0001477932-20-004015.txt : 20200715 0001477932-20-004015.hdr.sgml : 20200715 20200715141609 ACCESSION NUMBER: 0001477932-20-004015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 26 CONFORMED PERIOD OF REPORT: 20200531 FILED AS OF DATE: 20200715 DATE AS OF CHANGE: 20200715 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Apawthecary Pets USA CENTRAL INDEX KEY: 0001528697 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-COMPUTER & PERIPHERAL EQUIPMENT & SOFTWARE [5045] IRS NUMBER: 261679929 STATE OF INCORPORATION: NV FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-55513 FILM NUMBER: 201029113 BUSINESS ADDRESS: STREET 1: 619 S. RIDGELEY DRIVE STREET 2: SUITE 101 CITY: LOS ANGELES STATE: CA ZIP: 90036 BUSINESS PHONE: (323) 345-4587 MAIL ADDRESS: STREET 1: 619 S. RIDGELEY DRIVE STREET 2: SUITE 101 CITY: LOS ANGELES STATE: CA ZIP: 90036 FORMER COMPANY: FORMER CONFORMED NAME: Bookedbyus Inc. DATE OF NAME CHANGE: 20110826 10-Q 1 apaw_10q.htm FORM 10-Q apaw_10q.htm

 

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 May 31, 2020

 

199-374-960

Commission File Number

 

Apawthecary Pets USA.

(Exact name of registrant as specified in its charter)

 

Nevada

 

26-1679929

(State or other jurisdiction of incorporation or organization)

 

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

 

 

 

c/o Bradley Kersch 1223 Fletcher Way, Port CoquitlamBC

 

V3C6B5

(Address of principal executive offices)  

 

(Zip Code)

 

(323) 345-4587

(Registrant’s telephone number, including area code)

 

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 every Interactive Data File required to be submitted 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 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

Non-accelerated filer

Accelerated filer

Smaller reporting company

 

Emerging Growth

 

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

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of July 15, 2020 we had 24,827,264 shares of common stock outstanding.

 

 

 

   

TABLE OF CONTENTS

 

PART I—FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

Item 1.

Financial Statements.

 

3

 

Item 2.

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

 

10

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

 

12

 

Item 4.

Controls and Procedures.

 

12

 

 

 

 

 

PART II—OTHER INFORMATION

 

 

 

 

 

 

 

Item 1.

Legal Proceedings.

 

13

 

Item 1A.

Risk Factors.

 

13

 

Item 2.

Unregistered Sales of Securities and Use of Proceeds.

 

13

 

Item 3.

Defaults Upon Senior Securities.

 

13

 

Item 4.

Mine Safety Disclosures.

 

13

 

Item 5.

Other Information.

 

13

 

Item 6.

Exhibits.

 

14

 

 

 
2

 

 

PART I—FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

Apawthecary Pets USA

Balance Sheets

(Stated in U.S. dollars)

 

 

 

May 31,

2020

 

 

August 31,

2019

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$806

 

 

$20,256

 

Total current assets

 

 

806

 

 

$20,256

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$806

 

 

$20,256

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$13,925

 

 

$9,957

 

Accounts payable  - related parties

 

 

4,618

 

 

 

2,522

 

Due to related parties

 

 

70,673

 

 

 

70,673

 

Total current liabilities

 

 

89,216

 

 

 

83,152

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

 

89,216

 

 

 

83,152

 

 

 

 

 

 

 

 

 

 

Stockholders' deficit

 

 

 

 

 

 

 

 

Authorized 75,000,000 of common shares, par value $0.001

 

 

 

 

 

 

 

 

Issued and outstanding 24,827,264 common shares issued and outstanding as of May 31, 2020 and August 31, 2019

 

 

24,827

 

 

 

24,827

 

Additional paid-in capital

 

 

349,223

 

 

 

349,223

 

Accumulated deficit

 

 

(462,460)

 

 

(436,946)

 

 

 

 

 

 

 

 

 

Total stockholders' deficit

 

 

(88,410)

 

 

(62,896)

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders' Deficit

 

$806

 

 

$20,256

 

 

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

  

 
3

Table of Contents

 

Apawthecary Pets USA

Statements of Operations

(Stated in U.S. Dollars)

  

 

 

 For the 

 

 

 For the 

 

 

 For the 

 

 

 For the 

 

 

 

 Three Months

 

 

 Three Months

 

 

 Nine Months

 

 

 Nine Months

 

 

 

 Ended

 

 

 Ended

 

 

 Ended

 

 

 Ended

 

 

 

 May 31, 

 

 

 May 31, 

 

 

 May 31, 

 

 

 May 31, 

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

  (Unaudited)

 

 

 (Unaudited)

 

 

  (Unaudited)

 

 

 (Unaudited)

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$5,765

 

 

$4,762

 

 

$25,514

 

 

$23,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating Expenses

 

 

5,765

 

 

 

4,762

 

 

 

25,514

 

 

 

23,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$(5,765)

 

$(4,762)

 

$(25,514)

 

$(23,750)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per common share - basic and diluted

 

$(0.00)

 

$(0.00)

 

$(0.00)

 

$(0.00)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares - basic and diluted

 

 

24,827,264

 

 

 

24,827,264

 

 

 

24,827,264

 

 

 

24,827,264

 

 

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

  

 
4

Table of Contents

 

Apawthecary Pets USA

Statements of Cash Flows

(Stated in U.S. dollars)

