UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

(Mark One)

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

 

 

For the quarterly period ended April 30, 2022

 

 

or

 

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

For the transition period from ______________ to ______________

 

 

Commission File Number 000-55369

 

HUAIZHONG HEALTH GROUP, INC.

(Exact name of registrant as specified in its charter)

 

Nevada

 

90-1020141

(State or other jurisdiction of

incorporation or organization)

 

(IRS Employer

Identification No.)

 

Tianan Technology Park

13/F Headquarters Center Building 16 

555 Panyu North Ave, Panyu DistrictGuangzhou CityChina 

(Address of principal executive offices, including zip code.)

 

+86 (20) 2982 9356

(Telephone number, including area code)

 

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

 

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

 

Title of each class

Trading

Symbol(s)

Name of each exchange

on which registered

None

None

None

 

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, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

Emerging growth company

 

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

 

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

 

31,518,466 shares common stock issued and outstanding as of August 29, 2022.

 

 

 

 

HUAIZHONG HEALTH GROUP, INC.

 

FORM 10-Q

FOR THE PERIOD ENDED APRIL 30, 2022

 

TABLE OF CONTENTS

 

 

 

 

PAGE

 

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

Item 1.

Financial Statements

 

F-1

 

Item 2.

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

 

3

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

7

 

Item 4.

Controls and Procedures

 

7

 

 

 

 

 

 

 

PART II - OTHER INFORMATION

 

 

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

9

 

Item 1A.

Risk Factors

 

9

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

9

 

Item 3.

Defaults Upon Senior Securities

 

9

 

Item 4.

Mine Safety Disclosures

 

9

 

Item 5.

Other Information

 

9

 

Item 6.

Exhibits

 

10

 

 

SIGNATURES

 

11

 

 

 

2

Table of Contents

 

PART I - FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 HUAIZHONG HEALTH GROUP, INC.

Balance Sheets

(Unaudited)

 

 

 

April 30,

 

 

October 31,

 

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

 

$-

 

 

$-

 

Prepaid expenses

 

 

2,750

 

 

 

-

 

Total Current Assets

 

 

2,750

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$2,750

 

 

$-

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Deficit

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

 

10,000

 

 

 

9,950

 

Due to related party

 

 

58,926

 

 

 

40,351

 

Total Current Liabilities

 

 

68,926

 

 

 

50,301

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

 

68,926

 

 

 

50,301

 

 

 

 

 

 

 

 

 

 

Stockholders' Deficit

 

 

 

 

 

 

 

 

Common stock: 750,000,000 shares authorized; $0.001 par value

 

 

 

 

 

 

 

 

31,518,466 issued and outstanding

 

 

31,518

 

 

 

31,518

 

Additional paid in capital

 

 

257,587

 

 

 

257,587

 

Accumulated deficit

 

 

(355,281)

 

 

(339,406)

Total Stockholders' Deficit

 

 

(66,176)

 

 

(50,301)

Total Liabilities and Stockholders' Deficit

 

$2,750

 

 

$-

 

 

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

 

 
F-1

Table of Contents

 

HUAIZHONG HEALTH GROUP, INC.

Statements of Operations

(Unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

April 30,

 

 

April 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional fees

 

 

5,900

 

 

 

11,959

 

 

 

15,625

 

 

 

21,569

 

General and administrative

 

 

250

 

 

 

300

 

 

 

250

 

 

 

1,975

 

Total operating expenses

 

 

6,150

 

 

 

12,259

 

 

 

15,875

 

 

 

23,544

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Loss

 

 

(6,150)

 

 

(12,259)

 

 

(15,875)

 

 

(23,544)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss before taxes

 

 

(6,150)

 

 

(12,259)

 

 

(15,875)

 

 

(23,544)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

$(6,150)

 

$(12,259)

 

$(15,875)

 

$(23,544)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share, basic and diluted

 

$(0.00)

 

$(0.00)

 

$(0.00)

 

$(0.00)

Basic and diluted weighted average common shares outstanding

 

 

31,518,466

 

 

 

31,518,466

 

 

 

31,518,466

 

 

 

31,518,466

 

 

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

 

 
F-2

Table of Contents

 

HUAIZHONG HEALTH GROUP, INC.

