UNITED STATES SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
Form
[
For the quarterly period ended
or
[
For the transition period from __________ to __________
Commission file number
(Exact name of registrant as specified in its charter)
| 7370 | ||||||
| (State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification Number) |
(Primary Standard Industrial Classification Code Number) | ||||
|
Bakur Kalichava + mainoffice@ankam.net
|
||||||
| (Address, including Zip Code, and Telephone Number, including Area Code, of Registrant's Principal Executive Office) | ||||||
| Securities registered under Section 12(b) of the Exchange Act: | ||||
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||
| N/a | N/a | N/a | ||
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.
Indicate by check mark whether the registrant has submitted electronically on its corporate Web site, if any, 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 [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
| Large accelerated filer | [ ] | Accelerated filer | [ ] |
| [X] | Smaller reporting company | [ | |
| (Do not check if a smaller reporting company) | Emerging growth company | [ | |
If an emerging growth company, indicate by check mark
if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 7(a)(2)(B) of the Securities Act. [
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [ ]
State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: common shares issued and outstanding as of July 14, 2023.
ANKAM
FORM 10-Q
Quarterly Period Ended May 31, 2023
INDEX
| Page | ||
| PART I | FINANCIAL INFORMATION: | |
| Item 1. | Financial Statements (Unaudited) | 5 |
| Balance Sheets as of May 31, 2023 (Unaudited) and November 30, 2022 | 6 | |
| Statements of Operations for the three and six months ended May 31, 2023 and 2022 (Unaudited) | 7 | |
| Statements of Stockholders' Deficit for the three and six months ended May 31, 2023 and 2022 (Unaudited) | 8 | |
| Statements of Cash Flows for the six months ended May 31, 2023 and 2022 (Unaudited) | 9 | |
| Notes to the Financial Statements (Unaudited) | 10 | |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 16 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 18 |
| Item 4. | Controls and Procedures | 19 |
| PART II | OTHER INFORMATION: | |
| Item 1. | Legal Proceedings | 19 |
| Item 1A. | Risk Factors | 19 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 19 |
| Item 3. | Defaults Upon Senior Securities | 19 |
| Item 4. | Mine Safety Disclosures | 19 |
| Item 5. | Other Information | 19 |
| Item 6. | Exhibits | 20 |
| Signatures | 20 |
4
PART I - FINANCIAL INFORMATION
| Item 1. | Financial Statements (Unaudited) |
The accompanying interim financial statements of Ankam, Inc. (“the Company”, “we”, “us” or “our”), have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles have been omitted pursuant to such rules and regulations.
The interim financial statements should be read in conjunction with the Company’s latest annual financial statements.
In the opinion of management, the financial statements contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented.
5
ANKAM, INC
BALANCE SHEETS
|
May 31, 2023 (Unaudited) |
November 30, 2022 | ||||||||
| ASSETS | |||||||||
| CURRENT ASSETS: | |||||||||
| Cash | $ | $ | |||||||
| Accounts receivable | |||||||||
| Prepaid Expenses | |||||||||
| Right-of-use asset, net | |||||||||
| Total current assets | |||||||||
| Project in process | |||||||||
| Capitalized software costs, net | |||||||||
| TOTAL ASSETS | $ | $ | |||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||||
| CURRENT LIABILITIES: | |||||||||
| Accounts payable and accrued expenses | $ | $ | |||||||
| Deferred revenue | |||||||||
| Related party loan | |||||||||
| Lease liability | |||||||||
| Total current liabilities | |||||||||
| Total liabilities | |||||||||
|
Commitments and contingencies (Note 8)
|
|||||||||
| STOCKHOLDERS’ DEFICIT: | |||||||||
| Common stock: $ par value, shares authorized, shares issued and outstanding as of May 31, 2023 and November 30, 2022, respectively | |||||||||
| Additional paid in capital | |||||||||
| Accumulated deficit | ( |
( |
|||||||
| Total stockholders’ deficit | ( |
( |
|||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | $ | |||||||
The accompanying notes are an integral part of these unaudited financial statements.