 

 

 

 

 For the 

 

 

 For the 

 

 

 

 Nine months

 

 

 Nine months

 

 

 

  Ended

 

 

  Ended

 

 

 

 May 31,

 

 

 May 31,

 

 

 

2020

 

 

2019

 

 

 

  (Unaudited)

 

 

 (Unaudited)

 

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$(25,514)

 

$(23,750)

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

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

3,968

 

 

 

6,709

 

Accounts payable  - related parties

 

 

2,096

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Cash flows used in operating activities

 

 

(19,450)

 

 

(17,041)

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

 

(19,450)

 

 

(17,041)

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

 

20,256

 

 

 

42,594

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$806

 

 

$25,553

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

 

Interest paid

 

$-

 

 

$-

 

Income tax paid

 

$-

 

 

$-

 

   

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

 

 
5

Table of Contents

   

Apawthecary Pets USA

Statements of Changes in Stockholders' Deficit

(Stated in U.S. Dollars)

For the Three Months Ended May 31, 2020 and May 31, 2019

(Unaudited)

 

 

 

Common stock

 

 

Additional

 

 

Accumulated

 

 

 

 

 

 Shares

 

 

 Amount

 

 

 paid-in capital

 

 

 Deficit

 

 

 Total

 

Balance at February 29, 2020

 

 

24,827,264

 

 

$24,827

 

 

$349,223

 

 

$(456,695)

 

$(82,645)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(5,765)

 

 

(5,765)

Balance at May 31, 2020

 

 

24,827,264

 

 

$24,827

 

 

$349,223

 

 

$(462,460)

 

$(88,410)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at February 28, 2019

 

 

24,827,264

 

 

$24,827

 

 

$349,223

 

 

$(419,537)

 

$(45,487)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,762)

 

 

(4,762)

Balance at May 31, 2019

 

 

24,827,264

 

 

$24,827

 

 

$349,223

 

 

$(424,299)

 

$(50,249)

 

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

  

 
6

Table of Contents

  

Apawthecary Pets USA

Statements of Changes in Stockholders' Deficit

(Stated in U.S. Dollars)

For the Nine Months Ended May 31, 2020 and May 31, 2019

(Unaudited)

  

 

 

 Common stock

 

 

 Additional

 

 

 Accumulated

 

 

 

 

 

 Shares

 

 

 Amount

 

 

 paid-in capital

 

 

 Deficit

 

 

 Total

 

Balance at August 31, 2019

 

 

24,827,264

 

 

$24,827

 

 

$349,223

 

 

$(436,946)

 

$(62,896)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(25,514)

 

 

(25,514)

Balance at May 31, 2020

 

 

24,827,264

 

 

$24,827

 

 

$349,223

 

 

$(462,460)

 

$(88,410)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at August 31, 2018

 

 

24,827,264

 

 

$24,827

 

 

$349,223

 

 

$(400,549)

 

$(26,499)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(23,750)

 

 

(23,750)

Balance at May 31, 2019

 

 

24,827,264

 

 

$24,827

 

 

$349,223

 

 

$(424,299)

 

$(50,249)

     

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

 

 
7

Table of Contents

 

Apawthecary Pets USA

Notes to Financial Statements

(Stated in U.S. Dollars)

(Unaudited)

 

1.  Nature and Continuance of Operations  

 

Apawthecary Pets USA (the “Company”) was incorporated under the laws of the States of Nevada on December 27, 2007. The Company intends to operate in the pet industry.

 

On July 20, 2017, the Company changed its name from Bookedbyus Inc. to Apawthecary Pets USA.

 

The Company’s financial statements as at May 31, 2020 and for the period then ended have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company has a loss of $25,514 for the nine months ended May 31, 2020 and has a working capital deficit at May 31, 2020. These factors raise substantial doubt about the ability of the Company to continue as a going concern. .

 

Management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity capital. Management believes that the Company’s capital resources should be adequate to continue operating and maintaining its business strategy for the twelve months after the date the financial statements are issued. However, if the Company is unable to raise additional capital in the near future, due to the Company’s liquidity problems, management expects that the Company will need to curtail operations, liquidate assets, seek additional capital on less favorable terms and/or pursue other remedial measures. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

As of May 31, 2020, the Company was not engaged in continued business, and had significant expenses from early stage activities. Although management is currently attempting to implement its business plan and is seeking additional sources of financing, there is no assurance the activity will be successful. Accordingly, the Company must rely on its president to perform essential functions without compensation until a business operation can be commenced. The financial statements do not include any adjustments that may result from the outcome of this uncertainty.

  

2.  Significant Account Policies  

 

Basis of presentation

 

The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the Company’s audited financial statement for the year ended August 31, 2019, as filed with the SEC on Form 10-K. In the opinion of management, all normal recurring adjustments which are necessary for a fair presentation of financial statements of the results for the interim period ended May 31, 2020, have been included.

 

The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2019, as reported in the Form 10-K have been omitted.

  

 
8

Table of Contents

  

Apawthecary Pets USA

Notes to Financial Statements

(Stated in U.S. Dollars)

(Unaudited)

   

3.  Due to Related Parties and Related Party Transactions  

 

The outstanding balance of management fees payable is $4,618 and $2,522 as of May 31, 2020 and August 31, 2019 respectively.

 

As of May 31, 2020, related parties of the Company have provided a series of loans, totaling $70,673 (August 31, 2019 - $70,673) for working capital purposes. These loans are unsecured, interest-free, and due on demand.

