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) |
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(Address of principal executive offices) |
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(Registrant’s telephone number, including area code)
Panamera Healthcare Corporation
(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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3 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations | 10 |
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| Table of Contents |
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
PANAMERA HOLDINGS CORPORATION
Balance Sheets
(Unaudited)
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Current Assets |
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Cash |
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Prepaid expenses |
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Accounts receivable |
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Other receivable -related party |
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Total Current Assets |
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Total Assets |
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Liabilities and Stockholders' Deficit |
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Current Liabilities |
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Accounts payable |
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Payroll liabilities - related party |
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Deferred revenue and customer deposits |
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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' 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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Accumulated deficit |
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Total Stockholders' Deficit |
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Total Liabilities and Stockholders' 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
Statements of Operations
(Unaudited)
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Revenues -related party |
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Cost of revenues |
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Gross profit |
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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 Expense |
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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.
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| Table of Contents |
PANAMERA HOLDINGS CORPORATION
Statements of Changes in Stockholders’ Deficit
(Unaudited)
For the Three Months Ended October 31, 2022
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Balance - July 31, 2022 |
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Impact 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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For the Three Months Ended October 31, 2021
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Balance - July 31, 2021 |
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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, 2021 |
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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
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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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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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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Net Cash Provided by Financing Activities |
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Net change in cash |
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Cash, beginning of period |
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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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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
Notes to the Unaudited Interim Financial Statements
October 31, 2022
NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS
Panamera Holdings Corporation (the “Company”) is a Nevada corporation incorporated on May 20, 2014. Effective October 21, 2021, the Company changed its name from Panamera Healthcare Corporation to Panamera Holdings Corporation and increased
The Company intended to offer management and consulting services to healthcare organizations but 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. To date, the Company’s activities have been limited to its formation and the raising of equity capital and consulting services related to agreement signed on March 1, 2022.
Change in Control of Registrant
On April 26, 2021, the board of director of the Company approved a security purchase agreement with T. Benjamin Jennings or assignees to sell and issue
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited interim financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the unaudited interim financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. The accompanying unaudited interim financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K, for the year ended July 31, 2022, as filed with the SEC on January 06, 2023.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.
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.
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| Table of Contents |
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 has one annual consulting contract that requires a fixed monthly payment of $
As of October 31, 2022 and July 31, 2022, the Company recorded a customer deposit of $
Reclassification
Certain accounts from prior periods have been reclassified to conform to the current period presentation.
NOTE 3 - GOING CONCERN
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As of October 31, 2022, the Company has a loss from operations, an accumulated deficit 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 financial statements do not include any adjustments that might result from the outcome of this uncertainty.
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| Table of Contents |
NOTE 4 - RELATED PARTY TRANSACTIONS
During the three months ended October 31, 2022, and 2021, the Company’s shareholders financed of $
During the three months ended October 31, 2022, the Company recognized and paid $
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 October 31, 2022, and July 31, 2022, there were
NOTE 6 – CONCENTRATION
Revenue
During the year ended July 31, 2022, the Company entered into a consulting agreement in the field of Healthcare for a monthly fee of $
Cost of revenue
During the three ended October 31, 2022, the cost of revenue of $22,894 was for the payroll expenses related to a member of the Company’s board of directors, who performed the consulting agreement ‘s services.
NOTE 7– COMMITMENTS AND CONTINGENCIES
The Company had no other commitments or contingencies as of October 31, 2022.
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.
On December 6, 2022, the Company executed a Share Surrender Agreement with both Douglas Baker and Curtis Summers (the Stockholders) whereby each voluntarily surrendered
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| Table of Contents |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
FORWARD-LOOKING STATEMENTS
This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.
Our unaudited financial statements are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.
In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock.
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 engaged to act as a consultant to a healthcare organization through the services of an employee as referenced in the 8-K filed May 24, 2022.
Our address is 1218 Webster Street, Houston, Texas. Our telephone number is (713) 289-6200.
We have not ever declared bankruptcy, been in receivership, or involved in any kind of legal proceeding.
