Rhino Bitcoin Inc 10-Q for FY2022 Q1
Rhino Bitcoin Inc. (RHNO)
About this 10-Q
Rhino Bitcoin Inc filed this 10-Q on June 10, 2022, covering the quarter ended April 30, 2022 (FY2022 Q1).
Headline figures
Quarter ended April 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Net loss
- $158.1K
- compared with a net loss of $133.62K a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
OF THE SECURITIES EXCHANGE ACT OF 1934
For
The Quarterly Period Ended
or
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission
File Number:
(Exact name of registrant issuer as specified in its charter)
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
(Address of principal executive offices, including zip code)
Registrant’s
phone number, including area code +
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.
☒ NO ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding twelve months (or shorter period that the registrant was required to submit and post such files).
YES ☐ ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large
Accelerated Filer ☐ Accelerated Filer ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| The OTC Market – Pink Sheets |
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has fled all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
Yes
☐
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
| Class | Outstanding at April 30, 2022 | |
| Common Stock, $.0001 par value |
TABLE OF CONTENTS
| 2 |
PART I FINANCIAL INFORMATION
ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:
PHOENIX PLUS CORP.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| F-1 |
PHOENIX PLUS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF APRIL 30, 2022 AND JULY 31, 2021
(Currency expressed in United States Dollars (“US$”), except for number of shares)
| As of | As of | |||||||
| April 30, 2022 | July 31, 2021 | |||||||
| Unaudited | Audited | |||||||
| ASSETS | ||||||||
| NON-CURRENT ASSETS | ||||||||
| Lease asset- right of use | $ | $ | ||||||
| Equity method investment | ||||||||
| Total Non-Current Assets | ||||||||
| CURRENT ASSETS | ||||||||
| Trade receivable | $ | $ | ||||||
| Prepayment and deposits | ||||||||
| Cash in bank | ||||||||
| Total Current Assets | $ | $ | ||||||
| TOTAL ASSETS | ||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Trade payable | $ | $ | ||||||
| Other payables and accrued liabilities | ||||||||
| Lease liabilities, current | ||||||||
| Total Current Liabilities | $ | $ | ||||||
| NON-CURRENT LIABILITIES | ||||||||
| Lease liabilities, non-current | $ | $ | ||||||
| TOTAL LIABILITIES | $ | $ | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Preferred stock, $ par value; shares authorized; issued and outstanding | ||||||||
| Common Shares, par value $; shares authorized, shares issued and outstanding as of April 30, 2022 and July 31, 2021 | $ | $ | ||||||
| Additional paid in capital | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | $ | $ | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | $ | ||||||
See accompanying notes to condensed consolidated financial statements.
| F-2 |
PHOENIX PLUS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSSES
FOR THE THREE AND NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
Three Months Ended April 30 | Nine Months Ended April 30 | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| REVENUE | $ | $ | $ | $ | ||||||||||||
| COST OF REVENUE | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
| GROSS PROFIT/(LOSS) | $ | $ | $ | $ | ( | ) | ||||||||||
| OTHER INCOME | $ | $ | $ | $ | ||||||||||||
| EQUITY METHOD LOSS | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| LOSS BEFORE INCOME TAX | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| INCOME TAX PROVISION | $ | $ | $ | $ | ||||||||||||
| NET LOSS | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| OTHER COMPREHENSIVE LOSS | $ | $ | $ | $ | ||||||||||||
| TOTAL COMPREHENSIVE LOSS | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Net loss per share, basic and diluted: | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Weighted average number of common shares outstanding – Basic and diluted | ||||||||||||||||
See accompanying notes to condensed consolidated financial statements.
| F-3 |
PHOENIX PLUS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR NINE MONTHS ENDED APRIL 30, 2022 AND 2021
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
Nine
Months Ended April 30, 2022
(Unaudited)
| COMMON SHARES | ADDITIONAL | |||||||||||||||||||
| Number of Shares | Amount | PAID-IN CAPITAL | ACCUMULATED DEFICIT | TOTAL EQUITY | ||||||||||||||||
| Balance as of July 31, 2021 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Net loss for the period | - | ( | ) | ( | ) | |||||||||||||||
| Balance as of April 30,2022 | ( | ) | ||||||||||||||||||
Nine
Months Ended April 30, 2021
(Unaudited)
| COMMON SHARES | ADDITIONAL | |||||||||||||||||||
| Number of Shares | Amount | PAID-IN CAPITAL | ACCUMULATED DEFICIT | TOTAL EQUITY | ||||||||||||||||
| Balance as of July 31, 2020 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Net loss for the period | - | ( | ) | ( | ) | |||||||||||||||
| Balance as of April 30, 2021 | ( | ) | ||||||||||||||||||
See accompanying notes to condensed consolidated financial statements.
