WECONNECT TECH INTERNATIONAL: Discussion and analysis by management of the financial situation and the results of operations (form 10-Q)

Unless otherwise noted, all currency figures quoted as "U.S. dollars", "dollars"
or "$" refer to the legal currency of the United States. Throughout this report,
assets and liabilities of the Company's subsidiaries are translated into U.S.
dollars using the exchange rate on the balance sheet date. Revenue and expenses
are translated at average rates prevailing during the period. The gains and
losses resulting from translation of financial statements of foreign
subsidiaries are recorded as a separate component of accumulated other
comprehensive income within the statement of stockholders' equity.



Overview



We were an IT-solutions provider that provided a multi-dimensional e-commerce
platform to facilitate shopping, business, trade and integrates online & office
transactions in a single application. Prior to June 2019, we developed and
operated a mobile platform designed to consolidate users' cash and connect
merchants to consumers by offering a cashless form of transaction, in-app
shopping and a user rewards system. On June 2019, we ceased the operation of the
platform but continue to maintain our IT solution business operations. For the
nine months ended April 30, 2021, and 2020, we generated comprehensive losses of
$110,924 and $224,185, respectively.



Since we ceased operations of our platform June 2019, we unsuccessfully
attempted to diversify into the energy, oil & gas sector to strengthen our
financial position. Our current principal business is to achieve long-term
growth potential through a combination with a business rather than immediate,
short-term earnings. Based on proposed business activities, we are a "blank
check" company. We intend to comply with the periodic reporting requirements of
the Exchange Act for so long as it is subject to those requirements.



As of the date of this Quarterly Report, we have not entered into any binding
agreement with any party regarding acquisition opportunities for us. We hope to
continue to engage in discussions with other operating businesses affiliated
with our executive officers regarding potential acquisition opportunities. There
is no assurance that any nonbinding term sheet will result into a definitive
purchase transaction nor can we assure you that we will be able to successfully
acquire such company or any company in the near future.



We are in active talks to divest our operating subsidiary to a third party.

Financial condition; Business continuity



We have had limited operations and have been issued a "going concern" opinion by
our auditor, based upon our reliance on the sale of our common stock and loans
from a related party, as the sole source of funds for our future operations. We
have no assurance that future financing will be available to us on acceptable
terms, or at all. If financing is not available on satisfactory terms, we may be
unable to continue our business plan. Equity financing could result in
additional dilution to existing shareholders. If we are unable to raise
additional capital to maintain our operations in the future, we may be unable to
carry out our full business plan of finding an acquisition partner.



Our financial statements have been prepared on a going concern basis which
assumes the Company will be able to realize its assets and discharge its
liabilities in the normal course of business for the foreseeable future. As of
April 30, 2021, the Company had working capital deficit of $2,384,341and has
incurred losses since its inception resulting in an accumulated deficit of
$7,671,291. Further losses are anticipated, raising substantial doubt about the
Company's ability to continue as a going concern. The financial statements do
not include any adjustment that might result from the outcome of this
uncertainty.



The ability to continue as a going concern is dependent upon the Company finding
an acquisition partner in the future and/or to obtain the necessary financing to
meet its obligations. Management intends to finance operating costs over the
next twelve months with loans from directors and/or private placements of common
stock.







  14






Results of Operations



The following table provides selected financial data about our company as of
April 30, 2021 and 2020.



                                   For the Three     For the Three
                                   Months Ended      Months Ended        For the Nine         For the Nine
                                     April 30,         April 30,         Months Ended         Months Ended
                                       2021              2020           April 30, 2021       April 30, 2020
Revenue                            $           -     $       4,602     $              -     $         64,890
Cost of revenue                                -                 -                    -                   (2 )
Gross Margin                                   -             4,602                    -               64,888

Other Income                               1,919            17,462              (10,588 )             14,989
General and Admin Expense                 (6,501 )         (88,867 )       
    (22,200 )           (347,736 )
Loss Before Tax                            4,582           (66,803 )            (32,788 )           (267,859 )

Translation Adjustment                    25,730            54,976              (78,136 )             43,674
                                          25,730            54,976              (78,136 )             43,674

Comprehensive Loss                 $      21,148     $     (11,827 )   $       (110,924 )   $       (224,185 )



Three months ended April 30, 2021, compared to the three months ended April 30, 2020.

