PHCI 10-Q
Panamera Holdings Corp (PHCI)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended | |
or | |
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from ______________ to ______________ | |
Commission File Number | |
(Exact name of registrant as specified in its charter) |
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(State or other jurisdiction of incorporation or organization) |
| (IRS Employer Identification No.) |
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(Address of principal executive offices) |
| (Zip Code) |
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(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
None | None | None |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer | ☐ | Accelerated filer | ☐ |
☒ | Smaller reporting company | ||
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
TABLE OF CONTENTS
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Management’s Discussion and Analysis of Financial Condition and Results of Operations | 11 |
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| Table of Contents |
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
PANAMERA HOLDINGS CORPORATION
Consolidated Balance Sheets
(Unaudited)
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Assets |
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Current Assets |
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Cash |
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Accounts receivable |
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Employee advanced |
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Total Current Assets |
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Total Assets |
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Liabilities and Stockholders' Equity (Deficit) |
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Current Liabilities |
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Accounts payable |
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Due to related party |
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Total Current Liabilities |
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Total Liabilities |
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Stockholders' Equity (Deficit) |
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Preferred stock: |
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Common stock: |
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Additional paid in capital |
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Common stock subscriptions receivable-related party |
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Treasury stock, at cost: |
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Accumulated deficit |
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Total Stockholders' Equity (Deficit) |
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Total Liabilities and Stockholders' Equity (Deficit) |
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The accompanying notes to the unaudited financial statements are an integral part of these statements.
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| Table of Contents |
PANAMERA HOLDINGS CORPORATION
Consolidated Statements of Operations
(Unaudited)
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Revenues -related party |
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Cost of revenues -related party |
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Gross profit (loss) |
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Operating expenses |
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Professional fees |
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General and administration expenses |
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Total operating expenses |
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Net loss from operations |
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Other income (expense) |
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Interest income |
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Interest expense |
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Total other expense |
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Net loss before taxes |
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Income tax benefit |
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Net loss |
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Basic and diluted loss per common share |
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Weighted average number of common shares outstanding, basic and diluted |
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The accompanying notes to the unaudited financial statements are an integral part of these statements.
| 4 |
| Table of Contents |
PANAMERA HOLDINGS CORPORATION
Consolidated Statements of Changes in Stockholders’ Deficit
(Unaudited)
For the Three and Six Months Ended January 31, 2024
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Balance - July 31, 2023 |
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Imputed interest on related party loan |
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Net loss for the period |
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Balance - October 31, 2023 |
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Collected common stock subscription receivable -related parties |
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Imputed interest on related party loan |
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Net loss for the period |
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Balance - January 31, 2024 |
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For the Three and Six Months Ended January 31, 2023
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Balance - July 31, 2022 |
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Imputed interest on related party loan |
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Net loss for the period |
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Balance - October 31, 2022 |
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Imputed interest on related party loan |
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Common stock surrender, held as treasury stock |
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Net loss for the period |
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Balance - January 31, 2023 |
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The accompanying notes to the unaudited financial statements are an integral part of these statements.
| 5 |
| Table of Contents |
PANAMERA HOLDINGS CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
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Cash Flows from Operating Activities: |
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Net loss |
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Adjustments to reconcile net loss to net cash used in operating activities: |
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Imputed interest on related party loan |
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Changes in operating assets and liabilities: |
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Accounts payable |
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Accounts receivable |
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Prepaid expenses |
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Other receivable -related party |
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Deferred revenue and customer deposits |
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Payroll liabilities - related party |
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Employee advanced |
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Net Cash Used in Operating Activities |
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Cash Flows from Financing Activities: |
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Proceeds from related party loans |
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Repayment related party loans |
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Proceeds from common stock subscription receivable -related party |
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Net Cash (Used in) Provided by Financing Activities |
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Net change in cash |
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Cash, end of period |
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Supplemental cash flow information: |
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Cash paid for interest |
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Cash paid for taxes |
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Supplemental disclosure of non-cash financing activity |
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Share surrender, held as treasury stock |
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The accompanying notes to the unaudited financial statements are an integral part of these statements.