| F-4 |
PHOENIX PLUS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED APRIL 30, 2021
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(Unaudited)
| 2022 | 2021 | |||||||
Nine Months ended April 30 | ||||||||
| 2022 | 2021 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash (used in)/generated from operating activities: | ||||||||
| Equity method investment loss | ||||||||
| Depreciation and amortization | ||||||||
| Operating lease expenses | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Trade receivables | ||||||||
| Prepayments and deposits | ||||||||
| Trade payable | ( | ) | ( | ) | ||||
| Other payables and accrued liabilities | ||||||||
| Operating lease liabilities | ( | ) | ( | ) | ||||
| Net cash (used in)/generated from operating activities | ( | ) | ||||||
| Effect of exchange rate changes on cash and cash equivalents | $ | $ | ||||||
| Net (decrease)/ increase in cash and cash equivalents | ( | ) | ||||||
| Cash and cash equivalents, beginning of year | ||||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | $ | ||||||
| SUPPLEMENTAL CASH FLOWS INFORMATION | ||||||||
| Income taxes paid | $ | $ | ||||||
| Interest paid | $ | $ | ||||||
See accompanying notes to condensed consolidated financial statements.
| F-5 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
1. DESCRIPTION OF BUSINESS AND ORGANIZATION
Phoenix Plus Corp. was incorporated on November 5, 2018 under the laws of the state of Nevada.
The Company, through its subsidiaries, engaged in providing technical consultancy on solar power system and consultancy on green energy solution, and also focused on the commercialization of a targeted portfolio of solar products (amorphous thin film solar panels and ancillary products) and technologies for a wide range of applications including electrical power production.
On
March 18, 2019, the Company acquired
On July 25, 2019, Phoenix Plus Corp., a Malaysia Company acquired Phoenix Plus International Limited (herein referred as the “Hong Kong Company”), a private limited company incorporated in Hong Kong.
Details of the Company’s subsidiary:
SCHEDULE OF DETAILS OF COMPANY’S SUBSIDIARY
| Company name | Place and date of incorporation |
Particulars of issued capital |
Principal activities | ||||
| 1. | |||||||
| 2. |
| F-6 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The consolidated financial statements for Phoenix Plus Corp. and its subsidiaries for the period ended April 30, 2022 is prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of Phoenix Plus Corp. and its wholly owned subsidiaries, Phoenix Plus Corp. and Phoenix Plus International Limited. Intercompany accounts and transactions have been eliminated on consolidation. The Company has adopted July 31 as its fiscal year end.
Basis of consolidation
The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions have been eliminated upon consolidation.
Use of estimates
Management uses estimates and assumptions in preparing these financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheets, and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates.
Revenue recognition
In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients.
Revenue is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue. The Company derives its revenue from provision of technical consultancy on solar power system and consultancy on green energy solution.
Cash and cash equivalents
Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.
Property, Plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational:
Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the statement of operations.
Investment under equity method
The
Company apply the equity method to account for investments it possesses the ability to exercise significant influence, but not control,
over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when the investor
possesses more than
In applying the equity method, the Company records the investment at cost and subsequently increase or decrease the carrying amount of the investment by proportionate share of the net earnings or losses and other comprehensive income of the investee. The Company records dividends or other equity distributions as reductions in the carrying value of the investment.
| F-7 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
Income taxes
Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
ASC
740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements
uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the
financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax
positions must initially and subsequently be measured as the largest amount of tax benefit that has a
Going Concern
The
accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement
of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, for the period
ended April 30, 2022, the Company incurred a net loss of $
The Company’s ability to continue as a going concern is dependent upon improving its profitability and the continuing financial support from its shareholders. Management believes the existing shareholders or external financing will provide the additional cash to meet the Company’s obligations as they become due. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stock holders, in the case of equity financing.
| F-8 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic loss per share is computed by dividing the net income/(loss) by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.
