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 June 30, 2023

 

     Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the transition period from __________ to __________

 

Commission file number 333-209903

 

GSG GROUP INC.

(Exact name of small business issuer as specified in its charter)

 

Nevada

 

2750

 

37-1769300

State or other jurisdiction

of incorporation or organization

 

Primary Standard Industrial

Classification Number

 

IRS Employer

Identification Number

 

3/F, Ashely nine, 9-11 Ashely Road, Tsim Sha TsuiKLN, Hong Kong

 

Tel: +852 3106 8189

(Address and telephone number of principal executive offices)

 

_____________________________________________________________ 

(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. (Check one):

 

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 ☐

 

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 55,125,000 common shares issued and outstanding as of August 31, 2023.

 

 

 

 

GSG GROUP INC.

 

QUARTERLY REPORT ON FORM 10-Q

 

TABLE OF CONTENTS

 

 

 

 

Page

 

PART I FINANCIAL INFORMATION:

 

 

 

 

Item 1.

Financial Statements (Unaudited)

 

3

 

Balance Sheets as of June 30, 2023 (Unaudited) and December 31, 2022

 

4

 

Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2022 (unaudited)

 

5

 

Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022 (unaudited)

 

6

 

Notes to the Unaudited Financial Statements

 

8

 

 

 

 

Item 2.

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

 

11

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

14

Item 4.

Controls and Procedures

 

14

 

 

 

 

PART II OTHER INFORMATION:

 

 

 

 

Item 1.

Legal Proceedings

 

15

Item 1A.

Risk Factors

 

15

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

15

Item 3.

Defaults Upon Senior Securities

 

15

Item 4.

Submission of Matters to a Vote of Securities Holders

 

15

Item 5.

Other Information

 

15

Item 6.

Exhibits

 

16

 

Signatures

 

17

 

 
2

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PART 1 – FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

The accompanying interim financial statements of GSG Group Inc. (“the Company”, “we”, “us” or “our”), have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted principles have been condensed or omitted pursuant to such rules and regulations.

 

The interim financial statements are condensed and should be read in conjunction with the company’s latest annual financial statements.

 

In the opinion of management, the financial statements contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented.

 

 
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GSG GROUP INC.

 

BALANCE SHEETS

 

 

 

June 30,

2023

 

 

December 31,

2022

 

 

 

(Unaudited)

 

 

(Audited) 

 

ASSETS

 

Current Assets

 

 

 

 

 

 

Cash

 

$200

 

 

$200

 

Inventory

 

 

-

 

 

 

-

 

Prepaid expenses

 

 

-

 

 

 

-

 

Total Current Assets

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

-

 

 

 

-

 

Total Assets

 

$200

 

 

$200

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT)

Liabilities

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accrued expenses and other payables

 

$33,183

 

 

$36,195

 

Due to related parties

 

 

87,506

 

 

 

78,106

 

Total Current Liabilities

 

 

120,689

 

 

 

114,301

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

 

120,689

 

 

 

114,301

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity/(Deficit)

 

 

 

 

 

 

 

 

Common stock - par value $0.001; 75,000,000 shares authorized, 30,125,000 shares issued and outstanding as of June 30, 2023 and December 31, 2022

 

 

30,125

 

 

 

30,125

 

Additional paid-in capital

 

 

18,261

 

 

 

18,261

 

Accumulated deficit

 

 

(168,875 )

 

 

(162,487 )

Total Stockholders’ Equity/(Deficit)

 

 

(120,489 )

 

 

(114,101 )

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders’ Equity/(Deficit)

 

$200

 

 

$200

 

 

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

 

 
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GSG GROUP INC.

STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

For the 3 Months

Ended

June 30,

 

 

For the 6 Months

Ended

June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$-

 

 

$-

 

 

 

-

 

 

$-

 

Cost of goods sold

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Gross profit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

(3,094 )

 

 

(3,094 )

 

 

(6,388 )

 

 

(6,188 )

Total operating expenses

 

 

(3,094 )

 

 

(3,094 )

 

 

(6,388 )

 

 

(6,188 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before provision for income taxes

 

 

(3,094 )

 

 

(3,094 )

 

 

(6,388 )

 

 

(6,188 )

Provision for income taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net loss

 

$(3,094 )

 

$(3,094 )

 

$(6,388 )

 

$(6,188 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$(0.00 )

 

$(0.00 )

 

$(0.00 )

 

$(0.00 )

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

30,125,000

 

 

 

30,125,000

 

 

 

30,125,000

 

 

 

30,125,000

 

 

Remark: Professional fee for financial review of this 10Q report of USD1,500 has been absorbed by a related company.

 

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

 

 
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GSG GROUP INC.

STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

6 Months

Ended

June 30,

2023

 

 

6 Months

Ended

June 30,

2022

 

 

 

 

 

 

 

 

Net loss for the period

 

$(6,388 )

 

$(6,188 )

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Depreciation expense

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Inventory

 

 

-

 

 

 

-

 

Prepaid expenses & deposits

 

 

-

 

 

 

-

 

Accrued expenses and other payables

 

 

(3,012 )

 

 

(2,812 )

Accounts payable

 

 

-

 

 

 

-

 

CASH FLOWS USED IN OPERATING ACTIVITIES

 

 

(9,400 )

 

 

(9,000 )

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from sales of common stock

 

 

-

 

 

 

-

 

Proceeds from related parties

 

 

9,400

 

 

 

9,000

 

Repayments to related parties

 

 

-

 

 

 

-

 

CASH FLOWS PROVIDED BY FINANCING ACTIVITIES

 

 

9,400

 

 

 

9,000

 

 

 

 

 

 

 

 

 

 

NET INCREASE IN CASH

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Cash, beginning of period

 

 

200

 

 

 

200

 

 

 

 

 

 

 

 

 

 

Cash, end of period

 

$200

 

 

$200

 

 

 

 

 

 

 

 

 

 

NON-CASH TRANSACTIONS:

 

 

 

 

 

 

 

 

Expenses paid by related party

 

$-

 

 

$-

 

Forgiveness of net liabilities by former shareholder

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL CASH FLOW DISCLOSURES:

 

 

 

 

 

 

 

 

Interest paid

 

$-

 

 

$-

 

Income taxes paid

 

$-

 

 

$-

 

 

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

 

 
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GSG GROUP INC.

STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIT

(Unaudited)

 

 

 

Common Stock

 

 

Additional

 

 

 

 

Total

Shareholders’

 

 

 

Number of

 

 

Par

 

 

Paid in

 

 

Accumulated

 

 

Equity/

 

 

 

Shares

 

 

Value

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2021

 

 

30,125,000

 

 

$30,125

 

 

$18,261

 

 

$(146,411 )

 

$(98,025 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,076 )

 

 

(16,076 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2022

 

 

30,125,000

 

 

$30,125

 

 

$18,261

 

 

$(162,487 )

 

$(114,101 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the Six Months ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,388 )

 

 

(6,388 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, June 30, 2023

 

 

30,125,000

 

 

$30,125

 

 

$18,261

 

 

$(168,875 )

 

$(120,489 )

 

The accompanying notes are an integral part of these financial statements

 

 
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GSG GROUP INC.

 

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

June 30, 2023

 

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

 

GSG Group Inc. (“the Company”, “we”, “us” or “our”) has been incorporated as Wike Corp. in the State of Nevada on November 11, 2014. Initially we were a development-stage company in the ornamental ribbons printing business. On April 6, 2017, we changed the business to consulting services for investors into the Asian real estate market and other growth industries. On September 15, 2017, the name change to GSG Group Inc. was approved by the Financial Industry Regulatory Authority (“FINRA”). In 2019 the Company began discussions to add Medical Devices production and trading to its business portfolio. Since July 24th, 2023 the Company has its new office at 3/F, Ashely nine, 9-11 Ashely Road, Tsim Sha Tsui, KLN, Hong Kong.

 

On August 28, 2019 Company entered into an Asset Assignment Agreement (as amended on July 12, 2020) with Prejex Holding GmbH in Germany, under which it acquires certain brand rights (brand registration and the Prejex website, current held in trust for Company by related party Medical Consult Europe B.V.) and the right to use certain competences regarding production of needle free injection devices. In return it promises to invest the total amount of US$ 1,000,000.00 within 24 months from the date of the Agreement into producing such needle free injection devices and making Prejex Holding GmbH the exclusive production manager worldwide with a remuneration to Prejex Holding GmbH of 5% of all worldwide turnover as relates to the assigned Business Assets as defined by the Agreement. Under the amendment dated July 12, 2020, Company agrees to induce its shareholder Mr. Xin Chen to cancel 19,000,000 of his shares against payment of US$ 150,000.00 by Prejex Holding GmbH to Mr. Chen no later than June 30, 2021. This deadline has been expanded by mutual consent to June 30, 2022. While Mr. Chen had his shares cancelled on November 06, 2020, the parties extended the deadline for Prejex´ payment by mutual consent to June 30, 2023.

 

On July 13, 2020, the shareholders of the Company in a majority vote appointed Mr. Frank Raymakers as new director, President and CEO, Mr. Maarten Stuut as new director and CFO, Mr. Alfred Kelly as director and Chief Operating Officers and Mr. Eric P. Ditkowsky as new director and Chief Sales Officer. Mr. Gim Hooi OOI was appointed as the new Chief Marketing Officer.

 

On April 14, 2021, our CFO Mr. Maarten Stuut was appointed also as CEO due to the sudden passing of Mr. Raymakers on April 11, 2021.

 

On December 28, 2021, all deadlines stipulated in the Asset Assignment Agreement have been extended until December 31, 2023, where necessary, by the “Extension of Asset Assignment Agreement” concluded between the parties on that date. The extension had become necessary due to the impact of Covid restrictions on the ability of the parties to execute their business plan within the timelines estimated before.