| 6 |
| Table of Contents |
PANAMERA HOLDINGS CORPORATION
Notes to the Unaudited Interim Consolidated Financial Statements
January 31, 2024
NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS
Panamera Holdings Corporation (the “Company”) is a Nevada corporation incorporated on May 20, 2014. It is based in Houston, TX. Effective October 21, 2021, the Company changed its name from Panamera Healthcare Corporation to Panamera Holdings Corporation and increased the number of authorized shares of common stock from
The Company intended to offer management and consulting services to healthcare organizations but has redirected its efforts to now pursuing business opportunities, including but not limited to the environmental services industry, emerging innovative technologies and individual health choices led by innovation with integration. To date, the Company’s activities have been limited to its formation and the raising of equity capital and consulting services related to an agreement effective on March 1, 2022, with First DP Ventures, LP dba First Primary Care of Houston, Texas.
On June 2, 2023,
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited interim consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the unaudited interim consolidated financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K, for the year ended July 31, 2023, as filed with the SEC on November 16, 2023.
Basis of Consolidation
The consolidated financial statements include the accounts of Panamera Holdings Corporation and its wholly owned subsidiaries Panamera Metals Corporation, Panamera Technologies Corporation and Panamera Waste Corporation, collectively referred to as the “Company”. All inter-company balances and transactions are eliminated in consolidation.
Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. The estimates and judgments will also affect the reported amounts for certain expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.
| 7 |
| Table of Contents |
Accounts Receivable
Accounts receivables are recorded in accordance with Financial Accounting Standards Board Accounting Standards Codification (ASC) 310, “Receivables.” Accounts receivables are recorded at the invoiced amount or agreement and do not bear interest. The Company does not currently have any amount recorded as an allowance for doubtful accounts. Based on the management’s estimate and based on all accounts being current, the Company has not deemed it necessary to reserve for doubtful accounts at this time.
Commitments and Contingencies
The Company follows ASC 450-20, “Loss Contingencies,” to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.
Revenue Recognition
The Company recognizes revenue from its contracts with customers in accordance with ASC 606 – Revenue from Contracts with Customers. The Company recognizes revenues when satisfying the performance obligation of the associated contract that reflects the consideration expected to be received based on the terms of the contract.
Revenue related to contracts with customers is evaluated utilizing the following steps:
| (i) | Identify the contract, or contracts, with a customer; |
| (ii) | Identify the performance obligations in the contract; |
| (iii) | Determine the transaction price; |
| (iv) | Allocate the transaction price to the performance obligations in the contract; |
| (v) | Recognize revenue when the Company satisfies a performance obligation. |
The Company has one annual consulting contract that requires a fixed monthly payment of $
Net Loss Per Share of Common Stock
The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying consolidated financial statements, basic earnings (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.
NOTE 3 - GOING CONCERN
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As of January 31, 2024, the Company has a loss from operations of $
The ability of the Company to emerge from an early stage is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan. In response to these problems, management intends to raise additional funds through public or private placement offerings.
These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
| 8 |
| Table of Contents |
NOTE 4 - RELATED PARTY TRANSACTIONS
During the six months ended January 31,2024, and 2023, related parties financed $
During the six months ended January 31,2024 and 2023, the Company repaid related party loans of $
As of January 31, 2024, and July 31,2023, the Company was obliged for an unsecure, non-interest-bearing demand loans to three related parties, with balances of $
During the six months ended January 31,2024, and 2023, the Company recognized $
During the six months ended January 31,2024 and 2023, the Company recognized and paid $
During the six months ended January 31,2024 and 2023, the Company paid $
On March 1, 2022, the Company entered in a consulting agreement in the field of Healthcare with a monthly payment of $
The Company does not own or lease property or lease office space. The office space used by the Company was arranged by the founder, who is also a director of the Company, to use at no charge.
NOTE 5 - STOCKHOLDERS’ EQUITY
Preferred Stock
The Company has authorized
Common Stock
The Company has authorized
As of January 31,2024, and July 31,2023, there were
Treasury stock
The Company records treasury stock at cost. Treasury stock is comprised of shares of common stock purchased by the Company at par value. As of January 31, 2024, and July 31,2023, the Company had
| 9 |
| Table of Contents |
NOTE 6 – CONCENTRATION
Revenue
On March 1, 2022, the Company entered in a consulting agreement in the field of Healthcare with a monthly fee of $
Cost of revenue
During the six months ended January 31,2024, and 2023, the cost of revenue of $
NOTE 7– COMMITMENTS AND CONTINGENCIES
The Company had no other commitments or contingencies as of January 31, 2024.