Foreign currencies translation
Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of operations.
The reporting currency of the Company is United States Dollars (“US$”). The Company and its subsidiaries in Labuan and Hong Kong maintain its books and record in United States Dollars (“US$”) which is their functional currency.
In general, for consolidation purposes, assets and liabilities of its subsidiary whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income within the statement of stockholders’ equity.
Translation of amounts from MYR into US$1 and HK$ into US$1 has been made at the following exchange rates for the respective periods:
SCHEDULE OF FOREIGN CURRENCY TRANSLATION
| As of and for the Nine Months ended April 30 | ||||||||
| 2022 | 2021 | |||||||
| Period-end MYR : US$1 exchange rate | ||||||||
| Period-average MYR : US$1 exchange rate | ||||||||
| Period-end HKD$ : US$1 exchange rate | ||||||||
| Period-average HKD$ : US$1 exchange rate | ||||||||
Related parties
Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.
| F-9 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
Fair value of financial instruments:
The carrying value of the Company’s financial instruments: cash and cash equivalents, prepayment, deposits, accounts payable and accrued liabilities and amount due to a director approximate at their fair values because of the short-term nature of these financial instruments.
The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:
Level 1: Observable inputs such as quoted prices in active markets;
Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Leases
Prior to August 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective August 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. The implementation of ASC 842 did not have a material impact on the Company’s consolidated financial statements and did not have a significant impact on our liquidity. The Company adopted ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods. (see Note 12).
Recent accounting pronouncements
The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.
| F-10 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
3. COMMON STOCK
On
November 5, 2018, the Company issued shares of restricted common stock, with a par value of $ per share, to Mr. Fong Teck
Kheong for initial working capital of $
On
March 25, 2019, the Company issued shares of restricted common stock, with a par value of $ per share, to Mr. Fong
Teck Kheong for additional working capital of $
Between
March 28, 2019 to April 1, 2019, the Company issued shares of restricted common stock to 5 parties, with a par value of $
per share, for total additional working capital of $
On
April 1, 2019, the Company issued shares of restricted common stock to AGAPE ATP Corporation a company incorporated in Nevada
with a par value of $ per share, for additional working capital of $
On
April 1, 2019, the Company issued shares of restricted common stock, with a par value of $ per share, to H&D Holding
Sdn Bhd, a company incorporated in Malaysia, for additional working capital of $
Between
April 9, 2019 to April 16, 2019, the Company issued shares of restricted common stock to Junsei Ryu, Lee Chong Chow and Phoenix
Plus Holding Sdn Bhd with a par value of $ per share, for additional working capital of $
Between
April 25, 2019 to May 10, 2019, the Company sold shares to 19 foreign individuals, whom all reside in Malaysia. A total of
shares of restricted common stock were sold at a price of $ per share. The total proceeds to the Company amounted to a total of $
Between
May 11, 2019 to June 18, 2019, the Company sold shares to 23 foreign parties whom resides in Malaysia. A total of shares of
restricted common stock were sold at a price of $ per share. The total proceeds to the Company amounted to $
Between
May 20, 2019 to July 25,2019, the Company sold shares to 15 foreign parties, all of which do not reside in the United States. A total
of shares of restricted common stock were sold at a price of $ per share. The total proceeds to the Company amounted to
a total of $
On
July 9, 2021, the company has issued free trade common share of the company at a $ per share for a total consideration of $
As of April 30, 2022, the Company has an issued and outstanding common share of .
4. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment as of April 30, 2022 and July 31, 2021 and are summarized below:
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT
| As of April 30, 2022 (unaudited) | As of July 31, 2021 (audited) | |||||||
| Leasehold improvement | $ | $ | ||||||
| Accumulated depreciation | ( | ) | $ | ( | ) | |||
| Total | $ | $ |
These leasehold improvement include, but are not strictly limited to, preparing the interior of the office space for the Company’s use, improving functionality, and purchasing new office equipment. The leasehold improvement have completed on September 2019.
