0001493152-21-012214.txt : 20210519 0001493152-21-012214.hdr.sgml : 20210519 20210519145147 ACCESSION NUMBER: 0001493152-21-012214 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 49 CONFORMED PERIOD OF REPORT: 20210131 FILED AS OF DATE: 20210519 DATE AS OF CHANGE: 20210519 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RCMW Group, Inc. CENTRAL INDEX KEY: 0001797956 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-MISCELLANEOUS NONDURABLE GOODS [5190] IRS NUMBER: 940490694 STATE OF INCORPORATION: WY FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-56135 FILM NUMBER: 21939941 BUSINESS ADDRESS: STREET 1: 2232 DELL RANGE BLVD STE 245, CITY: CHEYENNE STATE: WY ZIP: 82009 BUSINESS PHONE: 437-230-7399 MAIL ADDRESS: STREET 1: 2232 DELL RANGE BLVD STE 245, CITY: CHEYENNE STATE: WY ZIP: 82009 FORMER COMPANY: FORMER CONFORMED NAME: Hemp Technology, Inc. DATE OF NAME CHANGE: 20191223 10-Q/A 1 form10-qa.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q/A

Amendment No. 2

 

(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, 2021

 

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

 

For the transition period from ______________to ______________

 

Commission File Number 000-56135

 

RCMW GROUP, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

Wyoming   98-0490694

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification Number)

     
2232 Dell Range Blvd, Ste 245, Cheyenne, WY   82009
(Address of Principal Executive Offices)   (Zip Code)

 

(437) 230-7399

(Registrant’s Telephone Number, Including Area Code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of exchange on which registered
Common Shares, Par Value $0.00001   RCMW   OTC-Pink Sheets

 

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 requirement for the past 90 days. Yes [X] No [  ]

 

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

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer [  ] Accelerated filer [  ]
   
Non-accelerated filer [  ] 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 [X]

 

As of March 26, 2021, 10,169,173 of the registrant’s $0.00001 par value common shares were outstanding. 

 

 

 

 

 

 

Explanatory Note

 

This Amendment No. 2 on Form 10-Q/A-2 amends RCMW Group, Inc. (“the Company”) Quarterly Report on Form 10-Q (“the Original Form 10-Q’) for the quarter ended January 31, 2021, which was previously filed with the U.S. Securities Exchange Commission (“SEC”) on March 26, 2021 and amends Form 10-Q/A-1 filed on March 30, 2021 for the same reporting period.

 

This Amendment No. 2 is being filed to include current information regarding a cease trade order by the British Columbia Securities Commission, where they require the Company to have current financial information available, before they will revoke the cease trade order. See Other Information in Part II, Item 5.

 

Except as referenced above, no other changes have been made to the Form 10-Q/A-2. This Amendment No. 2 does not reflect any subsequent events occurring after the March 26, 2021 filing date of the Original Form 10-Q or modify or update in any way disclosures made in the original filing.

 

Pursuant to the rules of the SEC, Part II, Item 6 of this Form 10-Q/A-2 includes the currently-dated certifications from our principal executive officer and principal financial officer, as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002. The certifications of the principal executive officer and principal financial officer are included in this Form 10-Q/A as Exhibits 31.1, 31.2, 32.1 and 32.2.

 

2

 

 

RCMW GROUP, INC. (formerly “HEMP TECHNOLOGY INC.”)

QUARTERLY REPORT ON FORM 10-Q

FOR THE NINE MONTHS ENDED JANUARY 31, 2021

 

TABLE OF CONTENTS

 

PART I – FINANCIAL INFORMATION  
Item 1. Interim Financial Statements  
  Condensed Consolidated Balance Sheets (Unaudited) 4
  Condensed Consolidated Statements of Operations (Unaudited) 5
  Condensed Consolidated Statements of Changes in Stockholders’ Equity 6
  Condensed Consolidated Statements of Cash Flows (Unaudited) 7
  Notes to the Condensed Consolidated Financial Statements (Unaudited) 8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 16
Item 3. Quantitative and Qualitative Disclosures About Market Risk 23
Item 4. Controls and Procedures 23
     
PART II – OTHER INFORMATION  
Item 1. Legal Proceedings 25
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25
Item 5. Other Information 25
Item 6. Exhibits 26
     
SIGNATURES 27

 

3

 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1. Interim Financial Statements (unaudited)

 

RCMW Group, Inc. (formerly “Hemp Technology Inc.”)

Unaudited Interim Condensed Consolidated Balance Sheets

As of January 31, 2021, and April 30, 2020

(Amounts Expressed in United States Dollars, Except for Share Amounts)

 

   January 31,   April 30, 
   2021   2020 
       (Audited) 
ASSETS          
Current Assets:          
Cash  $76,045    970 
Accounts receivable   427,455    - 
Prepaid expenses and other current assets   655,263    - 
Inventories   810,085    - 
Total Current Assets   1,968,848    970 
           
Prepaid expenses and other long-term assets   152,955      
Property and equipment, net   70,712    - 
TOTAL ASSETS  $2,192,515    970 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
LIABILITIES          
Current Liabilities:          
Accounts payable and accrued liabilities  $571,221    42,500 
Loan   775,343    - 
Unearned revenue   107,086    - 
Due to related parties   -    172,390 
Total Current Liabilities   1,453,650    214,890 
TOTAL LIABILITIES  $1,453,650    214,890 
           
SHAREHOLDERS’ EQUITY          
Share Capital  $99    47 
Shares to be issued   2,800      
Treasury stock, at cost (150,000 shares)   (9,500)     
Common stock, $0.00001 par value, 50,000,000,000 shares authorized; 9,890,950 shares issued and outstanding as of January 31, 2021 and 4,705,849 as of April 30, 2020 respectively          
Additional paid in capital   9,362,863    7,216,898 
Accumulated deficit   (8,617,397)   (7,430,865)
TOTAL SHAREHOLDERS’ EQUITY   738,865    (213,920)
           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  $2,192,515    970 

 

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

 

4

 

 

RCMW Group, Inc. (formerly “Hemp Technology Inc.”)

Unaudited Interim Condensed Consolidated Statements of Operations

Three and Nine Months Ended January 31, 2021 and 2020

(Amounts Expressed in United States Dollars, Except for Share Amounts)

 

   Three Months Ended January 31,   Nine Months Ended January 31, 
   2021   2020   2021   2020 
Revenues, net of discounts  $282,987    -   $3,638,568    - 
Cost of Goods Sold, net   116,090    -    2,925,321    - 
Inventory write-down   688,973         688,973      
Gross Profit (Loss)   (522,076)   -    24,274    - 
Expenses:                    
Selling, General, and Administrative   619,917    81,220    1,141,882    292,449 
Total Expenses   619,917    81,220    1,141,882    292,449 
Loss From Operations   (1,141,993)   (81,220)   (1,117,608)   (292,449)
Other Income (Expenses)                    
Interest   (55,629)   -    (68,924)   - 
Total Other Income (Expenses)   (55,629)   -    (68,924)   - 
Loss Before Income Taxes   (1,197,622)   (81,220)   (1,186,532)   (292,449)
Income Tax Expense   -    -    -    - 
Net Comprehensive Loss  $(1,197,622)   (81,220)  $(1,186,532)   (292,449)
Net Loss per share - basic and diluted  $(0.12)   (0.02)  $(0.14)   (0.07)
Weighted average number of shares outstanding - basic and diluted   9,838,657    4,932,516    8,584,894    4,411,769 

 

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

 

5

 

 

RCMW Group, Inc. (formerly “Hemp Technology Inc.”)

Unaudited Interim Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit)

(Amounts Expressed in United States Dollars, Except for Share Amounts)

 

Common Stock
   Number of Shares   Par value   Shares To be Issued   Treasury Stock, at Cost   Additional Paid in Capital   Deficit   Total Stockholders’ Equity (Deficit) 
Balance, April 30, 2019   4,121,474   $41   $191,551   $-   $6,953,937   $(7,076,990)  $68,539 
Shares to be issued - services             45,000                   45,000 
Sales of shares   58,701    1              26,414         26,415 
Shares issued for Pettanicals deposit   226,667    2              101,998         102,000 
Settle shares to be issued   525,674    5    (236,551)        236,546         - 
Net Loss                            (292,449)   (292,449)
Balance, January 31, 2020   4,932,516   $49   $-   $-   $7,318,895   $(7,369,439)  $(50,495)
                                    
Balance, April 30, 2020   4,705,849   $47   $-   $-   $7,216,898   $(7,430,865)  $(213,920)
Shares to be issued - stock split   224         -                   - 
Shares to be cancelled and returned to Treasury at Cost                  (9,500)             (9,500)
Shares issued for Bulk Asset Purchase                                   
Cannary Packaging Inc.   4,962,654    50    2,800         2,233,144         2,235,994 
Pettannicals Pet Treats   222,223    2              99,998         100,000 
Intangibles                       (187,177)        (187,177)
Net Loss                            (1,186,532)   (1,186,532)
Balance, January 31, 2021   9,890,950   $99   $2,800   $(9,500)  $9,362,863   $(8,617,397)  $738,865 

 

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

 

6

 

 

RCMW Group, Inc. (formerly “Hemp Technology Inc.”)

Unaudited Interim Condensed Consolidated Statements of Cash Flows

Three and Nine Months Ended January 31, 2021 and 2020

(Amounts Expressed in United States Dollars)

 

   For the Three Months Ended January 31,   For the Nine Months Ended January 31, 
   2021   2020   2021   2020 
Operating activities                    
Net Loss  $(1,197,622)   (81,220)  $(1,186,532)   (292,449)
Non-Cash Transactions                    
Depreciation and amortization   3,083         7,414      
Interest expense   55,629         68,924      
Inventory write-down   688,973         688,973      
Shares to be issued - services rendered                  45,000 
Changes in operating assets and liabilities:                    
Accounts receivable   1,105,261         (188,409)     
Prepaid expenses and other current assets   (492,022)        (655,263)     
Inventories   (707,617)        336,500      
Accounts payable and accrued liabilities   18,460    33,072    528,721    85,280 
Unearned revenue   107,086         107,086      
Net cash (used in) operating activities   (418,769)   (48,148)   (292,586)   (162,169)
Financing activities                    
Loan   879,552         1,385,312      
Loan repayment   (371,839)        (678,894)     
Prepaid expenses and other long-term assets   (152,955)        (152,955)     
Due to related party   -    31,475    (172,390)   60,552 
Property, equipment and intangible assets   (209)        (3,912)     
Shares cancelled for cash   (9,500)        (9,500)     
Shares issued for cash                  26,415 
Net cash provided by financing activities   345,049    31,475    367,661    86,967 
Net changes in cash   (73,720)   (16,673)   75,075    (75,202)
Cash at beginning of the period   149,765    27,452    970    85,981 
Cash at end of the period  $76,045    10,779   $76,045    10,779 

 

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

 

7

 

 

RCMW Group, Inc. (formerly “Hemp Technology Inc.”)

Notes to the Interim Condensed Consolidated Financial Statements

(Presented in U.S. Dollars)

(Unaudited)

 

Note 1 - Company overview

 

RCMW Group, Inc. (formerly “Hemp Technology Inc.”) (“RCMW”) of Wyoming and its subsidiaries, Hemp Technology Inc. of Kentucky, Hemp Biotech Inc. of Kentucky (see Note 12 - Subsequent events), 4033000, 4033001, and 4033002 of Wyoming (collectively the “Company”) is publicly listed on the OTC under the symbol “HPTYD”. The symbol was changed to “RCMW” effective March 24, 2021. RCMW’s registered office is in Cheyenne, Wyoming.

 

The Company is established in the production, branding and marketing of consumer products. The Company’s primary products are non-nicotine vaporizer hardware, and related batteries for the cannabinoid marketplace, and hemp seed-based pet specialty supplements and products. The Company does not produce or sell medicinal or recreational marijuana or products derived from high-THC Cannabis/marijuana plants and is focused on the use of hemp seed derived oils and proteins

 

Note 2 - Going concern

 

These interim condensed consolidated financial statements are prepared on a going concern basis. The Company has incurred continuing losses from its operations and as of January 31, 2021, the Company had an accumulated deficit of $8,617,397 resulting primarily from its previous biofuels business. The Company had a net loss of $353,875 during its most recent year ended April 30, 2020 and a net loss of $1,186,532 in the nine months ended January 31, 2021. This casts substantial doubt on the Company’s ability to continue as a going concern unless it can begin to generate a net profit.

 

Note 3 - Basis of preparation

 

The accompanying interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10–Q and Rule 10 of Regulation S–X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America. However, in the opinion of the management of the Company, all adjustments necessary for a fair presentation of the financial position and operating results have been included in these statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10 for the fiscal year ended April 30, 2020.

 

Basis of consolidation

 

The interim condensed consolidated financial statements include the accounts of RCMW and its subsidiaries as of January 31, 2021 and 2020. The Company has five wholly owned subsidiaries: Hemp Technology Inc. of Kentucky, Hemp Biotech Inc. of Kentucky, 4033000, 4033001 and 4033002 of Wyoming. Inter-company balances and transactions are eliminated in preparing the interim condensed consolidated financial statements. The accounting policies of the subsidiaries are consistent with RCMW.

