0001520138-22-000110.txt : 20220315 0001520138-22-000110.hdr.sgml : 20220315 20220315092345 ACCESSION NUMBER: 0001520138-22-000110 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 38 CONFORMED PERIOD OF REPORT: 20220131 FILED AS OF DATE: 20220315 DATE AS OF CHANGE: 20220315 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: 22739337 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-20220131_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 January 31, 2022

 

OR

 

o 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 x   No o

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x   No o

 

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 o Accelerated filer o
Non-accelerated filer x Smaller reporting company x
Emerging growth company o  

 

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. o

 

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

 

As of March 14, 2022, 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

 

   As of January 31, 2022
(Unaudited)
   As of July 31, 2021 
ASSETS          
           
CURRENT ASSETS          
Cash and equivalents  $29,647   $54,375 
Prepaid expenses   15,060    15,260 
Business advances        
           
Total current assets   44,707    69,635 
           
NONCURRENT ASSETS          
Deposit - rent   15,060    14,860 
Right of use asset, net   81,051    112,515 
           
Total noncurrent assets   96,111    127,375 
           
TOTAL ASSETS  $140,818   $197,010 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)          
           
CURRENT LIABILITIES          
           
Accounts payable   26,920    30,385 
Advance from related party   380,083    222,738 
Operating lease liability   77,171    72,648 
           
Total current liabilities   484,173    325,771 
           
Operating lease liability, non-current       3,292 
           
TOTAL LIABILITIES   484,173    329,063 
           
COMMITMENTS AND CONTINGENCIES          
           
STOCKHOLDERS’ EQUITY (DEFICIT)          
Common stock, $0.001 par value; authorized 345,000,000 shares; 153,105,464 shares issued and outstanding at July 31, 2021 and January 31, 2022   153,105    153,105 
Additional paid-in capital   213,251    213,251 
Accumulated other comprehensive loss   (4,225)   (2,489)
Accumulated deficit   (705,486)   (495,920)
           
TOTAL EQUITY (DEFICIT)   (343,355)   (132,053)
           
TOTAL LIABILITIES AND EQUITY (DEFICIT)  $140,818   $197,010 

 

See accompanying notes to the consolidated financial statements.

F-1

CLANCY CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS
for the three months ended January 31, 2022 and 2021
(unaudited)

 

   THREE MONTHS ENDED JANUARY 31,   SIX MONTHS ENDED JANUARY 31, 
   2022   2021   2022   2021 
Revenues  $   $8,239   $   $16,166 
Revenues - related party       6,883        13,472 
                     
Total Revenues       15,122        29,638 
                     
Cost of revenues       55,606        74,861 
                     
Gross loss       (40,484)       (45,223)
                     
Operating expenses                    
Research and development expense-software   70,020        140,501    39,531 
General and administrative   33,393    39,449    69,112    63,695 
                     
Total operating expenses   103,413    39,449    209,613    103,226 
                     
Loss from operations   (103,413)   (79,933)   (209,613)   (148,449)
                     
Non-operating income                    
Interest income   42    35    47    35 
                     
Total non-operating loss, net   42    35    47    35 
                     
Loss before income tax   (103,371)   (79,898)   (209,566)   (148,414)
                     
Income tax expense                
                     
Net loss   (103,371)   (79,898)   (209,566)   (148,414)
                     
Other comprehensive item                    
Foreign currency translation loss   (541)   (91)   (1,736)   (1,915)
                     
Comprehensive loss  $(103,912)  $(79,989)  $(211,302)  $(150,329)
                     
Basic weighted average shares outstanding   153,105,464    68,322,855    153,105,464    35,714,160 
                     
Basic net loss per share  $(0.00)  $(0.00)  $(0.00)  $(0.00)

 

See accompanying notes to the consolidated financial statements

F-2

CLANCY CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

 

