UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

 

For the quarterly period ended October 31, 2015

[   ] 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.:  333-195543

(Exact name of registrant as specified in its charter)

26 Floor, One Harbour Square, 181 Hoi Bun Road,

(Address of principal executive offices) (Zip Code)

 (Registrant’s telephone number, including area code)

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

		PAGE
	PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements.	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	11
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	15
Item 4.	Controls and Procedures.	15
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings.	16
Item 1A.	Risk Factors.	16
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	16
Item 3.	Defaults Upon Senior Securities.	16
Item 4.	Mine Safety Disclosures.	16
Item 5.	Other Information.	16
Item 6.	Exhibits.	17
	SIGNATURE	18

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PART I.

FINANCIAL INFORMATION

Item 1. Financial Statements.

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the audited financial statements and notes filed with the SEC on April 29, 2015. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the periods presented have been reflected herein. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year ending January 31, 2016.

QUINTEC CORP.

INDEX TO CONDENSED INTERIM FINANCIAL STATEMENTS

(UNAUDITED)

OCTOBER 31, 2015

 

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QUINTEC CORP.

Condensed Balance Sheets

 

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

 

 

 

QUINTEC CORP.

Condensed Statements of Operations

(Unaudited)

 

		Three Months Ended								Nine Months Ended
		October 31,				October 31,				October 31,				October 31,
		2015				2014				2015				2014
REVENUES		$	-			$	-			$	-			$	-
EXPENSES
Depreciation expense			125				125				375				375
General and administrative			90				910				340				1,314
Professional fees			6,430				7,344				22,939				13,419
Total Expenses			6,645				8,379				23,654				15,108
Loss before income taxes			(6,645	)			(8,379	)			(23,654	)			(15,108	)
Income tax provision			-				-				-				-
NET LOSS		$	(6,645	)		$	(8,379	)		$	(23,654	)		$	(15,108	)
BASIC AND DILUTED LOSS PER SHARE		$	(0.00	)		$	(0.00	)		$	(0.00	)		$	(0.00	)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
BASIC AND DILUTED			28,933,336				22,215,018				28,933,336				20,741,054

 

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

 

 

 

QUINTEC CORP.

Condensed Statements of Cash Flows

(Unaudited)

 

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

 

 

QUINTEC CORP.

Notes to the Condensed Financial Statements

(Unaudited)

NOTE 1. INCORPORATION AND CONTINUANCE OF OPERATIONS

QUINTEC CORP. ("we", "us", "our" or the "Company") was formed on May 23, 2013, in Nevada.  We are currently in a development process of launching an online, cross-border e-commerce platform for promotion and sales of foreign specialties and other discount branded products to worldwide customers. We have not commenced our planned principal operations.  The Company's fiscal year end is January 31.

These financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business.  We have incurred operating losses and require additional funds to maintain our operations.  Management's plans in this regard are to raise equity financing as required.

These conditions raise substantial doubt about our ability to continue as a going concern.  These financial statements do not include any adjustments that might result from this uncertainty.

We have not generated any operating revenues to date.

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

Interim Financial Statements

The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at October 31, 2015, and for all periods presented herein, have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's January 31, 2015 audited financial statements. The results of operations for the periods ended October 31, 2015 and 2014 are not necessarily indicative of the operating results for the full years.

Estimates and Assumptions

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of American requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and assumptions and could have a material effect on the Company’s reported financial position and results of operations.

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Foreign Currency Transactions

We are located and operating outside of the United States of America. We maintain our accounting records in U.S. Dollars.  At the transaction date, each asset, liability, revenue and expense is translated into U.S. dollars by the use of the exchange rate in effect at that date. At the period end, monetary assets and liabilities are re-measured by using the exchange rate in effect at that date. The resulting foreign exchange gains and losses are included in operations.

Cash and Cash Equivalents

For purposes of the statement of cash flows, cash and cash equivalents include cash and all debt securities with an original maturity of 90 days or less. As October 31, 2015 and 2014, cash and cash equivalents consist of only cash.

Fair Value Measurements

The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. 

The fair value hierarchy is defined into the following three categories:

Long-Lived Assets

In accordance with ASC 360, “Property, Plant and Equipment”, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value, which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value.  No impairment loss was recognized during the periods ended October 31, 2015 and 2014.