 

Use of estimates

 

The preparation of interim condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of expenses. We believe that the accounting estimates employed are appropriate and that the resulting balances are reasonable; however, due to the inherent uncertainty in making estimates, actual results could differ from the original estimates, resulting in changes to these balances in future periods.

 

8

 

 

Net income (loss) per share

 

We calculate net income (loss) per share in accordance with Accounting Standards Codification (“ASC”) Topic 260, Earnings per Share. Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period, and diluted earnings per share is computed by including common stock equivalents outstanding for the period in the denominator. For the nine months period ended January 31, 2021 and 2020, any equivalents would have been anti-dilutive as we had losses for the periods then ended.

 

Foreign Currency Translation

 

The reporting currency of the Company is the United States dollar. The financial statements of subsidiaries located outside of the U.S. are measured in their functional currency, which is the local currency. The functional currency of RCMW is the U.S. dollar. Monetary assets and liabilities of these subsidiaries are translated at the exchange rates at the balance sheet date. Income and expense items are translated using average monthly exchange rates. Non-monetary assets are translated at their historical exchange rates. Translation adjustments are included in accumulated other comprehensive loss in the condensed consolidated balance sheets and net income (loss) on the statement of operations as comprehensive income (loss).

 

Fair Values of Financial Instruments

 

The carrying amounts of cash, accounts receivable, accounts payable, due to related parties, unearned revenues, loans, and other current liabilities approximate their fair value due to the short-term nature of these instruments. The Company’s operations and financing activities are conducted primarily in United States dollars and as a result, the Company is not subject to significant exposure to market risks from changes in foreign currency rates. The Company is exposed to credit risk through its cash but mitigates this risk by keeping these deposits at major financial institutions.

 

ASC Topic 820, Fair Value Measurements and Disclosures, provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements).

 

Fair value is defined as an exit price, representing the amount that would be received upon the sale of an asset or payment to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability.

 

Income taxes

 

The Company utilizes the liability approach for accounting and reporting for income taxes. The provision for income taxes is based upon income or loss after adjustment for those permanent items that are not considered in the determination of taxable income. Deferred income taxes represent the tax effects of differences between the financial reporting and tax basis of the Company’s assets and liabilities at the enacted tax rates in effect for the years in which the differences are expected to reverse.

 

The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all the deferred tax assets will not be realized. Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In management’s opinion, adequate provisions for income taxes have been made. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary.

 

Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards.

 

9

 

 

The Company’s policy for recording interest and penalties associated with tax audits is to record such items as a component of general and administrative expense. The Company has identified its federal tax return and its state tax return in Wyoming as its “major” tax jurisdictions, and all prior year returns remain subject to examination. The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act reduced the U.S. federal corporate tax rate from 35% to 21%. As December 31, 2017, the Company had made a reasonable estimate of the effects of the Tax Act. This estimate incorporates assumptions made based upon the Company’s current interpretation of the Tax Act and may change as the Company may receive additional clarification and implementation guidance and as the interpretation of the Tax Act evolves. In accordance with SEC Staff Accounting Bulletin No. 118, the Company has finalized the accounting for the effects of the Tax Act during 2020. Future adjustments made to the provisional effects will be reported as a component of income tax expense in the reporting period in which any such adjustments are determined.

 

Stock based compensation

 

The Company follows ASC Topic 718, Compensation - Stock Compensation (“ASC 718”), which addresses the accounting for stock-based payment transactions, requiring such transactions to be accounted for using the fair value method. Awards of shares for property or services are recorded at the more readily measurable of the fair value of the stock and the fair value of the service. The Company uses the Black-Scholes option-pricing model to determine the grant date fair value of stock- based awards under ASC 718. The fair value is charged to earnings depending on the terms and conditions of the award, and the nature of the relationship of the recipient of the award to the Company. The Company records the grant date fair value in line with the period over which it was earned. For employees and management, this is typically considered to be the vesting period of the award. For consultants, the fair value of the award is recorded over the term of the service period, and unvested amounts are revalued at each reporting period over the service period. The Company estimates the expected forfeitures and updates the valuation accordingly.

 

Impairment of Long-Lived Assets

 

Management reviews for impairment whenever events or changes in circumstances indicate that the carrying amount of property and equipment may not be recoverable under the provisions of accounting for the impairment of long-lived assets. If it is determined that an impairment loss has occurred based upon expected future cash flows, the loss is recognized in the Interim Condensed Consolidated Statement of Operations.

 

Inventories

 

Inventories are stated at the lower of cost, determined principally under the first-in, first-out method, or net realizable value. Inventories include the cost of vape hardware, packaging, and pet products. Obsolete or excess inventories are reflected at their estimated realizable values. Net realizable value is the estimated sales revenue for a normal period of activity less expected selling costs. Allowances for excess and obsolete inventory are recognized for excess amounts, obsolescence and declines in net realizable value below cost. Estimation and judgement are required in determining the value of the allowance for excess and obsolete inventory at each balance sheet date. Management specifically analyzes estimates of future demand for products when determining allowances for excess and obsolete inventory. Changes in these estimates could result in revisions to the valuation of inventory in future periods.

 

Property and Equipment

 

Property, equipment, and improvements to leased premises are depreciated using the straight-line method over the estimated useful lives of the assets, or when applicable, the term of the lease, whichever is shorter. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated. The estimated useful lives are generally as follows:

 

Machinery and Equipment 20%
Office Equipment 30%
Furniture and Fixtures 20%

 

10

 

 

Revenue Recognition

 

Sales comprise the fair value of the consideration received or receivable for the sale of goods and rendering of services in the ordinary course of the Company’s activities. Sales are presented, net of sales tax, rebates and discounts, and after eliminating sales within the Company. The Company recognizes revenue when the amount of revenue and related cost can be reliably measured, it is probable that the collectability of the related receivables is reasonably assured and when the specific criteria for each of the Company’s activities are met as follows:

 

Sale of goods – Revenue from these sales is recognized when an entity has delivered the goods to locations specified by its customers and the customers have accepted the goods in accordance with the sales contract. Products are sold to certain customers with a volume discount and these customers also have the right to return faulty goods. Revenue from these sales is recorded based on the contracted price less the estimated volume discount and returns at the time of sale. Experience and projections are used to estimate the anticipated volume of sales and returns.

 

Deposits received from customers for which the related goods are not yet delivered represent contract liabilities and are recorded as unearned revenue.

 

Cost of Goods Sold

 

Costs related to expenses incurred to sell the Company’s products and services are recorded as cost of goods sold when the related revenue is recognized. The Company records inventory costs of the associated products delivered to customers within cost of goods sold.

 

Acquisitions

 

In accordance with the guidance for business combinations (ASC Topic 805, Business Combinations) the Company determines whether a transaction or other event is a business combination, which requires that the assets acquired, and liabilities assumed constitute a business. Each business combination is then accounted for by applying the acquisition method. If the assets acquired are not a business, we account for the transaction or other event as an asset acquisition. Under both methods, the Company recognizes the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquired entity. In addition, for transactions that are business combinations, we evaluate the existence of goodwill or a gain from a bargain purchase. We capitalize acquisition related costs and fees associated with asset acquisitions and immediately expense acquisition related costs and fees associated with business combinations.

 

Recent Accounting Pronouncements

 

Management does not believe that any recently issued, but not yet effective, accounting pronouncements, when adopted, will have a material effect on the accompanying interim condensed consolidated financial statements.

 

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Changes to Disclosure Requirements for Fair Value Measurements, which will improve the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The ASU removes, modifies, and adds certain disclosure requirements and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company determined there is no material impact on the adoption of this standard on its interim condensed consolidated financial statements.

 

11

 

 

In December 2019, the FASB Issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting of Income Taxes”, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating this guidance to determine the impact it may have on its financial statements.

 

In January 2020, the FASB issued ASU 2020-1, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815” (“ASU 2020-1”). ASU 2020-1 is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2020-1 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in ASU 2020-1 are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company is evaluating the potential impact of adoption of this standard on its consolidated financial statements.

 

Other accounting standards have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the condensed consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

 

Note 4 - Due to related parties and management compensation

 

As of January 31, 2021, the Company had non-interest bearing, unsecured payables with no specified terms of repayment, due to an entity controlled by two Officers of the Company in the amount of $ nil and $172,390 as of April 30, 2020.

 

Note 5 - Unearned Revenue

 

As of the period ended January 31, 2021, the Company had unearned revenue in the amount of $107,086, which represents deposits from customers, and a balance of $nil as of April 30, 2020.

 

Note 6 - Transactions between entities under common control

 

The transactions that have been completed during the period ended January 31, 2021 have been accounted for pursuant to ASC 805-50, Transactions Between Entities Under Common Control. A common control transaction is similar to a business combination, however, does not meet the definition of a business combination, because there is no change in control over the entity by the parent. Therefore, the accounting and reporting for the transaction between entities under common control are outside the scope of the business combinations guidance in ASC 805-10, ASC 805-20, and ASC 805-30, and addressed in ASC 805-50.

 

  (a) On June 18, 2020, the Company acquired from Vanessa Miskuski and Chad Costa (key management of RCMW) certain intangible assets related to the pet supplement industry in exchange for 222,223 common shares. Pursuant to ASC 805-50-30-5 relating to transactions between entities under common control, the intangible assets had a $nil historical cost, and therefore, were recorded in Additional Paid in Capital.
     
  (b) On July 7, 2020, the Company acquired specified assets from Cannary Packaging Inc. in the form of Accounts Receivables, Inventory, Property and Equipment, and Intangible Assets in exchange for 4,962,654 common shares. Given the transaction was between two entities which principal owners have significant influence, the transaction was completed through ASC 805-50-30-5 relating to transactions between entities under common control as one of the owners of Cannary Packaging Inc. is key management of RCMW. The intangible assets had a $nil historical cost, and therefore, recorded in Additional Paid in Capital, while the other assets acquired were recorded at their historical cost.

 

The preliminary allocation of the consideration transferred is as follows:    
     
Shares issued in connection with acquisition  $2,233,194 
Shares to be issued in connection with acquisition   2,800 
Total purchase price  $2,235,994 
      
Accounts receivable  $239,046 
Inventory   1,835,558 
Net property, plant, and equipment   74,214 
Additional paid in capital   87,176 
Total preliminary purchase price allocation  $2,235,994 

 

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Note 7 - Asset Acquisition

 

On August 11, 2020, RCMW entered into a purchase and sale agreement dated August 11, 2020, to acquire substantially all the assets of True Leaf Pet Inc. (“TLP”) in exchange for $300,000 CAD ($222,222 USD). The closing of the transaction pursuant to the Sale Agreement (the “Transaction”) was subject to approval by the Court of the Transaction within 30 days of the execution date. The Transaction closed September 11, 2020.

 

The Transaction completed on September 11, 2020 did not meet the definition of a business in accordance with ASC 805, and was therefore, accounted for as an asset acquisition.

 

Preliminary purchase price adjustment
 
Consideration Paid (USD)  $222,222 
Total purchase price  $222,222 
      
Accounts receivable   66,234 
Inventory   152,388 
Net Property, plant, and equipment   3,600 
Total preliminary purchase price allocation  $222,222 

 

Note 8 - Common stock

 

The Company’s authorized share capital consists of 50 billion of shares of common stock and 10 billion of preferred stock. There are no preferred shares issued, and 9,890,950 common shares were issued and outstanding on January 31, 2021.

 

During the nine months ended January 31, 2021:

 

  The Company issued 222,223 shares of common stock to the owners of the assets as part of the Bulk Asset Purchase Agreement dated June 18, 2020 valued at $100,000 USD (Note 6(a)).
     
  The Company issued 4,856,202 shares of common stock to the stockholders of the assets as part of the Bulk Asset/Share Exchange Agreement dated July 7, 2020 valued at approximately $2,185,291 USD (Note 6(b)).
     
  On December 16, 2020, the Company issued 106,452 unregistered restricted common shares to three shareholders. The issuance of these shares goes back to the Asset/Share Exchange Agreement, where the Company’s subsidiary, 4033002 exchanged shares for non-operating assets owned by Cannary Packaging, Inc., a private British Columbia company, with approximately 58 shareholders. When the share exchange took place in July 2020 a clerical error was made, and these three shareholders failed to receive their pro-rata ownership in the exchange. The issuance of these 106,452 unregistered restricted common shares corrected this clerical error (Note 6(b)).
     
  On December 28, 2020, the Board, based on shareholder approval, ratified a 1:4,500 reverse stock split and the authorized shares are to remain at 50,000,000,000 with a par value of $0.00001. The Company’s number CUSIP number reflecting this reverse split and corporate name change to RCMW Group, Inc. is: 74937E102. FINRA approved the reverse stock split to take effect on February 24, 2021. With the corporate name change the Company’s stock symbol changed to HPTYD. New stock symbol RCMW was effective on March 24, 2021.
     
  On January 5, 2021, the Company entered into a Settlement Agreement with a shareholder of the Company. The Company reached a mutual understanding with a shareholder to cancel 150,000 (post-split) common shares in exchange for its ownership rights of Hemp Biotech, Inc., an inactive Kentucky entity, with $nil carrying value. As part of the agreement, the Company paid $9,500 which included covering the Processor/Handler Licensing with the State of Kentucky for 2021 for this entity and the shareholder agreed to remove any references or associations with the Company. On March 3, 2021, the Company cancelled 150,000 shares of its common stock and these shares were returned to the corporate treasury.