 

On August 24, 2017 Apawthecary Pets USA entered into a license agreement with Solace Management Group Inc. a British Columbia corporation. The material terms of such license agreement are:

 

 

1.

Upon execution of the Agreement, the Apawthecary Pets USA shall provide a non-refundable license fee in the amount of $100,000 (the "License Fee") to be held in an escrow account pursuant and subject to the terms of an escrow agreement whereby the License Fee will remain in the escrow account until the earlier of a $3,000,000 raise by the Licensee or after the Set-up Period.

 

 

 

 

2.

Term of the License Agreement is 10 years with a 5 years renewal term.

 

 

 

 

3.

The license is an exclusive, non-transferable, non-sub licensable license to manufacture, sell, represent, market, distribute and advertise the Licensed Products within the Territory on the terms and conditions set forth in the License Agreement and shall include access to, and use of, the Solace Products within the Territory on the terms and conditions set forth in the License Agreement and shall include access to, and use of, the Solace Management Group Inc.’s Licensed Products and Services, Marks, Manuals, brands, and the business format, formulations, methods, specifications, standards, and operating procedures.

 

 

 

 

4.

Apawthecary Pets USA shall pay the Solace Management Group Inc. for all packaging and shipment expenses to the Licensee at the then current market rate plus 20%.

 

 

 

 

5.

Royalties will commence to accrue when the Licensed Products are accepted by the Apawthecary Pets USA. Apawthecary Pets USA shall pay quarterly royalties in addition to the yearly royalty fee, 10% of sales based on the wholesale price of each item.

 

Solace Management Group Inc. owns the brand and intellectual property rights to Apawthecary Pets.

 

Apawthecary Pets Inc., a Canadian corporation licensed the brand and distribution rights for Apawthecary Pets for use in Canada from Solace Management Group Inc.

 

Solace Management Group Inc. and Apawthecary Pets USA have an officer and director in common, Bradley Kersch. Apawthecary Pets USA has negotiated a licensing and distribution agreement with Solace Management Group Inc. The $100,000 License fee has not been paid as of May 31, 2020.

 

Aerock Fox provides consulting service to the Company without compensation.

 

Digital Pilot Inc., a company that has a common director (Aerock Fox) with Apawthecary Pets USA, provides an office located in 619 S. Ridgley, Los Angeles CA for an indefinite period of time with no charge.

 

 
9

Table of Contents

 

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

   

Management’s Discussion and Analysis

 

This section of the 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.

 

Apawthecary Pets USA (formerly Bookedbyus Inc.) (the “Company”) was incorporated under the laws of the State of Nevada on December 27, 2007. The Company intends to operate in the pet industry. We have commenced only limited operations, primarily focused on organizational matters to the date of this filling. The Company has not yet implemented its business model.

 

Management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity capital. However, if the Company is unable to raise additional capital in the near future, due to the Company’s liquidity problems, management expects that the Company will need to curtail operations, liquidate assets, seek additional capital on less favorable terms and/or pursue other remedial measures. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

On August 24, 2017, Apawthecary Pets USA entered into a license agreement with Solace Management Group Inc. a British Columbia corporation. The material terms of such license agreement are:

 

1.

Upon execution of the Agreement, the Apawthecary Pets USA shall provide a non-refundable license fee in the amount of $100,000 (the “License Fee”) to be held in an escrow account pursuant and subject to the terms of an escrow agreement whereby the License Fee will remain in the escrow account until the earlier of a $3,000,000 raise by the Licensee or after the Set-up Period.

 

 

2.

Term of the License Agreement is 10 years with a 5 year renewal term.

 

 

3.

The license is an exclusive, non-transferable, non-sub licensable license to manufacture, sell, represent, market, distribute and advertise the Licensed Products within the Territory on the terms and conditions set forth in the License Agreement and shall include access to, and use of, the Solace Management Group Inc.’s Licensed Products and Services, Marks, Manuals, brands, and the business format, formulations, methods, specifications, standards, and operating procedures.

 

 

4.

Apawthecary Pets USA shall pay the Solace Management Group Inc. for all packaging and shipment expenses to the Licensee at the then current market rate plus 20%.

 

 

5.

Royalties will commence to accrue when the Licensed Products are accepted by the Apawthecary Pets USA. Apawthecary Pets USA shall pay quarterly royalties in addition to the yearly royalty fee, 10% of sales based on the wholesale price of each item.

   

Solace Management Group Inc. owns the brand and intellectual property rights to Apawthecary Pets.

 

Apawthecary Pets Inc., a Canadian corporation licensed the brand and distribution rights for Apawthecary Pets for use in Canada from Solace Management Group Inc.

 

Solace Management Group Inc. and Apawthecary Pets USA have an officer and director in common, Bradley Kersch. Apawthecary Pets USA has negotiated a licensing and distribution agreement with Solace Management Group Inc. The $100,000 License fee has not been paid as of May 31, 2020.

 

Digital Pilot Inc., a company that has a common director (Aerock Fox) with Apawthecary Pets USA, provides an office located in 619 S. Ridgley, Los Angeles CA for an indefinite period of time with no charge.

 

In March 2020, the WHO declared the outbreak of COVID-19 as a pandemic based on the rapid increase in global exposure. COVID-19 continues to spread throughout the world, including the United States. We have not seen any significant direct negative impact of COVID-19 to the Company. However, given the daily evolution of the COVID-19 pandemic and the global responses to curb its spread, we are not presently able to estimate the effects of the COVID-19 pandemic on our future results of operations, financial condition, or liquidity for the remainder of fiscal year 2020 and, possibly, beyond.

