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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

 

For the quarterly period ended August 31, 2020

   

Commission File Number 333-216292

  

MIKROCOZE INC.

(Exact name of registrant as specified in its charter)

  

Nevada

 

81-3599639

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

1545 Crossways Blvd., Suite 250, Chesapeake, Virginia, 23320-0210

(Address of principal executive offices)(Zip Code)

 

(800) 542-8715

(Registrant’s telephone number, including area code)

 

N/A

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

 

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 such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☐ Yes    ☒ No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☐ Yes    ☒ No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

Emerging growth company

  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court ☐ Yes    ☐ No

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common, $0.001 Par Value

 

MZKR

 

OTCBB

 

As of October 14, 2020 the registrant had 75,000,000 shares of common stock issued and 75,000,000 shares of common stock outstanding, par value $0.001.

 

 

 

 

TABLE of CONTENTS

 

PART I—FINANCIAL INFORMATION

 

 

 

 

 

 

 

Item 1.

Condensed Financial Statements.

 

3

 

Item 2.

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

 

4

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

 

5

 

Item 4.

Controls and Procedures.

 

5

 

 

 

 

 

 

PART II—OTHER INFORMATION

 

 

 

 

 

 

 

 

Item 1.

Legal Proceedings.

 

6

 

Item 1A.

Risk Factors.

 

6

 

Item 2.

Unregistered Sales of Securities and Use of Proceeds.

 

6

 

Item 3.

Defaults Upon Senior Securities.

 

6

 

Item 4.

Mine Safety Disclosures

 

6

 

Item 5.

Other Information

 

6

 

Item 6.

Exhibits.

 

7

 

 

 

2

 

  

PART I—FINANCIAL INFORMATION

   

Item 1. Condensed Financial Statements.

    

MIKROCOZE INC.

FINANCIAL STATEMENTS

 

August 31, 2020

    

CONDENSED BALANCE SHEETS

 

F-1

 

 

 

 

CONDENSED STATEMENTS OF OPERATIONS

 

F-2

 

 

 

 

 

CONDENSED STATEMENTS OF STOCKHOLDERS’ DEFICIT

 

F-3

 

 

 

 

CONDENSED STATEMENTS OF CASH FLOWS

 

F-4

 

 

 

 

CONDENSED NOTES TO FINANCIAL STATEMENTS

 

F-5

 

  

 
3

Table of Contents

 

MIKROCOZE INC.

CONDENSED BALANCE SHEETS

    

 

 

August 31,

2020

 

 

November 30,

2019

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

Cash

 

$ 95

 

 

$ -

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

$ 95

 

 

$ -

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Accounts payable

 

$ 6,505

 

 

$ 1,037

 

Due to related parties

 

 

68,040

 

 

 

55,664

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

 

74,545

 

 

 

56,701

 

 

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Common stock

 

 

 

 

 

 

 

 

Authorized

 

 

 

 

 

 

 

 

200,000,000 shares of common stock, $0.001 par value,

 

 

 

 

 

 

 

 

Issued and outstanding

 

 

 

 

 

 

 

 

75,000,000 and 75,000,000 shares of common stock (refer Note 3)

 

 

75,000

 

 

 

75,000

 

Additional paid-in capital

 

 

(51,000 )

 

 

(51,000 )

Accumulated deficit

 

 

(98,450 )

 

 

(80,701 )

 

 

 

 

 

 

 

 

 

TOTAL STOCKHOLDERS’ DEFICIT

 

 

(74,450 )

 

 

(56,701 )

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$ 95

 

 

$ -

 

   

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

 

F-1

Table of Contents

   

MIKROCOZE INC.