 

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Note 9 - Loan

 

On August 21, 2020, the Company secured a payable servicing and security agreement with Bespoke Financial, Inc., whereby the Company have the right to drawing up to maximum of $300,000 USD. This was increased to $600,000 during the current period. The credit facility is personally guaranteed by specific key management personnel. The credit facility bore interest at a range of rates between 0.11% to 0.21% per day over the term for each individual financing. As of the period ending January 31, 2021, the Company had drawn on $599,552 of the credit facility and incurred an interest expense of $54,012.

 

On December 23, 2020, the Company entered into an agreement of sale of future receivables with Upwise Capital, a Connecticut Limited Liability Company, whereby the Company obtained a loan for $200,000 USD. The loan bore interest at the rate of 1.424% per week over a nine-month term and is being repaid at a rate of $6,878 per week. As of the period ending January 31, 2021, the balance owing on the loan was $179,262 and an interest expense of $14,912 had been incurred.

 

Note 10 - Commitments and Contingencies

 

Claims and Litigation

 

From time to time, the Company and/or its subsidiaries may become defendants in legal actions and the Company intends to defend itself against all legal claims. As of the date of this report, the Company is not aware of any material or significant claims against it.

 

Commitments

 

The Company has a $5,021 monthly lease commitment related to the office space, facilities and warehouses expiring on July 31, 2023.

 

Note 11 - Covid 19

 

On March 11, 2020, the World Health Organization (“WHO”) recognized COVID-19 as a global pandemic, prompting many national, regional, and local governments, including in the markets that the Company operates in, to implement preventative or protective measures, such as travel and business restrictions, temporary store closures, and wide-sweeping quarantines and stay-at-home orders.

 

As a result, COVID-19 has significantly curtailed global economic activity, including in the industries in which the Company operates. The full extent of the pandemic, related business and travel restrictions, governmental regulations and changes to consumer behavior intended to reduce its spread are uncertain as of the date of this Quarterly Report on Form 10-Q, and the timing of the peak of the pandemic and its ultimate impact on the U.S. and global economies remains uncertain.

 

Therefore, the full extent to which the COVID-19 pandemic may impact our results of operations, liquidity or financial position is uncertain. In addition, the COVID-19 pandemic has had and is likely to continue to have adverse effects on our clients, suppliers and third-party business partners. Management continues to monitor the impact that the COVID-19 pandemic is having on the Company and the economies in which we operate. We anticipate that our liquidity may be materially impacted by the COVID-19 pandemic and we expect that the effect of the COVID-19 pandemic will not be fully reflected in our results of operations and overall financial performance until future periods.

 

We will continue to actively monitor the development of the COVID-19 pandemic and may take further actions that alter our business operations as may be required by federal, state or local authorities or that we determine are in the best interests of our employees, clients, partners, and stockholders.

 

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Note 12 - Subsequent Events

 

  On February 1, 2021, the Company entered into a Settlement Agreement and Mutual Release with a shareholder of the Company. The purpose of the agreement was to terminate the business relationship with the shareholder. Both the Company and shareholder mutually decided that their business relationship was not beneficial for both the shareholder and Company and they mutually agreed to terminate this business relationship. In this private transaction, the shareholder agreed to sell his 77,778 (post-split) restricted common shares to the Company for $4,000. As a result, $4,000 in cash was paid to the shareholder in exchange for cancellation of his restricted common shares in the Company. The share certificate in is the process of being cancelled and returned to the Company’s Treasury.
     
  On February 4, 2021, the Company issued 6,223 unregistered restricted common shares to one shareholder. The issuance of these shares goes back to the Asset/Share Exchange Agreement, where the Company’s subsidiary, 4033002 exchanged shares for non-operating assets owned by Cannary Packaging, Inc., a private British Columbia company, with approximately 58 shareholders. When the share exchange took place in July 2020 a clerical error was made, and this shareholder failed to receive their pro-rata ownership in the exchange. The issuance of these 6,223 unregistered, restricted common shares corrected this clerical error.
     
  On March 3, 2021, the Company issued 240,000 unregistered restricted common shares from its Treasury to its three named executives for the Named Executive Officers Stock Compensation Plan.
     
  On March 3, 2021, the Company issued 80,000 unregistered restricted common shares from its Treasury to one shareholder as a COVID-19 Retention Bonus.
     
  On March 3, 2021, the Company issued 102,000 unregistered restricted common shares from its Treasury to one shareholder for legal services.

 

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

 

Introduction

 

This Management’s Discussion and Analysis (“MD&A”) should be read together with other information, including our unaudited interim condensed consolidated financial statements and the related notes to those statements included in Part I, Item 1 of this Quarterly Report (the “Interim Financial Statements”), our consolidated financial statements appearing in our Annual Report on Form 10-K for the year ended April 30, 2020 and Part I, Item 1A, Risk Factors, of the Annual Report. This MD&A provides additional information on our business, recent developments, financial condition, cash flows and results of operations, and is organized as follows:

 

 

Part 1 - Business Overview. This section provides a general description of our business, which we believe is important in understanding the results of our operations, financial condition, and potential future trends.

 

 

Part 2 - Results of Operations. This section provides an analysis of our results of operations for the third quarter of fiscal 2021 in comparison to the third quarter of fiscal 2020, and for the nine months ended January 31, 2021 in comparison to the nine months ended January 31, 2020.

 

  Part 3 - Financial Liquidity and Capital Resources. This section provides an analysis of our cash flows and outstanding debt and commitments. Included in this analysis is a discussion of the amount of financial capacity available to fund our ongoing operations and future commitments.

 

We prepare and report our Interim Financial Statements in accordance with U.S. GAAP. Our Interim Financial Statements, and the financial information contained herein, are reported in US dollars, except share and per share amounts or as otherwise stated.

 

As used in this Form 10-Q statement, the terms “we”, “us” and “our” mean RCMW Group, Inc. (formerly “Hemp Technology Inc.”) (“RCMW”) and its subsidiaries, Hemp Technology Inc., Hemp Biotech Inc., 4033000, 4033001 and 4033002 unless otherwise specified. In this Form 10-Q statement, the terms “dollar”, “US$” or “$” refer to United States dollars and the term CDN$ refers to Canadian dollars.

 

Forward-Looking Statements

 

This Form 10-Q statement contains forward-looking statements. Forward-looking statements are projections in respect of future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “intend”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, including the risks in the section entitled “Risk Factors”, uncertainties and other factors, which may cause our company’s or our industry’s actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity or performance. Except as required by applicable law, including the securities laws of the United States and Canada, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

 

Forward-looking statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management’s current expectations and plans relating to the future, and the reader is cautioned that the forward-looking statements may not be appropriate for any other purpose. While we believe that the assumptions and expectations reflected in the forward-looking statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-looking statements are made as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking statements, except as required by law. The forward-looking statements contained in this Quarterly Report and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements.

 

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Part 1 - Business Overview

 

Corporate History

 

Our Company was originally incorporated in July 2005 in Nevada under the name “Loma Verde Inc.” Our Company was initially formed for the purpose of acquiring and developing mineral properties and was therefore considered to be in the pre-exploration stage. Mineral claims with unknown reserves were acquired, but we did not establish the existence of commercially mineable ore deposits and we decided to abandon our mineral claims and to pursue other business opportunities, one of which was the alternative energy business.

 

In March 2007, we engaged in a merger with our wholly owned subsidiary, “Clean Power Concepts Inc.”, for the purpose of changing our name.

 

In April 2010, we changed our business focus to the operation of the business conducted by our subsidiary “General Bio Energy Inc.”, which was focused on the environmentally friendly green energy industry. General Bio Energy Inc. was incorporated in the Province of Saskatchewan in February 2006 under the name “Canadian Green Fuels Inc.” and changed its name to “General Bio Energy Inc.” in September 2008. General Bio Energy Inc. commenced its pre-production stage in May 2006 and began selling products in July 2008. From 2008 to 2011, we were engaged in the development of a bioenergy business focused on agricultural processing and the environmentally friendly green energy industry. We produced a range of products manufactured by crushing oilseeds and refining the by-products. Our subsidiary, General Bio Energy Inc., operated a fully integrated commercial oilseed crushing, bio-diesel refinery, which used its proprietary processes to produce two main co-products, oil and meal, each of which were further processed and then sold. The oil products produced from this process could be divided into three subcategories: (i) vegetable oil for human and animal consumption; (ii) biofuel and biofuel additives; and (iii) environmental lubricants and conditioners, penetrating sprays, dust suppressants, cutting oils and other “ECO-lubricants”. We also added a new group of oil products to our product mix: natural consumer health products. The meal and protein related products were used for agricultural and aquaculture feedstock. We considered our facility to be a “green” manufacturing facility because it had minimal effluents, using methods which are emissions friendly. Our production facility and head office were located in Regina, Saskatchewan.

 

From 2012 to 2018, we focused on clearing our debts from prior biofuels operations by issuing shares in exchange for the settlement of these liabilities, and on seeking a different venture for our shareholders. In 2013, our company redomiciled its corporate jurisdiction to the State of Wyoming.

 

Our Current Business

 

On January 18, 2020, we changed our name to Hemp Technology Inc. and announced a new business plan in the emerging hemp related products business. We hired new management to carry out these plans and raised $0.3 million seed capital between March and September 2020 to commence the process. On December 28, 2020, we changed our corporate name from Hemp Technology Inc. to RCWM Group, Inc.

 

17

 

 

The Company operates and intends to further obtain a diversified portfolio of subsidiary companies. Focusing on a variety of assets, products, and ancillary offerings in the hemp and related industries, the Company’s fluid business model is positioned to capitalize on, and adapt to, changing market conditions. Management of the Company continues to seek opportunities and strategic acquisitions that support its business model. RCMW Group, Inc. (formerly “Hemp Technology Inc.”), operates and intends to further augment their diversified portfolio of subsidiary companies. Focusing on a variety of assets, products, and ancillary offerings in the hemp and related industries, RCMW’s fluid business model is positioned to capitalize on, and quickly adapt to, changing market conditions. The Company is continually seeking opportunities and strategic acquisitions that support its business model and maintain alignment with the dynamic industry environment. The Company consists of subsidiaries which hold two hemp processing licenses in the state of Kentucky, Cannary Distribution in the Los Angeles metropolitan area, Verified Vapes, hardware manufacturer, Pettanicals, a high-quality nutritional pet supplement performance products brand and True Leaf Pet, a high-quality hemp seed-based pet supplement brand. The Company currently has operations in the U.S. and Canada.

 

On May 2, 2020, RCMW (then Hemp Technology Inc.), a Wyoming corporation and its wholly owned subsidiary 4033002, a newly formed Wyoming Corporation entered into an Asset/Share Exchange Agreement and corresponding Bulk Asset Sale Agreement with Cannary Packaging, Inc., (“Cannary”), a private British Columbia company. Under the terms of the Asset/Share Exchange Agreement, Cannary agreed to exchange its non-operating assets to 4033002, the Registrant’s subsidiary. The non-operating assets were valued at approximately $2,230,000 and were exchanged for 4,962,654 of the Registrant’s unregistered restricted common shares (the “Issued Shares”) of newly issued common stock to existing shareholders of Cannary based on their pro-rata ownership in Cannary.

 

On December 16, 2020, the Company issued 106,452 unregistered restricted common shares to three shareholders. The issuance of these shares goes back to the Asset/Share Exchange Agreement, where the Company’s subsidiary, 4033002 exchanged shares for non-operating assets owned by Cannary Packaging, Inc., a private British Columbia company, with approximately 58 shareholders. When the share exchange took place in July 2020 a clerical error was made, and these three shareholders failed to receive their pro-rata ownership in the exchange. The issuance of these 106,452 unregistered restricted common shares corrected this clerical error.

 

On February 4, 2021, the Company issued 6,223 unregistered, restricted common shares to one shareholder. The issuance of these shares goes back to the Asset/Share Exchange Agreement, where the Company’s subsidiary, 4033002 exchanged shares for non-operating assets owned by Cannary Packaging, Inc., a private British Columbia company, with approximately 58 shareholders. When the share exchange took place in July 2020 a clerical error was made, and this shareholder failed to receive their pro-rata ownership in the exchange. The issuance of these 6,223 unregistered, restricted common shares corrected this clerical error.

 

The purpose of acquiring these Non-Operating Assets is twofold: 1) 4033002 becomes the operating asset acquisition subsidiary for the Registrant; and 2) the acquisition of these Non-Operating Assets helps qualify Registrant for a NASDAQ listing.

 

18

 

 

On May 20, 2020, RCMW (then Hemp Technology Inc.), a Wyoming corporation (the “Registrant” or “the Company”) and its wholly owned subsidiary 4033001, a newly formed Wyoming Corporation entered into a Bulk Asset Sale Purchase Agreement with Vanessa Miskuski and Chad Costa. Under the terms of the Bulk Asset Sales Purchase Agreement Vanessa and Chad Costa agreed to sell to 4033001, the Registrant’s subsidiary, intangible assets valued at historical cost, in exchanged for 1,000,000,000 unregistered restricted common shares of the Registrant. The intangible assets were formerly owned by Pettanicals Pet Treats, Inc., a private Canadian company, which has been dissolved in accordance with section 314(1) of the British Columbia Business Corporations Act. Management believes that by purchasing these intangibles, it may be able to revive the pet vitamin business, which is now defunct. There is no assurance or guarantees that management will be successful or able to revive this former business.

