Vitaspring Biomedical Co. Ltd 10-Q for FY2025 Q2
Vitaspring Biomedical Co. Ltd. (VSBC)
About this 10-Q
Vitaspring Biomedical Co. Ltd filed this 10-Q on April 22, 2026, covering the quarter ended July 31, 2024 (FY2025 Q2).
Headline figures
Quarter ended July 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $0
- compared with $0 a year earlier
- Net loss
- $218.66K
- compared with a net loss of $353.58K a year earlier
- Diluted EPS
- $0.00
- compared with $0.00 a year earlier
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File No.
(Exact name of registrant as specified in its charter) |
State or other jurisdiction of Incorporation or organization | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code (
Securities registered pursuant to Section 12(b) of the Act: None
Title of each class |
| Trading Symbol(s) |
| Name of each exchange on which registered |
None |
| N/A |
| N/A |
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 shorter period that the registrant as required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☐ Yes ☒
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, or 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 Act).
Indicate by checkmark whether the issuer has filed all documents and reports required to be filed by Section 12, 13 and 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. ☐ Yes ☐ No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the most practicable date:
As of April 17, 2026 the registrant had
TABLE OF CONTENTS
|
| Page No. |
| |
|
|
|
|
|
| 3 |
| ||
|
|
|
|
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
| 4 |
| |
|
|
|
|
|
| 10 |
| ||
|
|
|
|
|
| 10 |
| ||
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| 13 |
| ||
|
|
|
|
|
| 13 |
| ||
|
|
|
|
|
| 18 |
| ||
|
|
|
|
|
| 18 |
| ||
|
|
|
|
|
| 18 |
| ||
|
|
|
|
|
| 18 |
| ||
|
|
|
|
|
| 18 |
|
2 |
| Table of Contents |
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements.
VITASPRING BIOMEDICAL CO., LTD.
INDEX TO FINANCIAL STATEMENTS
| F-1 |
| |
|
|
| |
| F-2 |
| |
|
|
| |
Statement of Changes in Stockholders’ Equity (Deficit) (unaudited) |
| F-3 |
|
|
|
| |
| F-4 |
| |
|
|
| |
| F-5 - F-14 |
|
3 |
| Table of Contents |
VITASPRING BIOMEDICAL CO., LTD
BALANCE SHEETS
(Unaudited)
|
| July 31, |
|
| January 31, |
| ||
|
| 2024 |
|
| 2024 |
| ||
ASSETS |
|
|
|
|
|
| ||
CURRENT ASSETS |
|
|
|
|
|
| ||
Cash |
| $ |
|
| $ |
| ||
Prepaid expenses |
|
|
|
|
|
| ||
Deposits |
|
|
|
|
|
| ||
Total current assets |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
LONG-TERM ASSETS |
|
|
|
|
|
|
|
|
Equipment and vehicle, net |
|
|
|
|
|
| ||
Operating lease right-of-use asset |
|
|
|
|
|
| ||
Total long-term assets |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
Total assets |
| $ |
|
| $ |
| ||
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Accounts payable - related party |
| $ |
|
| $ |
| ||
Accounts payable and other payables |
|
|
|
|
|
| ||
Income tax payable |
|
|
|
|
|
| ||
Operating lease liabilities (See Note 6 – Lease expiration) |
|
|
|
|
|
| ||
Advances from related party |
|
|
|
|
|
| ||
Total current liabilities |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $ |
|
|
|
|
|
| ||
Additional paid-in capital |
|
|
|
|
|
| ||
Accumulated deficit |
|
| ( | ) |
|
| ( | ) |
Total stockholders' deficit |
|
| ( | ) |
|
| ( | ) |
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' deficit |
| $ |
|
| $ |
| ||
See the accompanying Notes, which are an integral part of this unaudited financial statement.
| F-1 |
| Table of Contents |
VITASPRING BIOMEDICAL CO., LTD
STATEMENTS OF OPERATIONS
(Unaudited)
|
| Three Months ended |
|
| Six Months ended |
| ||||||||||
|
| July 31, |
|
| July 31, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Revenues |
| $ |
|
| $ |
|
| $ |
|
| $ |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
| ( | ) |
|
| ( | ) |
|
| ( | ) |
|
| ( | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from operations before provision for income taxes |
|
| ( | ) |
|
| ( | ) |
|
| ( | ) |
|
| ( | ) |
Provision for income tax expense |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net loss |
| $ | ( | ) |
| $ | ( | ) |
| $ | ( | ) |
| $ | ( | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share: Basic and diluted |
|
| ( | ) |
|
| ( | ) |
|
| ( | ) |
|
| ( | ) |
Weighted average number of shares outstanding: Basic and diluted |
|
|
|
|
|
|
|
|
|
|
|
| ||||
See the accompanying Notes, which are an integral part of this unaudited financial statement.