6
ANKAM, INC
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
For three months ended May 31, 2023 | For three months ended May 31, 2022 |
For six months ended May 31, 2023 |
For six months ended May 31, 2022 | |||||||||||
| REVENUE: | $ | $ | $ | $ | |||||||||||
| EXPENSES: | |||||||||||||||
| General and administrative expenses | |||||||||||||||
| Professional fees | |||||||||||||||
| Amortization | |||||||||||||||
| Total expenses | |||||||||||||||
| Loss before income taxes | ( |
( |
( |
( |
|||||||||||
| Provision for income taxes | |||||||||||||||
| NET LOSS | $ | ( |
$ | ( |
$ | ( |
$ | ( |
|||||||
| Net loss per common share - basic | $ | ( |
$ | ( |
$ | ( |
$ | ( |
|||||||
| Weighted average number of common shares outstanding - basic and diluted | |||||||||||||||
The accompanying notes are an integral part of these unaudited financial statements.
7
ANKAM, INC.
STATEMENTS OF STOCKHOLDERS’ DEFICIT
(Unaudited)
| Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Total Stockholders' Deficit | |||||||||||||
| Shares | Amount | |||||||||||||||
| Balance as of November 30, 2021 | |
$ | $ | $ | ( |
$ | ( |
|||||||||
| Common stock issued for cash | ||||||||||||||||
| Net loss | - | ( |
( |
|||||||||||||
| Balance as of February 28, 2022 | |
( |
( |
|||||||||||||
| Common stock issued for cash | ||||||||||||||||
| Net loss | - | ( |
( |
|||||||||||||
| Balance as of May 31, 2022 | $ | $ | $ | ( |
$ | ( |
||||||||||
|
|
||||||||||||||||
| Balance as of November 30, 2022 | $ | $ | $ | ( |
$ | ( |
||||||||||
| Net loss | - | ( |
( |
|||||||||||||
| Balance as of February 28, 2023 | ( |
( |
||||||||||||||
| Net loss | - | ( |
( |
|||||||||||||
| Balance as of May 31, 2023 | $ | $ | $ | ( |
$ | ( |
||||||||||
|
|
||||||||||||||||
The accompanying notes are an integral part of these unaudited financial statements.
8
ANKAM, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
For six months ended May 31, 2023 | For six months ended May 31, 2022 | |||||||
| Cash Flows from Operating Activities: | |||||||||
| Net loss | $ | ( |
$ | ( |
|||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||
| Amortization expense | |||||||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable | |||||||||
| Prepaid expenses | ( |
||||||||
| Project in process | ( |
||||||||
| Right-of-use asset/liability, net | |||||||||
| Accounts payable and accrued expenses | ( |
||||||||
| Deferred revenue | |||||||||
| Net cash used in operating activities | ( |
( |
|||||||
| Cash Flow from Investing Activities: | |||||||||
| Purchase of software | ( |
||||||||
| Net cash used in investing activities | ( |
||||||||
| Cash Flows from Financing Activities: | |||||||||
| Proceeds from the issuance of common stock | |||||||||
| Related party activity, net | |||||||||
| Net cash provided by financing activities | |||||||||
| NET INCREASE IN CASH | |||||||||
| CASH AT BEGINNING OF THE PERIOD | |||||||||
| CASH AT THE END OF THE PERIOD | $ | $ | |||||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | |||||||||
| Cash paid for interest | $ | $ | |||||||
| Cash paid for income taxes | $ | $ | |||||||
The accompanying notes are an integral part of these unaudited financial statements.
9
ANKAM, INC.