 

On September 11, 2020, RCMW (then Hemp Technology Inc.), a Wyoming corporation and its wholly owned subsidiary 4033001, a newly formed Wyoming Corporation, completed its acquisition of True Leaf Pet Inc.’s assets. The two companies first entered into the bulk asset purchase agreement on August 11, 2020. The bulk asset purchase agreement (the “Transaction”) was subject to approval by the Court of the Transaction within 30 days of the execution date. The Transaction closed on September 11, 2020.

 

Update on the COVID-19 Pandemic

 

On March 11, 2020, the World Health Organization (“WHO”) recognized COVID-19 as a global pandemic, prompting many national, regional, and local governments, including in the markets that the Company operates in, to implement preventative or protective measures, such as travel and business restrictions, temporary store closures, and wide-sweeping quarantines and stay-at-home orders.

 

As a result, COVID-19 has significantly curtailed global economic activity, including in the industries in which the Company operates. The full extent of the pandemic, related business and travel restrictions, governmental regulations and changes to consumer behavior intended to reduce its spread are uncertain as of the date of this Quarterly Report on Form 10-Q, and the timing of the peak of the pandemic and its ultimate impact on the U.S. and global economies remains uncertain.

 

Therefore, the full extent to which the COVID-19 pandemic may impact our results of operations, liquidity or financial position is uncertain. In addition, the COVID-19 pandemic has had and is likely to continue to have adverse effects on our clients, suppliers and third-party business partners. Management continues to monitor the impact that the COVID-19 pandemic is having on the Company and the economies in which we operate. We anticipate that our liquidity may be materially impacted by the COVID-19 pandemic and we expect that the effect of the COVID-19 pandemic will not be fully reflected in our results of operations and overall financial performance until future periods.

 

We will continue to actively monitor the development of the COVID-19 pandemic and may take further actions that alter our business operations as may be required by federal, state or local authorities or that we determine are in the best interests of our employees, clients, partners, and stockholders.

 

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Part 2 - Results of Operations

 

Revenue

 

Comprised of approximately 65% of sales made to other distributors and the remaining 35% to business to business (“B2B”) customers. Revenue had been consistent for the first two quarters with a monthly average of $ 894,821. During this quarter, revenue decreased primarily due to a general, and expected, decrease of orders over the holiday period. In addition, there was a return of approximately $700,000 made during the current period that related to prior period sales. A full refund was issued to the customer and the Company was able to receive a full refund on the costs from the manufacturing facility due to manufacturer’s defects. The net impact to the current period for this return was approximately $153,000. The sales to this customer are expected to begin to return to the same levels as in the first half of the fiscal year during the final quarter of this fiscal year.

 

A key indicator used by management is upcoming sales orders as, for a portion of our business, there can be a significant gap between order placement and fulfilment. As of January 31, 2021, the Company had approximately $260,000 open sales orders. At the date of this report, the Company had recognized revenue for approximately $235,000, or 91%, of these orders.

 

Operating Expenses

 

We incurred operating expenses of $1,141,882 during the nine months ended January 31, 2021. These expenses were primarily the result of engaging key staff to develop our business plan and fulfilling public company reporting obligations. Generally, the operation expenses were much lower due to the reduction of startup costs and staff being laid off due to the pandemic as a result of the Corona Virus (Covid-19).

 

Net Income from Operations

 

We incurred a net operating loss of $1,117,608, before other income and a provision for income taxes, during the nine-month period ended January 31, 2021 and a net loss of $292,449 in the comparable period in 2019.

 

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The following tables set forth, for the periods indicated, statements of operations data. The tables and the discussion above should be read in conjunction with the accompanying unaudited interim condensed consolidated financial statements and the notes thereto in this report.

 

Consolidated Results

 

Revenues                
                 
   Three months ended January 31,       Percent 
   2021   2020   Change   Change 
Revenues  $282,987    -   $282,987    100%
Costs and expenses   1,424,980    81,220    1,343,760    94%
Net Income (Loss) from operations  $(1,141,993)   (81,220)  $(1,060,773)   93%
                     

 

    Nine months ended January 31,           Percent  
    2021     2020     Change     Change  
Revenues   $ 3,638,568       -     $ 3,638,568       100 %
Costs and expenses     4,756,176       292,449       4,463,727       94 %
Net Income (Loss) from operations   $ (1,117,608 )     (292,449 )   $ (825,159 )     74 %

 

Costs and expenses                        
                         
    Three months ended January 31,           Percent  
    2021     2020     Change     Change  
Cost of sales   $ 116,090             $ 116,090       100 %
Inventory write-down     688,973       -       688,973       100 %
                                 
Selling, general and administrative     616,834       81,220       535,614       87 %
Depreciation and amortization     3,083       0       3,083       100 %
    $ 619,917       81,220     $ 538,697       87 %

 

    Nine months ended January 31,           Percent  
    2021     2020     Change     Change  
Cost of sales   $ 2,925,321       -     $ 2,925,321       100 %
Inventory write-down     688,973       -       688,973       100 %
                                 
Selling, general and administrative     1,134,468       292,449       842,019       74 %
Depreciation and amortization     7,414       -       7,414       100 %
    $ 1,141,882       292,449     $ 849,433       74 %

 

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Part 3 - Financial Liquidity and Capital Resources

 

Liquidity and Capital Resources                
                 
   For the Three Months Ended   For the Nine Months Ended 
   January 31,   January 31, 
   2021   2020   2021   2020 
Cash flow from operating activities  $(418,769)   (48,148)  $(292,586)   (162,169)
Cash flow from financing activities   345,049    31,475    367,661    86,967 
Net cash flow  $(73,720)   (16,673)  $75,075    (75,202)

 

Net cash used in operating activities

 

For the nine-month period ended January 31, 2021, the Company had a net loss of $1,186,532. Accounts payable increased by $528,721 during the period mainly due to purchasing inventory and regular business expenses, prepaids increased by $655,263 during the period mainly due to prepayment on purchasing inventory. There was an increase in accounts receivable of $188,409, which has largely been collected, and unearned revenues of $107,086, which has largely been earned, and a decrease in inventories of $1,025,473 which was impacted by inventory write-downs of $688,973. During the comparable period during the 2020 fiscal year, the Company had minimal activity.

 

Net cash provided by financing activities

 

During the nine-month period ended January 31, 2021, the Company received financing in the amount of $1,385,312, of which $678,894 has been repaid and had a decrease in amounts due to related parties of $172,390. In addition, an investment was made towards exploring access to the European market for our pet supplement business with prepayments made of $152,955. During the comparable periods in fiscal 2020, the Company had amounts due to related parties of $60,552 and shares issued for cash of $26,415 in financing activities.

 

Working capital

 

   As of   As of 
   January 31, 2021   April 30, 2020 
Current Assets  $1,968,848   $970 
Current Liabilities   1,453,650    214,890 
Working Capital (Deficit)  $515,198   $(213,920)

 

The Company’s current assets are substantially made up of accounts receivable, prepaid expenses, and inventories. Cash balances increased since April 30, 2020.

 

The Company’s current liabilities are substantially made up of accounts payable and accrued liabilities, loans in the amount of $775,343 and unearned revenues in the amount of $107,086.

 

22

 

 

Going concern

 

The Company has incurred continuing losses from its operations and as of January 31, 2021, the Company had an accumulated deficit of $8,617,397 resulting primarily from its previous biofuels business. The Company had a net loss of $353,875 during its most recent year ended April 30, 2020 and a net loss of $1,186,532 in the nine months ended January 31, 2021.

 

Off Balance Sheet Arrangements

 

As of January 31, 2021, the Company had no off balance-sheet arrangements. The Company has not entered into any specialized financial agreements to minimize its investment risk, currency risk or commodity risk.

 

Critical Accounting Estimates and Policies

 

The preparation of these interim condensed consolidated financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the interim condensed consolidated financial statements and reported amounts of expenses during the reporting period.

 

Significant assumptions about the future and other sources of estimation uncertainty that management has made at the end of the reporting period, that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, include, but are not limited to, the following: fair value of transactions involving shares of common stock, assessment of the useful life and evaluation for impairment of capital assets. Other areas requiring estimates include allocations of expenditures, valuation of accounts receivable and inventories and amortization of capital assets.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

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

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

As of the end of the period covered by this report, our principal executive officer and principal financial officer evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on their evaluation of our disclosure controls and procedures, our principal executive officer and principal financial officer, concluded that our disclosure controls and procedures were not effective as of January 31, 2021, to ensure that information required to be disclosed by the Company in the reports that we file or submit under the Exchange Act is (a) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (b) accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate to allow for timely decisions regarding required disclosure.

 

23

 

 

Description of Material Weakness

 

Management has concluded that the Company’s disclosure controls and procedures were not effective as of January 31, 2021, due to the lack of segregation of duties, internal miscommunications, lack of timely review of the financials; and need for an audit committee.

 

Remediation of Material Weakness

 

Management is developing a plan to institute protocols to avoid miscommunications and to identify causes of the control deficiencies that give rise to the material weaknesses. Until the remediation efforts are fully implemented, and an audit committee is appointed, management expects material weaknesses will continue to exist.

 

Remediation Efforts Management

 

Management is committed to the remediation of the material weaknesses, as well as the continued improvement of our internal control over financial reporting. To address the material weakness noted above, the Company is in the process of:

 

1) Putting into effect chronological actions, effective immediately, to begin preparing the financials immediately after the reporting period. Such measures would include to immediately send over to the independent auditor’s preliminary financials, at which point, the Company will contact its law firm with these preliminary financials. Also, establish a channel of communications with the Company’s law firm, its independent auditors and the filing agent to ensure that proper sign-off has been secured from the independent auditors before the filing agent makes any filing;

 

2) reviewing and updating the required timeline and requirements for the accounting close to provide sufficient time to review the financials and footnotes in the inclusion of the interim condensed consolidated financial statements;

 

3) reviewing recent and subsequent events to ensure adequate resources to ensure readiness and timeliness to be included in the Company’s financial statements;

 

4) assessing the required training needs to ascertain continuous development of existing personnel;

 

5) developing a segregation of duties, where checks and balances can be established in preparing the financials; and

 

6) when resources become available, establish an audit committee.

 

It is our goal to continue our evaluation and improve our internal control over financial reporting, management may modify the actions described above or identify and take additional measures to address control deficiencies. The Company is in the process of implementing the internal control processes effective immediately.

 

Changes in Internal Control over Financial Reporting

 

We believe the remedial measures discussed above will help us remediate the material weaknesses noted. We believe the corrective actions and controls need to be in operation for a sufficient period of time for management to conclude that the control environment is operating effectively and has been adequately tested through audit procedures. Accordingly, the material weaknesses have not been remediated as of the date of this report. As we continue to evaluate and work to remediate the control deficiencies that gave rise to the material weaknesses, we may determine that additional measures or time are required to address the control deficiencies or that we need to modify or otherwise adjust the remediation measures described above. We will continue to assess the effectiveness of our remediation efforts in connection with our evaluation of our internal control over financial reporting.

 

24

 

 

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings

 

In the opinion of management, we are not involved in any claims, legal actions or regulatory proceedings as of January 31, 2021, the ultimate disposition of which would have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

 

Item 1A. Risk Factors

 

For information on risk factors, please refer to “Risk Factors” in the Company’s Form 10-K Statement, Section 1A, for the year ended April 30, 2020.

 

Item 2. Unregistered Sales of Equity Securities

 

On December 16, 2020, the Company issued 106,452 unregistered restricted common shares from its Treasury to three shareholders. The issuance of these shares goes back to the Asset/Share Exchange Agreement, where the Company’s subsidiary, 4033002 exchanged shares for non-operating assets owned by Cannary Packaging, Inc., a private British Columbia company, with approximately 58 shareholders. When the share exchange took place in July 2020 a clerical error was made, and these three shareholders failed to receive their pro-rata ownership in the exchange.

 

Subsequent Event Share Issuances/Cancellation

 

  On February 1, 2021, the Company entered into a Settlement Agreement and Mutual Release with a shareholder of the Company. The purpose of the agreement was to terminate the business relationship with the shareholder. Both the Company and shareholder mutually decided that their business relationship was not beneficial for both the shareholder and Company and they mutually agreed to terminate this business relationship. In this private transaction, the shareholder agreed to sell his 77,778 (post-split) restricted common shares to the Company for $4,000. As a result, $4,000 in cash was paid to the shareholder in exchange for cancellation of his restricted common shares in the Company. The share certificate in is the process of being cancelled and returned to the Company’s Treasury.
     
  On February 4, 2021, the Company issued 6,223 unregistered restricted common shares to one shareholder. The issuance of these shares goes back to the Asset/Share Exchange Agreement, where the Company’s subsidiary, 4033002 exchanged shares for non-operating assets owned by Cannary Packaging, Inc., a private British Columbia company, with approximately 58 shareholders. When the share exchange took place in July 2020 a clerical error was made, and this shareholder failed to receive their pro-rata ownership in the exchange. The issuance of these 6,223 unregistered, restricted common shares corrected this clerical error.
     
