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EX-32.1 - Galem Group Inc.f10kcertification321.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-K



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

ACT OF 1934


For the fiscal year ended June 30, 2017


[ ] 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. 333-213608


GALEM GROUP INC.

 (Exact name of registrant as specified in its charter)



Nevada

(State or Other Jurisdiction of Incorporation or Organization)

38-3995730

IRS Employer Identification Number

7389

Primary Standard Industrial Classification Code Number


3773 Howard Hughes Parkway, Ste. 500S

Las Vegas, NV 89169-6014

Tel.  702-960-0696


(Address and telephone number of registrant's executive office)     



Securities registered pursuant to Section 12(b) of the Act: None


Securities registered pursuant to Section 12(g) of the Act: None



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Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [X]


Indicate by check mark if the registrant  is not  required  to file  reports  pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X]


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 shorter period that the registrant as 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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K  is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Yes [ ] No [X]


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one):


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 Act) Yes [ ] No [X]


As of October 12, 2017, the registrant had 3,970,000 shares of common stock issued and outstanding. No market value has been computed based upon the fact that no active trading market has been established as of October 12, 2017.



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Table Of Contents




 

Part I

 


Item 1

Description Of Business

4

   

   

 

Item 1a    

Risk Factors

5

 

  

 

Item 1b

Unresolved Staff Comments                                     

5

 

 

 

Item 2   

Properties

5

      

 

 

Item 3   

Legal Proceedings                                             

5

      

 

 

Item 4

Submission Of Matters To A Vote Of Security Holders           

5

 

Part II

 


Item  5   

Market For Common Equity And Related Stockholder Matters      

5

 

 

 

Item  6  

Selected Financial Data                                       

6

 

 

 

Item  7 

Management's Discussion And Analysis Or Results Of Operations

6

      

 

 

Item 7a 

Quantitative And Qualitative Disclosures About Market Risk   

8

 

 

 

Item 8

Financial Statements And Supplementary Data                  

8

      

 

 

Item 9    

Changes In And Disagreements With Accountants On Accounting And Financial Disclosure

17

      

 

 

Item 9a

Controls And Procedures

17

 

 

 

Item 9b

Other Information                                            

17


Part III

 

Item 10

Directors, Executive Officers, Promoters And Control Persons; Compliance With Section 16(A) Of The Exchange Act

17

 

 

 

Item 11

Executive Compensation

19

 

 

 

Item 12

Security Ownership Of Certain Beneficial Owners And Management And Related Stockholder Matters

20

 

 

 

Item 13

Certain Relationships, Related Transactions And Director Independence

20

 

 

 

Item 14

Principal Accountant Fees And Services                       

20


Part IV

 


Item 15

Exhibits And Financial Statement Schedules                   

20




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PART I


ITEM 1. DESCRIPTION OF BUSINESS


FORWARD-LOOKING STATEMENTS


This annual report contains forward-looking statements. These statements relate to future events or our future financial performance. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.


As used in this annual report, the terms "we", "us", "our", "the Company", mean GALEM GROUP INC., unless otherwise indicated.


All dollar amounts refer to US dollars unless otherwise indicated.


DESCRIPTION OF BUSINESS

 


Our company is a provider of consulting services in the field of traditional and alternative medicine and medical technologies. We are planning to offer a broad range of health advisory services: helping our customers to choose a clinic for treatment in European (Germany, Switzerland) and Asian countries (China, South Korea, Thailand, India, Nepal); organizing group and individual medical tours to clinics; assistance in selecting medical equipment manufacturers in Europe and Asia that are cost-effective and propose suitable delivery conditions; organization of seminars and workshops in traditional and alternative Asian medicine; organization of short-term and long-term yoga and qigong courses in China, Tibet, Nepal, India. We are going to provide our services both to legal entities and individuals.


Our business address was provided by our registered agent and located at 3773 Howard Hughes Parkway, Ste. 500S, Las Vegas, NV 89169-6014. Our telephone number is 702-960-0696.