NOTES TO THE FINANCIAL STATEMENTS
As of May 31, 2023
(Unaudited)
NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS
Ankam Inc. (the “Company”) was incorporated in August 2018 under the laws of the State of Nevada. The Company's product is MoneySaverApp, an application created to aggregate various discount cards on your mobile device. This way, users can easily access any discounts at any time. The idea for the app emerged as a way to simplify the use of discount cards and enable people to share them with anyone. With this product, users can obtain discounts for services such as chain stores, gas stations, car dealerships, sports clubs, laundries, pharmacies, clinics, airlines, beauty salons, restaurants, clubs, internet service providers, car repair shops, pet stores, and other customer loyalty programs.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Interim Financial Statements
The unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period. Therefore, these financial statements should be read in conjunction with the Company’s audited financial statements and notes filed with the SEC for the year ended November 30, 2022.
Basis of presentation
The accompanying financial statements have been prepared in accordance with GAAP and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company for the six months ended May 31, 2023 and 2022.
Cash and Cash Equivalents
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents.
Revenue Recognition
The Company offers a newsletter subscription, which contains the most significant news in the cryptocurrency market. In most cases identified articles show price changes, experts opinions, technical information that can be used to understand the market and make right decisions in this area.
10
ANKAM
NOTES TO THE FINANCIAL STATEMENTS
As of May 31, 2023
(Unaudited)
The Company recognizes revenue in accordance with Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customer". The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:
Step 1: Identify the contract 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
The Company recognizes revenue when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product.
The Company collects payment from customers before the service is provided. If deposits are collected before the service is provided, the Company recognizes deferred revenue.
Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable are recorded at invoiced amount and generally do not bear interest. An allowance for doubtful accounts is established, as necessary, based on past experience and other factors which, in management's judgment, deserve current recognition in estimating bad debts. Such factors include growth and composition of accounts receivable, the relationship of the allowance for doubtful accounts to accounts receivable, and current economic conditions.
As of May 31, 2023 and November 30, 2022 the Company had no allowance for bad debt.
Capitalized Software Costs
The Company capitalizes the application development phase costs of internal use software in accordance with Accounting Standards Codification (“ASC”) 350-40, “Intangibles-Goodwill and Other-Internal Use Software”. Capitalized costs will be amortized on a straight-line basis over the estimated useful life of the asset upon completion.
Impairment of Long-Lived Assets
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. The Company conducts its long-lived asset impairment analyses in accordance with ASC 360-10-15, “Impairment or Disposal of Long-Lived Assets”. ASC 360-10-15 requires the Company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of the undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group exceeds its fair value based on discounted cash flow analysis or appraisals.
11
ANKAM, INC.
NOTES TO THE FINANCIAL STATEMENTS
As of May 31, 2023
(Unaudited)
Use of Estimates
The preparation of financial statements in conformity with GAAP 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 of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
The Company reports earnings (loss) per share in accordance with ASC 260, “Earnings per Share”. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net loss by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities outstanding during the period. There were no dilutive securities as of May 31, 2023 and 2022.
Income Taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance on deferred tax assets is established when management considers it is more likely than not that some portion or all of the deferred tax assets will not be realized.
Tax benefits from an uncertain tax position are only recognized if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. Interest and penalties related to unrecognized tax benefits are recorded as incurred as a component of income tax expense. The Company has not recognized any tax benefits from uncertain tax positions for any of the reporting periods presented.
12
ANKAM, INC.
NOTES TO THE FINANCIAL STATEMENTS
As of May 31, 2023
(Unaudited)
Lease
ASC 842, "Leases", requires that lessees recognize right-of-use (“ROU”) assets and lease liabilities. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ASC 842 distinguishes leases as either a finance lease or an operating lease that affects how the leases are measured and presented in the statements of operations and cash flows.
Recent Accounting Pronouncements
The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe any of these pronouncements will have a material impact on the Company.
NOTE 3 – GOING CONCERN
The accompanying financial statements have been prepared in conformity with GAAP, which contemplates continuation of the Company as a going concern. As a development-stage company, the Company had minimal revenues and incurred losses as of May 31, 2023. The Company currently has limited working capital, and has not completed its efforts to establish a stabilized source of revenue sufficient to cover operating costs over an extended period of time.
Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it will be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.
NOTE 4 – RIGHT-OF-USE ASSET
The Company entered into a lease in November 2022
for a period of one year to rent servers on which the web-version of the crypto wallet is actually running and on which the web wallet
and app code are being developed. The monthly rental amount is $14,966. The server agreement balance as of May 31, 2023 and November 30,
2022 is $
The Company determined this transaction to reflect an operating lease. The entire invoice was due upon invoice on November 11, 2022 and the Company is making payments towards the balance periodically, however, there are no extended terms for payment. Therefore, the present value of the lease is the invoice date, and all remaining amounts are due and are reflected in the current liability section of the balance sheets.
During the three months ended May 31, 2023 and 2022, the Company recorded $44,898 and $1,315 as operating lease expenses which is included in general and administrative expenses on the statements of operations. During the six months ended May 31, 2023 and 2022, the Company recorded $89,796 and $3,715 as operating lease expenses which is included in general and administrative expenses on the statements of operations.
13
ANKAM, INC.
NOTES TO THE FINANCIAL STATEMENTS
As of May 31, 2023
(Unaudited)
Operating right-of-use are summarized below:
| May 31, 2023 | November 30, 2022 | ||||
| Server rental | $ | 179,592 | $ | 179,592 | |
| Less: accumulated amortization | (99,636) | (9,840) | |||
| Right-of-use, net | $ | 79,956 | $ | 169,752 | |
Operating lease liabilities are summarized below:
| May 31, 2023 | November 30, 2022 | ||||
| Server rental | $ | 77,460 | $ | 149,660 | |
| Less: current portion | 77,460 | 149,660 | |||
| Long term portion | $ | — | $ | — | |
NOTE 5 – PROJECT IN PROGRESS
The Company is developing and implementing a cryptocurrency wallet project. Upon completion of the development, the Company will receive an application with a cryptocurrency wallet and a version of the website. The initial estimated cost of the project was $255,800, of which $77,000 has been completed and capitalized as shown in Note 6. As of May 31, 2023, the total cost of the project is approximately $276,000. The project is planned to launch in September 2023.
The Company believes that the development of this application will be relevant for 3 years with its constant testing, adjustment, control and improvement of functionality based on user feedback.
NOTE 6 – CAPITALIZED SOFTWARE COSTS
| Useful Life |
As of May 31, 2023 |
As of November 30, 2022 | |||
| Cryptocurrency Web Wallet + App | 3 years | $ | 77,000 | $ | 77,000 |
| MoneySaver App | 3 years | 6,735 | 6,735 | ||
| Total capitalized software | 83,735 | 83,735 | |||
| Accumulated amortization | (27,199) | (13,244) | |||
| Balance | $ | 56,536 | $ | 70,491 | |
During the three months ended May 31, 2023 and 2022, the amortization expense was $6,978 and $561, respectively. During the six months ended May 31, 2023 and 2022, the amortization expense was $13,955 and $1,122, respectively.
NOTE 7 – RELATED PARTY TRANSACTIONS
The Company owed its sole director $
NOTE 8 – COMMITMENTS AND CONTINGENCIES
During the normal course of business, the Company may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with Financial Accounting Standards Board (“FASB”) ASC 450-20-50, “Contingencies”. The Company evaluates its exposure to the matter, possible legal or settlement strategies and the likelihood of an unfavorable outcome. If the Company determines that an unfavorable outcome is probable and can be reasonably estimated, it establishes the necessary accruals. As of May 31, 2023, the Company is not aware of any contingent liabilities that should be reflected in the financial statements.
14
ANKAM, INC.