  On March 3, 2021, the Company issued 240,000 unregistered restricted common shares from its Treasury to its three named executives for the Named Executive Officers Stock Compensation Plan.
     
  On March 3, 2021, the Company issued 80,000 unregistered restricted common shares from its Treasury to one shareholder as a COVID-19 Retention Bonus.
     
  On March 3, 2021, the Company issued 102,000 unregistered restricted common shares from its Treasury to one shareholder for legal services.
     
  On March 3, 2021, the Company cancelled 150,000 shares of its common stock and these shares were returned to the corporate treasury. This related to a January 5, 2021 agreement where the Company reached a mutual understanding with a shareholder to cancel 150,000 common shares, par value $0.00001, in exchange for its ownership rights of Hemp Biotech, Inc., an inactive Kentucky entity.

 

Item 5. Other Information

 

  On December 28, 2020, the Board, based on shareholder approval ratified a 1:4,500 reverse stock split. The Company’s number CUSIP number reflecting this reverse split and corporate name change to RCMW Group, Inc. is: 74937E102. FINRA approved the reverse stock split to take effect on February 24, 2021. With the corporate name change the Company’s stock symbol changed to HPTYD. New stock symbol RCMW was effective on March 24, 2021.

 

  The British Columbia Securities Commission (“BCSC”) of Canada has initiated a cease trade order (“CTO”) on the Company. The CTO was issued for failure to file comparative annual financial statements, as required under Part 4 of National Instrument 51-102 Continuous Disclosure Obligations (“NI 51-102”). The Company has been fully reporting with the SEC since March 30, 2020 and is current with its filings. In an effort to revoke this CTO, in March, 2021 the Company started reporting its financials in the Canadian SEDAR system. The vast majority of the Company’s shareholders are U.S. residents. Management has taken this CTO very seriously and has taken the necessary steps to meet the financial reporting requirements. Further, management has engaged legal counsel in Canada to help them revoke this CTO. It is difficult to determine how long this CTO will remain in effect.

 

25

 

 

Item 6. Exhibits

 

Exhibit

No.

  Description   Form Type   Exhibit No   Filed Date
                 
3.1   Articles   10-12G   3.1   01/02/2020
                 
3.2   Bylaws, as currently in effect   10-12G   3.2   01/02/2020
                 
3.10   Original Articles (10/17/2005)   10-12G/A   3.10   02/21/2020
                 
3.11   Articles of Domestication, as currently in effect   10-12G/A   3.11   03/18/2020
                 
3.13   Amended Articles   8-K   3.13   12/30/2020
                 
31.1   Rule 13a-14(a)/15d-14(a) Certification – Chief Executive Officer            
                 
31.2   Rule 13a-14(a)/15d-14(a) Certification – Chief Financial Officer            
                 
32.1   Section 1350 Certifications – Chief Executive Officer            
                 
32.2   Section 1350 Certifications – Chief Financial Officer            
                 
101.INS(1)   XBRL Instance Document            
                 
101.SCH(1)   XBRL Taxonomy Extension Schema            
                 
101.CAL(1)   XBRL Taxonomy Extension Calculation Linkbase Document            
                 
101.DEF(1)   XBRL Taxonomy Extension Definition Linkbase Document            
                 
101.LAB(1)   XBRL Taxonomy Extension Label Linkbase Document            
                 
101.PRE(1)   XBRL Taxonomy Extension Presentation Linkbase Document            

 

(1)

Pursuant to Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 or 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

 

26

 

 

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.

 

  RCMW GROUP, INC.
     
Date: May 19, 2021 By: /s/ Michael D. Shenher
    Michael D. Shenher
   

Chief Executive Officer

(Principal executive officer)

     
Date: May 19, 2021 By: /s/ Walter Schredl
    Walter Schredl
   

Chief Financial Officer

(Principal financial and accounting officer)

 

27

 

EX-31.1 2 ex31-1.htm

 

 

EXHIBIT 31.1

 

Rule 13a-14(a)/15d-14(a) Certifications

 

I, Michael D. Shenher, certify that:

 

1. I have reviewed this report on Form 10-Q/A-2 of RCMW Group, Inc. (formerly “Hemp Technology Inc.”);

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

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

 

(e) All significant deficiencies and material weakness 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

 

(f) 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: May 19, 2021  
   
/s/ Michael D. Shenher  
Michael D. Shenher  
(Chief Executive Officer)  
   
 

 

EX-31.2 3 ex31-2.htm

 

EXHIBIT 31.2

 

Rule 13a-14(a)/15d-14(a) Certifications

 

I, Walter Schredl, certify that:

 

1. I have reviewed this report on Form 10-Q/A-2 of RCMW Group, Inc. (formerly “Hemp Technology Inc.”);

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(g) 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;

 

(h) 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;

 

(i) 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

 

(j) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

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

 

(k) All significant deficiencies and material weakness 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

 

(l) 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: May 19, 2021  
   
/s/ Walter Schredl  
Chief Financial Officer  
(Principal financial and accounting officer)  

 

 

 

EX-32.1 4 ex32-1.htm

 

EXHIBIT 32.1

 

Section 1350 Certifications

 

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of RCMW Group, Inc. (the “Company”) certifies to his knowledge that:

 

(1) The Quarterly Report on Form 10-Q/A-2 of the Company for the quarterly period ended January 31, 2021 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 that Form 10-Q/A-2 fairly presents, in all material respects, the financial conditions and results of operations of the Company.

 

/s/ Michael D. Shenher  
(Michael D. Shenher)  
Chief Executive Officer  
   
May 19, 2021  
Date  

 

A signed original of this written statement required by Section 906 has been provided to RCMW Group, Inc. and will be retained by RCMW Group, Inc. and furnished to the U.S. Securities and Exchange Commission or its staff upon request.

 

 

 

EX-32.2 5 ex32-2.htm

 

EXHIBIT 32.2

 

Section 1350 Certifications

 

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of RCMW Group, Inc. (the “Company”) certifies to his knowledge that:

 

  1) The Quarterly Report on Form 10-Q/A-2 of the Company for the quarterly period ended January 31, 2021 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 that Form 10-Q/A-2 fairly presents, in all material respects, the financial conditions and results of operations of the Company.

 

Date: May 19, 2021  
   
/s/ Walter Schredl  
(Walter Schredl)  
Chief Financial Officer  

 

A signed original of this written statement required by Section 906 has been provided to RCMW Group, Inc. and will be retained by RCMW Group, Inc. and furnished to the U.S. Securities and Exchange Commission or its staff upon request.

 

 

 

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Document and Entity Information - shares
9 Months Ended
Jan. 31, 2021
Mar. 26, 2021
Cover [Abstract]    
Entity Registrant Name RCMW Group, Inc.  
Entity Central Index Key 0001797956  
Document Type 10-Q/A  
Document Period End Date Jan. 31, 2021  
Amendment Flag true  
Amendment Description This Amendment No. 2 on Form 10-Q/A-2 amends RCMW Group, Inc. ("the Company") Quarterly Report on Form 10-Q ("the Original Form 10-Q') for the quarter ended January 31, 2021, which was previously filed with the U.S. Securities Exchange Commission ("SEC") on March 26, 2021 and amends Form 10-Q/A-1 filed on March 30, 2021 for the same reporting period.This Amendment No. 2 is being filed to include current information regarding a cease trade order by the British Columbia Securities Commission, where they require the Company to have current financial information available, before they will revoke the cease trade order. See Other Information in Part II, Item 5.Except as referenced above, no other changes have been made to the Form 10-Q/A-2. This Amendment No. 2 does not reflect any subsequent events occurring after the March 26, 2021 filing date of the Original Form 10-Q or modify or update in any way disclosures made in the original filing.Pursuant to the rules of the SEC, Part II, Item 6 of this Form 10-Q/A-2 includes the currently-dated certifications from our principal executive officer and principal financial officer, as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002. The certifications of the principal executive officer and principal financial officer are included in this Form 10-Q/A as Exhibits 31.1, 31.2, 32.1 and 32.2.  
Current Fiscal Year End Date --04-30  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business Flag true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   10,169,173
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2021  
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Interim Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
Jan. 31, 2021
Apr. 30, 2020
Current Assets:    
Cash $ 76,045 $ 970
Accounts receivable 427,455
Prepaid expenses and other current assets 655,263
Inventories 810,085
Total Current Assets 1,968,848 970
Prepaid expenses and other long-term assets 152,955
Property and equipment, net 70,712
TOTAL ASSETS 2,192,515 970
Current Liabilities:    
Accounts payable and accrued liabilities 571,221 42,500
Loan 775,343
Unearned revenue 107,086
Due to related parties 172,390
Total Current Liabilities 1,453,650 214,890
TOTAL LIABILITIES 1,453,650 214,890
SHAREHOLDERS' EQUITY    
Share Capital Common stock, $0.00001 par value, 50,000,000,000 shares authorized; 9,890,950 shares issued and outstanding as of January 31, 2021 and 4,705,849 as of April 30, 2020 respectively 99 47
Shares to be issued 2,800
Treasury stock, at cost (150,000 shares) (9,500)
Additional paid in capital 9,362,863 7,216,898
Accumulated deficit (8,617,397) (7,430,865)
TOTAL SHAREHOLDERS' EQUITY 738,865 (213,920)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,192,515 $ 970
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Interim Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Jan. 31, 2021
Apr. 30, 2020
Statement of Financial Position [Abstract]    
Treasury stock, shares 150,000
Common stock, par value $ 0.00001 $ 0.00001
Common stock, shares authorized 50,000,000,000 50,000,000,000
Common stock, shares issued 9,890,950 4,705,849
Common stock, shares outstanding 9,890,950 4,705,849
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Interim Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2021
Jan. 31, 2020
Income Statement [Abstract]        
Revenues, net of discounts $ 282,987 $ 3,638,568
Cost of Goods Sold, net 116,090 2,925,321
Inventory write-down 688,973 688,973
Gross Profit (Loss) (522,076) 24,274
Expenses:        
Selling, General, and Administrative 619,917 81,220 1,141,882 292,449
Total Expenses 619,917 81,220 1,141,882 292,449
Loss From Operations (1,141,993) (81,220) (1,117,608) (292,449)
Other Income (Expenses)        
Interest (55,629) (68,924)
Total Other Income (Expenses) (55,629) (68,924)
Loss Before Income Taxes (1,197,622) (81,220) (1,186,532) (292,449)
Income Tax Expense
Net Comprehensive Loss $ (1,197,622) $ (81,220) $ (1,186,532) $ (292,449)
Net Loss per share - basic and diluted $ (0.12) $ (0.02) $ (0.14) $ (0.07)
Weighted average number of shares outstanding - basic and diluted 9,838,657 4,932,516 8,584,894 4,411,769
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Interim Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($)
Common Stock [Member]
Shares to be Issued [Member]
Treasury Stock, at Cost [Member]
Additional Paid in Capital [Member]
Deficit [Member]
Total
Balance at Apr. 30, 2019 $ 41 $ 191,551 $ 6,953,937 $ (7,076,990) $ 68,539
Balance, shares at Apr. 30, 2019 4,121,474          
Shares to be issued - services 45,000 45,000
Sales of shares $ 1 26,414 26,415
Sales of shares, shares 58,701          
Shares issued for Pettanicals deposit $ 2 101,998 102,000
Shares issued for Pettanicals deposit, shares 226,667          
Settle shares to be issued $ 5 (236,551) 236,546
Settle shares to be issued, shares 525,674          
Net Loss (292,449) (292,449)
Balance at Jan. 31, 2020 $ 49 7,318,895 (7,369,439) (50,495)
Balance, shares at Jan. 31, 2020 4,932,516          
Balance at Apr. 30, 2019 $ 41 191,551 6,953,937 (7,076,990) 68,539
Balance, shares at Apr. 30, 2019 4,121,474          
Net Loss           (353,875)
Balance at Apr. 30, 2020 $ 47 $ 7,216,898 $ (7,430,865) $ (213,920)
Balance, shares at Apr. 30, 2020 4,705,849          
Shares to be issued - stock split 224
Shares to be cancelled and returned to Treasury at Cost $ (9,500) $ (9,500)
Shares issued for Bulk Asset Purchase Cannary Packaging Inc. $ 50 2,800 2,233,144 2,235,994
Shares issued for Bulk Asset Purchase Cannary Packaging Inc., shares 4,962,654          
Shares issued for Bulk Asset Purchase Petannical Pet Treats $ 2 99,998   100,000
Shares issued for Bulk Asset Purchase Petannical Pet Treats, shares 222,223          
Shares issued for Bulk Asset Purchase Intangibles (187,177) (187,177)
Net Loss (1,186,532) (1,186,532)
Balance at Jan. 31, 2021 $ 99 $ 2,800 $ (9,500) $ 9,362,863 $ (8,617,397) $ 738,865
Balance, shares at Jan. 31, 2021 9,890,950          
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Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2021
Jan. 31, 2020
Apr. 30, 2020
Operating activities          
Net Loss $ (1,197,622) $ (81,220) $ (1,186,532) $ (292,449) $ (353,875)
Non-Cash Transactions          
Depreciation and amortization 3,083 7,414  
Interest expense 55,629 68,924  
Inventory write-down 688,973 688,973  
Shares to be issued - services rendered 45,000  
Changes in operating assets and liabilities:          
Accounts receivable 1,105,261 (188,409)  
Prepaid expenses and other current assets (492,022) (655,263)  
Inventories (707,617) 336,500  
Accounts payable and accrued liabilities 18,460 33,072 528,721 85,280  
Unearned revenue 107,086 107,086  
Net cash (used in) operating activities (418,769) (48,148) (292,586) (162,169)  
Financing activities          
Loan 879,552 1,385,312  
Loan repayment (371,839) (678,894)  
Prepaid expenses and other long-term assets (152,955) (152,955)  
Due to related party 31,475 (172,390) 60,552  
Property, equipment and intangible assets (209) (3,912)  
Shares cancelled for cash (9,500) (9,500)  
Shares issued for cash 26,415  
Net cash provided by financing activities 345,049 31,475 367,661 86,967  
Net changes in cash (73,720) (16,673) 75,075 (75,202)  
Cash at beginning of the period 149,765 27,452 970 85,981 85,981
Cash at end of the period $ 76,045 $ 10,779 $ 76,045 $ 10,779 $ 970
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Company Overview
9 Months Ended
Jan. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Company Overview

Note 1 - Company overview

 

RCMW Group, Inc. (formerly “Hemp Technology Inc.”) (“RCMW”) of Wyoming and its subsidiaries, Hemp Technology Inc. of Kentucky, Hemp Biotech Inc. of Kentucky (see Note 12 - Subsequent events), 4033000, 4033001, and 4033002 of Wyoming (collectively the “Company”) is publicly listed on the OTC under the symbol “HPTYD”. The symbol was changed to “RCMW” effective March 24, 2021. RCMW’s registered office is in Cheyenne, Wyoming.