   SIX MONTHS ENDED JANUARY 31, 
   2022   2021 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net loss  $(209,566)  $(148,414)
Lease expense   33,151    30,397 
(Increase) decrease in assets and liabilities:          
Accounts receivable       (14,819)
Prepaid expense   400    43,342 
Accounts payable   (3,822)   5,000 
Advances from customers        
Net cash used in operating activities   (179,837)   (84,494)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Proceeds from shares issued for equity financing       300,000 
Changes in due to related party   154,628    26,368 
           
Net cash provided by financing activities   154,628    326,368 
           
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND EQUIVALENTS   481    2,800 
           
NET INCREASE IN CASH AND EQUIVALENTS   (24,728)   244,674 
           
CASH AND EQUIVALENTS, BEGINNING OF PERIOD   54,375    21,821 
           
CASH AND EQUIVALENTS, END OF PERIOD  $29,647   $266,495 
           
Supplemental cash flow data:          
Income tax paid  $   $ 
Interest paid  $   $ 
           
Supplemental Disclosure of Non-cash lease activities:          
Recognition of right of use asset  $   $ 
Recognition of lease liability  $   $ 

 

See accompanying notes to financial statements.

F-3

CLANCY CORP.
STATEMENT OF CHANGES IN SHAREHOLDERS’ DEFICIT

 

For the three months ended January 31, 2022

 

                     Accumulated         
       Additional   Other         
   Common Stock   Paid in   Comprehensive   Accumulated     
   Shares   Amount   Capital   Loss   Deficit   Total 
Balance July 31, 2021   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   153,105,464    153,105    213,251    (3,684)   (602,115)   (239,443)
                               
Net Loss                   (103,371)   (103,371)
                               
Currency translation               (541)       (541)
                               
Balance, January 31, 2022   153,105,464   $153,105   $213,251   $(4,225)  $(705,486)  $(343,355)
                               
For the six months ended January 31, 2021
 
                     Accumulated         
       Additional   Other         
   Common Stock   Paid in   Comprehensive   Accumulated     
   Shares   Amount   Capital   loss   Deficit   Total 
Balance July 31, 2020   3,105,250   $3,105   $63,251   $   $(147,025)  $(80,669)
                               
Net Loss                   (68,517)   (68,517)
                               
Currency translation               (1,824)       (1,824)
Balance October 31, 2019   3,105,250    3,105    63,251    (1,824)   (215,542)   (151,010)
                               
Shares Issued for Equity Financing   150,000,000    150,000    150,000            300,000 
Rounding of shares due to stock split   214                     
Net loss                   (79,898)   (79,898)
                               
Currency translation               (91)       (91)
                               
Balance, January 31, 2021   153,105,464   $153,105   $213,251   $(19,915)  $(295,440)  $69,001 

 

See accompanying notes to the consolidated financial statements

F-4

CLANCY CORP.
NOTES TO THE FINANCIAL STATEMENTS

January 31, 2022 (Unaudited) and July 31, 2021

 

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

 

Clancy Corp. (“Company”) was incorporated on March 22, 2016 under the laws of the State of Nevada, USA.

 

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 January 31, 2022.

 

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 – GOING CONCERN

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. For the three and six months ended January 31, 2022, 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 major 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 January 31, 2022.

F-5

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

 

The Company is exposed to credit risk in the normal course of business, primarily related to cash and cash equivalents. Balances at financial institutions and state-owned banks within the PRC are covered by insurance up to RMB 500,000 (US$77,000) per bank. Balances at Federal Deposit Insurance Corporation (“FDIC”) insured bank in US are covered by insurance up to $250,000 per depositor per insured-bank. As of January 31, 2022, cash held in the PRC bank of approximately $15,942 and $13,705 in equivalent USD, and these deposits are covered by the insurance.

F-6

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 January 31, 2022 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.

 

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 six months period ended January 31, 2022 and 2021 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:

 

  

   January 31,
2022
   January 31,
2021
 
Period end USD: RMB exchange rate   6.3746    6.4709 
Average USD: RMB exchange rate   6.4191    6.6807 

 

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 and six months ended January 31, 2022 and 2021, there were no potentially dilutive equity instruments issued or outstanding.

