10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended February 29, 2020

OR

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

For the transition period from ______________ to ______________

Commission File No. 333-22981

YUMBA RECORDS STORAGE, INC.

(Exact Name of Small Business Issuer as specified in its charter)

Nevada	4225	32-0603983
(State or jurisdiction of incorporation or organization)	(Primary Standard Industrial Classification Code Number)	(I.R.S. Employer Identification Number)

Yumba Records Storage, Inc.

H. No FF-2, First Floor

Rosemina Arcade, Malbhat

Margao, State of Goa, India 403601

Telephone: 011-91-9689157273

Email: yumba.records@gmail.com

 (Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

Check 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 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.

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. Yes ☒   No ¨

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

11,000,000 shares of registrant’s common stock, $0.001 par value, were outstanding at April 17, 2020. Registrant has no other class of common equity.

PART I. FINANCIAL INFORMATION

Item 1 Financial Statements.

Yumba Records Storage, Inc.

Condensed Consolidated Balance Sheets

	February 29, 2020			August 31, 2019
	(unaudited)
ASSETS
Current assets
Cash	$	30,100		$	408
Total current assets		30,100			408
Total assets	$	30,100		$	408
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities	$	728		$	728
Due to related party		630			2,871
Total current liabilities		1,358			3,599
Long term liabilities
Notes payable, net of discount		13,844			13,503
Total liabilities		15,202			17,102
STOCKHOLDERS’ EQUITY (DEFICIT)
Common stock: $0.001 par value, 200,000,000 authorized, 11,000,000 and 6,000,000 issued and outstanding as of February 29, 2020 and August 31, 2019 respectively		11,000			6,000
Additional paid-in capital		46,945			1,945
Accumulated deficit		(43,047	)		(24,639	)
Total stockholders’ equity (deficit)		14,898			(16,694	)
Total liabilities and stockholders’ equity (deficit)	$	30,100		$	408

(The accompanying notes are an integral part of these financial statements)

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Yumba Records Storage, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

	For the Three Months						For the Six Months
	February 29, 2020			February 28, 2019			February 29,  2020			February 28, 2019
Revenue
Revenue	$	419		$	-		$	419		$	-
Expenses
General and administrative		7,652			-			8,680			66
Professional fees		3,000			-			9,738			4,500
Total expenses		10,652			-			18,418			4,566
Loss from operations		(10,233	)		-			(17,999	)		(4,566	)
Other Expenses and Losses
Interest expense		(171	)		-			(341	)		-
Loss on foreign exchange		(33	)		-			(68	)		-
Loss before provision for income tax		(10,437	)		-			(18,408	)		(4,566	)
Provision for income tax		-			-			-			-
Net loss	$	(10,437	)	$	-		$	(18,408	)	$	(4,566	)
Net loss per share – basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted average shares outstanding – basic and diluted		11,000,000			6,000,000			10,747,624			6,000,000

(The accompanying notes are an integral part of these financial statements)

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YUMBA RECORDS STORAGE, INC.

Condensed Consolidated Statement of Stockholders’ equity (deficit)

(unaudited)

	Common Stock				Additional Paid-in		Accumulated
	Number		Par Value		Capital		Deficit			Total
September 1, 2019		6,000,000	$	6,000	$	1,945	$	(24,639	)	$	(16,694	)
Sale of common shares for cash		5,000,000		5,000		45,000		-			50,000
Net loss for the period		-		-		-		(7,971	)		(7,971	)
November 30, 2019		11,000,000	$	11,000	$	46,945	$	(32,610	)	$	25,335
Net loss for the period		-		-		-		(10,437	)		(10,437	)
February 29, 2020		11,000,000	$	11,000	$	46,945	$	(43,047	)	$	14,898

	Common Stock				Additional Paid-in		Accumulated
	Number		Par Value		Capital		Deficit			Total
September 1, 2018		6,000,000	$	6,000	$	-	$	(11,937	)	$	(5,937	)
Net loss for the period		-		-		-		(4,566	)		(4,566	)
November 30, 2018		6,000,000	$	6,000	$	-	$	(16,503	)	$	10,503
Net loss for the period		-		-		-		-			-
February 28, 2019		6,000,000	$	6,000	$	-	$	(16,503	)	$	10,503

(The accompanying notes are an integral part of these financial statements)

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Yumba Records Storage, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	For the Six Months Ended February 29, 2020			For the Six Months Ended February 28, 2019
Cash flows from operating activities
Net loss	$	(18,408	)	$	(4,566	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount		341			-
Change in operating assets and liabilities
Accounts payables and accrued liabilities		-			4,074
Due to related parties		(2,241	)		-
Net cash used in operating activities		(20,308	)		(492	)
Cash flows from financing activities
Proceeds from sale of common shares for cash		50,000			-
Net cash provided by financing activities		50,000			-
Change in cash		29,692			(492	)
Cash – beginning of period		408			10,290
Cash – end of period	$	30,100		$	9,798
Supplemental cash flow disclosures
Cash paid for:
Interest		-			-
Income tax		-			-

(The accompanying notes are an integral part of these financial statements)

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Yumba Records Storage, Inc.