Revenue. During the three months ended April 30, 2021, and 2020, we earned
revenue of $0 and $4,602, respectively. Our revenue consisted primarily of IT
service fees and merchant platform maintenance fees. The decrease in our revenue
is primarily attributable to the impact of COVID-19 and related government
actions on our business operations. We do not expect to generate any revenues
for the foreseeable future unless an extraordinary corporate event such as a
merger or acquisition or other strategic partnership occurs.



No customers accounted for 10% or more of our total net revenue during the three
months ended April 30, 2021. During the three months ended April 30, 2020, the
following customers accounted for 10% or more of our total net revenue:



                                            Three months ended
                                              April 30, 2020
                                                      Percentage of
                                       Revenues         revenues
MIG Network & Consultancy Sdn Bhd      $   4,244              92.22%
Creative Property Management Sdn Bhd       1,545              33.57%
East Cloud Sdn Bhd                          (450 )            (9.78% )
North Cloud Sdn Bhd                         (737 )           (16.01% )
                                       $   4,602



Creative Property Management Sdn Bhd, East Cloud Sdn Bhd, and MIG Network &
Consultancy Sdn Bhd are affiliated with our executive officers and directors,
Shiong Han Wee and Kwueh Lin Wong. North Cloud Sdn Bhd is a shareholder holding
less than 5% of our issued and outstanding securities.







  15






Gross Profit. We recorded a gross profit of $0 and gross profit of $4,602 for
the three months ended April 30, 2021, and 2020, respectively. The decrease in
gross profit is mainly attributable to the cessation of business operations
arising from the COVID-19 pandemic and related government actions.



General and Administrative Expenses. General and administrative expenses were
$6,501 and $88,867 for the three months ended April 30, 2021, and 2020,
respectively. The decrease in general and administrative expenses was primarily
attributable to the cessation of business operations arising from the COVID-19
pandemic and related government actions.



During the three months ended April 30, 2021 and 2020, no supplier accounted for 10% or more of our total operating costs.

The income tax charge. We have not recorded any tax charges for the three months ended April 30, 2021, and 2020 respectively.

Net loss. We recorded a net loss of $ 4,582 and $ 66,803 for the three months ended April 30, 2021,, and 2020, respectively. The decrease in the net loss is mainly due to the cessation of business activities resulting from the COVID-19 pandemic and related government actions.

Nine months ended April 30, 2021, compared to the nine months ended April 30, 2020.

Revenues. During the nine months ended April 30, 2021, and 2020, we earned
revenues of $0 and $64,890, respectively. The decrease in our revenue is
primarily attributable to the impact of COVID-19 and related government actions
on our business operations. We do not expect to generate any revenues for the
foreseeable future unless an extraordinary corporate event such as a merger or
acquisition or other strategic partnership occurs.



No customers accounted for 10% or more of our total net revenue during the nine
months ended April 30, 2021. During the nine months ended April 30, 2020, the
following customers accounted for 10% or more of our total net revenues:



                                             Nine months ended
                                              April 30, 2020
                                                      Percentage of
                                       Revenues         revenues
North Cloud Sdn Bhd                    $  26,961              41.55%
Creative Property Management Sdn Bhd       6,394               9.85%
East Cloud Sdn Bhd                        16,482              25.40%
MIG Network & Consultancy Sdn Bhd         15,053              23.20%
                                       $  64,890



Creative Property Management Sdn Bhd, East Cloud Sdn Bhd, and MIG Network &
Consultancy Sdn Bhd are affiliated with our executive officers and directors,
Shiong Han Wee and Kwueh Lin Wong. North Cloud Sdn Bhd is a shareholder holding
less than 5% of our issued and outstanding securities.



General and Administrative Expenses. General and administrative expenses were
$22,200 and $347,736 for the nine months ended April 30, 2021, and 2020,
respectively. The decrease in general and administrative expenses was primarily
attributable to the cessation of business operations arising from the COVID-19
pandemic and related government actions.



During the nine months ended April 30, 2021 and 2020, no supplier accounted for 10% or more of our total operating costs.



Gross Profit. We recorded a gross profit of $0 and $64,888 for the nine months
ended April 30, 2021, and 2020, respectively. The decrease in gross profit is
mainly attributable to the cessation of business operations arising from the
COVID-19 pandemic and related government actions.







  16





The income tax charge. We have not recorded any tax charges for the nine months ended April 30, 2021,, and 2020, respectively.

Overall loss. We suffered a net loss of $ 110,924 and $ 224,185 for the nine months ended April 30, 2021,, and 2020, respectively. The decrease in the overall loss is mainly attributable to the decrease in general and administrative expenses.