F-7

Financial Instrument

 

The carrying value of the Company’s short-term financial instruments, such as prepaid expenses, security deposit, 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, “Compensation – Stock Compensation”, which requires that share-based payment transactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period. To date, the Company has not adopted a stock option plan and has not granted any stock options.

 

Recently Adopted Accounting Pronouncements

 

As of January 31, 2022 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 January 31, 2022, there was no recently issued accounting standards adopted which would have a material effect on the Company’s consolidated financial statements.

 

NOTE 4 - OPERATING LEASE RIGHT-OF-USE ASSETS

 

As of January 31, 2022, the total operating lease Right of Use assets were $81,051. The total operating lease cost was $16,718 and $15,968, respectively, for the three-month period ended January 31, 2022 and 2021. The total operating lease cost was $33,151 and $30,397, respectively, for the six-month period ended January 31, 2022 and 2021.

 

NOTE 5 - LEASE LIABILITIES- OPERATING LEASE

 

Future minimum lease payments under the operating lease as of January 31, 2022 are: 

 

12 months ended January 31, 2023  $81,299 
12 months ended January 31, 2024    
Total Lease payments   81,299 
Less Imputed Interest   (4,128)
Net Lease liability  $77,171 

F-8

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 six months ended January 31, 2022 and 2021, the major shareholder loaned the Company $154,628 and 26,368, respectively.

 

As of January 31, 2022 and July 31, 2021, the balance owing the major shareholder was $380,083 and $222,738, respectively. The loan is 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 January 31, 2022 and 2021, the R&D expenses were $70,020 and $0, respectively. For the six months ended January 31, 2022 and 2021, the R&D expenses were $140,501 and $39,531, respectively.

 

NOTE 8 - INCOME TAXES

 

Income tax expense was $0 for the six and there months ended January 31, 2022 and 2021.

 

As of January 31, 2022, the Company had no unrecognized tax benefits and, accordingly, the Company did not recognize interest or penalties during the three and six months ended January 31, 2022 related to unrecognized tax benefits. There was no accrual for uncertain tax positions as of January 31, 2022.

 

There is no income tax benefit for the losses for the three and six months ended January 31, 2022 and 2021, 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.

 

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.

-3-

Comparison of Three and Six Month Periods ended January 31, 2022 and 2021

 

Revenues

 

For the three months ended January 31, 2022 and 2021, the company had revenues of $0 and $15,122, respectively. For the six months ended January 31, 2022 and 2021, the company had revenues of $0 and $29,638, respectively. The revenues for both periods in 2021 were from our IT related business conducted through Beijing Clancy. 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 and six month periods.

 

Cost of Revenues

 

For the three months ended January 31, 202 and 2021, the Company had cost of revenues $0 and $55,606, respectively. For the six months ended January 31, 202 and 2021, the Company had cost of revenues $0 and $74,861, respectively. Cost of revenues includes salaries and benefits of IT technicians. The decrease in cost of goods sold is due to the termination of our IT business which, as mentioned, 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 and six months ended January 31, 2022.

 

Operating Expenses

 

For the three months ended January 31, 2022, the Company had total operating expenses of $103,413, consisting of $70,020 in research and development (“R&D”) expense, $33,393 in general and administrative expenses. These amounts compare with total operating expenses of $39,449 consisting of $0 in R&D expense and $39,449 in general and administrative expense for the three months ended January 31, 2021. The increase of $63,964 was due to the increase in R&D expense.

 

For the six months ended January 31, 2022, the Company had total operating expenses of $209,613, consisting of $140,501 in R&D expense, $69,112 in general and administrative expenses. These amounts compare with total operating expenses of $103,226 consisting of $39,531 in R&D expense and $63,695 in general and administrative expense for the six months ended January 31, 2021. The increase of $106,387 was due to the increase in R&D expense.

 

Net Loss

 

For the six months ended 31, 2022 and 2021, the Company had a net loss of $209,566 and $148,414, respectively, for the reasons discussed above, mainly the increase of the R&D expenses.

 

For the three months ended 31, 2022 and 2021, the Company had a net loss of $103,371 and $79,898, respectively, for the reasons discussed above, mainly the increase of the R&D expenses.