Notes to the Condensed Consolidated financial statements

February 29, 2020

(Unaudited)

1. NATURE AND CONTINUANCE OF OPERATIONS

Yumba Records Storage, Inc. (the "Company") was incorporated in the state of Nevada on July 21, 2017 ("Inception"). The Company plans to be a physical record storage and retrieval company. The Company's corporate headquarters are located in Margao, India and its fiscal year-end is August 31.

Most of the activities of the Company have related to its organization, initial funding, and share issuances. In February 2020, the Company commenced its operations.

2. GOING CONCERN

These unaudited financial statements have been prepared on a going concern basis, which assumes that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. During the six months ended February 29, 2020, the Company incurred a net loss of $18,408. As of February 29, 2020, the Company had an accumulated deficit of $43,047. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern within one year after the date that the financial statements are issued.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Condensed Consolidated Financial Information: 

The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumption are inherent in the preparation of the Company’s financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions that could have a material effect on the reported amounts of the Company’s financial position and results of operations.

Operating results for the six-month period ended February 29, 2020 are not necessarily indicative of the results that may be expected for the year ending August 31, 2020. The condensed consolidated balance sheet at August 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles in the U.S. for complete financial statements.

Unaudited Condensed Consolidated Financial Statements

The unaudited condensed consolidated financial statements include the accounts of Yumba Records Storage, Inc. and its wholly owned Canadian subsidiary, Yumba Records Storage Inc. and wholly owned Indian subsidiary, Yumba Records Storage Private Limited. All significant intercompany balances and transactions have been eliminated upon consolidation.

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Yumba Records Storage, Inc.

Notes to the  Condensed Consolidated financial statements

February 29, 2020

(unaudited)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. The Company maintains cash balances at one financial institution that is insured by the FDIC.

Revenue Recognition.

The Company adopted Revenue from Contracts with Customers (Topic 606) (“ASC 606”). The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects to receive in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The Company adopted the standard using the modified retrospective method and the adoption did not have a material impact on its financial statements. The Company recognizes revenue when performance obligations under the terms of a contract with the customer are satisfied. Product sales occur once control is transferred upon delivery to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods and services

Use of Estimates and Assumptions

The preparation of condensed consolidated financial statements in conformity with US generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.

Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Accounting for Income Taxes. The asset and liability method provide that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company will measure and record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

Income (Loss) Per Share

Basic earnings per share is computed by dividing net income (or loss) by the weighted- average number of shares outstanding during the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company, assuming the issuance of an equivalent number of common shares pursuant to options, warrants, or convertible debt arrangements. Diluted earnings per share is not shown for periods in which the Company incurs a loss because it would be anti-dilutive. Similarly, potential common stock equivalents are not included in the calculation if the effect would be anti-dilutive. No potentially dilutive debt or equity securities were issued or outstanding during the six-month period ended February 29, 2020 and 2018.

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Yumba Records Storage, Inc.

Notes to the  Condensed Consolidated financial statements

February 29, 2020

(unaudited)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Financial Instruments

The Company’s financial instruments consist of cash, accounts payables, notes payable and due to shareholder. The carrying amount of such approximate their fair value due to the short maturity of the instrument.

Fair Value of Financial Instruments

The Company follows ASC 820, Fair Value Measurements and Disclosures, for all financial instruments and non-financial instruments accounted for at fair value on a recurring basis. This accounting standard establishes a single definition of fair value and a framework for measuring fair value, sets out a fair value hierarchy to be used to classify the source of information used in fair value measurement and expands disclosures about fair value measurements required under other accounting pronouncements. It does not change existing guidance as to whether or not an instrument is carried at fair value. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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

These tiers include:

Level 1:	Defined as observable inputs such as quoted prices in active markets;
Level 2:	Defined as inputs other than quoted prices in active markets that are either directly or indirectly observable;
Level 3:	Defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The Company has adopted ASC 825, Financial Instruments, which allows companies to choose to measure eligible financial instruments and certain other items at fair value that are not required to be measured at fair value. The Company has not elected the fair value option for any eligible financial instruments.

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption.

4. COMMON STOCK

The total number of common shares authorized that may be issued by the Company is 200,000,000 shares with a par value of $0.001 per share.

The Company became a reporting company on June 3, 2019 and offered a total of 5,000,000 shares of Company’s common stock on a "self-underwritten" basis at a fixed price of $0.01 per share. In October 2019, the Company completed its offering of a total of 5,000,000 shares of Company’s common stock on a "self-underwritten" basis at a fixed price of $0.01 per share, for total proceeds of $50,000.

As at February 29, 2020, there were no issued and outstanding stock options or warrants.

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Yumba Records Storage, Inc.

Notes to the Condensed Consolidated financial statements

February 29, 2020

(Unaudited)

5. RELATED PARTY TRANSACTIONS

The Company does not own any real property. In February 2020, the Company had lease premises from a related party for INR 12,000 rupees ($163) per month. A company related party has signed a storage service contract with the Company for INR 10,000 rupees ($137 ) per month, for a total of $nil and $nil during the three and six months ended February 29, 2020. 