 

On December 01, 2022, the shareholders of the Company in a majority vote appointed Mr. Chester Jansen as new director and COO. At the same date Mr. Eric P. Ditkowsky and Mr. Alfred Kelly ceased to be directors of the Company.

 

As per May 25, 2023 and following Management having revised the business plan of the Company and implementation of the Prejex project no longer being  its first priority, , the Asset Assignment Agreement with Prejex Holding GmbH was cancelled in mutual consent by the parties. 

 

Following the addition of new directors and management to the board, the extended management prepared and presented its revised business plan for the Company with its focus returning to Asia and the rising needs of China, one of the highest populated countries and thus biggest markets in the world. The new business potentially will generate a healthy stream of new income to the Company. The management has primarily targeted a physiotherapy company with 15 years of experience in the industry, specifically targeting the elderly with physiotherapy needs, fitness enthusiasts, athletes, and individuals seeking injury prevention and recovery.

 

NOTE 2 – GOING CONCERN

 

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate the continuation of the Company as a going concern. However, the Company had no revenue for the Six months ended June 30, 2023 and incurred recurring losses. In addition, the Company had a negative working capital and generated negative cash flows from operating activities for the Six months ended June 30, 2023, and has not completed its efforts to establish a stable source of revenues sufficient to cover operating costs over an extended period of time. Therefore, there is substantial doubt about the Company’s ability to continue as a going concern.

 

Management anticipates that the Company will be dependent, for the near future, on borrowings from related party to fund operating expenses. In light of management’s efforts, there are no assurances that the Company will be successful in any of its endeavours or become financially viable and continue as a going concern. 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.

 

 
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NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for financial information. 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 year ended December 31, 2022 included in the Company’s Form 10-K filed with the Securities and Exchange Commission. The unaudited interim 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 Six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

 

Use of Estimates

 

The preparation of the financial statements in conformity with generally accepted accounting principles 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 amount of revenues and expenses during the reporting period. The management makes its best estimate of the outcome for these items based on information available when the financial statements are prepared. Actual results could differ from those estimates.

 

Fair Value of Financial Instruments

 

ASC topic 820 “Fair Value Measurements and Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

 

These tiers include:

 

Level 1:

defined as observable inputs such as quoted prices in active markets;

Level 2:

defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

Level 3:

defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

 

The carrying amounts of cash, prepaid expenses and accrued expenses and other payables approximate their fair value due to their relatively short-term maturity.

 

Related Party Transaction

 

A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business.

 

Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated.

 

Revenue Recognition

 

The Company will recognize revenue in accordance with ASC topic 605 “Revenue Recognition”. Revenue is recognized when the four basic criteria of revenue recognition are met:  (1) a contractual agreement exists; (2) transfer of rights has been completed; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.

 

 
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NOTE 4 – Related Party Transactions

 

During the Six months ended June 30, 2023, the Company borrowed cash of $9,400 from an unrelated shareholder for operating purposes and repaid in the amount of $0. During the Six months ended June 30, 2022, the Company had borrowed cash of $9,000 from its directors or related parties for operating purposes and had repaid in the amount of $0. The borrowings from and expenses paid by directors and/or other related or unrelated parties are unsecured, non-interest bearing and due on demand.

 

NOTE 5 – COMMITMENTS AND CONTINGENCIES

 

None

 

NOTE 6 – SUBSEQUENT EVENTS

 

In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the Pro-forma financial statements are issued, the Company has evaluated all events or transactions that occurred after 30 June, 2023, up through the date the Company issued the unaudited pro-forma financial statements.

 

On July 17, 2023, the Company added two new directors, Ms. Wenqiu Liao and Mr. Ha Leong Lau to the Company’s Board.

 

On July 17, 2023, the Company entered into a Share Exchange Agreement of Kingdom Defi Limited in regards to Harmony Physiotherapy Limited and its operations of professional physiotherapy treatment and healthcare services

On July 18, 2023, the President and CEO position of Mr. Maarten Stuut was replaced with Ms. Wenqiu Liao. The CFO position of Mr. Maarten Stuut was replaced by Mr. Ha Leong Lau as the Acting CFO of the Company. The Acting CFO shall serve in this role until a permanent CFO is appointed. The COO position of Mr. Chester Jansen was replaced that day by Mr. Po Hei Chan and Mr. Stuut and Mr. Jansen left the board. 

 

On July 19, 2023, the Company cancelled the shares of Mr. Gim Hooi Ooi, a shareholder of the Company, and reversed the aged debt of $40,323 owing to Mr. Gim Hooi Ooi. Mr. Gim Hooi Ooi held a total of 17,709,098 common shares of the Company and was equivalent to an aggregate of 58.78% of outstanding and issued shares prior to the cancellation. The cancellation instruction has been submitted to the TA.

 

On July 19, 2023, the Company issued 25,000,000 common shares to Kingdom Defi Limited in exchange for a new business into the Company. The new share issuance was completed on August 18, 2023.

 

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

 

Forward looking statement notice

 

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.

