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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  For the quarterly period ended September 30, 2022
   
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  For the transition period from __________  to __________

 

Commission file number: 000-22711

 

LOGICQUEST TECHNOLOGY, INC.

(Exact name of registrant as specified in its charter)

 

Nevada 76-0640970
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

 

5 Independence Way, Suite 300, Princeton, NJ, U.S.A. 08540
(Address of principal executive offices) (Zip Code)

 

Registrant's telephone number, including area code 609-514-5136

 

Securities registered pursuant to Section 12(b) of the Act:  None

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
     

 

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 filings requirements for the past 90 days. Yes No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files). Yes No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

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

 

APPLICABLE ONLY TO CORPORATE ISSUERS

 

 

On November 14, 2022, the registrant had outstanding 2,301,968 shares of Common Stock, $0.001 par value per share.

 
 

 

 
 

TABLE OF CONTENTS

 

 

PART I. FINANCIAL INFORMATION  
   
ITEM 1. FINANCIAL STATEMENTS 1
   
Unaudited Financial Statements  
   
Balance Sheets as of September 30, 2022 and December 31, 2021 1
   
Statements of Operations for the Three and Nine Months Ended September 30, 2022 and 2021 2
   
Statements of Changes in Stockholders’ Deficit for the Three and Nine Months Ended September 30, 2022 3
   
Statements of Changes in Stockholders’ Deficit for the Three and Nine Months Ended September 30, 2021 4
   
Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021 5
   
Notes to Financial Statements 6
   
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 7
   
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 10
   
ITEM 4. CONTROLS AND PROCEDURES 11
   
PART II. OTHER INFORMATION  
   
ITEM 1. LEGAL PROCEEDINGS 12
   
ITEM 1A. RISK FACTORS 12
   
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 12
   
ITEM 3. DEFAULTS UPON SENIOR SECURITIES 12
   
ITEM 4. MINE SAFETY DISCLOSURES 12
   
ITEM 5. OTHER INFORMATION 12
   
ITEM 6. EXHIBITS 12
   
SIGNATURES 13

 

 

 

 

 

 

 
 

PART I. FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

LOGICQUEST TECHNOLOGY, INC.

BALANCE SHEETS

 

   September 30,   December 31, 
   2022   2021 
   (Unaudited)     
ASSETS          
           
Current assets:          
Prepaid expenses and other current assets  $711   $1,490 
Total current assets   711    1,490 
Total assets  $711   $1,490 
           
LIABILITIES AND STOCKHOLDERS' DEFICIT          
           
Current liabilities:          
Accrued liabilities  $13,994   $4,126,002 
Due to a related party       1,050,079 
Note payable       1,337,600 
Total current liabilities   13,994    6,513,681 
           
Stockholders' deficit:          
Undesignated preferred stock, $.001 par value, 9,999,942 shares authorized, none issued and outstanding        
Series C Convertible Non-Redeemable preferred stock, $.001 par value, 48 shares authorized, issued and outstanding at September 30, 2022 and December 31, 2021; $12,500 per share liquidation preference ($600,000 aggregate liquidation preference at September 30, 2022)        
Series D Convertible Non-Redeemable preferred stock, $.001 par value, 10 shares authorized, issued and outstanding at September 30, 2022 and December 31, 2021; $8,725 per share liquidation preference ($87,250 aggregate liquidation preference at September 30, 2022)        
Common stock, $0.001 par value, 200,000,000 shares authorized, 2,301,968 shares issued and outstanding at September 30, 2022 and December 31, 2021   2,302    2,302 
Additional paid-in capital   29,179,647    22,487,937 
Accumulated deficit   (29,195,232)   (29,002,430)
Total stockholders' deficit   (13,283)   (6,512,191)
Total liabilities and stockholders' deficit  $711   $1,490 

 

See accompanying notes to unaudited financial statements

 

 

1 
 

LOGICQUEST TECHNOLOGY, INC.

STATEMENTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

UNAUDITED

  

                 
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2022   2021   2022   2021 
                 
Operating expenses                    
Selling, general and administrative expenses  $18,982   $18,736   $59,798   $56,229 
Loss from operations   (18,982)   (18,736)   (59,798)   (56,229)
                     
Interest expense       (80,572)   (133,004)   (240,067)
                     
Net loss  $(18,982)  $(99,308)  $(192,802)  $(296,296)
                     
Net loss per share                    
Basic  $(0.01)  $(0.04)  $(0.08)  $(0.13)
Diluted  $(0.01)  $(0.04)  $(0.08)  $(0.13)
                     
Weighted average shares outstanding                    
Basic   2,301,968    2,301,968    2,301,968    2,301,968 
Diluted   2,301,968    2,301,968    2,301,968    2,301,968 

 

See accompanying notes to unaudited financial statements

 

2 
 

LOGICQUEST TECHNOLOGY, INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022

UNAUDITED

  

 

                                     
           PREFERRED STOCK   ADDITIONAL         
   COMMON STOCK   SERIES C   SERIES D   PAID-IN   ACCUMULATED     
   SHARES   CAPITAL   SHARES   CAPITAL   SHARES   CAPITAL   CAPITAL   DEFICIT   TOTAL 
Balance at June 30, 2022   2,301,968   $2,302    48   $    10   $   $28,065,874   $(29,176,250)  $(1,108,074)
Net loss                               (18,982)   (18,982)
Settlement of liabilities with a related party                           1,113,773        1,113,773 
Balance at September 30, 2022   2,301,968   $2,302    48   $    10   $   $29,179,647   $(29,195,232)  $(13,283)

 

 

           PREFERRED STOCK   ADDITIONAL         
   COMMON STOCK   SERIES C   SERIES D   PAID-IN   ACCUMULATED     
   SHARES   CAPITAL   SHARES   CAPITAL   SHARES   CAPITAL   CAPITAL   DEFICIT   TOTAL 
Balance at December 31, 2021   2,301,968   $2,302    48   $    10   $   $22,487,937   $(29,002,430)  $(6,512,191)
Net loss                               (192,802)   (192,802)
Settlement of liabilities with a related party                           6,691,710        6,691,710 
Balance at September 30, 2022   2,301,968   $2,302    48   $    10   $   $29,179,647   $(29,195,232)  $(13,283)

See accompanying notes to unaudited financial statements

 

3 
 

LOGICQUEST TECHNOLOGY, INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021

UNAUDITED

 

 

           PREFERRED STOCK   ADDITIONAL         
   COMMON STOCK   SERIES C   SERIES D   PAID-IN   ACCUMULATED     
   SHARES   CAPITAL   SHARES   CAPITAL   SHARES   CAPITAL   CAPITAL   DEFICIT   TOTAL 
Balance at June 30, 2021   2,301,968   $2,302    48   $    10   $   $22,487,937   $(28,796,378)  $(6,306,139)
Net loss                               (99,308)   (99,308)
Balance at September 30, 2021   2,301,968   $2,302    48   $    10   $   $22,487,937   $(28,895,686)  $(6,405,447)

 

           PREFERRED STOCK   ADDITIONAL         
   COMMON STOCK   SERIES C   SERIES D   PAID-IN   ACCUMULATED     
   SHARES   CAPITAL   SHARES   CAPITAL   SHARES   CAPITAL   CAPITAL   DEFICIT   TOTAL 
Balance at December 31, 2020   2,301,968   $2,302    48   $    10   $   $22,487,937   $(28,599,390)  $(6,109,151)
Net loss                               (296,296)   (296,296)
Balance at September 30, 2021   2,301,968   $2,302    48   $    10   $   $22,487,937   $(28,895,686)  $(6,405,447)

 

 

See accompanying notes to unaudited financial statements

 

4 
 

 

LOGICQUEST TECHNOLOGY, INC.

STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

UNAUDITED

   

         
   Nine Months Ended 
   September 30, 
   2022   2021 
Cash flows from operating activities:          
Net loss  $(192,802)  $(296,296)
Adjustments to reconcile net loss to net cash used in operating activities:          
Changes in operating assets and liabilities:          
Prepaid expenses and other current assets   779    (519)
Accrued liabilities   192,023    296,815 
Net cash used in operating activities        
           
Net decrease in cash and cash equivalents        
Cash and cash equivalents at beginning of period        
Cash and cash equivalents at end of period  $   $ 
           
Supplemental information:          
Cash paid for interest  $   $ 
Cash paid for income taxes  $   $ 
           
Non-cash transactions:          
Assignment of third-party liabilities to a related party  $5,577,937   $ 
Settlement of liabilities with a related party  $6,691,710   $ 
Operating expenses directly paid by a related party  $63,694   $66,152 

 

See accompanying notes to unaudited financial statements

 

5 
 

LOGICQUEST TECHNOLOGY, INC.