Business Concept


The number of medical travel consulting service provider is constantly growing. Sometimes it's difficult for customers to deal with that abundance of clinics and their proposals. Our company will serve as an intermediary between consumers and health care providers. Our main task is to collect information about medical service providers in Europe and Asia and provide our customers with comprehensive support in using their services. We will gather information based on several significant factors, such as price, conditions of stay in the clinic, applied treatment technologies, qualification and experience of medical personnel. Moreover, we are going to organize medical tours clinics selected by our customers. If our customer is not able to make a trip due to his or her health conditions or doesn't want to visit it in person, we are ready to implement online tours to medical organizations in Europe and Asia by means of Skype and Periscope.


We are also going to provide consulting for the purchase of medical equipment in Europe and Asia. Today, for example, China or South Korea are considered to be one of the fastest growing medical equipment markets. We intend to help our customers to choose medical equipment based on several criteria, such as price, available discounts, technical characteristics, warranty and delivery terms.  Our job is to provide our potential customer with information about a particular manufacturer including full analysis and rating based on the above factors. We plan to save the time of our customers that they would spend searching and choosing the right manufacturer of medical devices and plan to relieve them from problems associated with such activity.



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The next type of consulting is organization of seminars and workshops dedicated to traditional and non-traditional medical services in Asian countries. We are going to involve medical professionals, who will conduct seminars, master classes, lectures on various healthcare topics in person, or through webinars.

We are also planning to organize short-term and long-term yoga and qigong courses in China, Tibet, Nepal and India. Oriental practices and physical exercises for the development of functional body are becoming more and more popular all over the globe. For example, almost any modern fitness club has a yoga course. More and more people prefer functional or spiritual practices such as yoga or qigong. Knowledgebase is concentrated mainly in the regions of China, Tibet, Nepal and India. The range of areas of yoga or qigong is wide. For example, yoga has 50 different directions. Professional teachers and gurus work in these areas. We are going to offer our customers a comprehensive analysis of Asian yoga and qigong schools based on the following factors: price, conditions of stay, proposed results. We are also planning to organize our own long-term and short-term yoga and qigong courses with the help of professional teachers.


ITEM 1A. RISK FACTORS


Not applicable.



ITEM 1B. UNRESOLVED STAFF COMMENTS


None.


ITEM 2. PROPERTIES


We do not own any property.


ITEM 3. LEGAL PROCEEDINGS


We are not currently involved in any legal proceedings and we are not aware of any pending or potential legal actions.


ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS


No report required.



PART II


ITEM 5. MARKET FOR EQUITY SECURITIES AND OTHER SHAREHOLDER MATTERS


MARKET INFORMATION


As of October 12, 2017, the 3,970,000 issued and outstanding shares of common stock were held by a total of 35 shareholders of record.


DIVIDENDS

 

We have never paid or declared any dividends on our common stock and do not anticipate paying cash dividends in the foreseeable future.


SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS


We currently do not have any equity compensation plans.



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ITEM 6. SELECTED FINANCIAL DATA


Not Applicable.


ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULT OF OPERATIONS


The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs.  Our actual results could differ materially from those discussed in the forward looking statements.  Factors that could cause or contribute to such differences include, but are not limited to those discussed below and elsewhere in this Annual Report.  Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.


RESULTS OF OPERATIONS



We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.


Our net income for the fiscal year ended June 30, 2017 was $5,828 compared to a net loss of $758 during the period from Inception (March 31, 2016) to June 30, 2016. During fiscal year ended June 30, 2017 we have generated $20,950 in revenue. For the period from Inception (March 31, 2016) to June 30, 2016, we have not generated any revenue.


During the fiscal year ended June 30, 2017, we incurred expenses of $15,121 compared to $758 incurred during the period from Inception (March 31, 2016) to June 30, 2016.  

 

LIQUIDITY AND CAPITAL RESOURCES


As of June 30, 2017 our total assets were $43,024 compared to $6,067 in total assets at June 30, 2016. As of June 30, 2017, our total liabilities were $5,853 compared to $3,825 in total liabilities at June 30, 2016.


Stockholders’ equity increased from $2,242 as of June 30, 2016 to $37,171 as of June 30, 2017.

The weighted average number of shares outstanding was 3,234,258 for the year ended June 30, 2017 compared to 1,500,000 for the period from Inception (March 31, 2016) to June 30, 2016.



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Cash Flows from Operating Activities



We have generated positive cash flows from operating activities. For the year ended June 30, 2017, net cash flows provided by operating activities was $6,145. Net cash flows used in operating activities was $758 for the period from inception (March 31, 2016) to June 30, 2016.