Depreciation
expense for the nine months period ended April 30, 2022 and April 30, 2021 was $ and $
| F-11 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2021
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
5. PREPAYMENTS AND DEPOSITS
Prepayments and deposits consisted of the following at April 30, 2022 and July 31, 2021:
SCEHEDULE OF PREPAYMENT AND DEPOSITS
| As of April 30, 2022 (unaudited) | As of July 31, 2021 (audited) | |||||||
| Subscription receivable | $ | $ | ||||||
| Deposits | ||||||||
| Prepayment | ||||||||
| Total prepayments and deposits | $ | $ |
6. TRADE PAYABLE
Prepayments and deposits consisted of the following at April 30, 2022 and July 31, 2021:
SCHEDULE OF TRADE PAYABLE
| As of April 30, 2022 (unaudited) | As of July 31, 2021 (audited) | |||||||
| Trade payable | $ | $ | ||||||
| Total trade payable | $ | $ |
7. EQUITY METHOD INVESTMENT
SCHEDULE OF EQUITY METHOD INVESTMENT
|
As of April 30, 2022 (unaudited) |
|
As of July 31, 2021 (audited) | |||||
| Investment, at cost | $ | $ | ||||||
| Less: Equity method loss | ( | ) | ||||||
| Equity method investments | $ | $ |
The
Company holds investment in business that is accounted for pursuant to the equity method due to the Company’s ability to
exert significant influence over decisions relating to its operating and financial affairs. Revenue and expenses of this investment are
not consolidated into the Company’s financial statements; rather, the proportionate share of the earnings/losses is reflected as
equity method earnings/losses in statements of operations and comprehensive income/loss. As of April 30, 2022, the Company holds
During
the nine months period ended April 30, 2022 and 2021, the Company accounted $
8. OTHER PAYABLES AND ACCRUED LIABILITIES
Other payables and accrued liabilities consisted of the following at April 30, 2022 and July 31, 2021:
SCHEDULE OF OTHER PAYABLES AND ACCRUED LIABILITIES
|
As of April 30, 2022 (unaudited) |
|
As of July 31, 2021 (audited) | |||||
| Accrued audit fees | $ | $ | ||||||
| Accrued expenses | $ | $ | ||||||
| Total other payables and accrued liabilities | $ | $ |
9. REVENUE
For the period ended April 30, 2022 and 2021, the Company has revenue arise from the following:
SCHEDULE OF REVENUE
| Nine months ended April 30, 2022 (unaudited) | Nine months ended April 30, 2021 (unaudited) | |||||||
| Consultancy service provided | $ | $ | ||||||
| Total revenue | $ | $ | ||||||
10. OTHER INCOME
For the period ended April 30, 2022 and 2021, the Company has income arise from the following:
SCHEDULE OF OTHER INCOME
| Nine months ended April 30, 2022 (unaudited) | Nine months ended April 30, 2021 (unaudited) | |||||||
| Gain from foreign exchange arise from bank remittance transaction: | $ | $ | ||||||
| Local | ||||||||
| Foreign, representing | ||||||||
| -Labuan | ||||||||
| -Hong Kong | ||||||||
| $ | $ | |||||||
| F-12 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
11. INCOME TAXES
For the nine months ended April 30, 2022, the local (United States) and foreign components of loss before income taxes were comprised of the following:
SCHEDULE OF LOCAL AND FOREIGN COMPONENTS OF INCOME (LOSS) BEFORE INCOME TAX
Nine months ended April 30, 2022 (unaudited) | Nine months ended April 30, 2021 (unaudited) | |||||||
| Tax jurisdictions from: | - | - | ||||||
| Local | $ | ( | ) | ( | ) | |||
| Foreign, representing | ||||||||
| - Labuan | ( | ) | ||||||
| - Hong Kong | $ | ( | ) | ( | ) | |||
| Loss before income tax | $ | ( | ) | ( | ) | |||
The provision for income taxes consisted of the following:
SCHEDULE OF PROVISION FOR INCOME TAX
Nine months ended April 30, 2022 (unaudited) | Nine months ended April 30, 2021 (unaudited) | |||||||
| Current: | - | - | ||||||
| - Local | $ | $ | ||||||
| - Foreign | ||||||||
| Deferred: | - | - | ||||||
| - Local | ||||||||
| - Foreign | ||||||||
| Income tax expense | $ | $ | ||||||
Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the year that includes the enactment date.
