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EX-32 - CERTIFICATION - Innovative Payment Solutions, Inc.asiya_ex32.htm
EX-31 - CERTIFICATION - Innovative Payment Solutions, Inc.asiya_ex31.htm

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q


[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2015


OR


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

For the transition period from ______________ to ______________


Commission File No. 333-192877


ASIYA PEARLS, INC.

(Exact Name of Small Business Issuer as specified in its charter)

 

Nevada

 

33-1230229

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)


H. 2434, Tengengar Galli, near Sheetal Hotel,

Belgaum, Karnataka, India 590001

 (Address of principal executive offices)


Telephone:  011 91 97 65 24 89 53

Email: asiyapearls@gmail.com

Registrant’s telephone number, including area code


Not applicable

Former name, former address and former fiscal year, if changed since last report


Indicate by check market whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X__ No __


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x__ No __


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.


Large accelerated filer

[ ]

Accelerated filer

[ ]

Non-accelerated filer

[ ]

Smaller reporting company

[X ]


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


Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as at the latest practicable date: 10,000,000 shares of Registrant’s common stock, $0.0001 par value, were outstanding at September 2, 2015





PART I. FINANCIAL INFORMATION


Item 1 Financial Statements.



Asiya Pearls, Inc.

Balance Sheets

(Unaudited)



 

July 31,

2015

$

October 31,
2014
$

 

 

 

ASSETS

 

 

Current assets

 

 

  Cash

6,492

31,882

Total current assets

6,492

31,882

Total assets

6,492

31,882

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

Current liabilities

 

 

  Accounts payable and accrued liabilities

-

383

Total current liabilities

-

383

Total liabilities

-

383

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Preferred stock: $0.0001 par va1ue, 25,000,000 authorized,

0 issued and outstanding

-

-

Common stock: $0.0001 par value, 100,000,000 authorized,

10,000,000 issued and outstanding

1,000

1,000

 Additional paid-in capital

74,000

74,000

 Accumulated Deficit

(68,508)

(43,501)

Total stockholder’s equity

6,492

31,499

Total liabilities and stockholders’ equity

6,492

31,882










(The accompanying notes are an integral part of these financial statements)



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Asiya Pearls, Inc.

Statements of Operations

(Unaudited)



 

For the Three Months

 

For the Nine Months

 

Ended July 31

 

Ended July 31

 

2015

2014

 

2015

2014

 

$

$

 

$

$

Expenses

 

 

 

 

 

  General and administrative

1,431

13,106

 

4,848

14,665

  Professional fees

1,581

3,182

 

20,159

22,875

Net loss

(3,012)

(16,288)

 

(25,007)

(37,540)

 

 

 

 

 

 

Net loss per share - basic and diluted

(0.00)

(0.00)

 

(0.00)

(0.01)

 

 

 

 

 

 

Weighted average shares outstanding - basic and diluted

10,000,000

7,362,637

 

10,000,000

5,790,441


































(The accompanying notes are an integral part of these financial statements)



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Asiya Pearls, Inc.

Statements of Cash Flows

(Unaudited)



 

For the Nine Months

Ended July 31, 2015

$

For the Nine Months

ended  July 31, 2014

$

 

 

 

Cash flows from operating activities

 

 

  Net loss

(25,007)

(37,540)

Adjustments to reconcile to net cash used in operating activities:

 

 

  Change in operating assets and liabilities

 

 

    Prepaid

-

(493)

    Accounts payables and accrued liabilities

(383)

5,542

Net cash used in operating activities

(25,390)

(32,491)

 

 

 

Cash flows from financing activities

 

 

  Proceeds from issuance of common stock

-

50,000

Net cash provided by financing activities

-

50,000

 

 

 

Change in cash

(25,390)

17,509

 

 

 

Cash - beginning of period

31,882

25,000

 

 

 

Cash - end of period

6,492

42,509

 

 

 

Supplemental cash flow disclosures

 

 

  Cash paid For:

 

 

     Interest

     Income tax
























(The accompanying notes are an integral part of these financial statements)



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Asiya Pearls, Inc.

Notes to the financial statements

July 31, 2015

(Unaudited)


Note 1: Nature and Continuance of Operations


Asiya Pearls, Inc. (the "Company") was incorporated in the state of Nevada on September 25, 2013 ("Inception"). The Company intends to operate as an on-line loose pearl retailer.  The Company's corporate headquarters are located in Belgaum, India and its fiscal year-end is October 31.


Note 2: Basis of Presentation


Unaudited Interim financial statements


The accompanying unaudited interim financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q of Regulation S-X. They may not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements for the  year ended October 31, 2014 included in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission. These interim unaudited financial statements should be read in conjunction with those financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three and nine months ended July 31, 2015 are not necessarily indicative of the results that may be expected for the year ending October 31, 2015.


Note 3: Capital Stock


The total number of common shares authorized that may be issued by the Company is 100,000,000 shares with a par value of $0.0001 per share.