 

The Company is established in the production, branding and marketing of consumer products. The Company’s primary products are non-nicotine vaporizer hardware, and related batteries for the cannabinoid marketplace, and hemp seed-based pet specialty supplements and products. The Company does not produce or sell medicinal or recreational marijuana or products derived from high-THC Cannabis/marijuana plants and is focused on the use of hemp seed derived oils and proteins

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Going Concern
9 Months Ended
Jan. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern

Note 2 - Going concern

 

These interim condensed consolidated financial statements are prepared on a going concern basis. The Company has incurred continuing losses from its operations and as of January 31, 2021, the Company had an accumulated deficit of $8,617,397 resulting primarily from its previous biofuels business. The Company had a net loss of $353,875 during its most recent year ended April 30, 2020 and a net loss of $1,186,532 in the nine months ended January 31, 2021. This casts substantial doubt on the Company’s ability to continue as a going concern unless it can begin to generate a net profit.

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Basis of Preparation
9 Months Ended
Jan. 31, 2021
Accounting Policies [Abstract]  
Basis of Preparation

Note 3 - Basis of preparation

 

The accompanying interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10–Q and Rule 10 of Regulation S–X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America. However, in the opinion of the management of the Company, all adjustments necessary for a fair presentation of the financial position and operating results have been included in these statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10 for the fiscal year ended April 30, 2020.

 

Basis of consolidation

 

The interim condensed consolidated financial statements include the accounts of RCMW and its subsidiaries as of January 31, 2021 and 2020. The Company has five wholly owned subsidiaries: Hemp Technology Inc. of Kentucky, Hemp Biotech Inc. of Kentucky, 4033000, 4033001 and 4033002 of Wyoming. Inter-company balances and transactions are eliminated in preparing the interim condensed consolidated financial statements. The accounting policies of the subsidiaries are consistent with RCMW.

 

Use of estimates

 

The preparation of interim condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of expenses. We believe that the accounting estimates employed are appropriate and that the resulting balances are reasonable; however, due to the inherent uncertainty in making estimates, actual results could differ from the original estimates, resulting in changes to these balances in future periods.

  

Net income (loss) per share

 

We calculate net income (loss) per share in accordance with Accounting Standards Codification (“ASC”) Topic 260, Earnings per Share. Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period, and diluted earnings per share is computed by including common stock equivalents outstanding for the period in the denominator. For the nine months period ended January 31, 2021 and 2020, any equivalents would have been anti-dilutive as we had losses for the periods then ended.

 

Foreign Currency Translation

 

The reporting currency of the Company is the United States dollar. The financial statements of subsidiaries located outside of the U.S. are measured in their functional currency, which is the local currency. The functional currency of RCMW is the U.S. dollar. Monetary assets and liabilities of these subsidiaries are translated at the exchange rates at the balance sheet date. Income and expense items are translated using average monthly exchange rates. Non-monetary assets are translated at their historical exchange rates. Translation adjustments are included in accumulated other comprehensive loss in the condensed consolidated balance sheets and net income (loss) on the statement of operations as comprehensive income (loss).

 

Fair Values of Financial Instruments

 

The carrying amounts of cash, accounts receivable, accounts payable, due to related parties, unearned revenues, loans, and other current liabilities approximate their fair value due to the short-term nature of these instruments. The Company’s operations and financing activities are conducted primarily in United States dollars and as a result, the Company is not subject to significant exposure to market risks from changes in foreign currency rates. The Company is exposed to credit risk through its cash but mitigates this risk by keeping these deposits at major financial institutions.

 

ASC Topic 820, Fair Value Measurements and Disclosures, provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements).

 

Fair value is defined as an exit price, representing the amount that would be received upon the sale of an asset or payment to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability.

 

Income taxes

 

The Company utilizes the liability approach for accounting and reporting for income taxes. The provision for income taxes is based upon income or loss after adjustment for those permanent items that are not considered in the determination of taxable income. Deferred income taxes represent the tax effects of differences between the financial reporting and tax basis of the Company’s assets and liabilities at the enacted tax rates in effect for the years in which the differences are expected to reverse.

 

The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all the deferred tax assets will not be realized. Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In management’s opinion, adequate provisions for income taxes have been made. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary.

 

Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards.

 

The Company’s policy for recording interest and penalties associated with tax audits is to record such items as a component of general and administrative expense. The Company has identified its federal tax return and its state tax return in Wyoming as its “major” tax jurisdictions, and all prior year returns remain subject to examination. The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act reduced the U.S. federal corporate tax rate from 35% to 21%. As December 31, 2017, the Company had made a reasonable estimate of the effects of the Tax Act. This estimate incorporates assumptions made based upon the Company’s current interpretation of the Tax Act and may change as the Company may receive additional clarification and implementation guidance and as the interpretation of the Tax Act evolves. In accordance with SEC Staff Accounting Bulletin No. 118, the Company has finalized the accounting for the effects of the Tax Act during 2020. Future adjustments made to the provisional effects will be reported as a component of income tax expense in the reporting period in which any such adjustments are determined.

 

Stock based compensation

 

The Company follows ASC Topic 718, Compensation - Stock Compensation (“ASC 718”), which addresses the accounting for stock-based payment transactions, requiring such transactions to be accounted for using the fair value method. Awards of shares for property or services are recorded at the more readily measurable of the fair value of the stock and the fair value of the service. The Company uses the Black-Scholes option-pricing model to determine the grant date fair value of stock- based awards under ASC 718. The fair value is charged to earnings depending on the terms and conditions of the award, and the nature of the relationship of the recipient of the award to the Company. The Company records the grant date fair value in line with the period over which it was earned. For employees and management, this is typically considered to be the vesting period of the award. For consultants, the fair value of the award is recorded over the term of the service period, and unvested amounts are revalued at each reporting period over the service period. The Company estimates the expected forfeitures and updates the valuation accordingly.

 

Impairment of Long-Lived Assets

 

Management reviews for impairment whenever events or changes in circumstances indicate that the carrying amount of property and equipment may not be recoverable under the provisions of accounting for the impairment of long-lived assets. If it is determined that an impairment loss has occurred based upon expected future cash flows, the loss is recognized in the Interim Condensed Consolidated Statement of Operations.

 

Inventories

 

Inventories are stated at the lower of cost, determined principally under the first-in, first-out method, or net realizable value. Inventories include the cost of vape hardware, packaging, and pet products. Obsolete or excess inventories are reflected at their estimated realizable values. Net realizable value is the estimated sales revenue for a normal period of activity less expected selling costs. Allowances for excess and obsolete inventory are recognized for excess amounts, obsolescence and declines in net realizable value below cost. Estimation and judgement are required in determining the value of the allowance for excess and obsolete inventory at each balance sheet date. Management specifically analyzes estimates of future demand for products when determining allowances for excess and obsolete inventory. Changes in these estimates could result in revisions to the valuation of inventory in future periods.

 

Property and Equipment

 

Property, equipment, and improvements to leased premises are depreciated using the straight-line method over the estimated useful lives of the assets, or when applicable, the term of the lease, whichever is shorter. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated. The estimated useful lives are generally as follows:

 

Machinery and Equipment 20%
Office Equipment 30%
Furniture and Fixtures 20%

 

Revenue Recognition

 

Sales comprise the fair value of the consideration received or receivable for the sale of goods and rendering of services in the ordinary course of the Company’s activities. Sales are presented, net of sales tax, rebates and discounts, and after eliminating sales within the Company. The Company recognizes revenue when the amount of revenue and related cost can be reliably measured, it is probable that the collectability of the related receivables is reasonably assured and when the specific criteria for each of the Company’s activities are met as follows:

 

Sale of goods – Revenue from these sales is recognized when an entity has delivered the goods to locations specified by its customers and the customers have accepted the goods in accordance with the sales contract. Products are sold to certain customers with a volume discount and these customers also have the right to return faulty goods. Revenue from these sales is recorded based on the contracted price less the estimated volume discount and returns at the time of sale. Experience and projections are used to estimate the anticipated volume of sales and returns.

 

Deposits received from customers for which the related goods are not yet delivered represent contract liabilities and are recorded as unearned revenue.

 

Cost of Goods Sold

 

Costs related to expenses incurred to sell the Company’s products and services are recorded as cost of goods sold when the related revenue is recognized. The Company records inventory costs of the associated products delivered to customers within cost of goods sold.

 

Acquisitions

 

In accordance with the guidance for business combinations (ASC Topic 805, Business Combinations) the Company determines whether a transaction or other event is a business combination, which requires that the assets acquired, and liabilities assumed constitute a business. Each business combination is then accounted for by applying the acquisition method. If the assets acquired are not a business, we account for the transaction or other event as an asset acquisition. Under both methods, the Company recognizes the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquired entity. In addition, for transactions that are business combinations, we evaluate the existence of goodwill or a gain from a bargain purchase. We capitalize acquisition related costs and fees associated with asset acquisitions and immediately expense acquisition related costs and fees associated with business combinations.

 

Recent Accounting Pronouncements

 

Management does not believe that any recently issued, but not yet effective, accounting pronouncements, when adopted, will have a material effect on the accompanying interim condensed consolidated financial statements.

 

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Changes to Disclosure Requirements for Fair Value Measurements, which will improve the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The ASU removes, modifies, and adds certain disclosure requirements and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company determined there is no material impact on the adoption of this standard on its interim condensed consolidated financial statements.

 

In December 2019, the FASB Issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting of Income Taxes”, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating this guidance to determine the impact it may have on its financial statements.

 

In January 2020, the FASB issued ASU 2020-1, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815” (“ASU 2020-1”). ASU 2020-1 is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2020-1 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in ASU 2020-1 are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company is evaluating the potential impact of adoption of this standard on its consolidated financial statements.

 

Other accounting standards have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the condensed consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

XML 21 R10.htm IDEA: XBRL DOCUMENT v3.21.1
Due to Related Parties and Management Compensation
9 Months Ended
Jan. 31, 2021
Related Party Transactions [Abstract]  
Due to Related Parties and Management Compensation

Note 4 - Due to related parties and management compensation

 

As of January 31, 2021, the Company had non-interest bearing, unsecured payables with no specified terms of repayment, due to an entity controlled by two Officers of the Company in the amount of $ nil and $172,390 as of April 30, 2020.

XML 22 R11.htm IDEA: XBRL DOCUMENT v3.21.1
Unearned Revenue
9 Months Ended
Jan. 31, 2021
Revenue from Contract with Customer [Abstract]  
Unearned Revenue

Note 5 - Unearned Revenue

 

As of the period ended January 31, 2021, the Company had unearned revenue in the amount of $107,086, which represents deposits from customers, and a balance of $nil as of April 30, 2020.

XML 23 R12.htm IDEA: XBRL DOCUMENT v3.21.1
Transactions Between Entities Under Common Control
9 Months Ended
Jan. 31, 2021
Business Combinations [Abstract]  
Transactions Between Entities Under Common Control

Note 6 - Transactions between entities under common control

 

The transactions that have been completed during the period ended January 31, 2021 have been accounted for pursuant to ASC 805-50, Transactions Between Entities Under Common Control. A common control transaction is similar to a business combination, however, does not meet the definition of a business combination, because there is no change in control over the entity by the parent. Therefore, the accounting and reporting for the transaction between entities under common control are outside the scope of the business combinations guidance in ASC 805-10, ASC 805-20, and ASC 805-30, and addressed in ASC 805-50.