 

General

 

GSG Group Inc. was incorporated in the State of Nevada on November 11, 2014 with a fiscal year end of December 31. We were formed to commence operations in ornamental ribbons production, such as printing on ribbons, but, effective April 6, 2017, management decided to cease the existing business of printing ornamental ribbons and to explore new business to generate sufficient cash flow and profits to the Company. Today, the Company is looking to advise foreign parties on real estate and industrial investments in Cambodia and is also looking to build cash flows in the medical devices area.

 

The Company has its office at 3/F, Ashely nine, 9-11 Ashely Road, Tsim Sha Tsui, KLN, Hong Kong.

 

Product

 

Originally, our products included ribbons, notebooks, plastic items and other printed goods of that kind, where we specialized mostly on ribbons printing. Since 2017 until late 2018 we stopped the printing business and focused on advising investors on the Asia real estate market, specifically in Cambodia. This is also how we decided in Q2/2019 to enter into discussions about production of medical devices in Cambodia.

 

On August 28, 2019 we signed an Asset Assignment Agreement in order to acquire certain brand and production rights from Prejex GmbH in Germany, which allow us to produce and distribute certain needle free injection devices globally. The management have continued and continue working towards producing the first tranche of Prejex needle free injectors. As such, the CEO is in negotiations with two new potential production partners, who are looking to produce the needle free injectors for the beauty markets in Turkey and Asia. This agreement was cancelled on May 25, 2023.

 

On June 30, we revised the business plan to focus on new business which potentially will generate a healthy stream of new income to the Company. The management has primarily targeted a physiotherapy company with 15 years of experience in the industry, specifically targeting the elderly with physiotherapy needs, fitness enthusiasts, athletes, and individuals seeking injury prevention and recovery.

 

Target market

 

At this point, the Management has eyed the rising health and physiotherapy needs of aging poluation in China market and kept an open option to tap the blue sea to speed up positive cash flows into the Company.

 

 
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Industry analysis

 

According to Arizton Advisory & Intelligence, the global physiotherapy market is expected to grow at a CAGR of 16.3% from 2022 to 2030. The combination of an aging population and the rising prevalence of cardiovascular, neurological, and musculoskeletal problems provides the dynamics for the accelerated growth of the global physiotherapy market.

 

The global physiotherapy market was valued at USD15.35 billion in 2022 and is projected to reach USD51.39 billion by 2030.

 

China’s rehabilitation medical services market was valued at RMB84 billion in 2020 and is expected to grow at a CAGR of 17.7% to reach RMB211billion in 2025. Physiotherapy is the main method of therapy in rehabilitation medical services, with demands mainly from patient rehabilitation, postpartum rehabilitation, sports rehabilitation and child rehabilitation. With the improvement of the standard of living in China, the demand for premium rehabilitation services drives the demand for physiotherapy in China on top of the global underlying trend.

 

Marketing

 

We have made the initially needed contacts to market our product mostly on a mouth to mouth basis, which is possible due to our long built network to all relevant business owners, industry leaders and decision makers internationally and locally. We intend to increase our online presences and to utilize alternative marketing tools in the future to further increase our exposure and recognition with our target clients.

 

Competition

 

The level of competition in our target line of business is still lower than in other further developed areas in the medical devices industry and we rely on our targeted performance benchmarks in result driven, professionally produced, managed and sold products that we can offer at a competitive price level due to our still lean structure and organization.

 

Insurance

 

We do not maintain any insurance at the moment, but have negotiated the necessary product coverage ready to be available immediately once required. We will decide on a case by case basis if professional indemnity cover would also be advisable. If we were made a party of a products liability action and, in the case would not have arranged for insurance cover, we may not have sufficient funds to defend the litigation. If that occurs a judgment could be rendered against us that could cause us to cease operations.

 

Employees

 

We are a development stage company and currently have no employees, other than our officers and directors.

 

Offices

 

The phone number is +852 3106 8189. The office is located at 3/F, Ashely nine, 9-11 Ashely Road, Tsim Sha Tsui, KLN, Hong Kong.

 

 
12

Table of Contents

  

Government Regulation

 

We will be required to comply with all regulations, rules and directives of governmental authorities and agencies applicable to consulting firms and operation of any facility in any jurisdiction which we would conduct activities. We do not believe that regulation will have a material impact on the way we conduct our business. We do not need to receive any government approvals necessary to conduct our business; however we will have to comply with all applicable export and import regulations.

 

Results of operations

 

The following comparative analysis on results of operations was based primarily on the comparative financial statements, footnotes and related information for the periods identified below and should be read in conjunction with the financial statements and the notes to those statements that are included elsewhere in this report.

 

Comparison of the Three and Six months ended June 30, 2023 and June 30, 2022

 

Revenues

 

For the Three months ended June 30, 2023 we have generated revenues of $0 and $0 for the same period ended June 30, 2022. For the Six months ended June 30, 2023 we have generated revenues of $0 and revenues were $0 for the Six months ended June 30, 2022.