 

 
10

Table of Contents

 

Capital Resources and Liquidity

 

Our auditors have issued a “going concern” opinion, meaning that there is substantial doubt if we can continue as an on-going business unless we obtain additional capital. No substantial revenues from our planned business model are anticipated until we have raised sufficient monies to implement our business model. The Company will need to seek capital from other resources such as private placements in the Company’s common stock or debt financing, which may not even be available to the Company. However, if such financing were available, because we are a development stage company with no or limited operations to date, it would likely have to pay additional costs associated with such financing and in the case of high risk loans be subject to an above market interest rate. At such time these funds are required, management would evaluate the terms of such financing. If the company cannot raise additional proceeds via such financing, it would be required to cease business operations.

  

As of May 31, 2020, we had $806 in cash as compared to $20,256 as at August 31, 2019. As of the date of this Form 10-Q, the current funds available to the Company will not be sufficient to fund the expenses related to the implementation of our business and continue maintaining a reporting status. The Company’s sole officer and director, Mr. Kersch has indicated that he may be willing to provide a maximum of $20,000, required to maintain the reporting status, in the form of a non-secured loan for the next twelve months as the expenses are incurred if no other proceeds are obtained by the Company. However, there is no contract or written agreement in place.

 

We do not anticipate researching any further products nor the purchase or sale of any significant equipment. We also do not expect any significant additions to the number of employees.

 

Results of Operations

 

We had $nil in revenue for the three and nine month period ended May 31, 2020 as compared to revenue for three and nine month period ended May 31, 2019 of $nil.

 

Total operating expenses for the three month period ended May 31, 2020 were $5,765 as compared to total operating expenses for the three month period ended May 31, 2019 of 4,762 resulting in a net loss for the three month period ended May 31, 2020 of $5,765 as compared to a net loss of $4,762 for three month period ended May 31, 2019. The net loss for the three month period ended May 31, 2020 is a result of general and administrative expense of $5,765 as compared to the net loss for the three month period ended May 31, 2019 of $4,762 which was a result of general and administrative expense of $4,762.

 

Total operating expenses for the nine month period ended May 31, 2020 were $25,514 as compared to total operating expenses for the nine month period ended May 31, 2019 of $23,750 resulting in a net loss for the nine month period ended May 31, 2020 of $25,514 as compared to a net loss of $23,750 for nine month period ended May 31, 2019. The net loss for the nine month period ended May 31, 2020 is a result of general and administrative expense of $25,514 as compared to the net loss for the nine month period ended May 31, 2019 of $23,750 which was a result of general and administrative expense of $23,750.

 

Off-balance sheet arrangements

 

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.

    

 
11

Table of Contents

    

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 as of May 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 May 31, 2020 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

 

 
12

Table of Contents

    

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 Securities Exchange Act of 1934 and are not required to provide the information under this item. 

 

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

 

None

 

Item 3. Defaults Upon Senior Securities.

 

None

 

Item 4. Mine Safety Disclosure.

 

None

 

Item 5. Other Information.

 

(a) None

 

 
13

Table of Contents

 

Item 6. Exhibits.

   

The following documents are filed as a part of this report or are incorporated by reference to previous filings, if so indicated:

 

Exhibit No.

 

Description

3.1

 

Certificate of Amendment as previously filed with the SEC on Form S-1 on September 15, 2017

 

 

 

3.2

 

By-Laws Inc. as previously filed with the SEC on Form S-1 on September 7, 2011

 

 

 

31.1

 

Certification of Chief Executive Officer Pursuant to Rule 13a–14(a) or 15d-14(a) of the Securities Exchange Act of 1934

 

 

 

31.2

 

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

 

 

 

32.1

 

Certification of Chief Executive Officer under Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

 

 

32.2

 

Certification of Chief Financial Officer under Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

 

 

 

101.INS

 

Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).

 

 

 

101.SCH

 

Inline XBRL Taxonomy Extension Schema Document.

 

 

 

101.CAL

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

 

 

 

101.CAL

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

 

 

 

101.LAB

 

Inline XBRL Taxonomy Extension Labels Linkbase Document.

 

 

 

101.PRE

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

 

 

 

104

 

Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

__________ 

*     Included in Exhibit 31.1

**   Included in Exhibit 32.1

 

 
14

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.

   

 

Apawthecary Pets USA.

 

 

 

 

July 15, 2020

By:

/s/ Bradley Kersch

 

 

 

Bradley Kersch

 

 

 

President, Chief Executive Officer (Principal Executive Officer) and Director

 

 

 
15

 

EX-31.1 2 apaw_ex311.htm CERTIFICATION apaw_ex311.htm

EXHIBIT 31.1

 

CERTIFICATION

 

I, Bradley Kersch, certify that:

 

1.

I have reviewed this quarterly report on Form 10-Q of Apawthecary Pets USA.;

 

 

2.

Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

 

 

3.

Based on my knowledge, the financial statements, and other financial information included in report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

 

 

4.