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.
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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 October 31, 2022. 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 engaged to act as a consultant to a healthcare organization 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.
(b) competitive position as compared to other operations of similar size and experience within the industry segment as well as within the industry as a whole.
(c) strength and diversity of management, either in place or scheduled for recruitment.
(d) capital requirements and anticipated availability of required funds, to be provided by the Company or from operations, through the sale of additional securities, through joint ventures or similar arrangements or from other sources.
(e) the cost of participation by the Company as compared to the perceived tangible and intangible values and potentials.
(f) the extent to which the business opportunity can be advanced; and
(g) the accessibility of required management expertise, personnel, raw materials, services, professional assistance and other required items.
In applying the foregoing criteria, not one of which will be controlling, management will attempt to analyze all factors and circumstances and make a determination based upon reasonable investigative measures and available data. Potentially available opportunities may occur in many different industries, and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex. Due to the Registrant’s limited capital available for investigation, the Registrant may not discover or adequately evaluate adverse facts about the opportunity to be acquired. In addition, we will be competing against other entities that possess greater financial, technical and managerial capabilities for identifying and completing the implementation of any opportunities and/or business combinations.
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Results of Operations
The following summary of our results of operations should be read in conjunction with our audited financial statements for the period ended October 31, 2022, which are included herein.
Our operating results for the three months ended October 31, 2022 and 2021 and the changes between those periods for the respective items are summarized as follows.
Results of Operations for the three months ended October 31, 2022 and 2021
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Revenues |
| $ | 25,001 |
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| $ | - |
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| $ | 25,001 |
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Operating expenses |
| $ | 5,495 |
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| $ | 2,440 |
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| $ | 3,055 |
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Interest expense |
| $ | 833 |
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| $ | 67 |
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| $ | 766 |
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Net loss |
| $ | 4,221 |
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| $ | 2,507 |
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| $ | 1,714 |
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During the three months ended October 31, 2022, and 2021, we generated $25,001 and $0 revenues, respectively. The revenues are related to consulting services rendered to one customer and $16,668 has been paid and October 2022 fees of $8,333 has been paid on November 1, 2022.
We had a net loss of $4,221 for the three months ended October 31, 2022, and $2,507 for the three months ended October 31, 2021. The increase in net loss of $1,714, was due to an increase in gross profit of $2,107, offset by an increase in operating expenses of $3,055 and interest expenses of $766.
Cost of revenues for the three months ended October 31, 2022 and 2021, were $22,894 and $0, respectively. The cost of revenues was for the payroll expenses related to a member of the Company’s board of directors, who performed the consulting agreement‘s services.
Operating expenses for the three months ended October 31, 2022 and 2021 were $5,495 and $2,440, respectively. For the three months ended October 31, 2022, the operating expenses were primarily attributed to professional fees for maintaining reporting status with the Securities and Exchange Commission (“SEC”) of $5,052 and general and administrative expenses of $443. For the three months ended October 31,2021, the operating expenses were primarily attributed to professional fees for maintaining reporting status with the Securities and Exchange Commission (“SEC”) of $28 and general and administrative expenses of $2,412.
Interest expenses for the three months ended October 31, 2022, and 2021, represent interest expense of $833 and $67 to a related party on funds advanced to the Company, respectively.