Statements of Changes in Stockholders’ Deficit

(Unaudited)

 

For the Six Months Ended April 30, 2022

 

 

 

 

 

 

 

 

 

 Additional

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 Paid in

 

 

Accumulated

 

 

 

 

 

 

 Shares

 

 

 Amount

 

 

 Capital

 

 

 Deficit

 

 

 Total

 

Balance - October 31, 2021

 

 

31,518,466

 

 

$31,518

 

 

$257,587

 

 

$(339,406)

 

$(50,301)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(9,725)

 

 

(9,725)

Balance - January 31, 2022

 

 

31,518,466

 

 

 

31,518

 

 

 

257,587

 

 

 

(349,131)

 

 

(60,026)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(6,150)

 

 

(6,150)

Balance - April 30, 2022

 

 

31,518,466

 

 

$31,518

 

 

$257,587

 

 

$(355,281)

 

$(66,176)

 

For the Six Months Ended April 30, 2021

 

 

 

 

 

 

 

 

 

 Additional

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 Paid in

 

 

Accumulated

 

 

 

 

 

 

 Shares

 

 

 Amount

 

 

 Capital

 

 

 Deficit

 

 

 Total

 

Balance - October 31, 2020

 

 

31,518,466

 

 

$31,518

 

 

$257,587

 

 

$(308,577)

 

$(19,472)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(11,285)

 

 

(11,285)

Balance - January 31, 2021

 

 

31,518,466

 

 

 

31,518

 

 

 

257,587

 

 

 

(319,862)

 

 

(30,757)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(12,259)

 

 

(12,259)

Balance - April 30, 2021

 

 

31,518,466

 

 

$31,518

 

 

$257,587

 

 

$(332,121)

 

$(43,016)

 

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

 

 
F-3

Table of Contents

 

HUAIZHONG HEALTH GROUP, INC.

Statements of Cash Flows

(Unaudited)

 

 

 

Six Months Ended

 

 

 

April 30,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss

 

$(15,875)

 

$(23,544)

Changes in current assets and liabilities:

 

 

 

 

 

 

 

 

  Related party advances funding operations

 

 

18,575

 

 

 

19,983

 

Prepaid expenses

 

 

(2,750)

 

 

-

 

Accounts payable

 

 

50

 

 

 

3,561

 

Net cash used in operating activities

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Net change in cash for the period

 

 

-

 

 

 

-

 

Cash at beginning of period

 

 

-

 

 

 

-

 

Cash at end of period

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$-

 

 

$-

 

Cash paid for interest

 

$-

 

 

$-

 

 

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

 

 
F-4

Table of Contents

 

HUAIZHONG HEALTH GROUP, INC.

Notes to the Unaudited Financial Statements

April 30, 2022

 

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation of Unaudited Interim Financial Statements

 

The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited interim financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

 

In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the unaudited interim financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. The accompanying unaudited interim financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K, for the year ended October 31, 2021, as filed with the SEC on January 26, 2022.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.

 

NOTE 2 - GOING CONCERN

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As of April 30, 2022, the Company has suffered recurring losses from operations, has an accumulated deficit of $355,281 and has not earned any revenues. The Company intends to fund operations through equity financing arrangements and related party advances, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending October 31, 2022.

 

The ability of the Company to emerge from an early stage is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan. In response to these problems, management intends to raise additional funds through public or private placement offerings.

 

These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty 

 

NOTE 3 - RELATED PARTY TRANSACTIONS

 

During the six months ended April 30, 2022 and 2021, the Company’s sole officer advanced to the Company an amount of $18,575 and $19,983 by paying for expenses on behalf of the Company. As of April 30, 2022, and October 31, 2021, the Company was obligated to the officer, for an unsecured, non-interest-bearing demand loan with a balance of $58,926 and $40,351, respectively.