 

Operating Expenses

 

The operating expenses were $3,094 and $3,094 for the Three months and $6,388 and $6,188 for the Six months ended June 30, 2023 and June 30, 2022, respectively. The increase in operating expenses are mainly due to increased occurrence of professional fees.

 

Professional fees for financial review of this 10Q Report for the Three months ended June 30, 2023 of $1,500 has been absorbed by a related company.

 

Liquidity and capital resources

 

We have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation. The Company will be relying on borrowings from related party to sustain its daily operations.

 

As at June 30, 2023, we had assets for the amount of $200, of which the cash balance was $200. As of December 31, 2022, our total assets were $200 which included cash of $200.

 

As at June 30, 2023 and December 31, 2022, our current liabilities were $120,689 and $114,301, respectively. The stockholders’ deficit was $120,489 as of June 30, 2023 and $114,101 as of December 31, 2022.

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

We have not generated positive cash flows from operating activities. Net cash flows used in operating activities was $9,400 and $0 for the Three months and $9,400 and $9,400 for the Six months ended June 30, 2023 and June 30, 2022, respectively.

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

For both, the Three and the Six months ended June 30, 2023 and 2022 respectively, we did not have any cash flows used in or provided by investing activities.

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

For the Six months ended June 30, 2023 net cash flows provided by financing activities was $9,400. The net cash flows provided by financing activities were $9,000 for the Six months ended June 30, 2022. During the Six months ended June 30, 2023, the Company borrowed cash of $9,400 from unrelated parties. The Company borrowed cash of $9,000 during the Six months ended June 30, 2022 from an unrelated party. The Company repaid cash of $0 to related parties in the Six months ended June 30, 2023 and $0 during the Six months ended June 30, 2022.

 

 
13

Table of Contents

  

Management’s discussion and analysis

 

You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this prospectus. Some of the information contained in this discussion and analysis or set forth elsewhere in this prospectus, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks and uncertainties. You should review the “Risk Factors” section of this prospectus for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

 

There is a substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills. This is because we have generated only limited revenues to date and had recurring losses and negative cash flows from operating activities.

 

If we need additional cash and cannot raise it, we will either have to suspend operations until we do raise the cash, or cease operations entirely.

 

Plan of operation

 

At the time of this document the Company is actively seeking for suitable

 

Off-balance sheet arrangements

 

We have no 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.

 

Limited operating history; need for additional capital

 

There is no historical financial information about us upon which to base an evaluation of our performance. We are in start-up stage operations and have generated limited revenues to the date. We cannot guarantee we will be successful in our business operations.

 

We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholder.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

None

 

ITEM 4. 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 or person performing similar functions, as appropriate to allow timely decisions regarding required disclosures.

 

An evaluation was conducted under the supervision and with the participation of our management on the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on the evaluation, our management concluded that our disclosure controls and procedures were not effective due to the material weaknesses identified as follows: (i) inadequate segregation of duties; (ii) lack of sufficient and adequate finance personnel with appropriate understanding of U.S. GAAP and SEC reporting requirements; (iii) lack of well-established procedures to identify, approve and report related party transactions. As a result, material weaknesses on internal control over financial reporting exist.

 

Our independent auditors have not audited and are not required to audit this assessment of our internal control over financial reporting for the period covered by this report.

 

Changes in Internal Controls over Financial Reporting

 

There was no change in the Company’s internal control over financial reporting during the most recent Six-month period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

 
14

Table of Contents

  

PART II. OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

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

 

ITEM 1A. RISK FACTORS

 

None

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None

 

ITEM 3. DEFAULTS UPON SENIOR SECURITES

 

None

 

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

 

None

 

ITEM 5. OTHER INFORMATION

 

None

 

 
15

Table of Contents

  

ITEM 6. EXHIBITS

 

The following exhibits are included as part of this report by reference:

 

31.1

 

Certification of Chief Executive 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.

 

 

 

31.2

 

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

 

 

 

32.2

 

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.

 

 
16

Table of Contents

  

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.

 

 

GSG Group Inc.

 

 

 

 

 

Date: October 05, 2023

By:

/s/ Wenqiu Liao

 

 

 

Wenqiu Liao

 

 

 

President and CEO

 

Date: October 05, 2023

By:

/s/ Ha Leong Lau

 

 

 

Ha Leong Lau

 

 

 

Director and CFO

 