The Company has received $15,170 from related party (Note 6).

6. RELATED PARTY NOTES PAYABLE, NET OF DISCOUNT

As of August 31, 2019, the Company received advances of $15,170 from a related party. These advances are unsecured with no interest. The Company entered into a formal promissory note for the advanced amount as of April 1, 2019, with a maturity date of December 31, 2021 with no stated interest rate. The computed discounted present value of the note payable at issuance, based on a 5% imputed interest rate, was $13,225 with $1,945 recognized as a debt discount, to be amortized over the life of the note using effective interest method. The amortization of the discount for three and six months ended February 29, 2020 was $171 and $341, respectively.  For three and six months ended February 28, 2019 amortization of discount was $nil and $nil, respectively. Discount amortization is reported as interest expense.

	February 29, 2020			August 31, 2019
Principal amount of notes payable	$	15,170		$	15,170
Less: unamortized discount		(1,326	)		(1,667	)
Notes payable less unamortized discount	$	13,844		$	13,503

7. SUBSEQUENT EVENTS

Management has evaluated subsequent events through to the date these unaudited condensed consolidated financial statements were  issued. Based on their evaluation, no material events have occurred that require disclosure.

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Item 2. Management's Discussion and Analysis of Financial Conditions and Results of Operations.

Forward Looking Statements

The information in this quarterly report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements involve risks and uncertainties, including statements regarding the Company’s capital needs, business strategy and expectations. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” the negative of such terms or other comparable terminology. Actual events or results may differ materially. In evaluating these statements, you should consider various factors, including the risks outlined from time to time, in other reports we file with the Securities and Exchange Commission (the “SEC”). These factors may cause our actual results to differ materially from any forward-looking statement. We disclaim any obligation to publicly update these statements or disclose any difference between its actual results and those reflected in these statements. The information constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Overview

We have commenced our business operations by offering document and data storage services primarily to small and medium-sized businesses located in India. Our Company was incorporated on July 21, 2017 and we have taken steps to proceed with our intended business plan.

We focus on offering management services to companies that wish to store paper documents and related items and it is the simplest for us to accommodate. Our physical records management services will include records management programs that aid customers in their compliance with specific document storage regulatory requirements; implementation of programs that feature secure, cost-effective storage for all documents; and flexible retrieval access, retention management, and document destruction services.

We expect that our information protection and storage services will be broadly divided into two major service categories: records management, and data protection and recovery. We intend to offer both physical services and technology solutions in each of these categories. Media formats can be broadly divided into paper documents and electronic records that include various forms of magnetic media such as computer tapes, hard drives, and optical disks.

We provide a secure storage location and document indexing service to customers and provide storage boxes and related supplies in order to make handling records easier.  We believe the issues encountered by customers trying to manage their electronic records are similar to the ones they face in their physical records management programs and consist primarily of: (1) storage capacity and the preservation of data; (2) access to and control over the data in a secure environment; and (3) the need to retain electronic records due to regulatory requirements.

The Company became a reporting company on June 3, 2019 after we had filed a prospectus that relates to the offering of a total of 5,000,000 shares of our common stock on a self-underwritten basis at a fixed price of $0.01 per share. In October 2019, we completed the sale of 5,000,000 common shares at the price of a $0.01 per share for total proceeds of $50,000. 

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There have been no material reclassifications, mergers, consolidations or purchases or sales of any significant amount of assets not in the ordinary course of business since the date of incorporation. The Company has never been party to any bankruptcy, receivership or similar proceeding, nor has it undergone any material reclassification, merger, consolidation, purchase or sale of a significant amount of assets not in the ordinary course of business.

Since inception, we have generated limited revenues and have incurred a cumulative net loss as reflected in the financial statements. We have minimal assets and have incurred losses since inception. Our limited start-up operations have consisted of the formation of our business plan and identification of our target market.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. There is substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the audited financial statements are issued.  

Plan of Operation

About Our Company

We were incorporated on July 21, 2017, and the six months ended February 29, 2020, we have completed as follows:

a.	Our organizational and planning activities
b.	We became a reporting company on June 3, 2019 after we had filed a prospectus that relates to the offering of a total of 5,000,000 shares of our common stock on a "self-underwritten" basis at a fixed price of $0.01 per share. In October 2019, we completed the sale of 5,000,000 common shares at the price of a $0.01 per share for total proceeds of $50,000.
c.	In February 2020, we signed an eleven-month lease with a related party for our facilities for a total of $1,464 (108,000 Indian rupees) for the 11 months and we have an option to extend by further eleven months. Our leased premises for our initial storage operations are located in the city of Margao in the state of Goa, India.
d.	We have signed two storage service contracts (one with a related party) during the quartered ended February 29, 2020 and an additional one on March 1, 2020.
e.	During the quarter ended February 29, 2020, the Company retained the services of a stock transfer agent.