Cash Flows from Investing Activities


We used $5,100 in investing activities for the year ended June 30, 2017 to purchase computer and equipment.


Cash Flows from Financing Activities


We have financed our operations primarily from either advancements or the issuance of equity and debt instruments. For the year ended June 30, 2017, net cash flows from financing activities was $31,128 received from proceeds from issuance of common stock and loan from shareholder. For the period from inception (March 31, 2016) to June 30, 2016, net cash flows from financing activities was $6,825 received from proceeds from issuance of common stock and loan from shareholder.


PLAN OF OPERATION AND FUNDING


We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.


Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next six months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) developmental expenses associated with a start-up business and (ii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.



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MATERIAL COMMITMENTS


As of the date of this Annual Report, we do not have any material commitments.


PURCHASE OF SIGNIFICANT EQUIPMENT


We do not intend to purchase any significant equipment during the next twelve months.


OFF-BALANCE SHEET ARRANGEMENTS


As of the date of this Annual Report, 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 are material to investors.


GOING CONCERN


The independent auditors' report accompanying our June 30, 2017 and June 30, 2016 financial statements contain an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.


ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


Not applicable.


 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                


Report of Independent Registered Public Accounting Firm

F-1


Balance Sheets as of June 30, 2017 and June 30, 2016

F-2


Statements of Operations for the year  ended June 30, 2017;   and for the period from Inception (March 31, 2016) to June 30, 2016

F-3


Statement of Changes in Stockholders’ Equity for the period from Inception (March 31, 2016) to June 30, 2017

F-4


Statements of Cash Flows for the year  ended June 30, 2017;   and for the period from Inception (March 31, 2016) to June 30, 2016

F-5


Notes to the Financial Statements

F-6 -F-8








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MICHAEL GILLESPIE & ASSOCIATES, PLLC

CERTIFIED PUBLIC ACCOUNTANTS

10544 ALTON AVE NE

SEATTLE, WA  98125

206.353.5736


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Board of Directors

Galem Group, Inc.   


We have audited the accompanying balance sheets of Galem Group, Inc. as of June 30, 2017 and 2016 and the related statements of operations, changes in stockholder’s equity and cash flows for the periods then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion the financial statements referred to above present fairly, in all material respects, the financial position of Galem Group, Inc for the years ended June 30, 2017 and 2016 and the results of its operations and cash flows for the periods then ended in conformity with generally accepted accounting principles in the United States of America.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note #2 to the financial statements, although the Company has limited operations it has yet to attain profitability. This raises substantial doubt about its ability to continue as a going concern. Management’s plan in regard to these matters is also described in Note #2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.


/S/ MICHAEL GILLESPIE & ASSOCIATES, PLLC


Seattle, Washington

October 5, 2017







F-1



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GALEM GROUP INC.

BALANCE SHEETS

(AUDITED)

 

JUNE 30, 2017

JUNE 30, 2016

ASSETS

 

 

Current Assets

 

 

 

Cash

$         38,240

$        6,067

 

Total current assets

38,240

6,067

Non-current assets

 

 

 

Equipment

4,784

 

 

Total non-current assets

4,784

 

Total Assets                                                         

$         43,024

$        6,067

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current  Liabilities

 

Loan from related parties

$         5,853

$     3,825

 

Total current liabilities

5,853

3,825

Total Liabilities

5,853

3,825

 

Stockholders’ Equity

  

Common stock, $0.001 par value, 75,000,000 shares authorized;

 

 

3,970,000 shares issued and outstanding , 3,000,000 shares issued and outstanding as of June 30, 2016

3,970

3,000

 

Additional paid-in-capital

28,130

-

 

Retained earnings (Accumulated Deficit)

5,071

(758)

Total Stockholders’ Equity

37,171

2,242

 

 

 

Total Liabilities and Stockholders’ Equity

$       43,024

$        6,067


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


 F-2



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GALEM GROUP INC.