 
17

 

nullnullnullnullv3.23.3
Cover - shares
6 Months Ended
Jun. 30, 2023
Aug. 31, 2023
Cover [Abstract]    
Entity Registrant Name GSG GROUP INC.  
Entity Central Index Key 0001668523  
Document Type 10-Q  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Small Business true  
Entity Shell Company true  
Entity Emerging Growth Company false  
Entity Current Reporting Status Yes  
Document Period End Date Jun. 30, 2023  
Entity Filer Category Non-accelerated Filer  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2023  
Entity Common Stock Shares Outstanding   55,125,000
Document Quarterly Report true  
Document Transition Report false  
Entity File Number 333-209903  
Entity Incorporation State Country Code NV  
Entity Tax Identification Number 37-1769300  
Entity Address Address Line 1 3/F, Ashely nine  
Entity Address Address Line 2 9-11 Ashely Road  
Entity Address Address Line 3 Tsim Sha Tsui  
Entity Address City Or Town KLN  
Entity Address Country HK  
Entity Address Postal Zip Code 8808  
City Area Code 852  
Local Phone Number 3106 8189  
Entity Interactive Data Current Yes  
v3.23.3
BALANCE SHEETS - USD ($)
Jun. 30, 2023
Dec. 31, 2022
Current Assets    
Cash $ 200 $ 200
Inventory 0 0
Prepaid expenses 0 0
Total Current Assets 0 0
Property and equipment, net 0 0
Total Assets 200 200
Current Liabilities    
Accrued expenses and other payables 33,183 36,195
Due to related parties 87,506 78,106
Total Current Liabilities 120,689 114,301
Total Liabilities 120,689 114,301
Common stock - par value $0.001; 75,000,000 shares authorized, 30,125,000 shares issued and outstanding as of June 30, 2023 and December 31, 2022 30,125 30,125
Additional paid-in capital 18,261 18,261
Accumulated deficit (168,875) (162,487)
Total Stockholders' Equity/(Deficit) (120,489) (114,101)
Total Liabilities and Stockholders' Equity/(Deficit) $ 200 $ 200
v3.23.3
BALANCE SHEETS (Parenthetical) - $ / shares
Jun. 30, 2023
Dec. 31, 2022
BALANCE SHEETS    
Common stock, shares par value $ 0.001 $ 0.001
Common stock, shares authorized 75,000,000 75,000,000
Common stock, shares issued 30,125,000 30,125,000
Common stock, shares outstanding 30,125,000 30,125,000
v3.23.3
STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
STATEMENTS OF OPERATIONS (Unaudited)        
Revenues $ 0 $ 0 $ 0 $ 0
Cost of goods sold 0 0 0 0
Gross profit 0 0 0 0
Operating expenses:        
General and administrative expenses (3,094) (3,094) (6,388) (6,188)
Total operating expenses (3,094) (3,094) (6,388) (6,188)
Loss before provision for income taxes (3,094) (3,094) (6,388) (6,188)
Provision for income taxes 0 0 0 0
Net loss $ (3,094) $ (3,094) $ (6,388) $ (6,188)
Net loss per share        
Basic and diluted $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Weighted average shares outstanding        
Basic and diluted 30,125,000 30,125,000 30,125,000 30,125,000
v3.23.3
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
STATEMENTS OF CASH FLOWS (Unaudited)    
Net loss for the period $ (6,388) $ (6,188)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 0 0
Changes in operating assets and liabilities:    
Inventory 0 0
Prepaid expenses & deposits 0 0
Accrued expenses and other payables (3,012) (2,812)
Accounts payable 0 0
CASH FLOWS USED IN OPERATING ACTIVITIES (9,400) (9,000)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from sales of common stock 0 0
Proceeds from related parties 9,400 9,000
Repayments to related parties 0 0
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 9,400 9,000
NET INCREASE IN CASH 0 0
Cash, beginning of period 200 200
Cash, end of period 200 200
NON-CASH TRANSACTIONS:    
Expenses paid by related party 0 0
Forgiveness of net liabilities by former shareholder 0 0
SUPPLEMENTAL CASH FLOW DISCLOSURES:    
Interest paid 0 0
Income taxes paid $ 0 $ 0
v3.23.3
STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT (Unaudited) - USD ($)
Total
Common Stock
Additional Paid-In Capital
Accumulated Deficit
Balance, shares at Dec. 31, 2021   30,125,000    
Balance, amount at Dec. 31, 2021 $ (98,025) $ 30,125 $ 18,261 $ (146,411)
Net loss for the year (16,076)     (16,076)
Balance, shares at Dec. 31, 2022   30,125,000    
Balance, amount at Dec. 31, 2022 (114,101) $ 30,125 18,261 (162,487)
Net loss for the year (6,388)     (6,388)
Balance, shares at Jun. 30, 2023   30,125,000    
Balance, amount at Jun. 30, 2023 $ (120,489) $ 30,125 $ 18,261 $ (168,875)
v3.23.3
ORGANIZATION AND NATURE OF BUSINESS
6 Months Ended
Jun. 30, 2023
ORGANIZATION AND NATURE OF BUSINESS  
ORGANIZATION AND NATURE OF BUSINESS

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

 

GSG Group Inc. (“the Company”, “we”, “us” or “our”) has been incorporated as Wike Corp. in the State of Nevada on November 11, 2014. Initially we were a development-stage company in the ornamental ribbons printing business. On April 6, 2017, we changed the business to consulting services for investors into the Asian real estate market and other growth industries. On September 15, 2017, the name change to GSG Group Inc. was approved by the Financial Industry Regulatory Authority (“FINRA”). In 2019 the Company began discussions to add Medical Devices production and trading to its business portfolio. Since July 24th, 2023 the Company has its new office at 3/F, Ashely nine, 9-11 Ashely Road, Tsim Sha Tsui, KLN, Hong Kong.