We plan to achieve the following specific business milestones in the 12 months:

1.

We will continue to approach various organizations for services. We plan to retain two salespersons to directly market our services to potential customers. The pay rates for such employees would be negotiable and based on commission rates based on business generated. We anticipate that any wages would be paid from revenue that we earn and would not impact our use of proceeds. Based on our success in generating business, we would expand our sales force. As our business develops, Ms. Mulla’s role would transition from client consultant to a manager of all of our sales consultants. Initially, she would also operate our storage facility along with two to three paid part-time employees. We anticipate that the costs of retaining these employees will be approximately $1,500 in our initial year of operations.

2.

We intend to apply to have our common stock quoted on OTC markets and have retained a market maker to sponsor our application. There is no guarantee that we will be successful in obtaining any quotation for our common stock.

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Currently, our President devotes approximately 5% of her business time to the Company’s operations. Ms. Mulla has indicated that she is willing to spend more time with the business as it grows, and her services are needed. We anticipate that she will be required to spend about 20 hours a week on matters relating to our business when operations commence. Starting March 1, 2020, we will compensate Ms. Mulla in the amount of Indian Rupees 5,000/- per month (US $68) for a period of nine months.

Investors should be aware that there is substantial doubt as to our ability to continue as a going concern. This means that there is substantial doubt that we can continue as an on-going business for the next 12 months. This opinion is based on our suffering initial losses, having limited operations, and having limited working capital. Besides our limited revenue presently, our only other source for cash is sale of our shares or loans by others in our Company. However, we do not have any written agreements in place for any investments or loans from third parties. We must raise cash to implement our projects and expand our operations. Management’s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

Since we became a reporting company, we are responsible for filing various forms with the United States Securities and Exchange Commission (the “SEC”) such as Form 10-K and Form 10-Qs. The shareholders may read and copy any material filed by us with the SEC at the SEC’s Public Reference Room at 100 F Street N.W., Washington, DC, 20549. The shareholders may obtain information on the operations of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information which we have filed electronically with the SEC by assessing the website at the following address: http://www.sec.gov.

Results of Operations

We commenced earning revenue on February 15, 2020 and hope to increase revenue that we generate from operations, but there is no assurance that our revenue will increase significantly. Since inception, we sold 11,000,000 shares of common stock total proceeds of $56,000.

For the three months ended February 29, 2020, we earned $419 in gross revenue. We incurred total operating expenses in the amount of $10,652, comprised of professional fees totaling $3,000, transfer agent set-up fees and filing fees totaling $7,005 and general and administration charges totaling $647.

For the three months ended February 28, 2019, we did not incur any operating expenses.

For the six months ended February 29, 2020, we earned $419 in gross revenue for a period of half month. We incurred total operating expenses in the amount of $18,418, comprised of professional fees totaling $9,738, transfer agent set-up fees and filing fees totaling $7,005 and general and administration charges totaling $1,675.

For the six months ended February 28, 2019, we incurred total operating expenses in the amount of $4,566, comprised of professional fees totaling $4,500.

We have not incurred any expenses for research and development since inception. As a result of operating losses, there has been no provision for the payment of income taxes from the date of inception.

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Liquidity and Capital Resources

As of February 29, 2020, we had a cash balance of $30,100.

We have raised $50,000, to complete our plan of operation for the next 12 months and we believe we have sufficient current cash to cover our expenses for filing required quarterly and annual reports with the Securities and Exchange Commission and fund our plan of limited operation. We anticipate our costs of being a reporting company to be approximately $16,000 for fiscal year 2020 in connection with our public filings that will have to be made with the SEC on a quarterly basis. If needed, we may get additional funding from advances from related parties and/or from equity financing from the sale of our common stock. If we are successful in completing an equity financing, existing shareholders will experience dilution of their interest in our Company. We do not have any financing arranged and we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock to fund our plan of operation. In the absence of such financing, our business will fail. There are no assurances that we will be able to achieve further sales of our common stock or any other form of additional financing. If we are unable to achieve the financing necessary to continue our plan of operations, then we will not be able to continue our plan of operation for the next 12 months and our business will fail.

Due to our lack of operating history and the need to generate significant revenues, there currently exists a substantial doubt about our ability to continue as a going concern.

The detailed analysis of the risk factors is disclosed our Company’s registration statement Form S-1 as filed with the Securities and Exchange Commission.

Future Financings

At our present, we do not anticipate that we will require additional financing immediately in order to enable us to proceed with our plan of operations.

If we require additional financing, there can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we will not be able to meet our other obligations as they become due. We are pursuing various alternatives to meet our immediate and long-term financial requirements.

We anticipate continuing to rely on equity sales of our common stock in order to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of equity securities or arrange for debt or other financing to fund our planned business activities.

There is substantial doubt that we can continue as an on-going business for the next twelve months unless we generate sufficient revenues. There is no assurance we will ever reach that point. In the meantime, the continuation of the Company may be dependent upon the continued financial support from our shareholders, our ability to obtain necessary equity financing to continue operations and the attainment of profitable operations.

