bold; padding-left: 0"> </td><td style="padding-right: 0; font-weight: bold; padding-bottom: 1.5pt; padding-left: 0"> </td> <td colspan="2" id="xdx_498_20201031_zy906pps6tFi" style="border-bottom: Black 1.5pt solid; padding-right: 0; white-space: nowrap; font-weight: bold; text-align: center; padding-left: 0">October 31, <br/> 2020</td><td style="padding-right: 0; padding-bottom: 1.5pt; font-weight: bold; padding-left: 0"> </td></tr> <tr id="xdx_406_eus-gaap--ForeignCurrencyExchangeRateRemeasurement1_iI_dp_uPure_hus-gaap--IntercompanyForeignCurrencyBalanceByDescriptionAxis__custom--PeriodEndRMBUSDExchangeRateMember_zKCSZVJUgYvi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-right: 0; width: 74%; text-align: justify; padding-left: 0">Period end USD: RMB exchange rate</td><td style="padding-right: 0; width: 3%; padding-left: 0"> </td> <td style="padding-right: 0; width: 1%; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; width: 8%; text-align: right; padding-left: 0">6.39</td><td style="padding-right: 0; white-space: nowrap; width: 1%; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; width: 3%; padding-left: 0"> </td> <td style="padding-right: 0; width: 1%; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; width: 8%; text-align: right; padding-left: 0">6.69</td><td style="padding-right: 0; white-space: nowrap; width: 1%; text-align: left; padding-left: 0"> </td></tr> <tr id="xdx_404_eus-gaap--ForeignCurrencyExchangeRateRemeasurement1_iI_dp_uPure_hus-gaap--IntercompanyForeignCurrencyBalanceByDescriptionAxis__custom--PeriodAverageRMBUSDExchangeRateMember_zNNF1PVsnG9a" style="vertical-align: bottom; background-color: White"> <td style="padding-right: 0; text-align: justify; padding-left: 0">Average USD: RMB exchange rate</td><td style="padding-right: 0; padding-left: 0"> </td> <td style="padding-right: 0; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; text-align: right; padding-left: 0">6.45</td><td style="padding-right: 0; white-space: nowrap; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; padding-left: 0"> </td> <td style="padding-right: 0; text-align: left; padding-left: 0"> </td><td style="padding-right: 0; text-align: right; padding-left: 0">6.83</td><td style="padding-right: 0; white-space: nowrap; text-align: left; padding-left: 0"> </td></tr> </table> 0.0639 0.0669 0.0645 0.0683 <p id="xdx_846_ecustom--ForeignOperationsPolicyTextBlock_zxNBWoHsF6ic" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_86C_zskuF5cAHtq8">Foreign Operations</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">All of the Company’s operations and assets are located in Beijing China. The Company may be adversely affected by possible political or economic events in this country. The effect of these factors cannot be accurately predicted.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_841_eus-gaap--EarningsPerSharePolicyTextBlock_zkmjB3JjbV4h" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_862_zGLGy7V2WxTg">Basic Income (Loss) Per Share</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company computes income (loss) per share in accordance with FASB ASC 260 “Earnings per Share”. Basic income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. In the three months ended October 31, 2021 and 2020, there were no potentially dilutive equity instruments issued or outstanding.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_842_eus-gaap--ComprehensiveIncomePolicyPolicyTextBlock_zgGaUr9Fo8Vb" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_863_zP8oV5VV8eS3">Comprehensive Income</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company follows Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 220, “Comprehensive Income,” in reporting comprehensive income. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. The Company has one item of other comprehensive loss, consisting of a currency translation adjustment of $<span id="xdx_902_eus-gaap--OtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentTax_c20210801__20211031_zJxVacpJiDS1">1,195</span> for the three months ended October 31, 2021 compared to $<span id="xdx_905_eus-gaap--OtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentTax_c20200801__20201031_zgu1DkgAoMgj">1,824</span> for the three months ended October 31, 2020.</span></p> 1195 1824 <p id="xdx_844_eus-gaap--FairValueOfFinancialInstrumentsPolicy_z1EpWH0qAY0c" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_868_z3GehmqMiJv8">Financial Instrument</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The carrying value of the Company’s short-term financial instruments, such as accounts payable and advances, approximates their fair values because of their short maturities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_84D_eus-gaap--ShareBasedCompensationOptionAndIncentivePlansPolicy_zKZwYZ5lL0o2" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_867_zni1HK0K4P5d">Stock-Based Compensation</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_844_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_z4y1Z5rNgUHf" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline"><span id="xdx_86C_zzoI3ktrpxNc">Recently Adopted Accounting Pronouncements</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">As of October 31, 2021 and for the period then ended, there were no recently adopted accounting standards that had a material effect on the Company’s financial statements.