STATEMENT OF OPERATIONS

(AUDITED)

 

 

 

Year ended June 30, 2017

For the period from Inception (March 31, 2016) to June 30, 2016

Revenue

 

 

$20,950

$   -

 

 

 

 

 

Cost of the goods sold

 

 

4,000

-

Gross Profit

 

 

16,950

-

Operating expenses:

 

 

 

 

 General and administrative expenses

 

 

11,121

758

Net income from operations

 

 

5,829

(758)

Income (loss) before provision for income taxes

 

 

5,829

(758)

 

 

 

 

 

Provision for income taxes

 

 

-

-

 

 

 

 

 

Net income (loss)

 

 

$      5,829

$         (758)

 

 

 

 

 

Income (loss) per common share:

 Basic and Diluted

 

 

$        (0.00)

$        (0.00)

 

 

 

 

 

Weighted Average Number of Common Shares  Outstanding:

Basic and Diluted

 

 

3,234,258

1,500,000


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


F-3



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GALEM GROUP INC.

STATEMENT OF CHANGES IN STOCKHOLDER’S EQUITY

FOR THE PERIOD FROM INCEPTION (MARCH 31, 2016) to JUNE 30, 2016

(AUDITED)

 

Number of

Common

Shares


Amount

Additional Paid-In-Capital

Deficit

accumulated



Total

Balance at March 31, 2016, Inception  

-

$     -  

$      -

$        -  

$         -  

Common Shares issued for cash at $0.001 per share on May 16, 2016

3,000,000

3,000

 

-

3,000

Net income (loss) for the year                                                                  

-

-

 

(758)

(758)

Balances as of June 30, 2016

3,000,000

3,000

 

 (758)

   2,242

Common Shares issued for cash at $0.03 per share

970,000

970

28,130

 

29,100

Net income for the year                                                                  

 

 

 

5,829

5,829

Balances as of June 30, 2017

3,970,000

$3,970

$  28,130

$5,071

$37,171    



The accompanying notes are an integral part of these financial statements


F-4



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GALEM GROUP INC.

STATEMENT OF CASH FLOWS

(AUDITED)

 

 

Year  ended June 30, 2017

For the period from Inception (March 31, 2016) to June 30, 2016

Cash flows from Operating Activities

 

 

 

 

Net Income (loss)

 

$          5,829

$      (758)

 

Amortization expenses

 

316

-

 

Net cash provided (used) by operating activities

 

6,145

(758)

 

 

 

 

 

Cash flows from Investing Activities

 

 

 

   Purchase of fixed assets

 

$             (5,100)

$             -

  Net cash used in investing activities

 

(5,100)

-

 

 

 

 

Cash flows from Financing Activities

 

 

 

 

Proceeds from sale of common stock

 

29,100

3,000

 

Proceeds of loan from shareholder

 

2,028

3,825

 

Net cash provided by financing activities

 

31,128

6,825

Net increase in cash and equivalents

 

32,173

6,067

Cash and equivalents at beginning of the period

 

6,067

-

Cash and equivalents at end of the period

 

$           38,240

$       6,067

 

Supplemental cash flow information:

 

 

 

 

Cash paid for:

 

 

 

 

Interest                                                                                               

 

$                  -

$             -

 

Taxes                                                                                           

 

$                  -

$             -


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


F-5



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GALEM GROUP INC.

NOTES TO THE AUDITED FINANCIAL STATEMENTS

FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2017 (UNAUDITED)


NOTE 1 – ORGANIZATION AND BUSINESS


GALEM GROUP INC. (the “Company”) is a corporation established under the corporation laws in the State of Nevada on March 31, 2016.

The Company has adopted June 30 fiscal year end.

Galem Group Inc. company is a provider of consulting services in the field of traditional and alternative medicine and medical technologies.

Our principal executive offices are located at 3773 Howard Hughes Parkway, Ste. 500S, Las Vegas, NV 89169-6014


NOTE 2 – GOING CONCERN


The Company’s financial statements as of June 30, 2017 been prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The Company has retained earnings from inception (March 31, 2016) to June 30, 2017 of $5,071.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.


NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.

The Company’s unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. The accompanying unaudited financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair statement of the results of operations for the period shown and are not necessarily indicative of the results to be expected for the full year ending  June 30, 2017. These unaudited  financial statements should be read in conjunction with the audited financial statements and related notes for the year ended June 30, 2016.


Use of Estimates

Preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions.


Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company's bank accounts are deposited in insured institutions. The funds are insured up to $250,000. At June 30, 2017 the Company's bank deposits did not exceed the insured amounts.