Our operations and financial results are subject to various risks and uncertainties that could adversely affect our business, financial condition and results of operations.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements including arrangements that would affect our liquidity, capital resources, market risk support and credit risk support or other benefits.

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Item 3. Qualitative and Quantitative Disclosure about Market Risks

As a “smaller reporting company,” we are not required to provide the information required by Item 3.

Item 4. Controls and Procedures.

Disclosure controls and procedures

Evaluation of Disclosure Controls and Procedures

Our Principal Executive Officer and Principal Financial Officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report, have concluded that, as of February 29, 2020, our disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.

A material weakness is a deficiency, or a 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 will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management to conclude that, as of February 29, 2020, our disclosure controls and procedures were not effective: (i) lack of a functioning audit committee, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (ii) inadequate segregation of duties consistent with control objectives; and (iii) ineffective controls over period end financial disclosure and reporting processes.

Controls and Procedures over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended February 29, 2020, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

14

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

The Company currently is not a party to any legal proceedings and, to the Company’s knowledge; no such proceedings are threatened or contemplated.

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 Equity Securities and Use of Proceeds

None.

Item 3. Default Upon Senior Securities:

None.

Item 4. Mine Safety Disclosures:

None.

Item 5. Other Information:

None.

Item 6. Exhibits and Reports on Form 8-K.

a. Exhibits

Exhibit Number	Description of Exhibit
31.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C.§ 1350, as adopted pursuant to § 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document

 

15

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

	YUMBA RECORDS STORAGE, INC.
Date: April 20, 2020	By:	/s/ Chasma Mulla
		Chasma Mulla
		Chief Executive Officer

	YUMBA RECORDS STORAGE, INC.
Date: April 20, 2020	By:	/s/ Chasma Mulla
		Chasma Mulla
		Chief Financial Officer and Director

16

EX-31.1

EXHIBIT 31.1

Certification of Chief Executive Officer pursuant to Securities Exchange

Act of 1934 Rule 13a-14(a) or 15d-14(a)

I, Chasma Mulla, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of YUMBA RECORDS STORAGE, INC.;
2.	Based on my knowledge, this 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 report;
3.	Based on my knowledge, the financial statements, and other financial information included in this 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 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 we 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; and
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 officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the 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 control over financial reporting.

 

April 20, 2020	By:	/s/ Chasma Mulla
		Name: Chasm Mulla
		Title: President, treasurer, secretary and director (Principal Executive, Financial and Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Yumba Records Storage, Inc. (the “Company”) on Form 10-Q for the quarter ended February 29, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Chasma Mulla, Principal Executive, Financial and Accounting Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 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 result of operations of the Company.

April 20, 2020	By:	/s/ Chasma Mulla
		Name: Chasm Mulla
		Title: President, treasurer, secretary and Director (Principal Executive, Financial and Accounting Officer)

XML

RELATED PARTY NOTES PAYABLE, NET OF DISCOUNT (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
RELATED PARTY NOTES PAYABLE, NET OF DISCOUNT (Details)
Principal amount of notes payable	$ 15,170	$ 15,170
Less: unamortized discount	(1,326)	(1,667)
Notes payable less unamortized discount	$ 13,844	$ 13,503

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Revenue
Revenue	$ 419		$ 419
Expenses
General and administrative	7,652		8,680	66
Professional fees	3,000		9,738	4,500
Total expenses	10,652		18,418	4,566
Loss from operations	(10,233)		(17,999)	(4,566)
Other Expenses and Losses
Interest expense	(171)		(341)
Loss on foreign exchange	(33)		(68)
Loss before provision for income tax	(10,437)		(18,048)	(4,566)
Provision for income tax
Net Loss	$ (10,437)		$ (18,408)	$ (4,566)
Net loss per share - basic and diluted	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
Weighted average shares outstanding - basic and diluted	11,000,000	6,000,000	10,747,624	6,000,000

XML

GOING CONCERN

6 Months Ended

Feb. 29, 2020

GOING CONCERN

Note 2 - GOING CONCERN

These unaudited financial statements have been prepared on a going concern basis, which assumes that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. During the six months ended February 29, 2020, the Company incurred a net loss of $18,408. As of February 29, 2020, the Company had an accumulated deficit of $43,047. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern within one year after the date that the financial statements are issued.

XML

NATURE AND CONTINUANCE OF OPERATIONS (Details Narrative)	6 Months Ended
	Feb. 29, 2020
NATURE AND CONTINUANCE OF OPERATIONS (Details Narrative)
State of incorporation	Nevada
Date of Incorporation	Jul. 21, 2017

XML

RELATED PARTY NOTES PAYABLE, NET OF DISCOUNT

6 Months Ended

Feb. 29, 2020

RELATED PARTY NOTES PAYABLE, NET OF DISCOUNT

Note 6 - RELATED PARTY NOTES PAYABLE, NET OF DISCOUNT

As of August 31, 2019, the Company received advances of $15,170 from a related party. These advances are unsecured with no interest. The Company entered into a formal promissory note for the advanced amount as of April 1, 2019, with a maturity date of December 31, 2021 with no stated interest rate. The computed discounted present value of the note payable at issuance, based on a 5% imputed interest rate, was $13,225 with $1,945 recognized as a debt discount, to be amortized over the life of the note using effective interest method. The amortization of the discount for three and six months ended February 29, 2020 was $171 and $341, respectively.  For three and six months ended February 28, 2019 amortization of discount was $nil and $nil, respectively. Discount amortization is reported as interest expense.