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline">Recently Issued Accounting Pronouncements Not Yet Adopted</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">As of October 31, 2021, there was no recently issued accounting standards not yet adopted which would have a material effect on the Company’s consolidated financial statements.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_802_ecustom--OperatingLeaseRightOfUseAssetsTextBlock_ztDyYgZDAlk9" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b><i>NOTE 4 - <span id="xdx_82A_ziuUthu7jH7b">OPERATING LEASE RIGHT-OF- USE ASSETS</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">As of October 31, 2021, the total operating lease Right of Use assets were $<span id="xdx_904_eus-gaap--OperatingLeaseRightOfUseAsset_iI_c20211031_z4ecQJMSNIj4">97,260</span>. The total operating lease cost was $<span id="xdx_90B_eus-gaap--OperatingLeaseExpense_c20210801__20211031_zQWxBe4NDdf7">16,508</span> and $<span id="xdx_901_eus-gaap--OperatingLeaseExpense_c20200801__20201031_zjqR8wjZvpS">15,437</span> for the three-month period ended October 31, 2021 and 2020.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> 97260 16508 15437 <p id="xdx_80B_ecustom--LeaseLiabilitiesOperatingLeaseTextBlock_zTztwpM7WRE9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><i>NOTE 5 - <span id="xdx_824_zPIco2lq6yce">LEASE LIABILITIES- OPERATING LEASE</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_898_eus-gaap--ScheduleOfFutureMinimumRentalPaymentsForOperatingLeasesTableTextBlock_zvuJoleajZbf" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Future minimum lease payments under the operating lease as of October 31, 2021 are:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_8B5_zoqbrELxtyZ1" style="display: none">Schedule of Future Minimum Lease Payment</span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_88E_ecustom--DisclosureLeaseLiabilitiesOperatingLeaseDetailsAbstract_zLyymmC62Wnb" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - LEASE LIABILITIES- OPERATING LEASE (Details)"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td/><td/> <td style="text-align: left"/><td id="xdx_492_20211031_zxKKLVFG9HDb" style="text-align: right"/><td style="white-space: nowrap; text-align: left"/></tr> <tr id="xdx_409_eus-gaap--OperatingLeasesFutureMinimumPaymentsDueCurrent_iI_pp0p0_maOLFMPz8QO_zAizrAreeBjb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 87%">12 months ended October 31, 2021</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">81,147</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeasesFutureMinimumPaymentsDueInTwoYears_iI_pp0p0_maOLFMPz8QO_zwkysUqOA5Yd" style="vertical-align: bottom; background-color: White"> <td>12 months ended October 31, 2022</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0355">—</span></td><td style="white-space: nowrap; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OperatingLeasesFutureMinimumPaymentsDueInThreeYears_iI_pp0p0_maOLFMPz8QO_zCLFYJimSUI2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">12 months ended October 31, 2023</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0357">—</span></td><td style="white-space: nowrap; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--OperatingLeasesFutureMinimumPaymentsDue_iTI_pp0p0_mtOLFMPz8QO_maOLLzASQ_zLO0H51iaGi9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total Lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81,147</td><td style="white-space: nowrap; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ReceivableWithImputedInterestNetAmount_iNI_pp0p0_di_msOLLzASQ_z8Jn4acnz0Wl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less Imputed Interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,358</td><td style="white-space: nowrap; padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiability_iTI_pp0p0_mtOLLzASQ_ze6SlU1XAbLg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 4pt">Net Lease liability</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">76,789</td><td style="white-space: nowrap; padding-bottom: 4pt; text-align: left"> </td></tr> </table> <p id="xdx_8A7_zP3mi5sMvKz8" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_898_eus-gaap--ScheduleOfFutureMinimumRentalPaymentsForOperatingLeasesTableTextBlock_zvuJoleajZbf" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Future minimum lease payments under the operating lease as of October 31, 2021 are:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_8B5_zoqbrELxtyZ1" style="display: none">Schedule of Future Minimum Lease Payment</span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_88E_ecustom--DisclosureLeaseLiabilitiesOperatingLeaseDetailsAbstract_zLyymmC62Wnb" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - LEASE LIABILITIES- OPERATING LEASE (Details)"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td/><td/> <td style="text-align: left"/><td id="xdx_492_20211031_zxKKLVFG9HDb" style="text-align: right"/><td style="white-space: nowrap; text-align: left"/></tr> <tr id="xdx_409_eus-gaap--OperatingLeasesFutureMinimumPaymentsDueCurrent_iI_pp0p0_maOLFMPz8QO_zAizrAreeBjb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 87%">12 months ended October 31, 2021</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">81,147</td><td style="white-space: nowrap; width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeasesFutureMinimumPaymentsDueInTwoYears_iI_pp0p0_maOLFMPz8QO_zwkysUqOA5Yd" style="vertical-align: bottom; background-color: White"> <td>12 months ended October 31, 2022</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0355">—</span></td><td style="white-space: nowrap; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OperatingLeasesFutureMinimumPaymentsDueInThreeYears_iI_pp0p0_maOLFMPz8QO_zCLFYJimSUI2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">12 months ended October 31, 2023</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0357">—</span></td><td style="white-space: nowrap; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--OperatingLeasesFutureMinimumPaymentsDue_iTI_pp0p0_mtOLFMPz8QO_maOLLzASQ_zLO0H51iaGi9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total Lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81,147</td><td style="white-space: nowrap; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ReceivableWithImputedInterestNetAmount_iNI_pp0p0_di_msOLLzASQ_z8Jn4acnz0Wl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less Imputed Interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,358</td><td style="white-space: nowrap; padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiability_iTI_pp0p0_mtOLLzASQ_ze6SlU1XAbLg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 4pt">Net Lease liability</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">76,789</td><td style="white-space: nowrap; padding-bottom: 4pt; text-align: left"> </td></tr> </table> 81147 81147 4358 76789 <p id="xdx_802_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_z9NZOPersfm5" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><i>NOTE 6 - <span id="xdx_82D_z0eNJeoxS0v5">RELATED PARTY TRANSACTIONS</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif; background-color: white">The Company’s major shareholder has orally agreed to loan funds to the Company for its operations on an as needed basis. For the three months ended October 31, 2021, the major shareholder loaned the Company $<span id="xdx_906_eus-gaap--ProceedsFromRelatedPartyDebt_c20210801__20211031_zsBmZ7Ujj2I3">41,017</span> and for the three months ended October 31, 2020, the Company paid back to the major shareholder $<span id="xdx_90D_eus-gaap--ProceedsFromRelatedPartyDebt_iN_di_c20200801__20201031_zSPAFFfyjmHc">57,206</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">As of October 31, 2021 and July 31, 2021, the balance owing to a related party was $<span id="xdx_90C_eus-gaap--ContractWithCustomerLiabilityCurrent_iI_c20211031__srt--TitleOfIndividualAxis__srt--DirectorMember_zs59th3HJLL5">265,529</span> and $<span id="xdx_904_eus-gaap--ContractWithCustomerLiabilityCurrent_iI_c20210731__srt--TitleOfIndividualAxis__srt--DirectorMember_zZjbT05VanK4">222,738</span>, respectively. The loan was interest free and unsecured and had no stated terms of repayment.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> 41017 -57206 265529 222738 <p id="xdx_803_ecustom--ResearchAndDevelopmentExpenseTextBlock_zKPDTB2h3v95" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b><i>NOTE 7 - <span id="xdx_825_zZnCJnz7AvO2">RESEARCH AND DEVELOPMENT EXPENSE</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">The Company incurred significant expenses in research and development (R&amp;D). For the three months ended October 31, 2021 and 2020, the R&amp;D expenses were $<span id="xdx_90B_eus-gaap--ResearchAndDevelopmentExpense_c20210801__20211031_zzCBXRvZObdg">70,481</span> and $<span id="xdx_904_eus-gaap--ResearchAndDevelopmentExpense_c20200801__20201031_z26AOmapA2ag">39,531</span>, respectively.</span></p> 70481 39531 <p id="xdx_80C_eus-gaap--IncomeTaxDisclosureTextBlock_zRg7yxa8WJh3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><i>NOTE 8 - <span id="xdx_825_zsDcox0zZ0u9">INCOME TAXES</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">Income tax expense was $0 for the three months ended October 31, 2021 and 2020.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">As of July 31, 2021, the Company had no unrecognized tax benefits and, accordingly, the Company did not recognize interest or penalties during the three months ended October 31, 2021 related to unrecognized tax benefits. There was no accrual for uncertain tax positions as of October 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">There is no income tax benefit for the losses for the three months ended October 31, 2021 and 2020, since management has determined that the realization of the net tax deferred asset is not assured and has created a valuation allowance for the entire amount of such benefits.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_80F_eus-gaap--SubsequentEventsTextBlock_zhOlzykpf8zj" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b><i>NOTE 9 - <span id="xdx_822_zP8ezm1h5bP">SUBSEQUENT EVENTS</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif">Management has evaluated subsequent events through the date of filing the financial statements with the Securities and Exchange Commission, the date the financial statements were available to be issued. Management is not aware of any reportable events that occurred subsequent to the balance sheet date up to the date of filing this report.</span></p> XML 10 R1.htm IDEA: XBRL DOCUMENT v3.21.2
Cover - shares
3 Months Ended
Oct. 31, 2021
Dec. 13, 2021