The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company has subsidiaries that operate in various countries: United States, Hong Kong and Labuan, Malaysia that are subject to taxes in the jurisdictions in which they operate, as follows:
United States of America
The
Company is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of April 30, 2022 the
operations in the United States of America incurred $
Labuan
Under
the current laws of the Labuan, Phoenix Plus Corp.is governed under the Labuan Business Activity Act, 1990. The tax charge for such company
is based on
Hong Kong
Phoenix
Plus International Limited is subject to Hong Kong Profits Tax, which is charged at the statutory income tax rate of
| F-13 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
12. LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES
The Company officially adopted ASC 842 for the period on and after August 1, 2019 as permitted by ASU 2016-02. ASC 842 originally required all entities to use a “modified retrospective” transition approach that is intended to maximize comparability and be less complex than a full retrospective approach. On July 30, 2018, the FASB issued ASU 2018-11 to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU 2016-02 of which permits entities may elect not to recast the comparative periods presented when transitioning to ASC 842. As permitted by ASU 2018-11, the Company elect not to recast comparative periods, thusly.
A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows.
The recognition of operating lease right and lease liability as follow:
SCHEDULE OF INITIAL RECOGNITION OF OPERATING LEASE RIGHT AND LEASE LIABILITY
| Gross lease payable | $ | |||
| Less: imputed interest | ( | ) | ||
| Recognition as of July 1, 2021 | $ |
As of April 30, 2022 operating lease right of use asset as follow:
SCHEDULE OF OPERATING LEASE RIGHT OF USE ASSET
| Initial recognition as of August 1, 2019 | $ | |||
| Additional portion from 1 July 31, 2020 to 30 June 2021 | ||||
| Add: new lease addition from 1 July 2021 to 30 June 2023 | ||||
| Accumulated amortization | ( | ) | ||
| Foreign exchange translation gain | ||||
| Balance as of April 30, 2022 | $ |
As of April 30, 2022, operating lease liability as follow:
SCHEDULE OF OPERATING LEASE LIABILITY
| Initial recognition as of August 1, 2019 | $ | |||
| Add: additional portion (increase of leasing fee) | ||||
| Add: new lease addition from 1 July 2021 to 30 June 2023 | ||||
| Less: gross repayment | ( | ) | ||
| Add: imputed interest | ||||
| Foreign exchange translation gain | ||||
| Balance as of April 30, 2022 | $ | |||
| Less: lease liability current portion | ( | ) | ||
| Lease liability non-current portion | $ |
For the period ended April 30, 2022, the amortization of the operating lease right of use asset are $4,818.
Maturities of operating lease obligation as follow:
SCHEDULE OF MATURITIES OF OPERATING LEASE OBLIGATION
| Year ending | ||||
| April 30, 2022 (12 months) | $ | |||
| June 30, 2023 (2 months) | ||||
| Total | $ |
Other information:
SCHEDULE OF OTHER INFORMATION
| Nine Months ended April 30, | ||||||||
| 2022 | 2021 | |||||||
| (unaudited) | (unaudited) | |||||||
| Cash paid for amounts included in the measurement of lease liabilities: | - | - | ||||||
| Operating cash flow from operating lease | $ | $ | ||||||
| Right-of-use assets obtained in exchange for operating lease liabilities | ||||||||
| Remaining lease term for operating lease (years) | ||||||||
| Weighted average discount rate for operating lease | % | % | ||||||
Lease
expenses were $
13. SIGNIFICANT EVENT
On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the “COVID-19 outbreak”) and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally.
The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, it is uncertain as to the full magnitude that the pandemic will have on our financial condition, liquidity, and future results of operations. Management is actively monitoring the impact of the global situation on our financial condition, liquidity, operations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, we are not able to estimate the effects of the COVID-19 outbreak on our results of operations, financial condition, or liquidity for the period ended April 30, 2022.
| F-14 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
14. SEGMENT INFORMATION
ASC 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about services categories, business segments and major customers in financial statements. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes.