The total number of preferred shares authorized that may be issued by the Company is 25,000,000 shares with a par value of $0.0001 per share. The preferred stock may be issued in one or more series, from time to time, with each series to have such designation, relative rights, preference or limitations, as adopted by the Company's Board of Directors.


The Company became a reporting company on March 11, 2014 and on May 17, 2014, the Company completed its offering of a total of 5,000,000 shares of Company’s common stock on a "self-underwritten" basis at a fixed price of $0.01 per share, for total proceeds of $50,000. As at July 31, 2015, the Company had 10,000,000 common stock issued and outstanding.


As at July 31, 2015, there were no outstanding stock options or warrants.


Note 4: Going Concern


These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern 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. However, since inception, the Company has incurred  cumulative net losses of $68,508, had negative cash flows from operating activities and has generated no revenue. The Company anticipates future losses in the development of its business raising substantial doubt about the Company's ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with loans from directors, related parties and/or issuance of common shares. There is no assurance that the Company will be successful in raising this additional capital or in achieving profitable operations. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.



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Item 2.  Management's Discussion and Analysis of Financial Conditions and Results of Operations.


The following discussion of our financial condition, changes in financial condition, plan of operations and results of operations should be read in conjunction with our unaudited interim financial statements for the three and nine months ended July 31, 2015 and 2014, together with the notes thereto included in this Form 10-Q. The discussion contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors.


Overview


Asiya Pearls, Inc. was incorporated under the laws of the State of Nevada on September 25, 2013. We are in the business of the online retail sale of high grade loose pearls which we intend to obtain from suppliers in Hyderabad, one of the major pearl centers in India. We intend to offer pearls to consumers in our online store. For orders, we will access the inventory maintained by our supplier. Our product line will consist of pearls of different sizes, colors and characteristics (drilled and whole). The concept is that our customers have their own jewelry designers who, with our pearls, will custom-make their jewelry. Our president has ample experience in online retail and our second director has experience in pearls and jewelry. We sell these products through an internet website (the "Website"). Our website (www.asiyapearls.com) is operational. Unfortunately we have received no orders for pearls as yet. We continue to hope we will get orders for pearls in the very near future as survival of our Company is dependent on these orders. We require approximately $15,000 for the next 12 months as a reporting issuer and we have a working capital of $6,492 and if additional funds become required before generation of revenue, the additional funding may come from equity financing from the sale of our common stock.  In the event we do not raise sufficient capital to implement its planned operations, your entire investment could be lost. Our office is located at the premises of our President, Shabbir Shaikh, who provides such space to us on a rent-free basis at H. 2434, Tengengar Galli, Belgaum, India.


There have been no material reclassifications, mergers, consolidations or purchases or sales of any significant amount of assets not in the ordinary course of business since the date of incorporation. The Company has never been party to any bankruptcy, receivership or similar proceeding, nor has it undergone any material reclassification, merger, consolidation, purchase or sale of a significant amount of assets not in the ordinary course of business.

Our auditors have issued a going concern opinion. This means that there is substantial doubt that we can continue as an ongoing business for the next twelve months. This is because we have not generated any revenues and no revenues are anticipated.


Plan of Operation


About Our Company


We have had no revenues since our website became operational and we have $6,492 in cash and will require approximately $15,000 for the next 12 months as a reporting issuer. We have been investigating the potential to generate any sales by discussing our products locally, without success and we have been discussing with potential investors for injection of working capital.


Although we have no plans to change our planned business activities or to combine with another business, and we are not aware of any events or circumstances that might cause these plans to change, we may have to review any potential that is presented to us.


Since we became a reporting company, we are responsible for filing various forms with the United States Securities and Exchange Commission (the “SEC”) such as Form 10-K and Form 10-Qs. The shareholders may read and copy any material filed by us with the SEC at the SEC’s Public Reference Room at 100 F Street N.W., Washington, DC, 20549.   The shareholders may obtain information on the operations of the Public Reference Room by calling the SEC at 1-800-SEC-0330.  The SEC maintains an Internet site that contains reports, proxy and information statements, and other information which we have filed electronically with the SEC by assessing the website at the following address:  http://www.sec.gov.





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Results of Operations


We did not earn any revenues for the three and nine months ended July 31, 2015 or July 31, 2014. We do not expect to realize any revenues until we are able to execute our business plan.


For the three months ended July 31, 2015, we have incurred total operating expenses in the amount of $3,012, mainly comprised of professional fees totaling $1,581 which relates to accounting fees; and general and administrative expenses totaling $1,431 which mainly relates to filing fees.


For the three months ended July 31, 2014, we have incurred total operating expenses in the amount of $16,288, mainly comprised of professional fees totaling $3,182 which relates to legal and accounting fees for the registration statement and related costs; and general and administrative expenses totaling $13,106 which mainly relates to transfer agent fees and travel for completion of the offering of $50,000.