 

On August 28, 2019 Company entered into an Asset Assignment Agreement (as amended on July 12, 2020) with Prejex Holding GmbH in Germany, under which it acquires certain brand rights (brand registration and the Prejex website, current held in trust for Company by related party Medical Consult Europe B.V.) and the right to use certain competences regarding production of needle free injection devices. In return it promises to invest the total amount of US$ 1,000,000.00 within 24 months from the date of the Agreement into producing such needle free injection devices and making Prejex Holding GmbH the exclusive production manager worldwide with a remuneration to Prejex Holding GmbH of 5% of all worldwide turnover as relates to the assigned Business Assets as defined by the Agreement. Under the amendment dated July 12, 2020, Company agrees to induce its shareholder Mr. Xin Chen to cancel 19,000,000 of his shares against payment of US$ 150,000.00 by Prejex Holding GmbH to Mr. Chen no later than June 30, 2021. This deadline has been expanded by mutual consent to June 30, 2022. While Mr. Chen had his shares cancelled on November 06, 2020, the parties extended the deadline for Prejex´ payment by mutual consent to June 30, 2023.

 

On July 13, 2020, the shareholders of the Company in a majority vote appointed Mr. Frank Raymakers as new director, President and CEO, Mr. Maarten Stuut as new director and CFO, Mr. Alfred Kelly as director and Chief Operating Officers and Mr. Eric P. Ditkowsky as new director and Chief Sales Officer. Mr. Gim Hooi OOI was appointed as the new Chief Marketing Officer.

 

On April 14, 2021, our CFO Mr. Maarten Stuut was appointed also as CEO due to the sudden passing of Mr. Raymakers on April 11, 2021.

 

On December 28, 2021, all deadlines stipulated in the Asset Assignment Agreement have been extended until December 31, 2023, where necessary, by the “Extension of Asset Assignment Agreement” concluded between the parties on that date. The extension had become necessary due to the impact of Covid restrictions on the ability of the parties to execute their business plan within the timelines estimated before.

 

On December 01, 2022, the shareholders of the Company in a majority vote appointed Mr. Chester Jansen as new director and COO. At the same date Mr. Eric P. Ditkowsky and Mr. Alfred Kelly ceased to be directors of the Company.

 

As per May 25, 2023 and following Management having revised the business plan of the Company and implementation of the Prejex project no longer being  its first priority, , the Asset Assignment Agreement with Prejex Holding GmbH was cancelled in mutual consent by the parties. 

 

Following the addition of new directors and management to the board, the extended management prepared and presented its revised business plan for the Company with its focus returning to Asia and the rising needs of China, one of the highest populated countries and thus biggest markets in the world. The new business potentially will generate a healthy stream of new income to the Company. The management has primarily targeted a physiotherapy company with 15 years of experience in the industry, specifically targeting the elderly with physiotherapy needs, fitness enthusiasts, athletes, and individuals seeking injury prevention and recovery.

v3.23.3
GOING CONCERN
6 Months Ended
Jun. 30, 2023
GOING CONCERN  
GOING CONCERN

NOTE 2 – GOING CONCERN

 

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate the continuation of the Company as a going concern. However, the Company had no revenue for the Six months ended June 30, 2023 and incurred recurring losses. In addition, the Company had a negative working capital and generated negative cash flows from operating activities for the Six months ended June 30, 2023, and has not completed its efforts to establish a stable source of revenues sufficient to cover operating costs over an extended period of time. Therefore, there is substantial doubt about the Company’s ability to continue as a going concern.

 

Management anticipates that the Company will be dependent, for the near future, on borrowings from related party to fund operating expenses. In light of management’s efforts, there are no assurances that the Company will be successful in any of its endeavours or become financially viable and continue as a going concern. 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.

v3.23.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for financial information. 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 year ended December 31, 2022 included in the Company’s Form 10-K filed with the Securities and Exchange Commission. The unaudited interim 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 Six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

 

Use of Estimates

 

The preparation of the financial statements in conformity with generally accepted accounting principles 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 amount of revenues and expenses during the reporting period. The management makes its best estimate of the outcome for these items based on information available when the financial statements are prepared. Actual results could differ from those estimates.

 

Fair Value of Financial Instruments

 

ASC topic 820 “Fair Value Measurements and Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

 

These tiers include:

 

Level 1:

defined as observable inputs such as quoted prices in active markets;

Level 2:

defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

Level 3:

defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

 

The carrying amounts of cash, prepaid expenses and accrued expenses and other payables approximate their fair value due to their relatively short-term maturity.

 

Related Party Transaction

 

A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business.

 

Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated.