I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

 

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

 

 

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

 

 

 

 

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

 

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

 

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

    

July 15, 2020

By:

/s/ Bradley Kersch

 

 

 

Bradley Kersch

 

 

 

Director, Chief Executive Office, President, Treasurer,

Chief Financial Officer and Principal Accounting Officer

 

EX-32.1 3 apaw_ex321.htm CERTIFICATION apaw_ex321.htm

EXHIBIT 32.1

 

 

CERTIFICATION PURSUANT TO 18 U.S.C. 1350 AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of Apawthecary Pets USA. (the “Company”) for the quarter ended May 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the Report), the undersigned Chief Executive Officer and President and the principal accounting and financial officer of the Company hereby certifies, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

 

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

 

 

 

2.

The information contained in the Report fairly presents, in all material respects the financial condition and results of operations of the Company.

  

July 15, 2020 

 

/s/ Bradley Kersch

 

 

 

Bradley Kersch

 

 

 

Director, Chief Executive Office, President, Treasurer,

Chief Financial Officer and Principal Accounting Officer

 

 

 

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NV 26-1679929 c/o Bradley Kersch 1223 Fletcher Way Port Coquitlam BC V3C6B5 323 345-4587 Yes Yes Non-accelerated Filer true true true 24827264 806 20256 806 20256 806 20256 13925 9957 4618 2522 70673 70673 89216 83152 89216 83152 75000000 0.001 24827264 24827 24827 349223 349223 -462460 -436946 -88410 -62896 806 20256 5765 4762 25514 23750 5765 4762 25514 23750 -5765 -4762 -25514 -23750 -0.00 -0.00 -0.00 -0.00 24827264 24827264 24827264 24827264 -25514 -23750 3968 6709 2096 0 -19450 -17041 -19450 -17041 20256 42594 806 25553 0 0 0 0 24827264 24827 349223 -456695 -82645 0 0 -5765 -5765 24827264 24827 349223 462460 -88410 24827264 24827 349223 419537 -45487 0 0 -4762 -4762 24827264 24827 349223 424299 -50249 24827264 24827 349223 436946 -62896 0 0 -25514 -25514 24827264 24827 349223 -88410 24827264 24827 349223 400549 -26499 0 0 -23750 -23750 24827264 24827 349223 424299 -50249 <p style="margin:0px"><strong>1. </strong> <strong>Nature and Continuance of Operations</strong>  </p><p style="margin:0px"> </p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;">Apawthecary Pets USA (the “Company”) was incorporated under the laws of the States of Nevada on December 27, 2007. The Company intends to operate in the pet industry. </p><p style="margin:0px 0px 0px 45px"> </p><p style="margin:0px 0px 0px 45px">On July 20, 2017, the Company changed its name from Bookedbyus Inc. to Apawthecary Pets USA. </p><p style="margin:0px 0px 0px 45px"> </p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;">The Company’s financial statements as at May 31, 2020 and for the period then ended have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company has a loss of $25,514 for the nine months ended May 31, 2020 and has a working capital deficit at May 31, 2020. These factors raise substantial doubt about the ability of the Company to continue as a going concern. .</p><p style="margin:0px 0px 0px 45px"> </p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;">Management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity capital. Management believes that the Company’s capital resources should be adequate to continue operating and maintaining its business strategy for the twelve months after the date the financial statements are issued. However, if the Company is unable to raise additional capital in the near future, due to the Company’s liquidity problems, management expects that the Company will need to curtail operations, liquidate assets, seek additional capital on less favorable terms and/or pursue other remedial measures. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.</p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;"> </p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;">As of May 31, 2020, the Company was not engaged in continued business, and had significant expenses from early stage activities. Although management is currently attempting to implement its business plan and is seeking additional sources of financing, there is no assurance the activity will be successful. Accordingly, the Company must rely on its president to perform essential functions without compensation until a business operation can be commenced. The financial statements do not include any adjustments that may result from the outcome of this uncertainty. </p> <p style="margin:0px"><strong>2. </strong> <strong>Significant Account Policies</strong>  </p><p style="margin:0px"> </p><p style="margin:0px 0px 0px 45px">Basis of presentation </p><p style="margin:0px 0px 0px 45px"> </p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;">The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the Company’s audited financial statement for the year ended August 31, 2019, as filed with the SEC on Form 10-K. In the opinion of management, all normal recurring adjustments which are necessary for a fair presentation of financial statements of the results for the interim period ended May 31, 2020, have been included.