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Period End Date Oct. 31, 2021  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2022  
Current Fiscal Year End Date --07-31  
Entity File Number 333-213698  
Entity Registrant Name CLANCY CORP.  
Entity Central Index Key 0001681769  
Entity Tax Identification Number 30-0944559  
Entity Incorporation, State or Country Code NV  
Entity Address, Address Line One 2nd Floor, BYD  
Entity Address, Address Line Two No. 56, Dongsihuan South Road  
Entity Address, Address Line Three Chaoyang District  
Entity Address, City or Town Beijing  
Entity Address, Country CN  
Entity Address, Postal Zip Code 100023  
Country Region +86  
City Area Code 189  
Local Phone Number 1098-4577  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company true  
Entity Common Stock, Shares Outstanding   153,105,464
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.21.2
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
Oct. 31, 2021
Jul. 31, 2021
CURRENT ASSETS:    
Cash and cash equivalents $ 8,812 $ 54,375
Prepaid expense 15,124 15,260
Business advances
TOTAL CURRENT ASSETS 23,936 69,635
OTHER ASSETS    
Deposit 15,022 14,860
Operating lease right of use – building 97,260 112,515
TOTAL ASSETS 136,218 197,010
CURRENT LIABILITIES:    
Accounts payable 33,343 30,385
Advances - Related Party 265,529 222,738
Operating lease liability – current 74,878 72,648
TOTAL CURRENT LIABILITIES 373,750 325,771
Operating lease liability – non-current 1,911 3,292
TOTAL LIABILITIES 375,661 329,063
STOCKHOLDERS’ DEFICIT    
Common Stock, $0.001 par value, authorized 345,000,000 shares 153,105,464 shares issued and outstanding as of October 31, 2021 and July 31,2021 153,105 153,105
Additional Paid in Capital 213,251 213,251
Accumulated Other Comprehensive Loss (3,684) (2,489)
Accumulated Deficit (602,115) (495,920)
TOTAL STOCKHOLDERS’ DEFICIT (239,443) (132,053)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 136,218 $ 197,010
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.21.2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares
Oct. 31, 2021
Jul. 31, 2021
Statement of Financial Position [Abstract]    
Common Stock, Par Value $ 0.001 $ 0.001
Common Stock, Shares Authorized 345,000,000 345,000,000
Common Stock, Shares, Issued 153,105,464 153,105,464
Common Stock, Shares, Outstanding 153,105,464 153,105,464
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.21.2
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
3 Months Ended
Oct. 31, 2021
Oct. 31, 2020
Income Statement [Abstract]    
REVENUE $ 7,927
REVENUE- related party 6,589
Cost of goods sold 19,255
Gross loss (4,739)
EXPENSES    
Research & development expense - software 70,481 39,531
General and administrative expenses 35,719 25,254
TOTAL OPERATING EXPENSES 106,200 64,785
Other income (expense)    
Interest income 5
NET LOSS FROM CONTINUING OPERATIONS (106,195) (69,524)
Provision for Income Taxes
NET LOSS (106,195) (69,524)
Currency translation adjustment (1,195) (1,824)
COMPREHENSIVE LOSS $ (107,390) $ (71,348)
NET LOSS PER COMMON SHARE - BASIC & DILUTED $ (0.00) $ (0.02)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC & DILUTED 153,105,464 3,105,250
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.21.2
STATEMENT OF CHANGES IN SHAREHOLDERS' DEFICIT (EQUITY) (Unaudited) - USD ($)
Common Stock [Member]
Additional Paid-in Capital [Member]
Comprehensive Income [Member]
Retained Earnings [Member]
Total
Beginning balance, value at Jul. 31, 2020 $ 3,105 $ 63,251 $ (147,025) $ (80,669)
Beginning Balance, Shares at Jul. 31, 2020 3,105,250        
Net Loss (69,524) (69,524)
Currency Translation Adjustment (1,824) (1,824)
Ending balance, value at Oct. 31, 2020 $ 3,105 63,251 (1,824) (216,549) (152,017)
Ending Balance, Shares at Oct. 31, 2020 3,105,250        
Beginning balance, value at Jul. 31, 2021 $ 153,105 213,251 (2,489) (495,920) (132,053)
Beginning Balance, Shares at Jul. 31, 2021 153,105,464        
Net Loss (106,195) (106,195)
Currency Translation Adjustment (1,195) (1,195)
Ending balance, value at Oct. 31, 2021 $ 153,105 $ 213,251 $ (3,684) $ (602,115) $ (239,443)
Ending Balance, Shares at Oct. 31, 2021 153,105,464        
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.21.2
STATEMENT OF CASH FLOWS (Unaudited) - USD ($)
3 Months Ended
Oct. 31, 2021
Oct. 31, 2020
OPERATING ACTIVITIES    
Net Loss $ (106,195) $ (69,524)
Adjustments to Reconcile Net Cash Used in Operating Activities:    
Lease Expense 16,508 15,437
Research & Development Expense - Software 39,531
Changes in Assets and Liabilities:    
Prepaid Expenses 297 137
Accounts Payable 2,680 189
Total Net Cash Used in Operating Activities (86,710) (14,230)
FINANCING ACTIVITIES    
Business Advances Received 83,348
Repayment of Loan from a Related Party 41,017 (57,206)
Net Cash Provided by Financing Activities 41,017 26,142
Effects Of Exchange Rate Changes On Cash 130 740
NET INCREASE IN CASH (45,564) 12,652
CASH AT BEGINNING OF PERIOD 54,375 21,821
CASH AT END OF PERIOD 8,812 34,473
Supplemental Cash flow Information:    
Interest Paid
Taxes Paid
Supplemental Disclosure of Non Cash Lease Activity:    
Recognition of Right of use asset
Recognition of Lease liability
XML 16 R7.htm IDEA: XBRL DOCUMENT v3.21.2
ORGANIZATION AND NATURE OF BUSINESS
3 Months Ended
Oct. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION AND NATURE OF BUSINESS