From time to time the Company may become a party to litigation matters involving claims against the Company.
Management believes that it is adequately insured for its operations and there are no current matters that would have a material effect on the Company's financial position or results of operations.
NOTE 8 – SUBSEQUENT EVENTS
Management has evaluated subsequent events through the date these financial statements were available to be issued. Panamera Holdings Corporation issued
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
FORWARD-LOOKING STATEMENTS
This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.
Our unaudited financial statements are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.
In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock.
As used in this quarterly report, the terms “we”, “us”, “our” and “our Company” mean Panamera Holdings Corporation, unless otherwise indicated.
General Overview
We were incorporated under the laws of the State of Nevada on May 20, 2014. Effective October 21,2021, the Company changed its name from Panamera Healthcare Corporation to Panamera Holdings Corporation and increased the number of authorized common stock from 150,000,000 shares of common stock to 550,000,000 shares of common stock, par value $0.0001per share. Prior management intended to offer management and consulting services to healthcare organizations, but current management have redirected our efforts now to pursuing business opportunities including but not limited to the environmental services industry, emerging innovative technologies and individual health choices led by innovation with integration.
We have since changed our focus to looking for other business opportunities to implement and/or operating companies with which to engage in a business combination as described above. As we pursue those other business opportunities, we have commenced business operations by engaging to act as a consultant to a healthcare organization through the services of an employee pursuant to a consulting agreement with First DP Ventures, LP dba First Primary Care of Houston, Texas as referenced in the 8-K filed May 24, 2022.
Our address is 5051 Westheimer Suite 1200, Houston, Texas 77056. Our telephone number is (713) 878-7200.
We have not ever declared bankruptcy, been in receivership, or involved in any kind of legal proceeding.
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The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include but are not limited to those discussed below and elsewhere in this report. Our unaudited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.
COVID-19
A novel strain of coronavirus (COVID-19) was first identified in December 2019, and subsequently declared a global pandemic by the World Health Organization on March 11, 2020. As a result of the outbreak, many companies have experienced disruptions in their operations and in markets served. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there were no material adverse impacts on the Company’s results of operations and financial position as of January 31, 2024. The full extent of the future impacts of COVID-19 on the Company’s plan of operations is uncertain. A prolonged outbreak could have a material adverse impact on the Company’s ability to identify and implement new business opportunities and/or consummate an acceptable merger or acquisition transaction.
Plan of Operations and Cash Requirements
We are no longer attempting to implement our original business plan. We now intend to look for other business opportunities to implement and/or operating companies with which to engage in a business combination including but not limited to the environmental services industry, emerging innovative technologies and individual health choices led by innovation with integration. Our focus will be on achieving long-term growth potential.
As we pursue those other business opportunities, we have commenced business operations by engaging to act as a consultant to a healthcare organization, First DP Ventures, LP dba First Primary Care of Houston, Texas, through the services of an employee.
The analysis of new business opportunities will be undertaken by or under the supervision of the Company’s management. While the Company has limited assets and minimal operating revenues, the Company has unrestricted flexibility in seeking, analyzing and participating in potential business opportunities and/or combinations in in any type of business, industry or geographical location. In its efforts, the Company will consider the following kinds of factors:
| (a) | potential for growth, indicated by new technology, anticipated market expansion or new products. |
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| (b) | competitive position as compared to other operations of similar size and experience within the industry segment as well as within the industry as a whole. |
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| (c) | strength and diversity of management, either in place or scheduled for recruitment. |
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| (d) | capital requirements and anticipated availability of required funds, to be provided by the Company or from operations, through the sale of additional securities, through joint ventures or similar arrangements or from other sources. |
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| (e) | the cost of participation by the Company as compared to the perceived tangible and intangible values and potentials. |
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| (f) | the extent to which the business opportunity can be advanced; and |
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| (g) | the accessibility of required management expertise, personnel, raw materials, services, professional assistance and other required items. |
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In applying the foregoing criteria, not one of which will be controlling, management will attempt to analyze all factors and circumstances and make a determination based upon reasonable investigative measures and available data. Potentially available opportunities may occur in many different industries, and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex. Due to the Registrant’s limited capital available for investigation, the Registrant may not discover or adequately evaluate adverse facts about the opportunity to be acquired. In addition, we will be competing against other entities that possess greater financial, technical and managerial capabilities for identifying and completing the implementation of any opportunities and/or business combinations.