</p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;"> </p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;">The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2019, as reported in the Form 10-K have been omitted. </p> <p style="MARGIN: 0px 0px 0px 45px; text-align:justify;">The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the Company’s audited financial statement for the year ended August 31, 2019, as filed with the SEC on Form 10-K. In the opinion of management, all normal recurring adjustments which are necessary for a fair presentation of financial statements of the results for the interim period ended May 31, 2020, have been included.</p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;"> </p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;">The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2019, as reported in the Form 10-K have been omitted. </p> <p style="margin:0px"><strong>3. </strong> <strong>Due to Related Parties and Related Party Transactions</strong>  </p><p style="margin:0px"> </p><p style="margin:0px 0px 0px 45px">The outstanding balance of management fees payable is $4,618 and $2,522 as of May 31, 2020 and August 31, 2019 respectively. </p><p style="margin:0px 0px 0px 45px"> </p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;">As of May 31, 2020, related parties of the Company have provided a series of loans, totaling $70,673 (August 31, 2019 - $70,673) for working capital purposes. These loans are unsecured, interest-free, and due on demand. </p><p style="margin:0px 0px 0px 45px"> </p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;">On August 24, 2017 Apawthecary Pets USA entered into a license agreement with Solace Management Group Inc. a British Columbia corporation. The material terms of such license agreement are: </p><p style="margin:0px 0px 0px 45px"> </p><table cellpadding="0" style="border-spacing:0;font-size:10pt;font-variant:normal;font-weight:normal;font-style:normal;text-align:left;line-height:normal;width:100%;border-collapse:collapse;"><tbody><tr style="height:15px"><td style="width:4%;"><p style="margin:0px"> </p></td><td style="width:4%;vertical-align:top;"><p style="margin:0px">1. </p></td><td style="vertical-align:top;"><p style="MARGIN: 0px; text-align:justify;">Upon execution of the Agreement, the Apawthecary Pets USA shall provide a non-refundable license fee in the amount of $100,000 (the "License Fee") to be held in an escrow account pursuant and subject to the terms of an escrow agreement whereby the License Fee will remain in the escrow account until the earlier of a $3,000,000 raise by the Licensee or after the Set-up Period. </p></td></tr><tr style="height:15px"><td><p style="margin:0px;text-indent:30px"> </p></td><td><p style="margin:0px;text-indent:30px"> </p></td><td><p style="margin:0px"> </p></td></tr><tr style="height:15px"><td><p style="margin:0px"> </p></td><td style="vertical-align:top;"><p style="margin:0px">2. </p></td><td style="vertical-align:top;"><p style="MARGIN: 0px; text-align:justify;">Term of the License Agreement is 10 years with a 5 years renewal term. </p></td></tr><tr style="height:15px"><td><p style="margin:0px;text-indent:30px"> </p></td><td><p style="margin:0px;text-indent:30px"> </p></td><td><p style="margin:0px"> </p></td></tr><tr style="height:15px"><td><p style="margin:0px"> </p></td><td style="vertical-align:top;"><p style="margin:0px">3. </p></td><td style="vertical-align:top;"><p style="MARGIN: 0px; text-align:justify;">The license is an exclusive, non-transferable, non-sub licensable license to manufacture, sell, represent, market, distribute and advertise the Licensed Products within the Territory on the terms and conditions set forth in the License Agreement and shall include access to, and use of, the Solace Products within the Territory on the terms and conditions set forth in the License Agreement and shall include access to, and use of, the Solace Management Group Inc.’s Licensed Products and Services, Marks, Manuals, brands, and the business format, formulations, methods, specifications, standards, and operating procedures. </p></td></tr><tr style="height:15px"><td><p style="margin:0px;text-indent:30px"> </p></td><td><p style="margin:0px;text-indent:30px"> </p></td><td><p style="margin:0px"> </p></td></tr><tr style="height:15px"><td><p style="margin:0px"> </p></td><td style="vertical-align:top;"><p style="margin:0px">4. </p></td><td style="vertical-align:top;"><p style="MARGIN: 0px; text-align:justify;">Apawthecary Pets USA shall pay the Solace Management Group Inc. for all packaging and shipment expenses to the Licensee at the then current market rate plus 20%. </p></td></tr><tr style="height:15px"><td><p style="margin:0px;text-indent:30px"> </p></td><td><p style="margin:0px;text-indent:30px"> </p></td><td><p style="margin:0px"> </p></td></tr><tr style="height:15px"><td><p style="margin:0px"> </p></td><td style="vertical-align:top;"><p style="margin:0px">5. </p></td><td style="vertical-align:top;"><p style="MARGIN: 0px; text-align:justify;">Royalties will commence to accrue when the Licensed Products are accepted by the Apawthecary Pets USA. Apawthecary Pets USA shall pay quarterly royalties in addition to the yearly royalty fee, 10% of sales based on the wholesale price of each item. </p></td></tr></tbody></table><p style="margin:0px"> </p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;">Solace Management Group Inc. owns the brand and intellectual property rights to Apawthecary Pets. </p><p style="margin:0px 0px 0px 45px"> </p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;">Apawthecary Pets Inc., a Canadian corporation licensed the brand and distribution rights for Apawthecary Pets for use in Canada from Solace Management Group Inc. </p><p style="margin:0px 0px 0px 45px"> </p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;">Solace Management Group Inc. and Apawthecary Pets USA have an officer and director in common, Bradley Kersch. Apawthecary Pets USA has negotiated a licensing and distribution agreement with Solace Management Group Inc. The $100,000 License fee has not been paid as of May 31, 2020. </p><p style="margin:0px 0px 0px 45px"> </p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;">Aerock Fox provides consulting service to the Company without compensation.</p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;"> </p><p style="MARGIN: 0px 0px 0px 45px; text-align:justify;">Digital Pilot Inc., a company that has a common director (Aerock Fox) with Apawthecary Pets USA, provides an office located in 619 S. Ridgley, Los Angeles CA for an indefinite period of time with no charge.</p> 4618 2522 70673 70673 100000 3000000 10 years 5 years 20% 10% 100000 XML 10 R1.htm IDEA: XBRL DOCUMENT v3.20.2