F-6



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Advertising Costs

The Company’s policy regarding advertising is to expense advertising when incurred. The Company did not incur advertising expense during period ended June 30, 2017.


Stock-Based Compensation

As of June 30, 2017, the Company has not issued any stock-based payments to its employees.

Stock-based compensation is accounted for at fair value in accordance with ASC 718, when applicable.  To date, the Company has not adopted a stock option plan and has not granted any stock options.


Income Taxes

The Company follows the liability method of accounting for income taxes.  Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences).  The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.


New Accounting Pronouncements

There were various accounting standards and interpretations issued recently, none of which are expected to a have a material impact on our financial position, operations or cash flows.

Start-Up Costs

In accordance with ASC 720, “Start-up Costs”, the company expenses all costs incurred in connection with the start-up and organization of the company.

Fair Value Measurements

The company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.

 

The estimated fair value of certain financial instruments, including cash and cash equivalents are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments.

ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:

Level 1 — quoted prices in active markets for identical assets or liabilities

Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable

Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

The company has no assets or liabilities valued at fair value on a recurring basis.

Revenue Recognition

The Company follows the guidance of the Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition. We record revenue when persuasive evidence of an arrangement exists, the services have been provided, the price to the customer is fixed or determinable and collectability of the revenue is reasonably assured.

Property and Equipment Depreciation Policy

The Company purchased a PC and tour guide sound system for its business operations. Property and equipment are stated at cost and depreciated on the straight line method over the estimated life of the asset, which is 3 years.

F-7


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NOTE 4 – CAPTIAL STOCK


The Company has 75,000,000 shares of common stock authorized with a par value of $0.001 per share.

On May 16, 2016 the Company issued 3,000,000 shares of its common stock to the director at $0.001 per share for total proceeds of $3,000. For the year ended June 30, 2017, the Company issued 970,000 shares of its common stock to the director at $0.03 per share for total proceeds of $29,100.

As of June 30, 2017, the Company had 3,970,000 shares issued and outstanding.


NOTE 5 – RELATED PARTY TRANSACTIONS


In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by officers, directors, or shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.  

Since March 31, 2016 (Inception) through June 30, 2017, the Company’s sole officer and director loaned the Company $5,853 to pay for incorporation costs and operating expenses.  As of June 30, 2017, the amount outstanding was $5,853. The loan is non-interest bearing, due upon demand and unsecured.


NOTE 6 – SUBSEQUENT EVENTS


The Company has evaluated all transactions from June 30, 2017 through the date these financial statements were available to be issued, October 5, 2017, and has determined that there are no items to disclose.

F-8



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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE


None.


ITEM 9A. CONTROLS AND PROCEDURES


Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is 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 Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.


An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2017. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Such officer also confirmed that there was no change in our internal control over financial reporting during the year June 30, 2017 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

  

ITEM 9B. OTHER INFORMATION


None.


PART III


ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS OF THE COMPANY


Name and Address of Executive

  Officer and/or Director

Age

Position

Emiliya Galfinger

3773 Howard Hughes Parkway, Ste. 500S, Las Vegas, NV 89169-6014

63

President, Treasurer, Secretary and Director

(Principal Executive, Financial and Accounting Officer)


Emiliya Galfinger has acted as our President, Treasurer, Secretary and sole Director since we incorporated on March 31, 2016. Ms. Galfinger owns 75.56% of the outstanding shares of our common stock. As such, it was unilaterally decided that Ms. Galfinger was going to be our sole President, Chief Executive Officer, Treasurer, and Chief Financial Officer, Chief Accounting Officer, Secretary and sole member of our board of directors. Ms. Galfinger graduated from Patrice Lumumba University (Moscow) in 1979. Since 1979 untill 1991 she worked in “Inturist” travel agency. She started her career in “Inturist” as a specialist at International Tourism department and finished as a head of Department. Since 1991 till 2015, Ms. Galfinger was a sole proprietor of tourism consulting service “Galfinger and Co” in Moscow with specialization in medical tourism. She mostly worked with European (Germany, Switzerland, Austria) and Asian (China, Thailand, India) countries. Since 2015 she started to develop the project of the new medical consulting service and on March 31, 2016 she established Galem Group Corp., a Nevada corporation. We believe that Ms. Galfinger’s specific experience, qualifications and skills will enable to develop our business.