 

Revenue Recognition

 

The Company will recognize revenue in accordance with ASC topic 605 “Revenue Recognition”. Revenue is recognized when the four basic criteria of revenue recognition are met:  (1) a contractual agreement exists; (2) transfer of rights has been completed; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.

v3.23.3
Related Party Transactions
6 Months Ended
Jun. 30, 2023
Related Party Transactions  
Related Party Transactions

NOTE 4 – Related Party Transactions

 

During the Six months ended June 30, 2023, the Company borrowed cash of $9,400 from an unrelated shareholder for operating purposes and repaid in the amount of $0. During the Six months ended June 30, 2022, the Company had borrowed cash of $9,000 from its directors or related parties for operating purposes and had repaid in the amount of $0. The borrowings from and expenses paid by directors and/or other related or unrelated parties are unsecured, non-interest bearing and due on demand.

v3.23.3
COMMITMENTS AND CONTINGENCIES
6 Months Ended
Jun. 30, 2023
COMMITMENTS AND CONTINGENCIES  
COMMITMENTS AND CONTINGENCIES

NOTE 5 – COMMITMENTS AND CONTINGENCIES

 

None

v3.23.3
SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2023
SUBSEQUENT EVENTS  
SUBSEQUENT EVENTS

NOTE 6 – SUBSEQUENT EVENTS

 

In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the Pro-forma financial statements are issued, the Company has evaluated all events or transactions that occurred after 30 June, 2023, up through the date the Company issued the unaudited pro-forma financial statements.

 

On July 17, 2023, the Company added two new directors, Ms. Wenqiu Liao and Mr. Ha Leong Lau to the Company’s Board.

 

On July 17, 2023, the Company entered into a Share Exchange Agreement of Kingdom Defi Limited in regards to Harmony Physiotherapy Limited and its operations of professional physiotherapy treatment and healthcare services

On July 18, 2023, the President and CEO position of Mr. Maarten Stuut was replaced with Ms. Wenqiu Liao. The CFO position of Mr. Maarten Stuut was replaced by Mr. Ha Leong Lau as the Acting CFO of the Company. The Acting CFO shall serve in this role until a permanent CFO is appointed. The COO position of Mr. Chester Jansen was replaced that day by Mr. Po Hei Chan and Mr. Stuut and Mr. Jansen left the board. 

 

On July 19, 2023, the Company cancelled the shares of Mr. Gim Hooi Ooi, a shareholder of the Company, and reversed the aged debt of $40,323 owing to Mr. Gim Hooi Ooi. Mr. Gim Hooi Ooi held a total of 17,709,098 common shares of the Company and was equivalent to an aggregate of 58.78% of outstanding and issued shares prior to the cancellation. The cancellation instruction has been submitted to the TA.

 

On July 19, 2023, the Company issued 25,000,000 common shares to Kingdom Defi Limited in exchange for a new business into the Company. The new share issuance was completed on August 18, 2023.

v3.23.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Policies)
6 Months Ended
Jun. 30, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Basis of Presentation

The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for financial information. 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 year ended December 31, 2022 included in the Company’s Form 10-K filed with the Securities and Exchange Commission. The unaudited interim 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 Six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

Use of Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles 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 amount of revenues and expenses during the reporting period. The management makes its best estimate of the outcome for these items based on information available when the financial statements are prepared. Actual results could differ from those estimates.

Fair Value of Financial Instruments

ASC topic 820 “Fair Value Measurements and Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

 

These tiers include:

 

Level 1:

defined as observable inputs such as quoted prices in active markets;

Level 2:

defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

Level 3:

defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

 

The carrying amounts of cash, prepaid expenses and accrued expenses and other payables approximate their fair value due to their relatively short-term maturity.

Related Party Transaction

A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business.

 

Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated.

Revenue Recognition

The Company will recognize revenue in accordance with ASC topic 605 “Revenue Recognition”. Revenue is recognized when the four basic criteria of revenue recognition are met:  (1) a contractual agreement exists; (2) transfer of rights has been completed; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.

v3.23.3
ORGANIZATION AND NATURE OF BUSINESS(Details Narrative) - USD ($)
1 Months Ended
Jul. 12, 2020
Aug. 28, 2019
ORGANIZATION AND NATURE OF BUSINESS    
Time Period   24 years
Turnover   5.00%
Investments   $ 1,000,000
Shares Cancelled 19,000,000  
Payment for Shares $ 150,000  
v3.23.3
Significant Accounting Policies and Recent Accounting Pronouncements (Details Narrative)
6 Months Ended
Jun. 30, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Description of related party (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company
v3.23.3
Related Party Transactions (Details Narrative) - USD ($)
Jun. 30, 2023
Jun. 30, 2022
Related Party Transactions    
Borrowed cash $ 9,400 $ 9,000
Repaid received from company $ 0 $ 0
v3.23.3
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member]
1 Months Ended
Jul. 19, 2023
USD ($)
shares
Kingdom Defi Limited [Member]  
Common stock shares issued $ 25,000,000
Mr. Gim Hooi Ooi [Member]  
Total held of common shares | shares 17,709,098
Equivalent of aggregate 58.78%
Reversed of debt $ 40,323

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