	February 29, 2020			August 31, 2019
Principal amount of notes payable	$	15,170		$	15,170
Less: unamortized discount		(1,326	)		(1,667	)
Notes payable less unamortized discount	$	13,844		$	13,503

XML

GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019	Aug. 31, 2019
GOING CONCERN (Details Narrative)
Net loss	$ (10,437)		$ (18,408)	$ (4,566)
Accumulated deficit	$ (43,047)		$ (43,047)		$ (24,639)

XML

SUBSEQUENT EVENTS

6 Months Ended

Feb. 29, 2020

SUBSEQUENT EVENTS

Note 7 - SUBSEQUENT EVENTS

Management has evaluated subsequent events through to the date these unaudited condensed consolidated financial statements were issued. Based on their evaluation, no material events have occurred that require disclosure.

XML

RELATED PARTY NOTES PAYABLE, NET OF DISCOUNT (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019	Aug. 31, 2019
Interest expense	$ (171)		$ (341)
Notes payable, net of discount	$ 13,844		$ 13,844		$ 13,503
President [Member]
Maturity date					Dec. 31, 2021
Advances from related party					$ 15,170
Notes payable, discount					5.00%
Notes payable, net of discount					$ 13,225
Debt discount					$ 1,945

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Feb. 29, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Condensed Consolidated Financial Information:

The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumption are inherent in the preparation of the Company’s financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions that could have a material effect on the reported amounts of the Company’s financial position and results of operations.

Operating results for the six-month period ended February 29, 2020 are not necessarily indicative of the results that may be expected for the year ending August 31, 2020. The condensed consolidated balance sheet at August 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles in the U.S. for complete financial statements.

Unaudited Condensed Consolidated Financial Statements

The unaudited condensed consolidated financial statements include the accounts of Yumba Records Storage, Inc. and its wholly owned Canadian subsidiary, Yumba Records Storage Inc. and wholly owned Indian subsidiary, Yumba Records Storage Private Limited. All significant intercompany balances and transactions have been eliminated upon consolidation.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. The Company maintains cash balances at one financial institution that is insured by the FDIC.

Revenue Recognition.

The Company adopted Revenue from Contracts with Customers (Topic 606) (“ASC 606”). The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects to receive in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The Company adopted the standard using the modified retrospective method and the adoption did not have a material impact on its financial statements. The Company recognizes revenue when performance obligations under the terms of a contract with the customer are satisfied. Product sales occur once control is transferred upon delivery to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods and services

Use of Estimates and Assumptions

The preparation of condensed consolidated financial statements in conformity with US generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.

Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Accounting for Income Taxes. The asset and liability method provide that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company will measure and record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

Income (Loss) Per Share

Basic earnings per share is computed by dividing net income (or loss) by the weighted- average number of shares outstanding during the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company, assuming the issuance of an equivalent number of common shares pursuant to options, warrants, or convertible debt arrangements. Diluted earnings per share is not shown for periods in which the Company incurs a loss because it would be anti-dilutive. Similarly, potential common stock equivalents are not included in the calculation if the effect would be anti-dilutive. No potentially dilutive debt or equity securities were issued or outstanding during the six-month period ended February 29, 2020 and 2018.

Financial Instruments

The Company’s financial instruments consist of cash, accounts payables, notes payable and due to shareholder. The carrying amount of such approximate their fair value due to the short maturity of the instrument.

Fair Value of Financial Instruments

The Company follows ASC 820, Fair Value Measurements and Disclosures, for all financial instruments and non-financial instruments accounted for at fair value on a recurring basis. This accounting standard establishes a single definition of fair value and a framework for measuring fair value, sets out a fair value hierarchy to be used to classify the source of information used in fair value measurement and expands disclosures about fair value measurements required under other accounting pronouncements. It does not change existing guidance as to whether or not an instrument is carried at fair value. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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

These tiers include:

Level 1:	Defined as observable inputs such as quoted prices in active markets;
Level 2:	Defined as inputs other than quoted prices in active markets that are either directly or indirectly observable;
Level 3:	Defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The Company has adopted ASC 825, Financial Instruments, which allows companies to choose to measure eligible financial instruments and certain other items at fair value that are not required to be measured at fair value. The Company has not elected the fair value option for any eligible financial instruments.

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption.