Liquidity and capital resources


Working Capital



                           April 30,2021       July 31, 2020
Current Assets            $           542     $           544
Current Liabilities            (2,384,883 )        (2,274,336 )
Working Capital Deficit   $    (2,384,341 )   $    (2,273,792 )




We had current assets of $542 consisting solely of cash and cash equivalents as
of April 30, 2021. Our current liabilities of $2,384,883 consisted of $1,286,091
of amount due to related parties, $990,139 of other payables and accrued
liabilities, $87,438 of accounts payable and $21,215 of current tax liabilities.



As of July 31, 2020, we had current assets of $544 and current liabilities of
$2,274,336. Our current assets consisted solely of cash and cash equivalents.
Our current liabilities consisted of $1,236,274 of amount due to related
parties, $933,410 of other payables and accrued liabilities, $83,458 of accounts
payable and $21,194 of current tax liabilities.



Cash Flows



                                                         Nine Months Ended       Nine Months Ended
                                                          April 30, 2021          April 30, 2020
Net Cash (Used in) / Provided by Operating Activities   $                (2 )   $            (3,153 )
Net Cash Provided by Investing Activities               $                 -     $                73
Net Cash Provided by Financing Activities               $                 -
    $                 -



Cash flow from operating activities

During the nine months ended April 30, 2021, the net cash used in operating activities was $ 2 and consisted mainly of a net loss of $ 32,788 and the unrealized foreign exchange gain of $ 78,136, offset by an increase in other accounts payable and accrued liabilities of $ 56,750, and an increase in amounts owed to related parties of $ 49,817.



During the nine months ended April 30, 2020, net cash used in operating
activities was $3,153 and consisted primarily of a net loss of $267,859, a
decrease in account payables of $7,996, a decrease in other payables and accrued
liabilities of $19,050, unrealized exchange gain of $13,180 and gain on disposal
of plant and equipment $45, offset by an increase in account receivables of
$5,131, an increase in other receivables, deposits and prepayments of $29,235,
an increase in amount due to related parties of $254,122, and depreciation of
plant and equipment of $ 16,489.







  17





Cash flow from investing activities

During the nine months ended April 30, 2021, investing activities did not provide or use net cash.



During the nine months ended April 30, 2020, there was net cash generated from
investing activities of $73 which consisted of sales proceeds from the disposal
of property, plant and equipment of $73.



Cash flow from financing activities

During the nine months ended April 30, 2021, and 2020, financing activities neither provided nor used net cash.


Financing Requirements


During the twelve-month period following the date of this quarterly report, we
anticipate that we will not generate sufficient operating revenue. Accordingly,
we will be required to obtain additional financing in order to pursue our plan
of operations during and beyond the next twelve months. We anticipate that
additional funding will be in the form of equity financing from the sale of our
common stock or shareholder loans. However, there is no assurance that we will
be able to raise sufficient funding from the sale of our common stock to fund
our business plan should we decide to proceed.



We anticipate continuing to rely on equity sales of our common shares and
advances from our executive officers and directors in order to continue to fund
our business operations. Issuances of additional shares will result in dilution
to our existing shareholders. There is no assurance that we will achieve any
additional sales of our equity securities or arrange for debt or other financing
to fund our business operations.



Off-balance sheet provisions



We have no significant off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that is material to
stockholders.



Critical Accounting Policies



The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America ("U.S. GAAP") requires
estimates and assumptions that affect the reported amounts of assets and
liabilities, revenues and expenses, and related disclosures of contingent assets
and liabilities in the consolidated financial statements and accompanying notes.
The SEC has defined a company's critical accounting policies as the ones that
are most important to the portrayal of the company's financial condition and
results of operations, and which require the company to make its most difficult
and subjective judgments, often as a result of the need to make estimates of
matters that are inherently uncertain. Based on this definition, we have not
identified any additional critical accounting policies and judgments. We also
have other key accounting policies, which involve the use of estimates,
judgments and assumptions that are significant to understanding our results,
which are described in note 2 to our financial statements. Although we believe
that our estimates, assumptions and judgments are reasonable, they are based
upon information presently available. Actual results may differ significantly
from these estimates under different assumptions, judgments or conditions.

Recent accounting positions



The Company has reviewed all recently issued, but not yet effective, accounting
pronouncements and do not believe the future adoption of any such pronouncements
may be expected to cause a material impact on its financial condition or the
results of its operations.







  18

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