KRIPTECH INTERNATIONAL CORP. (the Company) is a corporation established under the corporation laws in the State of Nevada on March 20, 2016.
The company intends to commence operations in the business of visa consultancy services.
The Company has adopted September 30 fiscal year end.
The Companys financial statements as of March 31, 2020 were 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 accumulated loss from inception (March 20, 2016) to March 31, 2020 of $45,385.
In order to continue as a going concern, the Company will need, among other things, additional capital resources. Managements 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.
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.
The financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the Companys financial position at March 31, 2020 the results of its operations for the six months ended March 31, 2020 and cash flows for the six months ended March 31, 2020. The results of operations for the six months ended March 31, 2020, are not necessarily indicative of the results to be expected for future quarters or the full year.
For purposes of the statement of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of six 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 March 31, 2020 the Company's bank deposits did not exceed the insured amounts.
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 managements estimates and assumptions.
Property and equipment is stated at cost and depreciated using the straight-line method over the shorter of the estimated useful life of the asset. The estimated useful life of our property and equipment is as follows: computer equipment and computer software acquired for internal use, three years.
As of March 31, 2020, 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.
The Company follows the guidance of the Accounting Standards Codification (ASC) Topic 605, Revenue Recognition. We recognize revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the product or service has been provided to the customer; (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of our fees is probable.
The Company records revenue when it is realizable and earned and the consulting services have been rendered to the customers.
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.
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.
On March 28, 2017, the Company purchased a computer for $1,375. The Company is stated at cost and depreciated using the straight-line method over the shorter of the estimated useful life of the asset. The estimated useful life of the equipment is as follows: computer equipment acquired for internal use, three years.
During six months ended March 31, 2020 and 2019, the Company recorded $250 and $250 in depreciation expense for the computer, respectively.
The Company has 75,000,000 shares of common stock authorized with a par value of $0.001 per share.
As of March 31, 2020, the Company had 10,530,000 shares issued and outstanding.
In support of the Companys 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 20, 2016 (Inception) through March 31, 2020, the Companys president, treasurer and director loaned the Company $11,968 to pay for incorporation costs and operating expenses. As of March 31, 2020, the amount outstanding was $11,968. The loan is non-interest bearing, due upon demand and unsecured.
In accordance with ASC 855-10 management has performed an evaluation of subsequent events from March 31, 2020 through the date the financial statements were issued. The following events were determined to be reportable.
On April 1, 2020, the Companys president, treasurer and director loaned the Company $975 to pay for operating expenses.
Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. 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.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
We provide our consulting service in Thailand for Thai citizens. Thai people need visa for many countries in the world. We provide visa consulting service for visitors to Schengen area (26 European countries), USA (visitors visa type B1/B2), Canada, UK, Australia, China, and/or about 30 other countries.
RESULTS OF OPERATIONS
Three Months Period Ended March 31, 2020 compared to the Three Months Period Ended March 31, 2019
During the three months period ended March 31, 2020 we have not generated any in revenue compared to $1,000 during the three months period ended March 31, 2019. The decrease of revenue was due to no sales for the three month period ended March 31, 2020.
During the three month period ended March 31, 2020, we incurred $4,633 in general and administrative expenses compared to $4,774 during the three months period ended March 31, 2019 .
Our net loss for the Three months period ended March 31, 2020 was $4,633 compared to net loss of $3,774 for the three months period ended March 31, 2019, due to no revenue for the three month period ended March 31, 2020.
Six Months Period Ended March 31, 2020 compared to the Six Months Period Ended March 31, 2019
During the six months period ended March 31, 2020 we have not generated any in revenue compared to $5,600 during the six months period ended March 31, 2019. The decrease of revenue was due to no sales for the six month period ended March 31, 2020.
During the six month period ended March 31, 2020, we incurred $9,591 in general and administrative expenses compared to $15,238 during the six months period ended March 31, 2019 . The change in operating expenses for the six month period ended March 31, 2020 compared to six month period ended March 31, 2019 was because there was $3,500 expense for DTC advisory for the period ended March 31, 2019.
Our net loss for the six months period ended March 31, 2020 was $9,591 compared to net loss of $9,638 for the six months period ended March 31, 2019.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2020
As of March 31, 2020, our total assets were $81 compared to $403 in total assets at September 30, 2019. As of March 31, 2020, our current liabilities were $12,166 compared to $2,897 as of September 30, 2019.
Stockholders deficit was $12,085 as of March 31, 2020 compared to stockholders deficit of $2,494 as of September 30, 2019.
Cash Flows from Operating Activities
For the six months ended March 31, 2020, cash flow used for operating activities was $9,440 consisting of a net loss of $9,591 and depreciation of $250 and decrease of account payable of $99. For the six months ended March 31, 2019, cash flow used for operating activities was $9,388 consisting of a net loss of $9,638 and depreciation expense of $250.
Cash Flows from Financing Activities
We have financed our operations primarily from either advancements or the issuance of equity and debt instruments. For the six-month period ended March 31, 2020 net cash provided by financing activities was $9,368 received from loan from related party. For the six-month period ended March 31, 2019 net cash provided by financing activities was $-0-.
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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.
As of the date of this Quarterly 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 Quarterly 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.
The independent auditors' report accompanying our September 30, 2019 financial statements contains 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.