 

Other

 

The Company does not own or lease property or lease office space. The office space used by the Company was arranged by the CEO and President, of the Company to use at no charge.

 

NOTE 4 - SUBSEQUENT EVENTS

 

Management has evaluated subsequent events through the date these financial statements were available to be issued. Based on our evaluation no material events have occurred that require disclosure.

 

 
F-5

Table of Contents

 

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

 

FORWARD-LOOKING STATEMENTS

 

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

 

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

 

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock.

 

CERTAIN TERMS USED IN THIS REPORT

 

As used in this annual report, the terms “we”, “us”, “our”, “Huaizhong”, mean Huaizhong Health Group, Inc.”., unless the context clearly requires otherwise.

 

Item 1. Business

 

Overview

 

Huaizhong Heath Group, Inc. is a for profit corporation established under the corporation laws in the State of Nevada, United States of America on September 12, 2013, originally incorporated as Adaiah Distribution, Inc. Effective December 15, 2020, the company changed its name to Huaizhong Health Group, Inc. The Company’s fiscal year end is October 31.

 

The Company was in the development phase of its custom pillow distribution business. During the third fiscal quarter ending July 31, 2018, the Company had ceased its operations of its Pillow manufacturing and sales.

 

We have since changed our focus to looking for other business opportunities to implement and/or operating companies with which to engage in a business combination.

 

Our address is Tianan Technology Park, 13/F Headquarter, Center Building 16, 555 Panyu North Ave., Panyu District, Guangzhou City, China. Our telephone number is +86 (20) 2982-9356.

 

We have not ever declared bankruptcy, been in receivership, or involved in any kind of legal proceeding.

 

 
3

Table of Contents

 

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

 

Plan of Operations and Cash Requirements

 

We are no longer attempting to implement our original business plan. We now intend to look for other business opportunities to implement and/or operating companies with which to engage in a business combination. We do not intend, at this time, to restrict our focus to opportunities or business combinations in any specific industry. Instead, our focus will be on achieving long-term growth potential.

 

The analysis of new business opportunities will be undertaken by, or under the supervision of, the Company’s management. While the Company has limited assets and no operating revenues, the Company has unrestricted flexibility in seeking, analyzing and participating in potential business opportunities and/or combinations in any type of business, industry or geographical location. In its efforts, the Company will consider the following kinds of factors:

 

(a) potential for growth, indicated by new technology, anticipated market expansion or new products.

 

(b) competitive position as compared to other operations of similar size and experience within the industry segment as well as within the industry as a whole.

 

(c) strength and diversity of management, either in place or scheduled for recruitment.

 

(d) capital requirements and anticipated availability of required funds, to be provided by the Company or from operations, through the sale of additional securities, through joint ventures or similar arrangements or from other sources.

 

(e) the cost of participation by the Company as compared to the perceived tangible and intangible values and potentials.

 

(f) the extent to which the business opportunity can be advanced; and

 

(g) the accessibility of required management expertise, personnel, raw materials, services, professional assistance and other required items.

 

In applying the foregoing criteria, not one of which will be controlling, management will attempt to analyze all factors and circumstances and make a determination based upon reasonable investigative measures and available data. Potentially available opportunities may occur in many different industries, and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex. Due to the Registrant’s limited capital available for investigation, the Registrant may not discover or adequately evaluate adverse facts about the opportunity to be acquired. In addition, we will be competing against other entities that possess greater financial, technical and managerial capabilities for identifying and completing the implementation of any opportunities and/or business combinations.

 

Results of Operations

 

The following summary of our results of operations should be read in conjunction with our financial statements for the period ended April 30, 2022, which are included herein.

 

 
4

Table of Contents

 

Our operating results for the three months ended April 30, 2022, and 2021 and the changes between those periods for the respective items are summarized as follows:

 

Results of Operations for the three months ended April 30, 2022, and 2021

 

 

 

Three Months Ended

 

 

 

 

 

 

April 30,

 

 

 

 

 

 

2022

 

 

2021

 

 

Change

 

Operating expenses

 

$6,150

 

 

$12,259

 

 

 

(6,109)

Net loss

 

$6,150

 

 

$12,259

 

 

$(6,109)

 

During the three months ended April 30, 2022, and 2021, no operating revenues were recorded.