NOTES TO FINANCIAL STATEMENTS

UNAUDITED

 

1. BASIS OF PRESENTATION

 

Basis of Presentation

The accompanying unaudited interim financial statements of Logicquest Technology, Inc. (“we”, “our”, “Logicquest” or the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in Logicquest's Annual Report filed with the SEC on Form 10-K.  In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein.  The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.  Notes to the financial statements which substantially duplicate the disclosure contained in the audited financial statements for the year ended December 31, 2021 as reported in the Form 10-K have been omitted.

 

2. GOING CONCERN CONSIDERATIONS

 

During the nine months ended September 30, 2022, Logicquest has been unable to generate cash flows sufficient to support its operations and has been dependent on debt raised from a related party. In addition to negative cash flow from operations, Logicquest has experienced recurring net losses, and has a negative working capital and stockholders’ deficit.

 

These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if Logicquest is unable to continue as a going concern.

 

3. DUE TO A RELATED PARTY

 

The due to a related party is summarized below:

 

Schedule of Amounts Due To A Related Party            
    At
September 30,
2022
    At
December 31,
2021
 
Expenses paid by Logicquest Technology Limited, a company controlled by the Company’s Chief Financial Officer, Cheng Yew Siong, on behalf of the Company   $     $ 1,050,079  

 

During the nine months ended September 30, 2022, Logicquest Technology Limited paid operating expenses of $63,694 on behalf of the Company. The amount of due to a related party is unsecured, does not bear interest and is due on demand.

 

Schedule Liabilities Assigned And Settled        
   Nine Months Ended
September 30,
2022
   Nine Months Ended
September 30,
2021
 
Liabilities assigned to Logicquest Technology Limited on June 26, 2022  $5,577,937   $ 
Liabilities settled with Logicquest Technology Limited on June 29, 2022  $(5,577,937)  $ 
Liabilities settled with Logicquest Technology Limited on September 29, 2022  $(1,113,773)  $ 

 

 

In June 2022, Tang Chuan Choon signed an agreement with Logicquest Technology Limited, pursuant to which Tang Chuan Choon assigned his receivable from the Company, included in the Company’s balance sheet as note payable and accrued liabilities balances, in the aggregate amount of $5,577,937, to Logicquest Technology Limited, who then signed an agreement with the Company and settled the balances for $1. The transaction was closed as of June 30, 2022. The settlement was account for as a transaction under common control and the difference between amount paid and amount settled was recorded in equity.

 

In September 2022, Logicquest Technology Limited signed an agreement with the Company and settled the remaining balances of liabilities of $1,113,773 for $1. The transaction was closed as of September 30, 2022. The settlement was account for as a transaction under common control and the difference between amount paid and amount settled was recorded in equity.

 

 

6 
 

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

 

FORWARD LOOKING STATEMENT

 

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 stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. All references to “common shares” refer to the common shares in our capital stock.

 

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.

 

As used in this quarterly report, the terms “we”, “us”, “our” and “our company” mean Logicquest Technology, Inc., unless otherwise indicated.

 

General Overview

 

Our company was formed on July 23, 2001 when Solis Communications, Inc., a company incorporated in the State of Texas on February 26, 2001, completed the acquisition of Berens Industries, Inc., a company originally incorporated in the State of Nevada on January 9, 1985. On September 17, 2001, we changed our name to Crescent Communications Inc. d.b.a Crescent Broadband. On November 15, 2004, we changed our name to Bluegate Corporation. On March 19, 2015, we changed our name to Logicquest Technology, Inc.

 

We are a Nevada corporation that previously operated as a broadband network service provider, providing internet connectivity to corporate clients on a subscription basis. During May 2014 our board of directors authorized an orderly wind-down of our Company's internet connectivity business which ceased effective September 30, 2014.

 

Our Current Business

 

We are currently a company with no operations. To sustain our company’s operation, our board is currently seeking investment opportunities.