Cover - shares
9 Months Ended
May 31, 2020
Jul. 15, 2020
Cover [Abstract]    
Entity Registrant Name Apawthecary Pets USA.  
Entity Central Index Key 0001528697  
Document Type 10-Q  
Amendment Flag false  
Current Fiscal Year End Date --08-31  
Entity Small Business true  
Entity Shell Company true  
Entity Emerging Growth Company true  
Entity Current Reporting Status Yes  
Document Period End Date May 31, 2020  
Entity Filer Category Non-accelerated Filer  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2020  
Entity Ex Transition Period true  
Entity Common Stock Shares Outstanding   24,827,264
Document Quarterly Report true  
Document Transition Report false  
Entity File Number 199-374-960  
Entity Incorporation State Country Code NV  
Entity Tax Identification Number 26-1679929  
Entity Address Address Line 1 c/o Bradley Kersch 1223 Fletcher Way  
Entity Address City Or Town Port Coquitlam  
Entity Address State Or Province BC  
Entity Address Postal Zip Code V3C6B5  
City Area Code 323  
Local Phone Number 345-4587  
Entity Interactive Data Current Yes  
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.20.2
Balance Sheets - USD ($)
May 31, 2020
Aug. 31, 2019
Current assets    
Cash and cash equivalents $ 806 $ 20,256
Total current assets 806 20,256
Total Assets 806 20,256
Current liabilities    
Accounts payable and accrued liabilities 13,925 9,957
Accounts payable - related parties 4,618 2,522
Due to related parties 70,673 70,673
Total current liabilities 89,216 83,152
Total Liabilities 89,216 83,152
Stockholders' deficit    
Authorized 75,000,000 of common shares, par value $0.001 Issued and outstanding 24,827,264 common shares issued and outstanding as of May 31, 2020 and August 31, 2019 24,827 24,827
Additional paid-in capital 349,223 349,223
Accumulated deficit (462,460) (436,946)
Total stockholders' deficit (88,410) (62,896)
Total Liabilities and Stockholders' Deficit $ 806 $ 20,256
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.20.2
Balance Sheets (Parenthetical) - $ / shares
May 31, 2020
Aug. 31, 2019
Stockholders' deficit    
Common Stock, Par Value Per Share $ 0.001 $ 0.001
Common Stock, Shares Authorized 75,000,000 75,000,000
Common Stock, Shares Issued 24,827,264 24,827,264
Common Stock, Shares Outstanding 24,827,264 24,827,264
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.20.2
Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
May 31, 2020
May 31, 2019
May 31, 2020
May 31, 2019
Operating Expenses        
General and administrative $ 5,765 $ 4,762 $ 25,514 $ 23,750
Total operating Expenses 5,765 4,762 25,514 23,750
Net loss $ (5,765) $ (4,762) $ (25,514) $ (23,750)
Basic and diluted net loss per common share - basic and diluted $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Weighted average number of common shares - basic and diluted 24,827,264 24,827,264 24,827,264 24,827,264
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.20.2
Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
May 31, 2020
May 31, 2019
Cash flows from operating activities    
Net loss $ (25,514) $ (23,750)
Adjustments to reconcile net loss to net cash used in operating activities:    
Accounts payable and accrued liabilities 3,968 6,709
Accounts payable - related parties 2,096 0
Cash flows used in operating activities (19,450) (17,041)
Net decrease in cash and cash equivalents (19,450) (17,041)
Cash and cash equivalents, beginning of period 20,256 42,594
Cash and cash equivalents, end of period 806 25,553
Supplemental disclosures of cash flow information    
Interest paid 0 0
Income tax paid $ 0 $ 0
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.20.2
Statements Of Changes In Stockholders Deficit (Unaudited) - USD ($)
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Balance, shares at Aug. 31, 2018   24,827,264    
Balance, amount at Aug. 31, 2018 $ (26,499) $ 24,827 $ 349,223 $ 400,549
Net loss (23,750) $ 0 0 (23,750)
Balance, shares at May. 31, 2019   24,827,264    
Balance, amount at May. 31, 2019 (50,249) $ 24,827 349,223 424,299
Balance, shares at Feb. 28, 2019   24,827,264    
Balance, amount at Feb. 28, 2019 (45,487) $ 24,827 349,223 419,537
Net loss (4,762) $ 0 0 (4,762)
Balance, shares at May. 31, 2019   24,827,264    
Balance, amount at May. 31, 2019 (50,249) $ 24,827 349,223 424,299
Balance, shares at Aug. 31, 2019   24,827,264    
Balance, amount at Aug. 31, 2019 (62,896) $ 24,827 349,223 436,946
Net loss (25,514) $ 0 0 (25,514)
Balance, shares at May. 31, 2020   24,827,264    
Balance, amount at May. 31, 2020 (88,410) $ 24,827 349,223 462,460
Balance, shares at Feb. 29, 2020   24,827,264    
Balance, amount at Feb. 29, 2020 (82,645) $ 24,827 349,223 (456,695)
Net loss (5,765) $ 0 0 (5,765)
Balance, shares at May. 31, 2020   24,827,264    
Balance, amount at May. 31, 2020 $ (88,410) $ 24,827 $ 349,223 $ 462,460
XML 16 R7.htm IDEA: XBRL DOCUMENT v3.20.2
Nature and Continuance of Operations
9 Months Ended
May 31, 2020
Nature and Continuance of Operations  
NOTE - 1. Nature and Continuance of Operations