Stock-Based Compensation

The Company adopted ASC 718, Compensation – Stock-Based Compensation, to account for its stock options and similar equity instruments issued.  Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period.  ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid.  We did not grant any stock options during the periods ended October 31, 2015 and 2014.

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Income Taxes

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted ASC 740, Income Taxes as of its inception. Pursuant to ASC 740 the Company is required to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.

Basic and Diluted Loss per Share

Loss per share is computed using the weighted average number of shares outstanding during the period.  We have adopted ASC 260, “Earnings per Share”.  Diluted loss per share for periods ended October 31, 2015 and 2014 was equivalent to basic loss per share as there were no potential dilutive equity instruments.

New Accounting Pronouncements

The Company’s management has considered all recent accounting pronouncements. Management believes that these recent pronouncements will not have a material effect on the Company’s financial statements. 

NOTE 3. PROPERTY AND EQUIPMENT

Property and equipment is stated at cost.  Depreciation on property and equipment is computed using the diminishing balance method over the estimated useful lives of the assets.  The estimated useful lives of the assets are as follows:

Property and equipment consisted of the following as at October 31, 2015 and January 31, 2015

During the period ended October 31, 2015 and 2014, the Company incurred depreciation expense of $375 and $375, respectively.

NOTE 4. DUE TO RELATED PARTY

As at October 31, 2015, and January 31, 2015, the Company owed its president and director $0 and $767, respectively, for expenses he paid on behalf of the Company. The total amount is unsecured, non-interest bearing, and has no specific terms for repayment.

During the three months ended October 31, 2015, an amount of $8,142 from a related party was forgiven and recorded to additional paid in capital.

 

 

During the year ended January 31, 2015, the Company issued 8,933,336 shares of common stock for cash proceeds of $26,800.

As at October 31, 2015 and January 31, 2015, the Company had 28,933,336 shares issued and outstanding.

NOTE 6.  SUBSEQUENT EVENTS

Management has evaluated subsequent events through the date these financial statements were available to be issued.  Based on our evaluation no material events have occurred that require disclosure.

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

As used in this Form 10-Q, references to “Quintec” the “Company,” “we,” “our” or “us” refer to Quintec Corp. unless the context otherwise indicates.

Forward-Looking Statements

Except for historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Such forward-looking statements involve risks and uncertainties, including, among other things, statements regarding our business strategy, future revenues and anticipated costs and expenses.  Such forward-looking statements include, among others, those statements including the words “expects,” “anticipates,” “intends,” “believes” and similar language.  Our actual results may differ significantly from those projected in the forward-looking statements.   Factors that might cause or contribute to such differences include, but are not limited to, those discussed herein as well as in the “Description of Business – Risk Factors” section in our Annual Report, Form 10, as filed on April 29, 2015.  You should carefully review the risks described in our Annual Report and in other documents we file from time to time with the Securities and Exchange Commission.  You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report.  We undertake no obligation to publicly release any revisions to the forward-looking statements or reflect events or circumstances after the date of this document.

Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements.

All references in this Form 10-Q to the “Company,” “Quintec” “we,” “us,” or “our” are to Quintec Corp.

Plan of Operation

We will integrate the tourism shopping procedure in our website and mobile applications by engaging stores, travelling agencies, manufacturers and distributors of best-selling items. Merchandise would be secured through exclusive distributorship or with joint ventures with suppliers.

As we gain technological and unique market presence, we plan to build a product portfolio for household supplies and healthcare products. We will also explore opportunities as an online discount retailer (outlet) for international branded products targeting middle class shoppers in China.

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We do not yet have any operations and the development of our business is speculative.  We will require additional financing, either through a stock offering, or standard or convertible debt.  Until and unless we are able to secure adequate financing, our business development will be curtailed.

 

Results of Operation

The following table provides selected financial data about our company for the period ended October 31, 2015 and the year ended January 31, 2015.

Our decrease in cash and total assets, was primarily due to cash used in operating expenses for the nine months ended October 31, 2015.

The following summary of our results of operations, for the period ended October 31, 2015 should be read in conjunction with our financial statements, as included in this Form 10-Q.

The majority of our expenses were primarily related professional fees, for ongoing regulatory costs.

 

For the nine months ended October 31, 2015, we had no revenue, incurred $375 in depreciation expenses, $340 in general and administrative expenses and $22,939 in professional fees, resulting in an operating and net loss of $23,654. The increase of professional fees was primarily related to ongoing regulatory requirements.