NOTES TO THE FINANCIAL STATEMENTS
As of May 31, 2023
(Unaudited)
NOTE 9 – INCOME TAXES
The components of the Company’s provision for federal income tax for the six months ended May 31, 2023 and the year ended November 30, 2022 consists of the following:
|
May 31, 2023 |
November 30, 2022 | |||||
| Federal income tax benefit attributable to: | ||||||
| Current operations | $ | $ | ||||
| Less: valuation allowance | ( |
( | ||||
| Net provision for federal income taxes | $ | — | $ | — |
The cumulative tax effect at the expected rate of 21% of significant items comprising our net deferred tax amount is as follows:
|
May 31, 2023 |
November 30, 2022 | |||||
| Deferred tax asset attributable to: | ||||||
| Net operating loss carryover | $ | $ | ||||
| Less: valuation allowance | ( |
( | ||||
| Net deferred tax asset | $ | $ |
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $228,289 as of May 31, 2023, for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.
NOTE 10 – SUBSEQUENT EVENTS
In accordance with ASC 855-10, “Subsequent Events”, the Company has analyzed its operations subsequent to May 31, 2023, through the date when financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements.
15
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
DESCRIPTION OF BUSINESS
Business Strategy
Ankam Inc. (the “Company”) was incorporated in August 2018 under the laws of the State of Nevada. Ankam Inc. actively works in two directions: application development MoneySaver App and crypto wallet project.
MoneySaver App is an application created to aggregate various discount cards on a mobile device. The main advantage of the MoneySaver App is the user can get easy access to any discounts at any moment from anywhere. The idea of the app appeared as a way of simplifying the use of discount cards, enabling people to share them with anyone and getting new discounts.
Simultaneously, Ankam Inc. is focused on the development and implementation of the cryptocurrency wallet project. The Company creates a service with the ability to manage cryptocurrency funds. As an additional option, the functionality for real-time monitoring of cryptocurrency price changes with news overviews will be implemented as well.
The cryptocurrency wallet will have the functionality of buying coin by bank deposit and payment gateway. In addition, it will have a deposit, withdrawal, referral system, membership system, blocked coin, as well as getting bonus, and many other functions required to launch the wallet. The real-time monitoring function of cryptocurrency price changes will allow users to stay up to date, as well as those interested in news in the sphere of cryptocurrency. This service functionality is convenient and practical, as it enables users to perform all the transactions they need in one service, which, as a result, will save their time and efforts.
The project will be released as a web version https://wallet.ankam.net/ as well as an app. Users will be able to download a mobile app to keep the service always at hand, while the website will allow them to access their account from anywhere.
According to its wide functionality and ease of use, it will be the perfect platform to create your own cryptocurrency wallet.
Marketing
The Company will begin its marketing program online, where our potential customers are likely to be able and willing to associate.
Advertising
With limited funds, the Company will rely on management for advertising decisions. The Company has developed an overall advertising scenario, which it has implemented in preliminary form. As more funds become available, the advertising budget will increase in a commensurate manner.
Employees
We have no employees other than our Director and President.
16
Description of Property
Our current office space is located at Besiki Business Center, Besiki 4, corner with Rustavelli Ave., Tbilisi, Georgia. The premises are provided to us by our President, Bakur Kalichava, for no consideration and is a ‘home office’. We believe these facilities are in good condition, but that we may need to expand our space as our research and development efforts increase.
Legal Proceedings
We are not involved in certain legal claims or proceedings, nor have we ever been.
RESULTS OF OPERATIONS
Three months ended May 31, 2023, compared to May 31, 2022
Revenues
During the three months ended May 31, 2023 and 2022, we have generated total revenue of $10,598 and $0, respectively.
In September 2022, the Company began selling its services, which caused an increase in revenue for the quarter ended May 31, 2023 compared to the quarter ended May 31, 2022.
Operating Expenses
Total operating expenses for the three months ended May 31, 2023 were $75,474 compared to $6,542 for the three months ended May 31, 2022. Our operating expenses consisted of general and administrative costs $62,980(May 31, 2022 - $1,713), professional fees $5,516 (May 31, 2022 - $4,268) and amortization $6,978 (May 31, 2022 - $561). Expenses increased in the three months ended May 31, 2023 primarily due to the server rental expense.