Results of Operations
The following summary of our results of operations should be read in conjunction with our unaudited financial statements for the period ended January 31, 2024, which are included herein.
Our operating results for the six months ended January 31, 2024 and 2023 and the changes between those periods for the respective items are summarized as follows.
Results of Operations for the three months ended January 31, 2024, and 2023
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| Three Months Ended |
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| January 31, |
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| 2024 |
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| 2023 |
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| Changes |
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Revenues – related party |
| $ | 25,000 |
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| $ | 25,000 |
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| $ | - |
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Cost of revenues – related party |
| $ | 24,285 |
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| $ | 25,970 |
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| $ | (1,685 | ) |
Operating expenses |
| $ | 42,087 |
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| $ | 10,461 |
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| $ | 31,626 |
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Other expenses |
| $ | 275 |
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| $ | 965 |
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| $ | (690 | ) |
Net loss |
| $ | 41,647 |
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| $ | 12,396 |
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| $ | 29,251 |
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During the three months ended January 31, 2024, and 2023, we generated $25,000 and $25,000 revenues – related party, respectively. The revenues are related to the Consulting Agreement, in the field of Healthcare with a monthly payment of $8,333, with First DP Ventures, LP. The services were performed by a member of the Company’s board of directors.
We had a net loss of $41,647 for the three months ended January 31, 2024, and $12,396 for the three months ended January 31, 2023. The increase in net loss of $29,251 was due to an increase in professional fees of $15,423, general and administration expenses of $16,203, offset by a decrease in cost of revenues -related party of $1,685 and other expenses of $690.
Cost of revenues -related party for the three months ended January 31, 2024, and 2023, were $24,285 and $25,970, respectively. The cost of revenues -related party was for the payroll expenses related to a member of the Company’s board of directors, who performed the consulting services in connection with the First DP Ventures LP agreement.
Operating expenses for the three months ended January 31, 2024, and 2023 were $42,087and $10,461, respectively. For the three months ended January 31, 2024, and 2023, the operating expenses were primarily attributed to professional fees for maintaining reporting status with the Securities and Exchange Commission (“SEC”) of $23,590 and $8,167 and general and administrative expenses of $18,497 and $2,294, respectively.
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Other expenses for the three months ended January 31, 2024, and 2023, represent interest expenses of $425 and $965 to related parties, on funds advanced to the Company and interest income of $150 and $0, respectively.
Results of Operations for the six months ended January 31, 2024, and 2023
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| Six Months Ended |
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| January 31, |
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| 2024 |
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| 2023 |
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| Changes |
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Revenues -related party |
| $ | 50,000 |
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| $ | 50,001 |
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| $ | (1 | ) |
Cost of revenues -related party |
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| 47,275 |
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| 48,864 |
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| $ | (1,589 | ) |
Operating expenses |
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| 106,998 |
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| 15,956 |
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| $ | 91,042 |
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Other expenses |
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| 366 |
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| 1,798 |
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| $ | (1,432 | ) |
Net loss |
| $ | 104,639 |
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| $ | 16,617 |
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| $ | 88,022 |
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During the six months ended January 31, 2024, and 2023, we generated $50,000 and $50,001 revenues – related party, respectively. The revenues are related to the Consulting Agreement, in the field of Healthcare with a monthly payment of $8,333, with First DP Ventures, LP. The services were performed by a member of the Company’s board of directors.
We had a net loss of $104,639 for the six months ended January 31, 2024, and $16,617 for the six months ended January 31, 2023. The increase in net loss of $88,022 was due to an increase in professional fees of $33,265, general and administration expenses of $57,777, offset by a decrease in cost of revenues -related party of $1,589 and other expenses of $1,432.
Cost of revenues -related party for the six months ended January 31, 2024, and 2023, were $47,275 and $48,864, respectively. The cost of revenues -related party was for the payroll expenses related to a member of the Company’s board of directors, who performed the consulting services in connection with the First DP Ventures LP agreement.