 

Liquidity and Capital Resource

 

The Company had $29,647 and $54,375, respectively, in cash and cash equivalents as of January 31, 2022 and July 31, 2021.

 

As of January 31, 2022 and July 31, 2021, the Company had working capital deficit of $439,466 and $256,136, respectively. The increase in working capital deficit was due to increased operating expenses during the period.

 

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

-4-

The following is a summary of the Company’s cash flows from operating and financing activities for the six months ended January 31, 2022 and 2021:

 

   Six Month Ended   Six Month Ended 
   January 31, 2022   January 31, 2021 
Net Cash Used in Operating Activities  $(179,837)  $(84,494)
Net Cash Provided by Financing Activities   154,628    326,368 
           
Effects of Exchange rate Changes on Cash   481    2,800 
Net Change in Cash  $(24,728)  $244,674 

 

Operating Activities

 

During the six months ended January 31, 2022, the Company had a net loss of $209,566 and after adjusting for lease expense, increased cash amortization of prepaid expenses and decreased payment on accounts payable, net cash used in operating activities of $179,837 was recorded. By comparison, during the six months period ended January 31, 2021, the Company incurred net cash used in operating activities of $84,494, which was mainly from net loss of $209,566 for the period.

 

Financing Activities

 

During the six months ended January 31, 2022, the Company had cash provided by financing activities of $154,628, which were loans from a related party (the Company’s sole officer and major shareholder). By comparison, during the nine months ended January 31, 2021, the Company had cash provided by financing activities of $326,368, which mainly consisted of shares issued from an equity financing for $300,000, and loans of $26,368 from the related party.

 

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 except as disclosed in the notes to the financial statements..

 

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 January 31, 2022. 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.

-5-

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.

 

Management’s Report on Internal Control over Financial Reporting

 

Change in Internal Control over Financial Reporting

 

During the quarter ended January 31, 2022, 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

-6-

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*
     
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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.

-7-

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: March 15, 2022 CLANCY CORP.
   
  /s/ Xiangying Meng
  Xiangying Meng

-8-

EX-31.1 2 ccyc-20220131_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: March 15, 2022 

 

 
   
  /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-20220131_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 January 31, 2022 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: March 15, 2022 

