BEMAX INC.

(A Development Stage Company)

Balance Sheets (Stated in U.S. Dollars)

November 30, 2015 and May 31, 2015

BEMAX INC.
Balance Sheets
(Stated in U.S.Dollars)
(Unaudited)
		Six Months Ended				Year Ended
		November 30, 2015				May 31, 2015
ASSETS
Current Assets
Cash and cash equivalents		$	45,673			$	58,137
Accounts receivable			407,722				407,722
Total current assets			453,395				465,859
Fixed Assets
Furniture and Equipment			500				500
Total fixed assets			500				500
TOTAL ASSETS		$	453,895			$	466,360
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Deferred revenue			507,722				507,722
Loan from shareholder and related party			29,236				17,336
Accounts payable			256,062				364,622
Total current liabilities			793,020				889,680
STOCKHOLDERS' EQUITY
Common stock, ($0.0001 par value, 500,000,000 shares
authorized; 258,750,000 shares issued and outstanding at
November 30, 2015 and  May 31, 2015 respectively			25,875				518
Additional paid-in capital			36,876				62,232
Deficit accumulated during development stage			(401,876	)			(486,070	)
TOTAL STOCKHOLDERS' EQUITY			(339,125	)			(423,320	)
TOTAL LIABILITITES AND STOCKHOLDERS' EQUITY		$	453,895				466,360

		Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
		November 30, 2015				November 30, 2014				November 30, 2015				November 30, 2014
REVENUES
Revenues			65,219				-				65,219				-
TOTAL REVENUES		$	65,219			$	-			$	65,219			$	-
Cost of good sold
Purchases-resale items			-				-
TOTAL COGS		$	-			$	-			$	-			$	-
Operating costs
General and administrative expenses			6,010				1,051				16,123				5,858
TOTAL OPERATING COSTS		$	6,010			$	(1,051	)		$	16,123			$	(5,858	)
NET ORDINARY INCOME (LOSS)		$	59,209			$	(1,051	)		$	49,096			$	(5,858	)
BASIC AND DILUTED EARNINGS (LOSS)
PER SHARE		$	(0.00	)		$	(0.00	)		$	(0.00	)		$	(0.00	)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING			258,750,000				5,175,000				258,750,000				5.175,000

		Six Months Ended				Six Months Ended
		November 30, 2015				November 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)		$	49,096			$	(5,858	)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Loan from shareholder and related party			11,900				2,300
Accounts payable			(108,560	)			-
Accounts receivable			35,100				-
Deferred revenue			-				-
Changes in operating assets and liabilities:			(12,464	)			-
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		(12,464		)			(3,558	)
INVESTING ACTIVITIES
Furniture and equipment			-				-
Net cash provided by investing activities			-				-
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock			-				58,750
NET CASH PROVIDED BY FINANCING ACTIVITIES			-				58,750
NET INCREASE  IN CASH			(12,464	)			55,192
CASH AT BEGINNING OF PERIOD			58,137				4,000
CASH AT END OF PERIOD		$	45,673			$	59,192
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during year for :
Interest		$	-			$	-
Income Taxes		$	-			$	-

														Deficit
						Common								Accumulated
		Common				Stock				Additional				During
		Stock				Amount				Paid-in Capital				Development Stage				Total
Stock issued for cash at May 31, 2013			-			$	-			$	-			$	-			$	-
Net loss May 31, 2013															(502	)			(502	)
Balance May 31, 2013			-				-				-				(502	)			(502	)
Common stock issued for cash on May
16, 2014.4,000,000 shares at a par
value of $0.0001 per share			4,000,000				400				3,600				-				4,000
Net loss May 31, 2014															(2,000	)			(2,000	)
Balance May 31, 2014			4,000,000			$	400			$	3,600			$	(2,502	)		$	1,498
Common stock issued for cash between
between October 14 and 24, 2014 at
$0.05 per share			1,175,000				118				58,632								58,750
Net loss May 31, 2015															(483,568	)			(483,568	)
Balance May 31, 2015			5,175,000			$	518			$	62,232			$	(486,070	)		$	(423,320	)

1.  NATURE OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statements

 

This report on Form 10-Q contains certain forward-looking statements.  All statements other than statements of historical fact are "forward-looking statements" for purposes of these provisions, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operation; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief; and any statement of assumptions underlying any of the foregoing. Such forward-looking statements are subject to inherent risks and uncertainties, and actual results could differ materially from those anticipated by the forward-looking statements.

 

Business Overview

 

Bemax Inc. is new Nevada –based company focusing on the distribution of disposable baby diapers made in North America and Asia by quality producers to wholesalers and retailers in Europe and the emerging markets.  We are a development stage corporation and have generated or realized minimal revenues from our business operations. 

Liquidity and Capital Resources

Cash Flows

		Three Months Ended November 30, 2015 $				Three Months Ended November 30, 2015 $
Net Cash Provided By(Used In) Operating Activities			(12,464	)			(3,558	)
Net Cash Used by Investing Activities			-				-
Net Cash Provided By(Used In) Financing Activities			-				58,750
CASH AT BEGINNING OF PERIOD			58,137				4,000
CASH AT END OF PERIOD			45,673				59,192

 

Through November 30, 2015, the Company has carried on limited operations with $65,219 in revenues.

We currently have minimal cash reserves. To date, the Company has covered operating deficits primarily through loans from the sole director. Accordingly, our ability to pursue our plan of operations is contingent on our being able to obtain funding for the development, marketing and commercialization of our products and services. However, as a result of its lack of operating success, the Company may not be able to raise additional funding to cover operating deficits.

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has accumulated deficit of $401,876 since inception (November 28, 2012) to the period ended November 30, 2015 and is dependent on its ability to raise capital from shareholders or other sources to sustain operations.  However, these conditions raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Management's Fiscal Quarter Report on Internal Control over Financial Reporting.

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Our internal control system was designed 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 in the United States of America. Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements.

 

Because of inherent limitations, a system of internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate due to change in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

Results of Operations for the Period Ended November 30, 2015

Revenue

Revenue for the period ended November 30, 2015, and November 30, 2014 were $65,219 and $0 respectively.

 

 

Deferred Revenue

Deferred revenue for the period ended November 30, 2015 and November 30, 2014 were $507,722 and $0 respectively. Management anticipate deferred revenue will be recognized within the next six months.

Net Income (Loss)

For the period ended November 30, 2015, the Company generate net income of $59,209 and incurred net losses of $1,051 for same period ended November 30, 2014.

Expenses

Our total expenses for the period ended November 30, 2015 were $6,010 which consisted of general and administrative expenses

Inflation

The amounts presented in the financial statements do not provide for the effect of inflation on our operations or financial position.  The net operating losses shown would be greater than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement costs or by using other inflation adjustments.

Off-Balance Sheet Arrangements

As of November 30, 2015, we had no off balance sheet transactions that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act 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 sole officer, as appropriate to allow timely decisions regarding required disclosure. We carried out an evaluation, under the supervision and with the participation of our sole officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of November 30, 2015.

 

 

Based on the evaluation of these disclosure controls and procedures, our Chief Executive and Chief Financial Officer concluded that as of the end of the periods covered by this report, we have identified the following material weakness of our internal controls:  Lack of sufficient accounting staff which results in a lack of segregation of duties necessary for a good system of internal control.

There were no changes in our internal control or in other factors during the last fiscal quarter covered by this report that have materially affected, or are likely to materially affect the Company's internal control over financial reporting.