Operating expenses for the six months ended January 31, 2024, and 2023 were $106,998 and $15,956, respectively. For the six months ended January 31, 2024, and 2023, the operating expenses were primarily attributed to professional fees for maintaining reporting status with the Securities and Exchange Commission (“SEC”) of $46,484 and $13,219 and general and administrative expenses of $60,514 and $2,737, respectively.
Other expenses for the six months ended January 31, 2024, and 2023, represent interest expenses of $1,344 and $1,798 to related parties, on funds advanced to the Company and interest income of $978 and $0, respectively.
Balance Sheet Data:
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| January 31, 2024 |
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| July 31, 2023 |
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| Changes |
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Cash |
| $ | 883 |
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| $ | 118,569 |
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| $ | (117,686 | ) |
Working capital deficiency |
| $ | (51,577 | ) |
| $ | 49,718 |
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| $ | (101,295 | ) |
Total assets |
| $ | 9,216 |
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| $ | 129,602 |
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| $ | (120,386 | ) |
Total liabilities |
| $ | 60,793 |
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| $ | 79,884 |
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| $ | (19,091 | ) |
Total stockholders' equity (deficit) |
| $ | (51,577 | ) |
| $ | 49,718 |
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| $ | (101,295 | ) |
As of January 31, 2024, our current assets were $9,216 and our current liabilities were $60,793 which resulted in working capital deficiency of $51,577. As of January 31, 2024, current assets were comprised of $833 in cash and $8,333 in accounts receivable, compared to $118,569 in cash, $8,333 in accounts receivable and $2,700 in employee advances as of July 31,2023. As of January 31, 2024, current liabilities were comprised of $46,646 in accounts payable, $14,147 in due to related party, compared to $32,385 in accounts payable, $47,499 in due to related party as of July 31, 2023.
As of January 31, 2024, our working capital deficiency increased by $101,295 from $49,718 working capital on July 31, 2023, to $51,577 working capital deficiency on January 31, 2024, primarily due to a decrease in current assets of $120,386 offset by a decrease in current liabilities of $19,091.
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Cash Flow Data:
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| Six Months Ended |
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| January 31, |
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| 2024 |
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| 2023 |
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| Changes |
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Cash Flows used in Operating Activities |
| $ | (86,334 | ) |
| $ | (9,412 | ) |
| $ | (76,922 | ) |
Cash Flows used in Investing Activities |
| $ | - |
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| $ | - |
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| $ | - |
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Cash Flows provided by (used in) Financing Activities |
| $ | (31,352 | ) |
| $ | 10,000 |
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| $ | (41,352 | ) |
Net Change in Cash During Period |
| $ | (117,686 | ) |
| $ | 588 |
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| $ | (118,274 | ) |
Cash Flows from Operating Activities
We have not generated positive cash flows from operating activities. For the six months ended January 31, 2024, net cash flows used in operating activities was $86,334, consisting of a net loss of $104,639, reduced by imputed interest on related party loan of $1,344, reduced by an increase in accounts payable of $14,261 and a decrease in employee advances of $2,700.
For the six months ended January 31, 2023, net cash flows used in operating activities was $9,412, consisting of a net loss of $16,617, reduced by imputed interest on related party loan of $1,798, reduced by an increase in accounts payable of $5,361 and by a decrease in prepaid expenses of $55, other receivable -related party of $1,098, payroll liabilities -related party of $394 offset by an increase in accounts receivable of $1and a decrease in customer deposit of $1,500.
Cash Flows from Financing Activities
We have financed our operations with loans from a related party. For the six months ended January 31, 2024, we repaid $33,352 to related party and received $2,000 from common stock subscription receivable -related party and for the six months ended January 31, 2023, we received $10,000 from advances to pay certain operation expenses from related party loans, respectively.
Going Concern
As of January 31, 2024, our company had a net loss of $104,639 and has earned $50,000 revenues – related party. Our company intends to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending July 31, 2024. The ability of our company to emerge from the development stage is dependent upon, among other things, obtaining additional financing to continue operations, and development of our business plan. In response to these problems, management intends to raise additional funds through public or private placement offerings. These factors, among others, raise substantial doubt about our company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.
Critical Accounting Policies
The discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with the accounting principles generally accepted in the United States of America. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financial statements.
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Revenue Recognition
The Company recognizes revenue from its contracts with customers in accordance with ASC 606 – Revenue from Contracts with Customers. The Company recognizes revenues when satisfying the performance obligation of the associated contract that reflects the consideration expected to be received based on the terms of the contract.