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During the past ten years, Ms. Galfinger has not been the subject to any of the following events:


1.

Any bankruptcy petition filed by or against any business of which Ms. Galfinger was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time.

2.

Any conviction in a criminal proceeding or being subject to a pending criminal proceeding.

3.

An order, judgment, or decree, not subsequently reversed, suspended or vacated, or any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting Ms. Galfinger’s involvement in any type of business, securities or banking activities.

4.

Found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Future Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

5.

Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right to engage in any activity described in paragraph (f)(3)(i) of this section, or to be associated with persons engaged in any such activity;

6.

Was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;

7.

Was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:

i.

Any Federal or State securities or commodities law or regulation; or

ii.

Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or

iii.

Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

1.

Was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.


AUDIT COMMITTEE


We do not have an audit committee financial expert. We do not have an audit committee financial expert because we believe the cost related to retaining a financial expert at this time is prohibitive. Further, because we have no operations, at the present time, we believe the services of a financial expert are not warranted.


SIGNIFICANT EMPLOYEES


Other than our director, we do not expect any other individuals to make a significant contribution to our business.



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ITEM 11. EXECUTIVE COMPENSATION


The following tables set forth certain information about compensation paid, earned or accrued for services by our Executive Officer from inception on March 31, 2016 until June 30, 2016  and for the year ended June 30, 2017:


Summary Compensation Table


Name and

Principal

Position

Period

Salary

($)

Bonus

($)

Stock

Awards

($)

Option

Awards

($)

Non-Equity

Incentive Plan

Compensation

($)

All Other

Compensation

($)

All Other

Compensation

($)

Total

($)

Emiliya Galfinger, President, Secretary and Treasurer

March 31, 2016 to September 30, 2016


-0-


-0-


-0-


-0-


-0-


-0-


-0-


-0-

July 1, 2016 to June 30, 2017


-0-


-0-


-0-


-0-


-0-


-0-


-0-


-0-




There are no current employment agreements between the company and its officer.


There are no annuity, pension or retirement benefits proposed to be paid to the officer or director or employees in the event of retirement at normal retirement date pursuant to any presently existing plan provided or contributed to by the company or any of its subsidiaries, if any.


CHANGE OF CONTROL


As of June 30, 2017, we had no pension plans or compensatory plans or other arrangements which provide compensation in the event of a termination of employment or a change in our control.



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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS


The following table sets forth information as of June 30, 2017 regarding the ownership of our common stock by each shareholder known by us to be the beneficial owner of more than five percent of our outstanding shares of common stock, each director and all executive officers and directors as a group. Except as otherwise indicated, each of the shareholders has sole voting and investment power with respect to the shares of common stock beneficially owned.


Title of Class

Name and Address of

Beneficial Owner

Amount and Nature of 

Beneficial Ownership

Percentage

Common Stock

Emiliya Galfinger

3773 Howard Hughes Parkway, Ste. 500S, Las Vegas, NV 89169-6014

3,000,000 shares of common stock (direct)

 

75.56%

 

The percent of class is based on 3,970,000 shares of common stock issued and outstanding as of the date of this annual report.


ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS


On May 16, 2016, we issued a total of 3,000,000 shares of restricted common stock to Emiliya Galfinger, our sole officer and director in consideration of $3,000. Further, Ms. Galfinger has advanced funds to us. As of June 3030, 2016, Ms. Galfinger has advanced to us $5,853. The obligation to Ms. Galfinger does not bear interest.


ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES


During fiscal year ended June 30, 2017, we incurred approximately $7,623 in fees to our principal independent accountants for professional services rendered in connection with the audit of our financial statements for the fiscal year ended June 30, 2016 and for the reviews of our financial statements for the quarters ended September 30, 2016, December 31, 2016 and March 31, 2017.


ITEM 15. EXHIBITS


The following exhibits are filed as part of this Annual Report.


Exhibits:

Exhibits:


Exhibits:


31.1 Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a)

32.1 Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002

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 Document

101.LAB XBRL Taxonomy Extension Label Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURES


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.


                                          

                    

 


GALEM GROUP INC.


Dated: October 12, 2017


By: /s/ Emiliya Galfinger

 

Emiliya Galfinger, President and

Chief Executive Officer and Chief Financial Officer







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