For the nine months ended October 31, 2014, we had no revenue, incurred $375 in depreciation expenses, $1,314 in general and administrative expenses and $13,419 in professional fees, resulting in an operating and net loss of $15,108.

Liquidity and Capital Resources

We anticipate we will need $100,000 to fund the next 12 months of our operations. Currently we do not have sufficient capital to fund our operations and business development for the next 12 months.

In response to these problems, management intends to raise additional funds through public or private placement offerings. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to us.

We have no known demands or commitments, and we are not aware of any events or uncertainties as of October 31, 2015 that will result in or that are reasonably likely to materially increase or decrease our current liquidity.

 

 

 

	For The Nine Months Ended				For The Nine Months Ended
	October 31, 2015				October, 2014
Cash Flows used in Operating Activities		$	(14,085	)		$	(11,335	)
Cash Flows from Financing Activities		$	-			$	17,800
Net Decrease in Cash During Period		$	(14,085	)		$	6,465

As at October 31, 2015, our company’s cash balance was $294 compared to $14,379 as at January 31, 2015 and our total current assets were $1,139 compared with $14,379 as at January 31, 2015. The decrease in cash and total assets was primarily due to the costs associated with ongoing regulatory requirements.

As at October 31, 2015, our company had total liabilities of $6,268 compared with total liabilities of $4,371 as at January 31, 2015.

As at October 31, 2015, our company had working capital deficiency of $5,129 compared with working capital of $10,008 as at January 31, 2015. The decrease in working capital was primarily due to the costs associated with ongoing regulatory requirements.

Cash Flow from Operating Activities

During the nine months ended October 31, 2015 and 2014, our company used $14,085 and $11,335 in cash from operating activities, respectively.  The increase cash used from operating activities was attributed to professional fees related to ongoing regulatory requirements and cash paid on behalf of the Company by a related party.

Cash Flow from Investing Activities

The company did not use any funds for investing activities in the nine months ended October 31, 2015 and 2014.

Cash Flow from Financing Activities

During the nine months ended October 31, 2015, and 2014, the Company received $nil and $17,800 from common share issuance, respectively.

Going Concern

Our auditors have issued a going concern opinion.  This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay for our expenses.  This is because we have not generated any revenues and no sales are yet possible.  There is no assurance we will ever reach this point.  Accordingly, we must raise sufficient capital from sources.  Our only other source for cash at this time is investments by others and loans from our officer and director.  We must raise cash to stay in business.  In response to these problems, management intends to raise additional funds through public or private placement offerings.  At this time, however, the Company does not have plans or intentions to raise additional funds by way of the sale of additional securities.  No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to us.

 

Critical Accounting Policies and Estimates

Off-Balance Sheet Arrangements

We do not have any 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 investors.

Item 3.    Quantitative and Qualitative Disclosures about Market Risk.

A smaller reporting company, as defined by Item 10 of Regulation S-K, is not required to provide the information required by this item.

Item 4.   Controls and Procedures.

Disclosure Controls and Procedures

Management's Report on Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our president (our principal executive officer, principal financial officer and principle accounting officer) to allow for timely decisions regarding required disclosure.

As of the end of the quarter covered by this report, we carried out an evaluation, under the supervision and with the participation of our president (our principal executive officer, principal financial officer and principle accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our president (our principal executive officer, principal financial officer and principle accounting officer) concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this quarterly report due our limited number of officers and members of the Board of Directors.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal controls over financial reporting that occurred during the period ended October 31, 2015, that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

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PART II. OTHER INFORMATION

 

Item 1.      Legal Proceedings.

We know of no material, existing or pending legal proceedings against our Company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

Item 1A.   Risk Factors

As a "smaller reporting company", we are not required to provide the information required by this Item.

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

We did not issue unregistered equity securities during the quarter ended October 31, 2015.

Item 3.      Defaults Upon Senior Securities.

None.

Item 4.      Mine Safety Disclosures.

 

Not applicable.

Item 5.      Other Information.

None.

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Item 6.      Exhibits.

 

31.1*	Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer.
31.2*	Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer.
32.1**	Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer.

101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document
*	Filed herewith
**	Furnished herewith

 

 

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SIGNATURE

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