 

We had a net loss of $6,150 and $12,259 for the three months ended April 30, 2022, and 2021, respectively. The decrease in net loss of $6,109 was primarily due to a decrease in operating expenses of $6,109.

 

Operating expenses for the three months ended April 30, 2022, and 2021 were $6,150 and $12,259, respectively.

During the three months ended April 30, 2022, the operating expenses, were primarily attributed to professional fees of $5,900, for maintaining reporting status with the Securities and Exchange Commission (“SEC”) and general administrative expenses of $250.

 

During the three months ended April 30, 2021, the operation expenses were primarily attributed to professional fees of $11,959 for maintaining reporting status with the Securities and Exchange Commission (“SEC”) and general administrative expenses of $300.

 

Results of Operations for the Six months ended April 30, 2022, and 2021

 

 

 

Six Months Ended

 

 

 

 

 

 

April 30,

 

 

 

 

 

 

2022

 

 

2021

 

 

Change

 

Operating expenses

 

$15,875

 

 

$23,544

 

 

 

(7,669)

Net loss

 

$15,875

 

 

$23,544

 

 

$(7,669)

 

During the six months ended April 30, 2022, and 2021, no operating revenues were recorded.

 

We had a net loss of $15,875 and $23,544 for the six months ended April 30, 2022, and 2021, respectively. The decrease in net loss of $7,669 was primarily due to a decrease in operating expenses of $7,669.

 

Operating expenses for the six months ended April 30, 2022, and 2021 were $15,875 and $23,544, respectively.

During the six months ended April 30, 2022, the operating expenses, were primarily attributed to professional fees of $15,625, for maintaining reporting status with the Securities and Exchange Commission (“SEC”) and general administrative expenses of $250.

 

During the six months ended April 30, 2021, the operation expenses were primarily attributed to professional fees of $21,569, for maintaining reporting status with the Securities and Exchange Commission (“SEC”) and general administrative expenses of $1,975.

 

 
5

Table of Contents

 

Balance Sheet Data:

 

 

 

April 30,

 

 

October 31,

 

 

 

 

 

 

2022

 

 

2021

 

 

Change

 

Cash

 

$-

 

 

$-

 

 

$-

 

Current Assets

 

 

2,750

 

 

 

-

 

 

 

2,750

 

Current Liabilities

 

 

68,926

 

 

 

50,301

 

 

 

18,625

 

Working Capital (Deficiency)

 

$(66,176)

 

$(50,301)

 

$(15,875)

 

As of April 30, 2022, our current assets were $2,750, and our current liabilities were $68,926 which resulted in working capital deficiency of $66,176.

 

As of April 30, 2022, current liabilities were comprised of $10,000 in accounts payable and $58,926 in due to related party, compared to $9,950 in accounts payable and $40,351 in due to related party as of October 31, 2021.

 

As of April 30, 2022, our working capital deficiency increased by $15,875 from $50,301 on October 31, 2021, to $66,176 on April 30, 2022, primarily due to an increase in current liabilities of $18,625 offset by an increase in current assets of $2,750.

 

Cash Flow Data:

 

 

 

Six Months Ended

 

 

 

 

 

 

April 30,

 

 

 

 

 

 

2022

 

 

2021

 

 

Change

 

Cash used in operating activities

 

$-

 

 

$-

 

 

$-

 

Cash used in investing activities

 

 

-

 

 

 

-

 

 

 

-

 

Cash provided by financing activities

 

 

-

 

 

 

-

 

 

 

-

 

Net change in cash for period

 

$-

 

 

$-

 

 

$-

 

 

Cash Flows from Operating Activities

 

We have not generated positive cash flows from operating activities. For the six months ended April 30, 2022, net cash flows used in operating activities was $0, consisting of a net loss of $15,875, reduced by an increase in accounts payable of $50, expenses paid by related party of $18,575 and increased by an increase in prepaid expenses of $2,750. For the six months ended April 30, 2021, net cash flows used in operating activities was $0, consisting of a net loss of $23,544, reduced by an increase in accounts payable of $3,561and expenses paid by related party of $19,983.