Net Losses
The net loss for the three months ended May 31, 2023, was $64,876, compared to $6,542 for the three months ended May 31, 2022, due to the factors discussed above.
Six months ended May 31, 2023, compared to May 31, 2022
Revenues
During the six months ended May 31, 2023 and 2022, we have generated total revenue of $13,698 and $0, respectively.
In September 2022, the Company began selling its services, which caused an increase in revenue for the six months ended May 31, 2023 compared to the six months ended May 31, 2022.
Operating Expenses
Total operating expenses for the six months ended May 31, 2023 were $160,251 compared to $16,615 for the six months ended May 31, 2022. Our operating expenses consisted of general and administrative costs $125,963 (May 31, 2022 - $4,725), professional fees $20,333 (May 31, 2022 - $10,768) and amortization $13,955 (May 31, 2022 - $1,122). Expenses increased in the six months ended May 31, 2023 primarily due to the server rental expense and professional expenses. Professional expenses increased due to transfer agent fees
Net Losses
The net loss for the six months ended May 31, 2023, was $146,553 compared to $16,615 for the six months ended May 31, 2022, due to the factors discussed above.
Liquidity and Capital Resources
As of May 31, 2023, our total assets were $349,158 and comprised of cash of $3,956, prepaid expenses of $10,000, right-of-use asset of $79,956, project in process of $198,710 and capitalized software costs of $56,536. Our total liabilities were $541,857 and comprised of advances from our director of $374,717, deferred revenue of $4,080, lease liability of $77,460 and accounts payable and accrued expenses of $85,600.
As of November 30, 2022, our total assets were $446,030 and comprised of cash of $2,277, accounts receivable of $4,800, project in process of $198,710, right-of-use asset of $169,752 and capitalized software costs of $70,491. Our total liabilities were $492,176 and comprised of advances from our director of $215,017, deferred revenue of $4,000, lease liability of $149,660 and accounts payable and accrued expenses of $123,499.
17
Stockholders’ deficit has increased from $46,146 as of November 30, 2022 to $192,699 as of May 31, 2023.
The Company has accumulated a deficit of $228,289 as of May 31, 2023, compared to $81,736 as of November 30, 2022, and further losses are anticipated in the development of its business.
During the six months ended May 31, 2023, the Company used $158,021 of cash in operating activities due to its net loss $146,553 increase in amortization expense of $13,955, decrease in accounts receivable of $4,800, increase in prepaid expenses of $10,000, decrease in right-of-use asset/liability, net of $17,596, increase in account payable of $37,899 and increase in deferred revenue of $80.
Net cash flows provided by financing activities for the six months ended May 31, 2023, were $159,700 due to proceeds from related party loan.
Off-Balance Sheet Arrangements
As of May 31, 2023, we did not have any off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
Limited Operating History and Need for Additional Capital
There is no historical financial information about us upon which to base an evaluation of our performance. We are in start-up stage operations and have generated limited revenues. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services and products.
We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholders.
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Not Applicable.
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| Item 4. | Controls and Procedures |
Evaluation of Disclosure Controls and Procedures
We carried out an evaluation as of May 31, 2023, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, who are one and the same, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(f) and 15d–15(e)). Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting during our most recent quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
| Item 1. | Legal Proceedings |
During the period ending May 31, 2023, there were no pending or threatened legal actions against us.
| Item 1A. | Risk Factors |
As a smaller reporting company, we are not required to provide the information required by this Item.
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Not Applicable.
| Item 3. | Defaults Upon Senior Securities |
Not Applicable.
| Item 4. | Mine Safety Disclosures |
Not Applicable.
| Item 5. | Other Information |
There is no other information required to be disclosed under this item that has not previously been reported.
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| Item 6. | Exhibits |
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.
| ANKAM | ||
| Date: July 14, 2023 | By: | /s/ Bakur Kalichava |
|
Name: Bakur Kalichava Title: President, Secretary, Treasurer, Director, Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial and Accounting Officer) | ||
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