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

    

 

 

Three months

ended

August 31,

2020

 

 

Three months

ended

August 31,

2019

 

 

Nine months

ended

August 31,

2020

 

 

Nine months

ended

August 31,

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

$ -

 

 

$ -

 

 

$ -

 

 

$ -

 

Cost of goods sold

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

583

 

 

 

2,191

 

 

 

3,289

 

 

 

5,217

 

Professional fees

 

 

3,560

 

 

 

2,800

 

 

 

14,460

 

 

 

13,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

 

(4,143 )

 

 

(4,991 )

 

 

(17,749 )

 

 

(18,817 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

 

$ (4,143 )

 

$ (4,991 )

 

$ (17,749 )

 

$ (18,817 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS PER COMMON SHARE – BASIC AND DILUTED

 

$ (0.00 )

 

$ (0.00 )

 

$ (0.00 )

 

$ (0.00 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – BASIC AND DILUTED

 

 

75,000,000

 

 

 

75,000,000

 

 

 

75,000,000

 

 

 

75,000,000

 

   

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

  

F-2

Table of Contents

   

MIKROCOZE INC.

CONDENDED STATEMENTS OF STOCKHOLDERS’ DEFICIT

For the Nine-month period ended August 31, 2020

(UNAUDITED)

 

 

 

Common Stock

 

 

Additional

 

 

 

 

 

 

 

 

 

Number of

shares

 

 

Amount

 

 

Paid-in

Capital

 

 

Accumulated

Deficit

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, November 30, 2019

 

 

75,000,000

 

 

$ 75,000

 

 

$ (51,000 )

 

$ (80,701 )

 

$ (56,701 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period ended February 29, 2020

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(8,844 )

 

 

(8,844 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, February 29, 2020

 

 

75,000,000

 

 

$ 75,000

 

 

$ (51,000 )

 

$ (89,545 )

 

$ (65,545 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period ended May 31, 2020

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,762 )

 

 

(4,762 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, May 31, 2020

 

 

75,000,000

 

 

$ 75,000

 

 

$ (51,000 )

 

$ (94,307 )

 

$ (70,307 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period ended August 31, 2020

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,143 )

 

 

(4,143 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, August 31, 2020

 

 

75,000,000

 

 

$ 75,000

 

 

$ (51,000 )

 

$ (98,450 )

 

$ (74,450 )

       

 

CONDENDED STATEMENTS OF STOCKHOLDERS’ DEFICIT

For the Nine-month period ended August 31, 2019

(UNAUDITED)

 

 

 

Common Stock

 

 

Additional

 

 

 

 

 

 

 

 

 

Number of

shares

 

 

Amount

 

 

Paid-in

Capital

 

 

Accumulated

Deficit

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, November 30, 2018

 

 

75,000,000

 

 

$ 75,000

 

 

$ (51,000 )

 

$ (57,428 )

 

$ (33,428 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period ended February 28, 2019

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(9,195 )

 

 

(9,195 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, February 28, 2019

 

 

75,000,000

 

 

$ 75,000

 

 

$ (51,000 )

 

$ (66,623 )

 

$ (42,623 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period ended May 31, 2019

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,631 )

 

 

(4,631 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, May 31, 2019

 

 

75,000,000

 

 

$ 75,000

 

 

$ (51,000 )

 

$ (71,254 )

 

$ (47,254 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period ended August 31, 2019

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,991 )

 

 

(4,991 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, August 31, 2019

 

 

75,000,000

 

 

$ 75,000

 

 

$ (51,000 )

 

$ (76,245 )

 

$ (52,245 )

  

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

  

F-3

Table of Contents

   

MIKROCOZE INC.

CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

Nine months

ended

August 31,

2020

 

 

Nine months

ended

August 31,

2019

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss for the period

 

$ (17,749 )

 

$ (18,817 )

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

 

 

 

 

Expenses paid on behalf of the Company by related party

 

 

12,046

 

 

 

16,662

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

 

5,468

 

 

 

2,050

 

 

 

 

 

 

 

 

 

 

NET CASH USED IN OPERATING ACTIVITIES

 

 

(235 )

 

 

(105 )

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

CASHFLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Related party advances

 

 

330

 

 

 

25

 

 

 

 

 

 

 

 

 

 

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

 

330

 

 

 

25

 

 

 

 

 

 

 

 

 

 

NET CHANGE IN CASH

 

 

95

 

 

 

(80 )

 

 

 

 

 

 

 

 

 

CASH, BEGINNING OF PERIOD

 

 

-

 

 

 

100

 

 

 

 

 

 

 

 

 

 

CASH, END OF PERIOD

 

$ 95

 

 

$ 20

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION AND NONCASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

Interest

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

Income taxes

 

$ -

 

 

$ -

 

  

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

  

F-4

Table of Contents

  

MIKROCOZE INC.