The Company had no inter-segment sales for the periods presented. Summarized financial information concerning the Company’s reportable segments is shown as below:
SCHEDULE OF NO INTER-SEGMENT SALES
By Geography:
| United States | Malaysia | Hong Kong | Total | |||||||||||||
| For the period ended April 30, 2022 | ||||||||||||||||
| United States | Malaysia | Hong Kong | Total | |||||||||||||
| Revenue | $ | $ | $ | $ | ||||||||||||
| Cost of revenue | ( | ) | ( | ) | ||||||||||||
| Net loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Total assets | $ | $ | $ | $ | ||||||||||||
| United States | Malaysia | Hong Kong | Total | |||||||||||||
| For the period ended April 30, 2021 | ||||||||||||||||
| United States | Malaysia | Hong Kong | Total | |||||||||||||
| Revenue | $ | $ | $ | $ | ||||||||||||
| Cost of revenue | ( | ) | ( | ) | ||||||||||||
| Net (loss)/income | ( | ) | ( | ) | ( | ) | ||||||||||
| Total assets | $ | $ | $ | $ | ||||||||||||
| F-15 |
PHOENIX PLUS CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED APRIL 30, 2022
(Currency expressed in United States Dollars (“US$”), except for number of shares)
(UNAUDITED)
15. CONCENTRATIONS OF RISK
SCHEDULE OF CONCENTRATION OF RISK
(a) Major customers
For the three months ended April 30, 2022 and 2021, the customers who accounted for 10% or more of the Company’s revenue and its trade receivable balance at period-end are presented as follows:
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
| Revenue | Percentage of revenue | Trade
| ||||||||||||||||||||||
| Customer A | $ | $ | % | % | $ | $ | ||||||||||||||||||
| Customer B | % | |||||||||||||||||||||||
| $ | $ | % | % | $ | $ | |||||||||||||||||||
For the nine months ended April 30, 2022 and 2021, the customers who accounted for 10% or more of the Company’s revenue and its trade receivable balance at period-end are presented as follows:
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
| Revenue | Percentage of revenue | Trade
| ||||||||||||||||||||||
| Customer A | $ | $ | % | % | $ | $ | ||||||||||||||||||
| Customer B | % | % | ||||||||||||||||||||||
| $ | $ | % | % | $ | $ | |||||||||||||||||||
(b) Major vendors
For the three months ended April 30, 2022 and 2021, the vendors who accounted for 10% or more of the Company’s cost of revenue and its trade payable balance at period-end are presented as follows:
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
| Cost of revenue | Percentage of cost of revenue | Trade payable | ||||||||||||||||||||||
| Vendor A | $ | $ | % | % | $ | $ | ||||||||||||||||||
| $ | $ | % | % | $ | $ | |||||||||||||||||||
For the nine months ended April 30, 2022 and 2021, the vendors who accounted for 10% or more of the Company’s cost of revenue and its trade payable balance at period-end are presented as follows:
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
| Cost of revenue s | Percentage of cost of revenue | Trade Payable | ||||||||||||||||||||||
| Vendor A | $ | $ | % | % | $ | $ | ||||||||||||||||||
| $ | $ | % | % | $ | $ | |||||||||||||||||||
16. SUBSEQUENT EVENTS
The Company has evaluated subsequent events from the balance sheet date through April 30, 2022 the date the Company issued unaudited consolidated financial statements in accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. During this period, there was no subsequent event that required recognition or disclosure.
On
May 17, 2022, the Company, through its Labuan incorporated subsidiary, Phoenix Plus Corp., subscribed
| F-16 |
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The information contained in this Form 10-Q is intended to update the information contained in our Annual Report on Form 10-K for the year ended July 31, 2021 filed with the Securities and Exchange Commission on November 12, 2021 (the “Form 10-K”) and presumes that readers have access to, and will have read, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other information contained in such Form 10-K. The following discussion and analysis also should be read together with our financial statements and the notes to the financial statements included elsewhere in this Form 10-Q.
The following discussion contains certain statements that may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements appear in a number of places in this Report, including, without limitation, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These statements are not guarantees of future performance and involve risks, uncertainties and requirements that are difficult to predict or are beyond our control. Forward-looking statements speak only as of the date of this quarterly report. You should not put undue reliance on any forward-looking statements. We assume no responsibility to update the forward-looking statements contained in this transition report on Form 10-Q. The following should also be read in conjunction with the unaudited condensed Consolidated Financial Statements and notes thereto that appear elsewhere in this report.