 

  (a) On June 18, 2020, the Company acquired from Vanessa Miskuski and Chad Costa (key management of RCMW) certain intangible assets related to the pet supplement industry in exchange for 222,223 common shares. Pursuant to ASC 805-50-30-5 relating to transactions between entities under common control, the intangible assets had a $nil historical cost, and therefore, were recorded in Additional Paid in Capital.
     
  (b) On July 7, 2020, the Company acquired specified assets from Cannary Packaging Inc. in the form of Accounts Receivables, Inventory, Property and Equipment, and Intangible Assets in exchange for 4,962,654 common shares. Given the transaction was between two entities which principal owners have significant influence, the transaction was completed through ASC 805-50-30-5 relating to transactions between entities under common control as one of the owners of Cannary Packaging Inc. is key management of RCMW. The intangible assets had a $nil historical cost, and therefore, recorded in Additional Paid in Capital, while the other assets acquired were recorded at their historical cost.

 

The preliminary allocation of the consideration transferred is as follows:      
       
Shares issued in connection with acquisition   $ 2,233,194  
Shares to be issued in connection with acquisition     2,800  
Total purchase price   $ 2,235,994  
         
Accounts receivable   $ 239,046  
Inventory     1,835,558  
Net property, plant, and equipment     74,214  
Additional paid in capital     87,176  
Total preliminary purchase price allocation   $ 2,235,994  
XML 24 R13.htm IDEA: XBRL DOCUMENT v3.21.1
Asset Acquisition
9 Months Ended
Jan. 31, 2021
Business Combinations [Abstract]  
Asset Acquisition

Note 7 - Asset Acquisition

 

On August 11, 2020, RCMW entered into a purchase and sale agreement dated August 11, 2020, to acquire substantially all the assets of True Leaf Pet Inc. ("TLP") in exchange for $300,000 CAD ($222,222 USD). The closing of the transaction pursuant to the Sale Agreement (the "Transaction") was subject to approval by the Court of the Transaction within 30 days of the execution date. The Transaction closed September 11, 2020.

 

The Transaction completed on September 11, 2020 did not meet the definition of a business in accordance with ASC 805, and was therefore, accounted for as an asset acquisition.

 

Preliminary purchase price adjustment
 
Consideration Paid (USD)   $ 222,222  
Total purchase price   $ 222,222  
         
Accounts receivable     66,234  
Inventory     152,388  
Net Property, plant, and equipment     3,600  
Total preliminary purchase price allocation   $ 222,222  
XML 25 R14.htm IDEA: XBRL DOCUMENT v3.21.1
Common Stock
9 Months Ended
Jan. 31, 2021
Stockholders' Equity Note [Abstract]  
Common Stock

Note 8 - Common stock

 

The Company’s authorized share capital consists of 50 billion of shares of common stock and 10 billion of preferred stock. There are no preferred shares issued, and 9,890,950 common shares were issued and outstanding on January 31, 2021.

 

During the nine months ended January 31, 2021:

 

  The Company issued 222,223 shares of common stock to the owners of the assets as part of the Bulk Asset Purchase Agreement dated June 18, 2020 valued at $100,000 USD (Note 6(a)).
     
  The Company issued 4,856,202 shares of common stock to the stockholders of the assets as part of the Bulk Asset/Share Exchange Agreement dated July 7, 2020 valued at approximately $2,185,291 USD (Note 6(b)).
     
  On December 16, 2020, the Company issued 106,452 unregistered restricted common shares to three shareholders. The issuance of these shares goes back to the Asset/Share Exchange Agreement, where the Company’s subsidiary, 4033002 exchanged shares for non-operating assets owned by Cannary Packaging, Inc., a private British Columbia company, with approximately 58 shareholders. When the share exchange took place in July 2020 a clerical error was made, and these three shareholders failed to receive their pro-rata ownership in the exchange. The issuance of these 106,452 unregistered restricted common shares corrected this clerical error (Note 6(b)).
     
  On December 28, 2020, the Board, based on shareholder approval, ratified a 1:4,500 reverse stock split and the authorized shares are to remain at 50,000,000,000 with a par value of $0.00001. The Company’s number CUSIP number reflecting this reverse split and corporate name change to RCMW Group, Inc. is: 74937E102. FINRA approved the reverse stock split to take effect on February 24, 2021. With the corporate name change the Company’s stock symbol changed to HPTYD. New stock symbol RCMW was effective on March 24, 2021.
     
  On January 5, 2021, the Company entered into a Settlement Agreement with a shareholder of the Company. The Company reached a mutual understanding with a shareholder to cancel 150,000 (post-split) common shares in exchange for its ownership rights of Hemp Biotech, Inc., an inactive Kentucky entity, with $nil carrying value. As part of the agreement, the Company paid $9,500 which included covering the Processor/Handler Licensing with the State of Kentucky for 2021 for this entity and the shareholder agreed to remove any references or associations with the Company. On March 3, 2021, the Company cancelled 150,000 shares of its common stock and these shares were returned to the corporate treasury.
XML 26 R15.htm IDEA: XBRL DOCUMENT v3.21.1
Loan
9 Months Ended
Jan. 31, 2021
Debt Disclosure [Abstract]  
Loan

Note 9 - Loan

 

On August 21, 2020, the Company secured a payable servicing and security agreement with Bespoke Financial, Inc., whereby the Company have the right to drawing up to maximum of $300,000 USD. This was increased to $600,000 during the current period. The credit facility is personally guaranteed by specific key management personnel. The credit facility bore interest at a range of rates between 0.11% to 0.21% per day over the term for each individual financing. As of the period ending January 31, 2021, the Company had drawn on $599,552 of the credit facility and incurred an interest expense of $54,012.

 

On December 23, 2020, the Company entered into an agreement of sale of future receivables with Upwise Capital, a Connecticut Limited Liability Company, whereby the Company obtained a loan for $200,000 USD. The loan bore interest at the rate of 1.424% per week over a nine-month term and is being repaid at a rate of $6,878 per week. As of the period ending January 31, 2021, the balance owing on the loan was $179,262 and an interest expense of $14,912 had been incurred.

XML 27 R16.htm IDEA: XBRL DOCUMENT v3.21.1
Commitments and Contingencies
9 Months Ended
Jan. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 10 - Commitments and Contingencies

 

Claims and Litigation

 

From time to time, the Company and/or its subsidiaries may become defendants in legal actions and the Company intends to defend itself against all legal claims. As of the date of this report, the Company is not aware of any material or significant claims against it.

 

Commitments

 

The Company has a $5,021 monthly lease commitment related to the office space, facilities and warehouses expiring on July 31, 2023.

XML 28 R17.htm IDEA: XBRL DOCUMENT v3.21.1
Covid 19
9 Months Ended
Jan. 31, 2021
Covid 19  
Covid 19

Note 11 - Covid 19

 

On March 11, 2020, the World Health Organization ("WHO") recognized COVID-19 as a global pandemic, prompting many national, regional, and local governments, including in the markets that the Company operates in, to implement preventative or protective measures, such as travel and business restrictions, temporary store closures, and wide-sweeping quarantines and stay-at-home orders.

 

As a result, COVID-19 has significantly curtailed global economic activity, including in the industries in which the Company operates. The full extent of the pandemic, related business and travel restrictions, governmental regulations and changes to consumer behavior intended to reduce its spread are uncertain as of the date of this Quarterly Report on Form 10-Q, and the timing of the peak of the pandemic and its ultimate impact on the U.S. and global economies remains uncertain.

 

Therefore, the full extent to which the COVID-19 pandemic may impact our results of operations, liquidity or financial position is uncertain. In addition, the COVID-19 pandemic has had and is likely to continue to have adverse effects on our clients, suppliers and third-party business partners. Management continues to monitor the impact that the COVID-19 pandemic is having on the Company and the economies in which we operate. We anticipate that our liquidity may be materially impacted by the COVID-19 pandemic and we expect that the effect of the COVID-19 pandemic will not be fully reflected in our results of operations and overall financial performance until future periods.

 

We will continue to actively monitor the development of the COVID-19 pandemic and may take further actions that alter our business operations as may be required by federal, state or local authorities or that we determine are in the best interests of our employees, clients, partners, and stockholders.

XML 29 R18.htm IDEA: XBRL DOCUMENT v3.21.1
Subsequent Events
9 Months Ended
Jan. 31, 2021
Subsequent Events [Abstract]  
Subsequent Events

Note 12 - Subsequent Events

 

  On February 1, 2021, the Company entered into a Settlement Agreement and Mutual Release with a shareholder of the Company. The purpose of the agreement was to terminate the business relationship with the shareholder. Both the Company and shareholder mutually decided that their business relationship was not beneficial for both the shareholder and Company and they mutually agreed to terminate this business relationship. In this private transaction, the shareholder agreed to sell his 77,778 (post-split) restricted common shares to the Company for $4,000. As a result, $4,000 in cash was paid to the shareholder in exchange for cancellation of his restricted common shares in the Company. The share certificate in is the process of being cancelled and returned to the Company’s Treasury.
     
  On February 4, 2021, the Company issued 6,223 unregistered restricted common shares to one shareholder. The issuance of these shares goes back to the Asset/Share Exchange Agreement, where the Company’s subsidiary, 4033002 exchanged shares for non-operating assets owned by Cannary Packaging, Inc., a private British Columbia company, with approximately 58 shareholders. When the share exchange took place in July 2020 a clerical error was made, and this shareholder failed to receive their pro-rata ownership in the exchange. The issuance of these 6,223 unregistered, restricted common shares corrected this clerical error.
     
  On March 3, 2021, the Company issued 240,000 unregistered restricted common shares from its Treasury to its three named executives for the Named Executive Officers Stock Compensation Plan.
     
  On March 3, 2021, the Company issued 80,000 unregistered restricted common shares from its Treasury to one shareholder as a COVID-19 Retention Bonus.
     
  On March 3, 2021, the Company issued 102,000 unregistered restricted common shares from its Treasury to one shareholder for legal services.
XML 30 R19.htm IDEA: XBRL DOCUMENT v3.21.1
Basis of Preparation (Policies)
9 Months Ended
Jan. 31, 2021
Accounting Policies [Abstract]  
Basis of Consolidation

Basis of consolidation

 

The interim condensed consolidated financial statements include the accounts of RCMW and its subsidiaries as of January 31, 2021 and 2020. The Company has five wholly owned subsidiaries: Hemp Technology Inc. of Kentucky, Hemp Biotech Inc. of Kentucky, 4033000, 4033001 and 4033002 of Wyoming. Inter-company balances and transactions are eliminated in preparing the interim condensed consolidated financial statements. The accounting policies of the subsidiaries are consistent with RCMW.

Use of Estimates

Use of estimates

 

The preparation of interim condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of expenses. We believe that the accounting estimates employed are appropriate and that the resulting balances are reasonable; however, due to the inherent uncertainty in making estimates, actual results could differ from the original estimates, resulting in changes to these balances in future periods.

Net Income (Loss) Per Share

Net income (loss) per share

 

We calculate net income (loss) per share in accordance with Accounting Standards Codification (“ASC”) Topic 260, Earnings per Share. Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period, and diluted earnings per share is computed by including common stock equivalents outstanding for the period in the denominator. For the nine months period ended January 31, 2021 and 2020, any equivalents would have been anti-dilutive as we had losses for the periods then ended.

Foreign Currency Translation

Foreign Currency Translation

 

The reporting currency of the Company is the United States dollar. The financial statements of subsidiaries located outside of the U.S. are measured in their functional currency, which is the local currency. The functional currency of RCMW is the U.S. dollar. Monetary assets and liabilities of these subsidiaries are translated at the exchange rates at the balance sheet date. Income and expense items are translated using average monthly exchange rates. Non-monetary assets are translated at their historical exchange rates. Translation adjustments are included in accumulated other comprehensive loss in the condensed consolidated balance sheets and net income (loss) on the statement of operations as comprehensive income (loss).

Fair Values of Financial Instruments

Fair Values of Financial Instruments

 

The carrying amounts of cash, accounts receivable, accounts payable, due to related parties, unearned revenues, loans, and other current liabilities approximate their fair value due to the short-term nature of these instruments. The Company’s operations and financing activities are conducted primarily in United States dollars and as a result, the Company is not subject to significant exposure to market risks from changes in foreign currency rates. The Company is exposed to credit risk through its cash but mitigates this risk by keeping these deposits at major financial institutions.

 

ASC Topic 820, Fair Value Measurements and Disclosures, provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements).

 

Fair value is defined as an exit price, representing the amount that would be received upon the sale of an asset or payment to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability.

Income Taxes

Income taxes

 

The Company utilizes the liability approach for accounting and reporting for income taxes. The provision for income taxes is based upon income or loss after adjustment for those permanent items that are not considered in the determination of taxable income. Deferred income taxes represent the tax effects of differences between the financial reporting and tax basis of the Company’s assets and liabilities at the enacted tax rates in effect for the years in which the differences are expected to reverse.

 

The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all the deferred tax assets will not be realized. Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In management’s opinion, adequate provisions for income taxes have been made. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary.

 

Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards.