CONDENSED NOTES TO FINANCIAL STATEMENTS

AUGUST 31, 2020 (Unaudited)

 

NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION

 

Mikrocoze Inc. was incorporated in the State of Nevada as a for-profit Company on August 17, 2016 and established a fiscal year end of November 30.The Company is organized to sell micro-furniture that is designed to maximize any small space and to sell its products via the internet.

 

Going concern

 

To date the Company has generated no revenues from its business operations and has incurred operating losses since inception of $98,450.As at August 31, 2020, the Company has a working capital deficit of $74,450.The Company will require additional funding to meet its ongoing obligations and to fund anticipated operating losses.The ability of the Company to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations.Accordingly, these factors raise substantial doubt as to the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. The Company intends to continue to fund its business by way of private placements and advances from related parties as may be required. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might result from this uncertainty.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation – Unaudited Financial Statements

 

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form 10-Q.They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements.However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements for the fiscal year ended November 30, 2019 included in the Company’s year-end financial statements on Form 10-K filed with the Securities and Exchange Commission.The unaudited financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the nine months ended August 31, 2020 are not necessarily indicative of the results that may be expected for the year ending November 30, 2020.

 

Use of Estimates and Assumptions

 

Preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain 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 period.Accordingly, actual results could differ from those estimates.

   

Cash and Cash Equivalents

 

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

 

Inventory

 

We value our inventories at the lower of cost, determined on a first-in, first-out method, or market value. Our inventory consists solely of finished goods. We review inventories on hand at least quarterly and record provisions for estimated excess, slow moving and obsolete inventory, as well as inventory with a carrying value in excess of net realizable value. The regular and systematic inventory valuation reviews include a current assessment of future product demand, historical experience and obsolete finished product.

 

F-5

Table of Contents

    

MIKROCOZE INC.

CONDENSED NOTES TO FINANCIAL STATEMENTS

AUGUST 31, 2020 (Unaudited)

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

         

Revenue Recognition

 

The Company recognizes revenue in accordance with ASC topic 606 “Revenue from contracts with customers, and other applicable revenue recognition guidance under US GAAP. Sales revenue is recognized for our retail and wholesale customers when: (i) approval of both parties, (ii) the goods or services associated with transaction must be identified, (iii) identification of the transaction price, (iv) the contract has commercial substance, and (v) the performance obligation is satisfied — generally when products are shipped to the customer. Revenue consists of revenue earned from the sale of furniture and is recognized at the time the product is shipped to the customer.

 

Foreign Currency Translation

 

The Company translates the foreign currency financial statements into US Dollars using the year or reporting period end of average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”).Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented.The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within stockholders’ deficit.Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in general and administrative expenses of the statement of operations.

 

Fair Value of Financial Instruments

 

The carrying amount of the Company’s financial assets and liabilities approximates their fair values due to their short-term maturities.

 

Loss per Common Share

 

The basic loss per share is calculated by dividing the Company’s net loss available to common shareholders by the weighted average number of common shares during the year. The diluted loss per share is calculated by dividing the Company’s net loss available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Diluted loss per share is the same as basic loss per share due to the lack of dilutive items in the Company. As of August 31, 2020 and 2019, there were no common stock equivalents outstanding.

 

Income Taxes

 

The Company follows the liability method of accounting for income taxes.Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances and tax loss carry-forwards.Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled.The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.