Company Overview
Phoenix Plus Corp., a Nevada Corporation, is a company that operates through its wholly owned subsidiary, Phoenix Plus Corp., a Company organized in Labuan, Malaysia. It should be noted that our wholly owned subsidiary, Phoenix Plus Corp., owns 100% of Phoenix Plus International Limited, the operating Hong Kong Company which is described below. All of the previous entities share the same exact business plan.
We have a physical office in Malaysia with address of 2-3 & 2-5 Bedford Business Park, Jalan 2/137B, Batu 5, Jalan Kelang Lama, 58200 Kuala Lumpur, Malaysia which completed renovation in September 2019. The office space is 12,000 square feet and to date the company has spent $114,263 towards ongoing renovations. These renovations include, but are not strictly limited to, preparing the interior of the office space for the Company’s use, improving functionality, and purchasing new office equipment. Our office space is rented by Phoenix Plus International Limited for a 24 months period from July 1, 2021 to June 30, 2023, for an initial down payment of MYR 13,500 and additional bi-monthly payments in the amount of MYR 7,500 over the course of the lease. The Company has an option to renew the tenancy for another 12 months period at a rental subject to mutual agreement with the landlord.
Phoenix Plus Corp, through its Hong Kong subsidiary, is engaged in providing technical consultancy on solar power systems and consultancy on green energy solutions, with an additional focus on the commercialization of a targeted portfolio of solar products (amorphous thin film solar panels and ancillary products) and technologies for a wide range of applications including electrical power production. Our mission is to harness the power of the sun to meet the growing resource demands of sustainable 21st century development.
Our business is to market and sell solar power products, systems and services. Specifically, we intend to engage in the following:
| ● | Install solar panels in both commercial and residential settings; and |
| ● | Develop and maintain solar parks. |
| 3 |
Results of Operation
For the three months ended April 30, 2022 and 2021
Revenue
For the three months ended April 30, 2022 and 2021, the Company has generated revenue of $0 and $14,622 respectively. The revenue represented income from consultancy services provided to our customers on engineering, equipment procurement and transportation, and construction on solar plant.
Cost of Revenue and Gross Margin
For the three months ended April 30, 2022 and 2021, cost incurred arise in providing consultancy services are $0 and $12,946 respectively. The Company generates a gross profit for the three months ended April 30, 2022 and 2021 of $0 and $1,676.
Selling and marketing expenses
For the three months ended April 30, 2022 and 2021, we had incurred selling and marketing expenses in the amount of $0 and $40,457. These expenses comprised of marketing events and conference to promote the company in Malaysia.
General and administrative expenses
For the three months ended April 30, 2022 and 2021, we had incurred general and administrative expenses in the amount of $159,839 and $94,842. These expenses are comprised of professional fees, listing consultancy fees, office and outlet operation expenses and depreciation.
Other Income
The Company recorded an amount of $1,866 and $0 as other income for the three months ended April 30, 2022 and 2021. This income is derived from the interest income and foreign exchange gain.
Net Loss
Our net loss for three months ended April 30, 2022 and 2021 were $158,104 and $133,623. The net loss mainly derived from the general and administrative, and selling and marketing expenses incurred.
For the Nine Months ended April 30, 2022 and 2021
Revenue
For the nine months ended April 30, 2022 and 2021, the Company has generated revenue of $19,918 and $28,815 respectively. The revenue represented income from consultancy services provided to our customers on engineering, equipment procurement and transportation, and construction on solar plant.
Cost of Revenue and Gross Margin
For the nine months ended April 30, 2022 and 2021, cost incurred arise in providing consultancy services are $16,328 and $43,131 respectively. The Company generates a gross profit of $3,590 for the nine months ended April 30, 2022 and a gross loss of $14,316 for the nine months ended April 30, 2021.
Selling and marketing expenses
For the nine months ended April 30, 2022 and 2021, we had incurred selling and marketing expenses in the amount of $0 and $40,457. These expenses comprised of marketing events and conference to promote the company in Malaysia.