 

At this stage, we can provide no assurance that we will be able to locate compatible business opportunities, what additional financing we will require to complete a business opportunity, or whether the opportunity's operations will be profitable.

 

If we are unable to secure adequate capital to continue our business, our shareholders will lose some or all of their investment and our business will likely fail.

 

7 
 

Results of Operations

 

Three and Nine Months Ended September 30, 2022 compared to the Three and Nine Months Ended September 30, 2021

 

We had a net loss of $18,982 for the three months ended September 30, 2022, which was $80,326 less than the net loss of $99,308 for the three months ended September 30, 2021. The change in our results over the three periods is a result of a decrease in interest expenses.

 

We had a net loss of $192,802 for the nine months ended September 30, 2022, which was $103,494 less than the net loss of $296,296 for the nine months ended September 30, 2021. The change in our results over the three periods is a result of a decrease in interest expenses.

 

The following table summarizes key items of comparison and their related increase and decrease for the three and nine months ended September 30, 2022 and 2021:

 

   Three Months Ended
September 30, 2022
   Three Months Ended
September 30, 2021
  

Three Months

Increase/

(Decrease)
2022 from 2021

   Nine Months Ended
September 30, 2022
   Nine Months Ended
September 30, 2021
  

Nine Months Increase/

(Decrease)
2022 from 2021

 
Selling, general and administrative expenses  $18,982   $18,736   $246   $59,798   $56,229   $3,569 
Loss from operations   (18,982)   (18,736)   246    (59,798)   (56,229)   3,569 
Interest expense       (80,572)   (80,572)   (133,004)   (240,067)   (107,063)
Net loss  $(18,982)  $(99,308)  $(80,326)  $(192,802)  $(296,296)  $(103,494)

 

Revenue

 

We have not earned any revenues during the quarter of September 30, 2022 and we do not anticipate earning revenues in the upcoming quarter.

 

Liquidity and Capital Resources

 

As of September 30, 2022, we had no cash or cash equivalents, current liabilities of $13,994 and a stockholders’ deficit of $13,283.

 

Working Capital

 

  

At
September 30,

2022

  

At
December 31,

2021

 
Current assets  $711   $1,490 
Current liabilities   13,994    6,513,681 
Working capital  $(13,283)  $(6,512,191)

 

We anticipate generating losses and, therefore, may be unable to continue operations further in the future.

 

Financial Condition

 

              Increase 
    Nine Months Ended    (Decrease) 
    September 30,    2022 from 
    2022    2021    2021 
Net cash used in operating activities  $   $   $ 
Net cash provided by financing activities            
Net decrease in cash during period  $   $   $ 
Cash balance at end of period             

 

8 
 

Operating Activities

 

Net cash used in operating activities during the nine months ended September 30, 2022 and 2021 was nil.

 

Financing Activities

 

Cash provided by financing activities during the nine months ended September 30, 2022 and 2021 was nil.

 

To date we have relied on proceeds from the sale of our shares and on loans from officers and directors, related companies and an independent third party in order to sustain our basic, minimum operating expenses; however, we cannot guarantee that we will secure any further sales of our shares or that our officers and directors, related companies or the independent third party will provide us with any future loans. We intend to use debt to cover the anticipated negative cash flows until we can operate at a break-even cash flow mode. We may seek additional capital to fund potential costs associated with possible expansion and/or acquisitions. We believe that future funding may be obtained from public or private offerings of equity securities, debt or convertible debt securities, or other sources. Stockholders should assume that any additional funding will likely be dilutive.

 

We are not aware of any known trends, demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in our liquidity increasing or decreasing in any material way.

 

Future Financings

 

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

 

We presently do not have any arrangements for additional financing for the expansion of our exploration operations, and no potential lines of credit or sources of financing are currently available for the purpose of proceeding with our plan of operations.

 

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, and capital expenditures or capital resources that are material to stockholders.

 

Critical Accounting Policies

 

Our discussion and analysis of our financial condition and results of operations are based upon financial statements which have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate these estimates. We base our estimates on historical experience and on assumptions that are believed to be reasonable. These estimates and assumptions provide a basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions, and these differences may be material.

 

We believe that the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our financial statements.

 

RELATED PARTY TRANSACTIONS

 

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

between related parties.