 

The Company’s policy for recording interest and penalties associated with tax audits is to record such items as a component of general and administrative expense. The Company has identified its federal tax return and its state tax return in Wyoming as its “major” tax jurisdictions, and all prior year returns remain subject to examination. The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act reduced the U.S. federal corporate tax rate from 35% to 21%. As December 31, 2017, the Company had made a reasonable estimate of the effects of the Tax Act. This estimate incorporates assumptions made based upon the Company’s current interpretation of the Tax Act and may change as the Company may receive additional clarification and implementation guidance and as the interpretation of the Tax Act evolves. In accordance with SEC Staff Accounting Bulletin No. 118, the Company has finalized the accounting for the effects of the Tax Act during 2020. Future adjustments made to the provisional effects will be reported as a component of income tax expense in the reporting period in which any such adjustments are determined.

Stock Based Compensation

Stock based compensation

 

The Company follows ASC Topic 718, Compensation - Stock Compensation (“ASC 718”), which addresses the accounting for stock-based payment transactions, requiring such transactions to be accounted for using the fair value method. Awards of shares for property or services are recorded at the more readily measurable of the fair value of the stock and the fair value of the service. The Company uses the Black-Scholes option-pricing model to determine the grant date fair value of stock- based awards under ASC 718. The fair value is charged to earnings depending on the terms and conditions of the award, and the nature of the relationship of the recipient of the award to the Company. The Company records the grant date fair value in line with the period over which it was earned. For employees and management, this is typically considered to be the vesting period of the award. For consultants, the fair value of the award is recorded over the term of the service period, and unvested amounts are revalued at each reporting period over the service period. The Company estimates the expected forfeitures and updates the valuation accordingly.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

 

Management reviews for impairment whenever events or changes in circumstances indicate that the carrying amount of property and equipment may not be recoverable under the provisions of accounting for the impairment of long-lived assets. If it is determined that an impairment loss has occurred based upon expected future cash flows, the loss is recognized in the Interim Condensed Consolidated Statement of Operations.

Inventories

Inventories

 

Inventories are stated at the lower of cost, determined principally under the first-in, first-out method, or net realizable value. Inventories include the cost of vape hardware, packaging, and pet products. Obsolete or excess inventories are reflected at their estimated realizable values. Net realizable value is the estimated sales revenue for a normal period of activity less expected selling costs. Allowances for excess and obsolete inventory are recognized for excess amounts, obsolescence and declines in net realizable value below cost. Estimation and judgement are required in determining the value of the allowance for excess and obsolete inventory at each balance sheet date. Management specifically analyzes estimates of future demand for products when determining allowances for excess and obsolete inventory. Changes in these estimates could result in revisions to the valuation of inventory in future periods.

Property and Equipment

Property and Equipment

 

Property, equipment, and improvements to leased premises are depreciated using the straight-line method over the estimated useful lives of the assets, or when applicable, the term of the lease, whichever is shorter. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated. The estimated useful lives are generally as follows:

 

Machinery and Equipment 20%
Office Equipment 30%
Furniture and Fixtures 20%
Revenue Recognition

Revenue Recognition

 

Sales comprise the fair value of the consideration received or receivable for the sale of goods and rendering of services in the ordinary course of the Company’s activities. Sales are presented, net of sales tax, rebates and discounts, and after eliminating sales within the Company. The Company recognizes revenue when the amount of revenue and related cost can be reliably measured, it is probable that the collectability of the related receivables is reasonably assured and when the specific criteria for each of the Company’s activities are met as follows:

 

Sale of goods – Revenue from these sales is recognized when an entity has delivered the goods to locations specified by its customers and the customers have accepted the goods in accordance with the sales contract. Products are sold to certain customers with a volume discount and these customers also have the right to return faulty goods. Revenue from these sales is recorded based on the contracted price less the estimated volume discount and returns at the time of sale. Experience and projections are used to estimate the anticipated volume of sales and returns.

 

Deposits received from customers for which the related goods are not yet delivered represent contract liabilities and are recorded as unearned revenue.

Cost of Goods Sold

Cost of Goods Sold

 

Costs related to expenses incurred to sell the Company’s products and services are recorded as cost of goods sold when the related revenue is recognized. The Company records inventory costs of the associated products delivered to customers within cost of goods sold.

Acquisitions

Acquisitions

 

In accordance with the guidance for business combinations (ASC Topic 805, Business Combinations) the Company determines whether a transaction or other event is a business combination, which requires that the assets acquired, and liabilities assumed constitute a business. Each business combination is then accounted for by applying the acquisition method. If the assets acquired are not a business, we account for the transaction or other event as an asset acquisition. Under both methods, the Company recognizes the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquired entity. In addition, for transactions that are business combinations, we evaluate the existence of goodwill or a gain from a bargain purchase. We capitalize acquisition related costs and fees associated with asset acquisitions and immediately expense acquisition related costs and fees associated with business combinations.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

Management does not believe that any recently issued, but not yet effective, accounting pronouncements, when adopted, will have a material effect on the accompanying interim condensed consolidated financial statements.

 

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Changes to Disclosure Requirements for Fair Value Measurements, which will improve the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The ASU removes, modifies, and adds certain disclosure requirements and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company determined there is no material impact on the adoption of this standard on its interim condensed consolidated financial statements.

 

In December 2019, the FASB Issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting of Income Taxes”, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating this guidance to determine the impact it may have on its financial statements.

 

In January 2020, the FASB issued ASU 2020-1, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815” (“ASU 2020-1”). ASU 2020-1 is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2020-1 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in ASU 2020-1 are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company is evaluating the potential impact of adoption of this standard on its consolidated financial statements.

 

Other accounting standards have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the condensed consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

XML 31 R20.htm IDEA: XBRL DOCUMENT v3.21.1
Transactions Between Entities Under Common Control (Tables)
9 Months Ended
Jan. 31, 2021
Cannary Packaging Inc [Member]  
Schedule of Consideration Transferred
The preliminary allocation of the consideration transferred is as follows:      
       
Shares issued in connection with acquisition   $ 2,233,194  
Shares to be issued in connection with acquisition     2,800  
Total purchase price   $ 2,235,994  
         
Accounts receivable   $ 239,046  
Inventory     1,835,558  
Net property, plant, and equipment     74,214  
Additional paid in capital     87,176  
Total preliminary purchase price allocation   $ 2,235,994  
XML 32 R21.htm IDEA: XBRL DOCUMENT v3.21.1
Asset Acquisition (Tables)
9 Months Ended
Jan. 31, 2021
True Leaf Pet Inc [Member]  
Schedule of Consideration Transferred

The Transaction completed on September 11, 2020 did not meet the definition of a business in accordance with ASC 805, and was therefore, accounted for as an asset acquisition.

 

Preliminary purchase price adjustment
 
Consideration Paid (USD)   $ 222,222  
Total purchase price   $ 222,222  
         
Accounts receivable     66,234  
Inventory     152,388  
Net Property, plant, and equipment     3,600  
Total preliminary purchase price allocation   $ 222,222  
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.21.1
Going Concern (Details Narrative) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2021
Jan. 31, 2020
Apr. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]          
Accumulated deficit $ (8,617,397)   $ (8,617,397)   $ (7,430,865)
Net Loss $ (1,197,622) $ (81,220) $ (1,186,532) $ (292,449) $ (353,875)
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.21.1
Basis of Preparation (Details Narrative)
9 Months Ended
Jan. 31, 2021
Income tax examination likelihood percentage, description Greater than 50 percent
Income tax, description The Tax Act reduced the U.S. federal corporate tax rate from 35% to 21%.
U.S. federal corporate tax rate 21.00%
Machinery and Equipment [Member]  
Depreciation of estimated useful lives of property and equipment percentage 20.00%
Office Equipment [Member]  
Depreciation of estimated useful lives of property and equipment percentage 30.00%
Furniture and Fixtures [Member]  
Depreciation of estimated useful lives of property and equipment percentage 20.00%
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.21.1
Due to Related Parties and Management Compensation (Details Narrative) - USD ($)
Jan. 31, 2021
Apr. 30, 2020
Due to officers $ 172,390
Two Officers [Member]    
Due to officers $ 172,390
XML 36 R25.htm IDEA: XBRL DOCUMENT v3.21.1
Unearned Revenue (Details Narrative) - USD ($)
Jan. 31, 2021
Apr. 30, 2020
Revenue Recognition and Deferred Revenue [Abstract]    
Unearned revenue $ 107,086
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.21.1
Transactions Between Entities Under Common Control (Details Narrative) - shares
Jul. 07, 2020
Jun. 18, 2020
Vanessa Miskuski and Chad Costa [Member]    
Number of shares exchanged during the period   222,223
Cannary Packaging Inc [Member]    
Number of shares exchanged during the period 4,962,654  
XML 38 R27.htm IDEA: XBRL DOCUMENT v3.21.1
Transactions Between Entities Under Common Control - Schedule of Consideration Transferred (Details) - Cannary Packaging Inc [Member]
Jul. 07, 2020
USD ($)
Shares issued in connection with acquisition $ 2,233,194
Shares to be issued in connection with acquisition 2,800
Total purchase price 2,235,994
Accounts receivable 239,046
Inventory 1,835,558
Net Property, plant, and equipment 74,214
Additional Paid In Capital 87,176
Total preliminary purchase price allocation $ 2,235,994
XML 39 R28.htm IDEA: XBRL DOCUMENT v3.21.1
Asset Acquisition (Details Narrative) - Aug. 11, 2020 - True Leaf Pet Inc [Member]
USD ($)
CAD ($)
Acquisition price $ 222,222  
Canadian Dollar [Member]    
Acquisition price   $ 300,000
XML 40 R29.htm IDEA: XBRL DOCUMENT v3.21.1
Asset Acquisition - Schedule of Consideration Transferred (Details) - True Leaf Pet Inc [Member]
Aug. 11, 2020
USD ($)
Consideration Paid $ 222,222
Total purchase price 222,222
Accounts receivable 66,234
Inventory 152,388
Net Property, plant, and equipment $ 3,600
XML 41 R30.htm IDEA: XBRL DOCUMENT v3.21.1
Common Stock (Details Narrative) - USD ($)
9 Months Ended
Jan. 05, 2021
Dec. 28, 2020
Dec. 16, 2020
Jul. 07, 2020
Jun. 18, 2020
Jan. 31, 2021
Mar. 03, 2021
Apr. 30, 2020
Common stock, shares authorized   50,000,000,000       50,000,000,000   50,000,000,000
Preferred stock, shares authorized           10,000,000,000    
Preferred stock, shares issued              
Common stock, shares issued           9,890,950   4,705,849
Common stock, shares outstanding           9,890,950   4,705,849
Value of shares issued for assets purchased           $ 2,235,994    
Reverse Stock Split   1:4,500 reverse stock split            
Common stock, par value   $ 0.00001       $ 0.00001   $ 0.00001
Shares Forfeited 150,000              
License fees paid $ 9,500              
Treasury stock             150,000  
Three Shareholders [Member]                
Restricted common shares     106,452          
Bulk Asset Purchase Agreement [Member]                
Number of shares issued for assets purchased         222,223      
Value of shares issued for assets purchased         $ 100,000      
Bulk Asset/Share Exchange Agreement [Member]                
Number of shares issued for assets purchased       4,856,202        
Value of shares issued for assets purchased       $ 2,185,291        
XML 42 R31.htm IDEA: XBRL DOCUMENT v3.21.1
Loan (Details Narrative) - USD ($)
3 Months Ended 9 Months Ended
Dec. 23, 2020
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2021
Jan. 31, 2020
Aug. 21, 2020
Apr. 30, 2020
Interest expense   $ 55,629 $ 68,924    
Loans payable   775,343   775,343    
Upwise Capital [Member]              
Interest expense       14,912      
Loans payable   179,262   179,262      
Payable Servicing and Security Agreement [Member] | Bespoke Financial, Inc [Member]              
Debt face amount   600,000   600,000   $ 300,000  
Line of credit, facility   $ 599,552   599,552      
Interest expense       $ 54,012      
Payable Servicing and Security Agreement [Member] | Bespoke Financial, Inc [Member] | Minimum [Member]              
Interest rate           0.11%  
Payable Servicing and Security Agreement [Member] | Bespoke Financial, Inc [Member] | Maximum [Member]              
Interest rate           0.21%  
Sale of Future Receivables [Member] | Upwise Capital [Member]              
Loans payable $ 200,000            
Interest percentage 1.424%            
Short-term debt, terms The loan bore interest at the rate of 1.424% per week over a nine-month term and is being repaid at a rate of $6,878 per week.            
XML 43 R32.htm IDEA: XBRL DOCUMENT v3.21.1
Commitments and Contingencies (Details Narrative)
9 Months Ended
Jan. 31, 2021
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Lease commitment $ 5,021
Lease expiration date Jul. 31, 2023
XML 44 R33.htm IDEA: XBRL DOCUMENT v3.21.1
Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($)
12 Months Ended
Mar. 03, 2021
Feb. 04, 2021
Feb. 02, 2021
One Shareholders [Member]      
Restricted common shares issues   6,223  
One Shareholders [Member] | Post Split [Member]      
Restricted common shares to be issue, shares     77,778
Restricted common shares,cash paid     $ 4,000
Three Named Executives [Member] | Executive Officers Stock Compensation Plan [Member]      
Restricted common shares issues 240,000    
One Shareholder [Member] | COVID-19 Retention Bonus [Member]      
Restricted common shares issues 80,000    
One Shareholder [Member] | Legal Services [Member]      
Restricted common shares issues 102,000    
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