General and administrative expenses
For the nine months ended April 30, 2022 and 2021, we had incurred general and administrative expenses in the amount of $304,243 and $202,520. These expenses are comprised of professional fees, listing consultancy fees, office and outlet operation expenses and depreciation.
Other Income
The Company recorded an amount of $37,457and $37,317 as other income for the nine months ended April 30, 2022 and 2021. This income is derived from interest income and foreign exchange gain.
Net Loss
Our net loss for nine months ended April 30, 2022 and 2021 were $263,531 and $219,976. The net loss mainly derived from the general and administrative, and selling and marketing expenses incurred.
| 4 |
Liquidity and Capital Resources
As of April 30, 2022 and 2021, we had cash and cash equivalents of $1,683,548 and $1,923,933. We expect increased levels of operations going forward will result in more significant cash flow and in turn working.
We depend substantially on financing activities to provide us with the liquidity and capital resources we need to meet our working capital requirements and to make capital investments in connection with ongoing operations.
Cash Generated From/(Used In) Operating Activities
For the nine months ended April 30, 2022, net cash used in operating activities was $227,324. The increase in cash used in operating activities was mainly for payment of general and administrative expenses, and selling and marketing expenses. For the nine months ended April 30, 2021, net cash generated from operating activities was $515,885. The increase of cash generate was mainly because of the IPO fund received from investors.
Cash Provided By Financing Activities
For the nine months ended April 30, 2022 and 2021, net cash provided by financing activities was $0 and $0.
Cash Provided By Investing Activities
For the nine months ended April 30, 2022 and 2021, the net cash used in investing activities was $0 and $0.
Credit Facilities
We do not have any credit facilities or other access to bank credit.
Off-balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders as of April 30, 2022.
Recent Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
| 5 |
ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.
ITEM 4 CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures:
We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of April 30, 2022. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer. Based upon that evaluation, our Chief Executive Officer concluded that, as of April 30, 2022, our disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management to conclude that, as of April 30, 2022, our disclosure controls and procedures were not effective: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.
Changes in Internal Control over Financial Reporting:
There were no changes in our internal control over financial reporting during the quarter ended April 30, 2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
| 6 |
PART II — OTHER INFORMATION
Item 1. Legal Proceedings
We know of no materials, active or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceedings or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any beneficial shareholder are an adverse party or has a material interest adverse to us.
Item 1A. Risk Factors.
We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information.
None
| 7 |
ITEM 6. Exhibits
| Exhibit No. | Description | |
| 31.1 | Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer* | |
| 32.1 | Section 1350 Certification of principal executive officer * | |
| 101.INS | XBRL Instance Document* | |
| 101.SCH | XBRL Schema Document* | |
| 101.CAL | XBRL Calculation Linkbase Document* | |
| 101.DEF | XBRL Definition Linkbase Document* | |
| 101.LAB | XBRL Label Linkbase Document* | |
| 101.PRE | XBRL Presentation Linkbase Document* |
* Filed herewith.
| 8 |
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.
| Phoenix Plus Corp. | ||
| (Name of Registrant) | ||
| Date: June 10, 2022 | By: | /s/ FONG TECK KHEONG |
| Title: | Chief Executive Officer, President, Director, Secretary and Treasurer | |
| 9 |
EXHIBIT 31.1
CERTIFICATION
I, FONG TECK KEONG, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Phoenix Plus Corp. (the “Company”) for the quarter ended April 30, 2022;
2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
| a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
| b. | Designed such internal control over financial reporting, or caused such internal control to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. | |
| c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
| d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
| a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |
| b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: June 10, 2022 | By: | /s/ FONG TECK KHEONG |
| Fong Teck Kheong | ||
|
Chief Executive Officer, President, Director, Secretary and Treasurer | ||
| (Principal Executive Officer) |
EXHIBIT 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Phoenix Plus Corp. (the “Company”) on Form 10-Q for the quarter ended April 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), The undersigned hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
| Date: June 10, 2022 | By: | /s/ FONG TECK KHEONG |
| Fong Teck Kheong | ||
Chief Executive Officer, President, Director, Secretary and Treasurer | ||
| (Principal Executive Officer) |
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.