 

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FAIR VALUE FINANCIAL INSTRUMENTS

 

For certain of the Company’s financial instruments, including prepaid expenses and accrued liabilities, the carrying amounts approximate fair values due to their short maturities.

 

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

 

It is not, however, practical to determine the fair value of amounts due to related parties and lease and management arrangement with related parties, if any, due to their related party nature.

 

INCOME TAXES

 

The Company uses the liability method of accounting for income taxes. Under this method, deferred income taxes are recorded to reflect the tax consequences on future years of temporary differences between the tax basis of assets and liabilities and their financial amounts at year-end. The Company provides a valuation allowance to reduce deferred tax assets to their net realizable value.

 

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement.

 

Going Concern

 

We remain dependent on outside sources of funding for the continuation of our operations. Our independent registered public accounting firm issued a going concern qualification in its report dated April 15, 2022 (included in our annual report on Form 10-K for the year ended December 31, 2021), which raises substantial doubt about our ability to continue as a going concern.

 

During the nine months ended September 30, 2022 and the year ended December 31, 2021, we have been unable to generate cash flows sufficient to support our operations and have been dependent on debt raised from a related party.

 

During the nine months ended September 30, 2022 and 2021, we experienced negative financial results as follows:

 

  

Nine Months Ended

September 30,

 
   2022   2021 
Net loss  $(192,802)  $(296,296)
Negative working capital   (13,283)   (6,405,447)
Stockholders’ deficit   (13,283)   (6,405,447)

 

These factors raise substantial doubt about our ability to continue as a going concern. The financial statements contained herein do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should we be unable to continue in existence. Our ability to continue as a going concern is dependent upon our ability to generate sufficient cash flows to meet our obligations on a timely basis, to obtain additional financing as may be required, and ultimately to attain profitable operations. However, there is no assurance that profitable operations or sufficient cash flows will occur in the future.

 

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.

 

 

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ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of disclosure controls and procedures.

 

We are required to maintain “disclosure controls and procedures” as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934. In designing and evaluating our disclosure controls and procedures, our management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Based on their evaluation as of the end of the period covered by this report, our Chief Financial Officer has concluded that our disclosure controls and procedures were not effective such that the information relating to our company, required to be disclosed in our Securities and Exchange Commission reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and (ii) is accumulated and communicated to our management, including our Chief Financial Officer, to allow timely decisions regarding required disclosure as a result of continuing weaknesses in our internal control over financial reporting.

 

As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021, based on management’s assessment of the effectiveness of our internal controls over financial reporting, management concluded that our internal controls over financial reporting were not effective as of December 31, 2021, due to insufficiently qualified accounting and other finance personnel with an appropriate level of U.S. GAAP knowledge and experience, and lack of segregation of duties. Management believes that our lack of experience with U.S. GAAP and lack of segregation of duties constitutes a material weakness in our internal control over financial reporting. Until such time, if ever, that we remediate the material weakness in our internal control over financial reporting we expect that the material weaknesses in our disclosure controls and procedures will continue.

 

Changes in internal control over financial reporting.

 

There was no change in the Company’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the quarter ended September 30, 2022 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

 

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PART II. OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

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

 

ITEM 1A. RISK FACTORS

 

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

 

ITEM 6. EXHIBITS

 

Exhibit    
Number   Name
     
3.1   Articles of incorporation (incorporated by reference to Form SB-2 filed June 3, 2005 as Exhibit 3.1).
3.2   Bylaws (incorporated by reference to Form SB-2 filed June 3, 2005 as Exhibit 3.2).
10.1   Memorandum of Understanding between our company and Logicquest dated March 31, 2016 (incorporated by reference to our Current Report on Form 8-K filed on April 7, 2016 as Exhibit 10.1).
31.1   CERTIFICATION REQUIRED BY RULE 13a - 14(a) OR RULE 15d - 14(a) OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
32.1   CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. SECTION 1350)
101.INS   Inline XBRL Instance Document. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH   Inline XBRL Taxonomy Extension Schema Document.
101.CAL   Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF   Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB   Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE   Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104   Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

 

 

 

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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.

 

  Logicquest Technology, Inc.  
       
Date: November 14, 2022 By: /s/ Cheng Yew Siong  
    Cheng Yew Siong  
    Director, Chief Financial Officer and Principal Accounting Officer  
       

 

 

 

 

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