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

 

Clancy Corp. (“the Company”) was incorporated on March 22, 2016 under the laws of the State of Nevada, USA. The Company initially was formed for the purpose of producing and selling handcrafted soaps.

 

On April 13, 2020, the Company registered Shanghai Clancy Enterprise Management Co., Ltd. (Shanghai Clancy) as a wholly foreign-owned entity and as a wholly owned subsidiary in Shanghai, China. Shanghai Clancy had no business activity from inception through October 31, 2021.

 

On April 24, 2020, Shanghai Clancy registered Beijing Clancy Information Technology Co., Ltd. (Beijing Clancy) in Beijing as its wholly-owned subsidiary and a second tier subsidiary of the Company.

 

From August 1, 2020 to April 30, 2021, the Company business centered on providing IT services to a small number of clients. Beginning in May 2021, the Company terminated its IT services and re-focused its business operations to business consulting services to small and median sized businesses. Management believes their prior business experience will enable them to assist small and medium sized companies improve their operating efficiencies. The Company will charge its clients based on their performance. Management believes the new business model will reduce internal overhead costs and potentially provide a larger market for its services.

 

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MANAGEMENT PLANS
3 Months Ended
Oct. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
MANAGEMENT PLANS

NOTE 2 – MANAGEMENT PLANS

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. Although Beijing Clancy started business operation and had generated revenue for the three months ended October 31, 2021, the Company incurred loss, an accumulated deficit and experienced negative cash flow from operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Mr. Meng, the majority stockholder, Chief Executive Officer and sole director of Company, verbally has agreed to provide continued financial support to the Company.

 

The Company’s business objective for the next twelve month and beyond such time will be to expand business operations and increase revenue. The Company will focus on product management, digital marketing, refined user operations, performance optimization, after-sales service, etc. to provide customers with more convenient and high- quality service experience.

 

The Covid-19 pandemic presents novel challenges and a chaotic business environment globally. The duration and intensity of the impact of the Covid-19 to business entities differ geographically. Covid-19 has a limited impact on the Company’s activities since Shanghai Clancy has no activities and Beijing Clancy operations are limited to Beijing, PRC. The impact on the Company’s result of operation and the financial statements was immaterial as of October 31, 2021.

 

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Oct. 31, 2021
Accounting Policies [Abstract]  
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 3 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of Clancy Corp. and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation.

Fiscal year end

 

The Company’s year end is July 31.

 

Use of Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Income Taxes

 

Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

 

Revenue Recognition

 

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts. The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognizes revenue in accordance with that core principle by applying the following steps: Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

 

Cash and Cash Equivalents

 

Cash and cash equivalents consist of all cash balances and highly liquid investments with original maturities of three months or less. Because of short maturity of these investments, the carrying amounts approximate their fair values.

 

Concentration of Credit Risk