  /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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Total Revenues 15,122 29,638
Cost of revenues 55,606 74,861
Gross loss (40,484) (45,223)
Operating expenses        
Research and development expense-software 70,020 0 140,501 39,531
General and administrative 33,393 39,449 69,112 63,695
Total operating expenses 103,413 39,449 209,613 103,226
Loss from operations (103,413) (79,933) (209,613) (148,449)
Non-operating income        
Interest income 42 35 47 35
Total non-operating loss, net 42 35 47 35
Loss before income tax (103,371) (79,898) (209,566) (148,414)
Income tax expense
Net loss (103,371) (79,898) (209,566) (148,414)
Other comprehensive item        
Foreign currency translation loss (541) (91) (1,736) (1,915)
Comprehensive loss $ (103,912) $ (79,989) $ (211,302) $ (150,329)
Basic weighted average shares outstanding 153,105,464 68,322,855 153,105,464 35,714,160
Basic net loss per share $ (0.00) $ (0.00) $ (0.00) $ (0.00)
XML 13 R5.htm IDEA: XBRL DOCUMENT v3.22.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
6 Months Ended
Jan. 31, 2022
Jan. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (209,566) $ (148,414)
Lease expense 33,151 30,397
(Increase) decrease in assets and liabilities:    
Accounts receivable (14,819)
Prepaid expense 400 43,342
Accounts payable (3,822) 5,000
Advances from customers
Net cash used in operating activities (179,837) (84,494)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from shares issued for equity financing 300,000
Changes in due to related party 154,628 26,368
Net cash provided by financing activities 154,628 326,368
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND EQUIVALENTS 481 2,800
NET INCREASE IN CASH AND EQUIVALENTS (24,728) 244,674
CASH AND EQUIVALENTS, BEGINNING OF PERIOD 54,375 21,821
CASH AND EQUIVALENTS, END OF PERIOD 29,647 266,495
Supplemental cash flow data:    
Income tax paid
Interest paid
Supplemental Disclosure of Non-cash lease activities:    
Recognition of right of use asset
Recognition of lease liability
XML 14 R6.htm IDEA: XBRL DOCUMENT v3.22.0.1
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)
Shares, Outstanding, Beginning Balance at Jul. 31, 2020 3,105,250        
Net loss (68,517) (68,517)
Currency translation (1,824) (1,824)
Ending balance, value at Oct. 31, 2020 $ 3,105 63,251 (1,824) (215,542) (151,010)
Shares, Outstanding, Ending Balance at Oct. 31, 2020 3,105,250        
Beginning balance, value at Jul. 31, 2020 $ 3,105 63,251 (147,025) (80,669)
Shares, Outstanding, Beginning Balance at Jul. 31, 2020 3,105,250        
Net loss         (148,414)
Currency translation         (1,915)
Shares Issued for Equity Financing         300,000
Ending balance, value at Jan. 31, 2021 $ 153,105 213,251 (19,915) (295,440) 69,001
Shares, Outstanding, Ending Balance at Jan. 31, 2021 153,105,464        
Beginning balance, value at Oct. 31, 2020 $ 3,105 63,251 (1,824) (215,542) (151,010)
Shares, Outstanding, Beginning Balance at Oct. 31, 2020 3,105,250        
Net loss (79,898) (79,898)
Currency translation (91) (91)
Shares Issued for Equity Financing $ 150,000 150,000 300,000
[custom:SharesIssuedForEquityFinancingInShares] 150,000,000        
[custom:RoundingOfSharesDueToStockSplit] 214        
Ending balance, value at Jan. 31, 2021 $ 153,105 213,251 (19,915) (295,440) 69,001
Shares, Outstanding, Ending Balance at Jan. 31, 2021 153,105,464        
Beginning balance, value at Jul. 31, 2021 $ 153,105 213,251 (2,489) (495,920) (132,053)
Shares, Outstanding, Beginning Balance at Jul. 31, 2021 153,105,464        
Net loss (106,195) (106,195)
Currency translation (1,195) (1,195)
Ending balance, value at Oct. 31, 2021 $ 153,105 213,251 (3,684) (602,115) (239,443)
Shares, Outstanding, Ending Balance at Oct. 31, 2021 153,105,464        
Beginning balance, value at Jul. 31, 2021 $ 153,105 213,251 (2,489) (495,920) (132,053)
Shares, Outstanding, Beginning Balance at Jul. 31, 2021 153,105,464        
Net loss         (209,566)
Currency translation         (1,736)
Shares Issued for Equity Financing        
Ending balance, value at Jan. 31, 2022 $ 153,105 213,251 (4,225) (705,486) (343,355)
Shares, Outstanding, Ending Balance at Jan. 31, 2022 153,105,464        
Beginning balance, value at Oct. 31, 2021 $ 153,105 213,251 (3,684) (602,115) (239,443)
Shares, Outstanding, Beginning Balance at Oct. 31, 2021 153,105,464        
Net loss (103,371) (103,371)
Currency translation (541) (541)
Ending balance, value at Jan. 31, 2022 $ 153,105 $ 213,251 $ (4,225) $ (705,486) $ (343,355)
Shares, Outstanding, Ending Balance at Jan. 31, 2022 153,105,464        
XML 15 R7.htm IDEA: XBRL DOCUMENT v3.22.0.1
ORGANIZATION AND NATURE OF BUSINESS
6 Months Ended
Jan. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION AND NATURE OF BUSINESS

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

 

Clancy Corp. (“Company”) was incorporated on March 22, 2016 under the laws of the State of Nevada, USA.

 

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 January 31, 2022.

 

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.

 

XML 16 R8.htm IDEA: XBRL DOCUMENT v3.22.0.1
GOING CONCERN
6 Months Ended
Jan. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GOING CONCERN

NOTE 2 – GOING CONCERN

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. For the three and six months ended January 31, 2022, 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 major 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 servic