 

Cash Flows used in Investing Activities

 

During the six months ended April 30, 2022, and 2021, we had no cash used in investing activities.

 

Cash Flows from Financing Activities

 

During the six months ended April 30, 2022, and 2021, we had no cash provided by financing activities.

 

Going Concern

 

As of April 30, 2022, our Company had a net loss of $15,875 and has earned no operating revenues. Our Company intends to fund operations through debt and/or equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending October 31, 2022. The ability of our Company to emerge from the development stage is dependent upon, among other things, obtaining additional financing to continue operations, and development of our business plan. In response to these problems, management

intends to raise additional funds through public or private placement offerings or through debt financing. These factors, among others, raise substantial doubt about our Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

 
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Critical Accounting Policies

 

The discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with the accounting principles generally accepted in the United States of America. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. We believe there are no material estimates or assumptions with levels of subjectivity and judgement necessary to be considered critical accounting policies.

 

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 that is material to stockholders.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a “smaller reporting company,” we are not required to provide the information required by this Item.

 

ITEM 4. CONTROLS AND PROCEDURES.

 

Evaluation of Disclosure Controls and Procedures

 

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

 

An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of April 30, 2022. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms as a result of the following material weaknesses: (1) lack of a functioning audit committee, (2) lack of a majority of outside directors on our Board of Directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (3) inadequate segregation of duties consistent with control objectives; and (4) management is dominated by two individuals without adequate compensating controls.

 

 
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A “material weakness” is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements would not be prevented or detected on a timely basis.

 

We expect to be materially dependent upon a third party to provide us with accounting consulting services for the foreseeable future. Until such time as we have a chief financial officer with the requisite expertise in U.S. GAAP, there are no assurances that the material weaknesses in our disclosure controls and procedures and internal control over financial reporting will not result in errors in our financial statements which could lead to a restatement of those financial statements.

 

Changes in Internal Controls

 

There have been no changes in our internal controls over financial reporting identified in connection with the evaluation required by paragraph (d) of Securities Exchange Act Rule 13a-15 or Rule 15d-15 that occurred in the period ended April 30, 2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 

 

 
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PART II. OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

From time to time we may become involved in various legal proceedings that arise in the ordinary course of business, including actions related to our intellectual property. Although the outcomes of these legal proceedings cannot be predicted with certainty, we are currently not aware of any such legal proceedings or claims that we believe, either individually or in the aggregate, will have a material adverse effect on our business, financial condition, or results of operations.

 

ITEM 1A. RISK FACTORS

 

As a “smaller reporting company,” we are not required to provide the information required by this Item.

 

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

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

None.

 

 
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ITEM 6. EXHIBITS.

 

The following exhibits are included as part of this report:

 

Exhibit

Number

 

Description

3.1

 

Articles of Incorporation (filed as an exhibit 3.1 to our Form S-1 Registration Statement on December 17, 2013)

3.2

 

Bylaws (filed as an exhibit 3.2 to our Form S-1 Registration Statement on December 17, 2013)

31.1*

 

Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1*

 

Certification of Chief Executive Officer and Chief Financial Officer Pursuant Section 906 Certifications under Sarbanes-Oxley Act of 2002

101*

 

Inline XBRL Document Set for the condensed financial statements and accompanying notes in Part I, Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q.

104*

 

Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set.

 _____________

* Filed herewith

 

 
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SIGNATURES

 

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

 

 

Huaizhong Health Group, Inc.

 

 

Registrant

 

 

Date: August 29, 2022

By:

/s/ Yuantong Wang

 

Yuantong Wang

 

President, Chief Executive Officer,

Chief Financial Officer

 

 
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