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| Table of Contents |
Balance Sheet Data:
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| October 31, 2022 |
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| July 31, 2022 |
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| Changes |
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Cash |
| $ | 2,967 |
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| $ | 3,087 |
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| $ | (120 | ) |
Working capital deficiency |
| $ | (51,002 | ) |
| $ | (47,614 | ) |
| $ | (3,388 | ) |
Total assets |
| $ | 12,853 |
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| $ | 12,572 |
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| $ | 281 |
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Total liabilities |
| $ | 63,855 |
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| $ | 60,186 |
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| $ | 3,669 |
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Total stockholders' deficit |
| $ | (51,002 | ) |
| $ | (47,614 | ) |
| $ | (3,388 | ) |
As of October 31, 2022, our current assets were $12,853, and our current liabilities were $63,855 which resulted in working capital deficiency of $51,002. As of October 31, 2022, current assets were comprised of $2,967 in cash, $55 in prepaid expenses, $8,333 in accounts receivable and $1,498 in other receivable-related party, compared to $3,087 in cash, $55 in prepaid expenses, $8,332 in accounts receivable and $1,098 in other receivable-related party as of July 31, 2022. As of October 31, 2022, current liabilities were comprised of $18,278 in accounts payable, $37,946 in due to related party and $7,631 in payroll liabilities -related party, compared to $17,034 in accounts payable, $33,946 in due to related party, $7,706 in payroll liabilities -related party and $1,500 in customer deposit as of July 31, 2022.
As of October 31, 2022, our working capital deficiency increased by $3,388 from $47,614 on July 31, 2022, to $51,002 on October 31, 2022, primarily due to an increase in current liabilities of $3,669 and offset by an increase in current assets of $281.
Cash Flow Data:
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| Three Months Ended |
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| ||||||
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| October 31, |
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| 2022 |
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| 2021 |
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| Changes |
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Cash Flows used in Operating Activities |
| $ | (4,120 | ) |
| $ | (3,874 | ) |
| $ | (246 | ) |
Cash Flows used in Investing Activities |
| $ | - |
|
| $ | - |
|
| $ | - |
|
Cash Flows provided by Financing Activities |
| $ | 4,000 |
|
| $ | 3,875 |
|
| $ | 125 |
|
Net Change in Cash During Period |
| $ | (120 | ) |
| $ | 1 |
|
| $ | (121 | ) |
Cash Flows from Operating Activities
We have not generated positive cash flows from operating activities. For the three months ended October 31, 2022, net cash flows used in operating activities was $4,120, consisting of a net loss of $4,221, reduced by imputed interest on related party loan of $833, reduced by an increase in accounts payable of $1,244 and offset by an increase in other receivable - related party of $400, accounts receivable of $1, payroll liabilities -related party of $75 and a decrease in customer deposit of $1,500.
For the three months ended October 31, 2021, net cash flows used in operating activities was $3,874, consisting of a net loss of $2,507, reduced by imputed interest on related party loan of $67 and increased by a decrease in accounts payable of $1,434.
Cash Flows from Financing Activities
We have financed our operations loans from a related party. For the three months ended October 31, 2022, and 2021, we received $4,000 and $3,875 from advances to pay certain operation expenses from related party loans, respectively.
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Going Concern
As of October 31, 2022, our company had a net loss of $4,221 and has earned $25,001 revenues. 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, 2023. 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.
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.
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The company recognizes the monthly revenue at the beginning of the month and any cash payments received in advanced 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. As of October 31, 2022, all revenue of $25,001 and accounts receivable of $8,333 were diverted from one customer.
Cost of revenue
During the three months ended October 31, 2022, the cost of revenue of $22,894 was for the payroll expenses related to a member of the Company’s board of directors, who performed the consulting agreement‘s services.
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.
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.
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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 October 31, 2022. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms as a result of the following material weaknesses: (1) lack of a functioning audit committee, (2) lack of a majority of outside directors on our Board of Directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (3) inadequate segregation of duties consistent with control objectives; and (4) management is dominated by two individuals without adequate compensating controls.
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 nine months ended October 31, 2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
From time to time, we may become involved in 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 | |
| ||
(14) | Code of Ethics | |
(31) | Rule 13a-14 (d)/15d-14d) Certifications | |
Section 302 Certification by the Principal Executive Officer | ||
Section 302 Certification by the Principal Financial Officer and Principal Accounting Officer | ||
(32) | Section 1350 Certifications | |
Section 906 Certification by the Principal Executive Officer | ||
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) | ||
|
| ||
Dated: February 14, 2023 |
| /s/ T. Benjamin Jennings | |
| T. Benjamin Jennings | ||
| President, Chief Executive Officer and Director | ||
| (Principal Executive Officer) |
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