 

Stock-based Compensation

 

The Company follows ASC 718-10, "Stock Compensation", which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 is a revision to SFAS No. 123, "Accounting for Stock-Based

 

F-6

Table of Contents

     

MIKROCOZE INC.

CONDENSED NOTES TO FINANCIAL STATEMENTS

AUGUST 31, 2020 (Unaudited)

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

      

Stock-based Compensation (continued)

 

Compensation," and supersedes Accounting Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees," and its related implementation guidance. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized. The Company has not adopted a stock option plan and has not granted any stock options. As at August 31, 2020 the Company had not adopted a stock option plan nor had it granted any stock options.Accordingly, no stock-based compensation has been recorded to date.

 

Recent Accounting Pronouncements

 

In February 2016, the FASB issued ASU 2016-02 related to the accounting for leases. This pronouncement requires lessees to record most leases on their balance sheet, while expense recognition on the income statement remains similar to current lease accounting guidance. The guidance also eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. Under the new guidance, lease classification as either a finance lease or an operating lease will determine how lease-related revenue and expense are recognized. The pronouncement is effective for the Company’s fiscal year beginning December 1, 2019, and for interim periods within that fiscal year. The adoption of this standard did not have an impact on the consolidated financial statements because leases are month-to-month and not material to the Company’s financial statements.

 

NOTE 3 – COMMON STOCK

   

The Company is authorized to issue 200,000,000 common shares with a par value of $0.001 per share.No preferred shares have been authorized or issued. There were no issuances of common stock during the current interim period.

  

NOTE 4 – RELATED PARTY TRANSACTIONS

    

During the period ended August 31, 2020, an entity controlled by the CEO paid expenses of $12,046 on behalf of the Company and advanced the Company $330. The total amount owed to the CEO, or entities controlled by the CEO, as of August 31, 2020 was $68,040 (November 30, 2019 - $55,664). The amounts due to related parties are unsecured and non-interest-bearing with no set terms of repayment.

  

NOTE 5 COMMITMENTS AND CONTINGENCIES

  

On August 26, 2018 the Company signed (renewed) its lease for office space in Chesapeake, Virginia. The term of the lease is for an automatic renewal on an annual basis at $79 per month.

  

NOTE 6 – SUBSEQUENT EVENTS

 

There were no significant subsequent events from the balance sheet date to the date the financial statements were issued.

 

F-7

Table of Contents

   

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

   

This section of this Form 10-Q includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our predictions.

 

Results of Operations

 

For the three-month period ended August 31, 2020 and 2019 we had no revenues.

 

Expenses for the three-month period ended August 31, 2020 totaled $4,143 resulting in a net loss of $4,143. The net loss for the three-month period ended August 31, 2020 is the result of expenses of $4,143, comprised of professional fees of $3,560; transfer agent expenses of $234; rent expenses of $262; telephone expense of $38; and bank service charges of $49. Expenses for the three-month period ended August 31, 2019 totaled $4,991 resulting in a net loss of $4,991. The net loss for the three-month period ended August 31, 2019 is the result of expenses of $4,991, comprised of professional fees of $2,800; filing fees of $1,350; transfer agent expenses of $517; rent expenses of $237; telephone expense of $57; and bank service charges of $30. The decrease in expenses between August 31, 2020 and August 31, 2019 is primarily due to the decrease in filing fees.

 

For the nine-month period ended August 31, 2020 and 2019 we had no revenues.

 

Expenses for the nine-month period ended August 31, 2020 totaled $17,749 resulting in a net loss of $17,749. The net loss for the nine-month period ended August 31, 2020 is the result of expenses of $17,749, comprised of professional fees of $14,460; filing fees of $573; transfer agent expenses of $1,610; rent expenses of $738; telephone expense of $166; and bank service charges of $202. Expenses for the nine-month period ended August 31, 2019 totaled $18,817 resulting in a net loss of $18,817. The net loss for the nine-month period ended August 31, 2019 is the result of expenses of $18,817, comprised of professional fees of $13,600; filing fees of $2,850; transfer agent expenses of $1,186; rent expenses of $890; telephone expense of $186; and bank service charges of $105. The decrease in expenses between August 31, 2020 and August 31, 2019 is primarily due to the decrease in filing fee expenses.