XML

Condensed Consolidated Statement of Stockholders' equity (deficit) (unaudited) - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]
Balance, shares at Aug. 31, 2018		6,000,000
Balance, amount at Aug. 31, 2018	$ (5,937)	$ 6,000		$ (11,937)
Net loss for the period	$ (4,566)			$ (4,566)
Balance, shares at Nov. 30, 2018		6,000,000
Balance, amount at Nov. 30, 2018	$ 10,503	$ 6,000		$ (16,503)
Net loss for the period
Balance, shares at Feb. 28, 2019		6,000,000
Balance, amount at Feb. 28, 2019	$ 10,503	$ 6,000		$ (16,503)
Balance, shares at Aug. 31, 2019		6,000,000
Balance, amount at Aug. 31, 2019	$ (16,694)	$ 6,000	$ 1,945	$ (24,639)
Net loss for the period	(7,971)			(7,971)
Sale of common shares for cash, shares		5,000,000
Sale of common shares for cash, amount	$ 50,000	$ 5,000	$ 45,000
Balance, shares at Nov. 30, 2019		11,000,000
Balance, amount at Nov. 30, 2019	$ 25,335	$ 11,000	$ 46,945	$ (32,610)
Net loss for the period	$ (10,437)			$ (10,437)
Balance, shares at Feb. 29, 2020		11,000,000
Balance, amount at Feb. 29, 2020	$ 14,898	$ 11,000	$ 46,945	$ (43,047)

XML

Document and Entity Information - shares	6 Months Ended
	Feb. 29, 2020	Apr. 17, 2020
Document And Entity Information
Entity Registrant Name	YUMBA RECORDS STORAGE, INC.
Entity Central Index Key	0001750398
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	Feb. 29, 2020
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020
Entity Ex Transition Period	true
Entity Common Stock Shares Outstanding		11,000,000
Entity File Number	333-22981
Entity Address Address Line 1	H. No FF-2, First Floor
Entity Address Address Line 2	Rosemina Arcade, Malbhat
Entity Address Postal Zip Code	403601
Entity Tax Identification Number	32-0603983
Entity Address City Or Town	Margao
Local Phone Number	91-9689157273
City Area Code	011
Entity Address Country	IN
Entity Interactive Data Current	Yes

XML

RELATED PARTY NOTES PAYABLE, NET OF DISCOUNT (Table)

6 Months Ended

Feb. 29, 2020

RELATED PARTY NOTES PAYABLE, NET OF DISCOUNT (Table)

Schedule of notes payable, Unamortized discount as interest expense

	February 29, 2020			August 31, 2019
Principal amount of notes payable	$	15,170		$	15,170
Less: unamortized discount		(1,326	)		(1,667	)
Notes payable less unamortized discount	$	13,844		$	13,503

XML

RELATED PARTY TRANSACTIONS

6 Months Ended

Feb. 29, 2020

RELATED PARTY TRANSACTIONS

Note 5 - RELATED PARTY TRANSACTIONS

The Company does not own any real property . In February 2020, the Company had lease premises from a related party for INR 12,000 rupees ($163) per month. A company related party has signed a storage service contract with the Company for INR 10,000 rupees ($137 ) per month, for a total of $nil and $nil during the three and six months ended February 29, 2020.

The Company has received $15,170 from related party (Note 6).

XML

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Principal amount of notes payable	$ 15,170	$ 15,170
Due to related party	630	$ 2,871
Lease [Member]
Due to related party	163
Storage Service [Member]
Due to related party	$ 137

XML

NATURE AND CONTINUANCE OF OPERATIONS

6 Months Ended

Feb. 29, 2020

NATURE AND CONTINUANCE OF OPERATIONS

Note 1 - NATURE AND CONTINUANCE OF OPERATIONS

Yumba Records Storage, Inc. (the "Company") was incorporated in the state of Nevada on July 21, 2017 ("Inception"). The Company plans to be a physical record storage and retrieval company . The Company's corporate headquarters are located in Margao, India and its fiscal year-end is August 31.

Most of the activities of the Company have related to its organization, initial funding, and share issuances. In February 2020, the Company commenced its operations.

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Feb. 29, 2020	Oct. 31, 2019	Aug. 31, 2019
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, shares par value	$ 0.001		$ 0.001
Common stock, shares authorized	200,000,000		200,000,000
Common stock, shares issued	11,000,000		6,000,000
Common stock, shares outstanding	11,000,000		6,000,000

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Cash flows from operating activities
Net loss	$ (18,408)	$ (4,566)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount	341
Change in operating assets and liabilities:
Accounts payables and accrued liabilities		4,074
Due to related parties	(2,241)
Net cash used in operating activities	(20,308)	(492)
Cash flows from financing activities
Proceeds from sale of common shares for cash	50,000
Net cash provided by financing activities	50,000
Change in cash	29,692	(492)
Cash - beginning of period	408	10,290
Cash - end of period	30,100	9,798
Supplemental cash flow disclosures
Cash paid for: Interest
Cash paid for: Income tax