1.  Nature and Continuance of Operations  

 

Apawthecary Pets USA (the “Company”) was incorporated under the laws of the States of Nevada on December 27, 2007. The Company intends to operate in the pet industry.

 

On July 20, 2017, the Company changed its name from Bookedbyus Inc. to Apawthecary Pets USA.

 

The Company’s financial statements as at May 31, 2020 and for the period then ended have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company has a loss of $25,514 for the nine months ended May 31, 2020 and has a working capital deficit at May 31, 2020. These factors raise substantial doubt about the ability of the Company to continue as a going concern. .

 

Management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity capital. Management believes that the Company’s capital resources should be adequate to continue operating and maintaining its business strategy for the twelve months after the date the financial statements are issued. However, if the Company is unable to raise additional capital in the near future, due to the Company’s liquidity problems, management expects that the Company will need to curtail operations, liquidate assets, seek additional capital on less favorable terms and/or pursue other remedial measures. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

As of May 31, 2020, the Company was not engaged in continued business, and had significant expenses from early stage activities. Although management is currently attempting to implement its business plan and is seeking additional sources of financing, there is no assurance the activity will be successful. Accordingly, the Company must rely on its president to perform essential functions without compensation until a business operation can be commenced. The financial statements do not include any adjustments that may result from the outcome of this uncertainty.

XML 17 R8.htm IDEA: XBRL DOCUMENT v3.20.2
Significant Account Policies
9 Months Ended
May 31, 2020
Significant Account Policies  
NOTE - 2. Significant Account Policies

2.  Significant Account Policies  

 

Basis of presentation

 

The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the Company’s audited financial statement for the year ended August 31, 2019, as filed with the SEC on Form 10-K. In the opinion of management, all normal recurring adjustments which are necessary for a fair presentation of financial statements of the results for the interim period ended May 31, 2020, have been included.

 

The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2019, as reported in the Form 10-K have been omitted.

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.20.2
Due to Related Parties and Related Party Transactions
9 Months Ended
May 31, 2020
Due to Related Parties and Related Party Transactions  
NOTE - 3. Due to Related Parties and Related Party Transactions

3.  Due to Related Parties and Related Party Transactions  

 

The outstanding balance of management fees payable is $4,618 and $2,522 as of May 31, 2020 and August 31, 2019 respectively.

 

As of May 31, 2020, related parties of the Company have provided a series of loans, totaling $70,673 (August 31, 2019 - $70,673) for working capital purposes. These loans are unsecured, interest-free, and due on demand.

 

On August 24, 2017 Apawthecary Pets USA entered into a license agreement with Solace Management Group Inc. a British Columbia corporation. The material terms of such license agreement are:

 

 

1.

Upon execution of the Agreement, the Apawthecary Pets USA shall provide a non-refundable license fee in the amount of $100,000 (the "License Fee") to be held in an escrow account pursuant and subject to the terms of an escrow agreement whereby the License Fee will remain in the escrow account until the earlier of a $3,000,000 raise by the Licensee or after the Set-up Period.

 

 

 

 

2.

Term of the License Agreement is 10 years with a 5 years renewal term.

 

 

 

 

3.

The license is an exclusive, non-transferable, non-sub licensable license to manufacture, sell, represent, market, distribute and advertise the Licensed Products within the Territory on the terms and conditions set forth in the License Agreement and shall include access to, and use of, the Solace Products within the Territory on the terms and conditions set forth in the License Agreement and shall include access to, and use of, the Solace Management Group Inc.’s Licensed Products and Services, Marks, Manuals, brands, and the business format, formulations, methods, specifications, standards, and operating procedures.

 

 

 

 

4.

Apawthecary Pets USA shall pay the Solace Management Group Inc. for all packaging and shipment expenses to the Licensee at the then current market rate plus 20%.

 

 

 

 

5.

Royalties will commence to accrue when the Licensed Products are accepted by the Apawthecary Pets USA. Apawthecary Pets USA shall pay quarterly royalties in addition to the yearly royalty fee, 10% of sales based on the wholesale price of each item.

 

Solace Management Group Inc. owns the brand and intellectual property rights to Apawthecary Pets.

 

Apawthecary Pets Inc., a Canadian corporation licensed the brand and distribution rights for Apawthecary Pets for use in Canada from Solace Management Group Inc.

 

Solace Management Group Inc. and Apawthecary Pets USA have an officer and director in common, Bradley Kersch. Apawthecary Pets USA has negotiated a licensing and distribution agreement with Solace Management Group Inc. The $100,000 License fee has not been paid as of May 31, 2020.

 

Aerock Fox provides consulting service to the Company without compensation.

 

Digital Pilot Inc., a company that has a common director (Aerock Fox) with Apawthecary Pets USA, provides an office located in 619 S. Ridgley, Los Angeles CA for an indefinite period of time with no charge.

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.20.2
Significant Accounting Policies (Policies)
9 Months Ended
May 31, 2020
Significant Account Policies  
Basis of presentation

The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the Company’s audited financial statement for the year ended August 31, 2019, as filed with the SEC on Form 10-K. In the opinion of management, all normal recurring adjustments which are necessary for a fair presentation of financial statements of the results for the interim period ended May 31, 2020, have been included.

 

The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2019, as reported in the Form 10-K have been omitted.

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.20.2
Due to Related Parties and Related Party Transactions (Details Narrative) - USD ($)
1 Months Ended
Aug. 24, 2017
May 31, 2020
Aug. 31, 2019
Accounts payable - related parties   $ 4,618 $ 2,522
Unpaid license fee   100,000  
Due to related party   $ 70,673 $ 70,673
Escrow Agreement [Member]      
License Fee $ 3,000,000    
License Agreement [Member] | Solace Management Group Inc [Member]      
License Fee $ 100,000    
Current market rate 20%    
License agreement term 10 years    
License agreement term renewal 5 years    
Royalty fee, percentage 10%    
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