For the nine months ended July 31, 2015, we have incurred total operating expenses in the amount of $25,007, mainly comprised of professional fees totaling $20,159 which relates to trading eligibility, legal and accounting fees for the registration statement and related costs; and general and administrative expenses totaling $4,848 which mainly relates to transfer agent fees.


For the nine months ended July 31, 2014, we have incurred total operating expenses in the amount of $37,540, mainly comprised of professional fees totaling $22,875 which relates to trading eligibility, legal and accounting fees for the registration statement and related costs; and general and administrative expenses totaling $14,665 which mainly relates to transfer agent fees and travel for completion of the offering of $50,000.


We have not incurred any expenses for research and development since inception. As a result of operating losses, there has been no provision for the payment of income taxes from the date of inception.


Liquidity and Capital Resources


As at July 31, 2015, we had a cash balance of $6,492. If additional funds become required before generation of revenue, the additional funding may come from equity financing from the sale of our common stock.


Our future financial results are also uncertain due to a number of factors, some of which are outside our control. These factors include, but are not limited to:


·

our ability to raise additional funding;

·

cost of development of our website;

·

interest by online users to purchase our products which will generate revenue from online sales.


Due to our lack of operating history and present inability to generate revenues, our auditors have stated their opinion that there currently exists a substantial doubt about our ability to continue as a going concern.


Going Concern Consideration


The report of our independent registered public accounting firm for the period ended October 31, 2014 included a going concern paragraph because of a substantial doubt about our ability to continue as a going concern based on the absence of an established source of revenue, recurring losses from operations, and our need for additional financing in order to fund our operations in fiscal 2015.


Our operations and financial results are subject to various risks and uncertainties that could adversely affect our business, financial condition and results of operations.


Off-Balance Sheet Arrangements


We have no off-balance sheet arrangements including arrangements that would affect our liquidity, capital resources, market risk support and credit risk support or other benefits.




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Forward Looking Statements


The information in this quarterly report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements involve risks and uncertainties, including statements regarding the Company’s capital needs, business strategy and expectations. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” the negative of such terms or other comparable terminology. Actual events or results may differ materially. In evaluating these statements, you should consider various factors, including the risks outlined from time to time, in other reports we file with the Securities and Exchange Commission (the “SEC”). These factors may cause our actual results to differ materially from any forward-looking statement. We disclaim any obligation to publicly update these statements, or disclose any difference between its actual results and those reflected in these statements. The information constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.


Item 3. Qualitative and Quantitative Disclosure about Market Risks


We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.


Item 4. Controls and Procedures.


Evaluation of Disclosure Controls and Procedures


Our Principal Executive Officer and Principal Financial Officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report, have concluded that, based on the evaluation of these controls and procedures, that our disclosure controls and procedures were effective such that the material information included in the report is accumulated and communicated to our management, recorded, processed, summarized and reported within the time periods relating to our company, particularly during the period when this report was being prepared.


Controls and Procedures over Financial Reporting


Additionally, there were no changes in our internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the evaluation date.


Our management conducted an evaluation of the effectiveness of our internal control over financial reporting, as of October 31, 2014 and based on our evaluation under this framework, management concluded that our internal control over financial reporting was not effective as of the evaluation date due to the factors stated below.


Insufficient resources: We have an inadequate number of personnel with requisite expertise in the key functional areas of finance and accounting.


Inadequate segregation of duties: We have an inadequate number of personnel to properly implement control procedures.


Lack of audit committee and outside directors on the Company’s board of directors: We do not have a functioning audit committee or outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures.


Our management recognizes that there are inherent limitations in the effectiveness of any system of internal control, and accordingly, even effective internal control can provide only reasonable assurance with respect to financial statement preparation and may not prevent or detect material misstatements. In addition, effective internal control at a point in time may become ineffective in future periods because of changes in conditions or due to deterioration in the degree of compliance with our established policies and procedures.




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PART II - OTHER INFORMATION


Item 1. Legal Proceedings.


The Company currently is not a party to any legal proceedings and, to the Company’s knowledge; no such proceedings are threatened or contemplated.


Item 1A. Risk Factors


We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.


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


None


Item 3. Default Upon Senior Securities.


None.


Item 4. Removed and Reserved.


Item 5. Other Information.


None.


Item 6. Exhibits and Reports on Form 8-K.


a. Exhibits


Exhibit Number

Description of Exhibit

31.1

Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C.§ 1350, as adopted pursuant to § 302 of the Sarbanes-Oxley Act of 2002.

32.1

Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002.






















9



SIGNATURES


In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereto duly authorized.


 

ASIYA PEARLS, INC.

 

 

Date: September 2, 2015

 

 

By: /s/ Shabbir Shaikh

 

Shabbir Shaikh,

 

Principal Executive Officer

 

Principal Financial Officer and Director









































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