XML

Condensed Consolidated Balance Sheets - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Current assets
Cash	$ 30,100	$ 408
Total current assets	30,100	408
Total assets	30,100	408
Current liabilities
Accounts payable and accrued liabilities	728	728
Due to related party	630	2,871
Total current liabilities	1,358	3,599
Long term liabilities
Notes payable, net of discount	13,844	13,503
Total liabilities	15,202	17,102
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock: $0.001 par value, 200,000,000 authorized, 11,000,000 and 6,000,000 issued and outstanding as of February 29, 2020 and August 31, 2019 respectively	11,000	6,000
Additional paid-in capital	46,945	1,945
Accumulated deficit	(43,047)	(24,639)
Total stockholders' equity (deficit)	14,898	(16,694)
Total liabilities and stockholders' equity (deficit)	$ 30,100	$ 408

XML

COMMON STOCK (Details Narrative) - USD ($)	1 Months Ended	6 Months Ended
	Oct. 31, 2019	Feb. 29, 2020	Feb. 28, 2019	Aug. 31, 2019	Jun. 03, 2019
Common stock, par value		$ 0.001		$ 0.001
Common stock, shares authorized		200,000,000		200,000,000
Common stock, shares issued		11,000,000		6,000,000
Common stock, shares outstanding		11,000,000		6,000,000
Proceeds from issuance of common stock		$ 50,000
Self Underwritten [Member]
Common stock, par value	$ 0.01				$ 0.01
Common stock, shares issued	5,000,000				5,000,000
Proceeds from issuance of common stock	$ 50,000

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Feb. 29, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

Condensed Consolidated Financial Information:

The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumption are inherent in the preparation of the Company’s financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions that could have a material effect on the reported amounts of the Company’s financial position and results of operations.

Operating results for the six-month period ended February 29, 2020 are not necessarily indicative of the results that may be expected for the year ending August 31, 2020. The condensed consolidated balance sheet at August 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles in the U.S. for complete financial statements.

Unaudited Consolidated Consolidated Financial Statements

The unaudited condensed consolidated financial statements include the accounts of Yumba Records Storage, Inc. and its wholly owned Canadian subsidiary, Yumba Records Storage Inc. and wholly owned Indian subsidiary, Yumba Records Storage Private Limited. All significant intercompany balances and transactions have been eliminated upon consolidation.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. The Company maintains cash balances at one financial institution that is insured by the FDIC.

Revenue Recognition.

The Company adopted Revenue from Contracts with Customers (Topic 606) (“ASC 606”). The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects to receive in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The Company adopted the standard using the modified retrospective method and the adoption did not have a material impact on its financial statements. The Company recognizes revenue when performance obligations under the terms of a contract with the customer are satisfied. Product sales occur once control is transferred upon delivery to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods and services.

Use of Estimates and Assumptions

The preparation of condensed consolidated financial statements in conformity with US generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.

Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Accounting for Income Taxes. The asset and liability method provide that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company will measure and record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

Income (Loss) Per Share

Basic earnings per share is computed by dividing net income (or loss) by the weighted- average number of shares outstanding during the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company, assuming the issuance of an equivalent number of common shares pursuant to options, warrants, or convertible debt arrangements. Diluted earnings per share is not shown for periods in which the Company incurs a loss because it would be anti-dilutive. Similarly, potential common stock equivalents are not included in the calculation if the effect would be anti-dilutive. No potentially dilutive debt or equity securities were issued or outstanding during the six-month period ended February 29, 2020 and 2018.

Financial Instruments

The Company’s financial instruments consist of cash, accounts payables, notes payable and due to shareholder. The carrying amount of such approximate their fair value due to the short maturity of the instrument.

Fair Value of Financial Instruments

The Company follows ASC 820, Fair Value Measurements and Disclosures, for all financial instruments and non-financial instruments accounted for at fair value on a recurring basis. This accounting standard establishes a single definition of fair value and a framework for measuring fair value, sets out a fair value hierarchy to be used to classify the source of information used in fair value measurement and expands disclosures about fair value measurements required under other accounting pronouncements. It does not change existing guidance as to whether or not an instrument is carried at fair value. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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

These tiers include:

Level 1:	Defined as observable inputs such as quoted prices in active markets;
Level 2:	Defined as inputs other than quoted prices in active markets that are either directly or indirectly observable;
Level 3:	Defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The Company has adopted ASC 825, Financial Instruments, which allows companies to choose to measure eligible financial instruments and certain other items at fair value that are not required to be measured at fair value. The Company has not elected the fair value option for any eligible financial instruments.

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption.

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COMMON STOCK

6 Months Ended

Feb. 29, 2020

COMMON STOCK

Note 4 - COMMON STOCK

The total number of common shares authorized that may be issued by the Company is 200,000,000 shares with a par value of $0.001 per share.

The Company became a reporting company on June 3, 2019 and offered a total of 5,000,000 shares of Company’s common stock on a "self-underwritten" basis at a fixed price of $0.01 per share. In October 2019, the Company completed its offering of a total of 5,000,000 shares of Company’s common stock on a "self-underwritten" basis at a fixed price of $0.01 per share, for total proceeds of $50,000.

As at February 29, 2020, there were no issued and outstanding stock options or warrants.