Revenue related to contracts with customers is evaluated utilizing the following steps:
| (i) | Identify the contract, or contracts, with a customer; |
| (ii) | Identify the performance obligations in the contract; |
| (iii) | Determine the transaction price; |
| (iv) | Allocate the transaction price to the performance obligations in the contract; |
| (v) | Recognize revenue when the Company satisfies a performance obligation. |
When the Company enters into a contract, the Company analyses the services required in the contract in order to identify the required performance obligations which would indicate the Company has met and fulfilled its obligations. For the current contracts in place, the Company has identified performance obligations as one single event, the sign-off by both parties that production is completed, and the product (film) is ready for distribution. To appropriately identify the performance obligations, the Company considers all of the services required to be satisfied per the contract, whether explicitly stated or implicitly implied. The Company allocates the full transaction price to the single performance obligation being satisfied.
The company recognizes the monthly revenue at the beginning of the month and any cash payments received in advance are recorded as deferred revenue until all obligations have been met as specified in the related customer contract.
During the year ended July 31, 2022, the Company entered in a consulting agreement in the field of Healthcare for monthly $8,333 with First DP Ventures, LP. The services were performed by a member of the Company’s board of directors pursuant to an Employment Contract. As of January 31, 2024, and 2023, all revenue of $50,000 and $50,001 and accounts receivable of $8,333 and $8,333 were derived from one customer, respectively.
Cost of revenue
During the six months ended January 31, 2024, and 2023, the cost of revenue of $47,275 and $48,864 was for the payroll expenses related to a member of the Company’s board of directors, who performed the consulting services, respectively.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
As a “smaller reporting company,” we are not required to provide the information required by this Item.
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Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of April 30, 2023. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms as a result of the following material weaknesses: (1) lack of a functioning audit committee, (2) lack of a majority of outside directors on our Board of Directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (3) inadequate segregation of duties consistent with control objectives; and (4) management is dominated by two individuals without adequate compensating controls.
A “material weakness” is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements would not be prevented or detected on a timely basis.
We expect to be materially dependent upon a third party to provide us with accounting consulting services for the foreseeable future. Until such time as we have a chief financial officer with the requisite expertise in U.S. GAAP, there are no assurances that the material weaknesses in our disclosure controls and procedures and internal control over financial reporting will not result in errors in our financial statements which could lead to a restatement of those financial statements.
Changes in Internal Controls
There have been no changes in our internal controls over financial reporting identified in connection with the evaluation required by paragraph (d) of Securities Exchange Act Rule 13a-15 or Rule 15d-15 that occurred in the six months ended January 31, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
From time to time, we may become involved in litigation relating to claims arising out of our operations in the normal course of business. We are not involved in any pending legal proceeding or litigation, and, to the best of our knowledge, no governmental authority is contemplating any proceeding to which we are a party, and which would reasonably be likely to have a material adverse effect on our Company. To date, our Company has never been involved in litigation, as either a party or a witness, nor has our Company been involved in any legal proceedings commenced by any regulatory agency against our Company.
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.
On December 2, 2022, our transfer agent files were successfully transitioned from Action Stock Transfer’s accounts to Securities Transfer Corporation (“STC”). STC is now our stock transfer agent with offices at 2901 N Dallas Parkway Suite 380, Plano, Texas 75093.
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Item 6. Exhibits.
The following exhibits are included as part of this report:
Exhibit Number | Description | |
(3) | Articles of Incorporation and Bylaws | |
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(14) | Code of Ethics | |
(31) | Rule 13a-14 (d)/15d-14d) Certifications | |
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes -Oxley Act of 2002 | ||
| Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes -Oxley Act of 2002 | |
(32) | Section 1350 Certifications | |
101* | Inline XBRL Document Set for the condensed financial statements and accompanying notes in Part I, Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q. | |
104* | Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set. |
___________
* | Filed herewith. |
** | Furnished herewith. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
PANAMERA HOLDINGS CORPORATION | ||
(Registrant) | ||
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Dated: March 8, 2024 | /s/ T. Benjamin Jennings | |
T. Benjamin Jennings | ||
President, Chief Executive Officer and Director | ||
(Principal Executive Officer) |
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