 

Liquidity and Capital Resources

 

We have generated minimal revenues to date and anticipate until we generate a more rapid growth in revenues, we will require additional financings in order to fully implement our plan of operations. With the exception of cash advances from our sole Officer and Director, and cash received in our initial offering, we have not had any additional funding. We must raise cash to implement our strategy and stay in business. Our president has verbally committed to continue to fund our operations up to $100,000. However, this is not in writing and maybe rescinded at any time.

 

As of August 31, 2020, we had $95 in cash and $68,040 due to a related party. As of November 30, 2019, we had $nil in cash, and $55,664 due to a related party. Total liabilities as of August 31, 2020, were $74,545 compared to $56,701 in total liabilities at November 30, 2019. The funds available to the Company will not be sufficient to fund the planned operations of the Company and maintain a reporting status. As of August 31, 2020, the Company owed $68,040 (November 30, 2019; $55,664) to its Chief Executive Officer. During the nine-month period ended August 31, 2020 and 2019, the CEO paid expenses of $12,046 and $16,662, respectively, on behalf of the Company. All amounts due to the related party are unsecured, non-interest bearing and have no set terms of repayment.

 

 
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We are continuing our implementation of our operational plans. Initial test sales have occurred, and the Company is currently developing plans in scale up sales. The website is operational (www.mikrocozeinc.com). Management expects a slow and steady increase in sales during the next fiscal year.

 

Off-balance sheet arrangements

 

Other than the situation described in the section titled Liquidity and Capital Resources, the company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect or change on the company’s financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. The term “off-balance sheet arrangement” generally means any transaction, agreement or other contractual arrangement to which an entity unconsolidated with the company is a party, under which the company has (i) any obligation arising under a guarantee contract, derivative instrument or variable interest; or (ii) a retained or contingent interest in assets transferred to such entity or similar arrangement that serves as credit, liquidity or market risk support for such assets

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

   

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

 

Item 4. Controls and Procedures.

   

Disclosure Controls and Procedures

 

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time period specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is accumulated and communicated to management including our principal executive officer and principal financial officer as appropriate, to allow timely decisions regarding required disclosure.

 

In connection with this quarterly report, as required by Rule 15d-15 under the Securities Exchange Act of 1934, we have carried out an evaluation of the effectiveness of the design and operation of our company’s disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of our company’s management, including our company’s principal executive officer and principal financial officer. Based upon that evaluation, our company’s principal executive officer and principal financial officer concluded that subject to the inherent limitations noted in this Part II, Item 9A(T) as of August 31, 2020, our disclosure controls and procedures were not effective due to the existence of material weaknesses in our internal controls over financial reporting.

 

Changes in Internal Control Over Financial Reporting

 

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f)) during the quarter ended August 31, 2020 that have materially affected, 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.

   

Currently we are not involved in any pending litigation or legal proceeding.

 

Item 1A. Risk Factors.

  

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

 

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

  

None

 

Item 3. Defaults Upon Senior Securities.

 

None

 

Item 4. Mining Safety Disclosures.

  

None

 

Item 5. Other Information.

  

None

 

 
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Item 6. Exhibits.

   

31.1

 

Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Executive Officer

 

 

 

31.2

 

Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Financial Officer *

 

 

 

32.1

 

Section 1350 Certification of Chief Executive Officer

 

 

 

32.2

 

Section 1350 Certification of Chief Financial Officer **

 

* Included in Exhibit 31.1

** Included in Exhibit 32.1

 

 
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SIGNATURES*

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  MIKROCROZE INC.

 

(Registrant)

 

       
Date: October 14, 2020 By: /s/ Sukmanjit Singh

 

 

Sukhmanjit Singh  
    President and Director  
    Principal and Executive Officer  

 

 

Principal Financial Officer

 

 

 

Principal Accounting Officer

 

 

 
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