| F-2 |
| Table of Contents |
VITASPRING BIOMEDICAL CO., LTD
STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT
(Unaudited)
For the three and six months ended July 31, 2024
|
|
|
|
|
|
|
| Additional |
|
|
|
|
| Total |
| |||||
|
| Common Stock |
|
| paid-in |
|
| Accumulated |
|
| Stockholders' |
| ||||||||
|
| Number of shares |
|
| Amount |
|
| capital |
|
| Deficit |
|
| Deficit |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Balance, January 31, 2024 |
|
|
|
| $ |
|
| $ |
|
| $ | ( | ) |
| $ | ( | ) | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net loss |
|
| - |
|
|
|
|
|
|
|
|
| ( | ) |
|
| ( | ) | ||
Balance, April 30, 2024 |
|
|
|
| $ |
|
| $ |
|
| $ | ( | ) |
| $ | ( | ) | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net loss |
|
| - |
|
|
|
|
|
|
|
|
| ( | ) |
|
| ( | ) | ||
Balance, July 31, 2024 |
|
|
|
| $ |
|
| $ |
|
| $ | ( | ) |
| $ | ( | ) | |||
For the three and six months ended July 31, 2023
|
|
|
|
|
|
|
| Additional |
|
|
|
|
| Total |
| |||||
|
| Common Stock |
|
| paid-in |
|
| Accumulated |
|
| Stockholders' |
| ||||||||
|
| Number of shares |
|
| Amount |
|
| capital |
|
| Deficit |
|
| Deficit |
| |||||
Balance, January 31, 2023 |
|
|
|
| $ |
|
| $ |
|
| $ | ( | ) |
| $ | ( | ) | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net loss |
|
| - |
|
|
|
|
|
|
|
|
| ( | ) |
|
| ( | ) | ||
Balance, April 30, 2023 |
|
|
|
| $ |
|
| $ |
|
| $ | ( | ) |
| $ | ( | ) | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net loss |
|
| - |
|
|
|
|
|
|
|
|
| ( | ) |
|
| ( | ) | ||
Balance, July 31, 2023 |
|
|
|
| $ |
|
| $ |
|
| $ | ( | ) |
| $ | ( | ) | |||
See the accompanying Notes, which are an integral part of this unaudited financial statement.
| F-3 |
| Table of Contents |
VITASPRING BIOMEDICAL CO., LTD
STATEMENTS OF CASH FLOWS
(Unaudited)
|
| Six Months ended |
| |||||
|
| July 31, |
| |||||
|
| 2024 |
|
| 2023 |
| ||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
| ||
Net loss |
| $ | ( | ) |
| $ | ( | ) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation expense |
|
|
|
|
|
| ||
Non-cash lease expense |
|
|
|
|
|
| ||
Stock-based compensation |
|
|
|
|
|
| ||
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
|
|
|
| ||
Prepaid expenses |
|
| ( | ) |
|
|
| |
Deposits |
|
|
|
|
| ( | ) | |
Accounts payable and other payables |
|
|
|
|
|
| ||
Operating lease liability |
|
| ( | ) |
|
| ( | ) |
Advances from related party for operating expense |
|
|
|
|
|
| ||
Net cash used in operating activities |
|
| ( | ) |
|
| ( | ) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITY |
|
|
|
|
|
|
|
|
Advances from related party |
|
|
|
|
|
| ||
Net cash provided by financing activity |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
Net change in cash |
|
|
|
|
| ( | ) | |
Cash at beginning of period |
|
|
|
|
|
| ||
Cash at end of period |
| $ |
|
| $ |
| ||
|
|
|
|
|
|
|
|
|
Supplemental cash flow disclosures: |
|
|
|
|
|
|
|
|
Income taxes paid |
| $ |
|
| $ |
| ||
Interest expense paid |
| $ |
|
| $ |
| ||
|
|
|
|
|
|
|
|
|
Non-cash investing and financing activities |
|
|
|
|
|
|
|
|
Stock-based compensation for restricted common shares |
| $ |
|
| $ |
| ||
See the accompanying Notes, which are an integral part of this unaudited financial statement.
| F-4 |
| Table of Contents |
VITASPRING BIOMEDICAL CO., LTD.
Notes to Unaudited Financial Statements
July 31, 2024
Note 1 – ORGANIZATION AND NATURE OF BUSINESS
VitaSpring Biomedical Co., Ltd (“the Company”) was incorporated in the State of Nevada on September 6, 2016. The Company aims to build a cell medical industry, invest in research and development of stem cell applications in regenerative medicine, establish advanced medical research centers and high-standard cell production centers, and provide “GTP” standard stem cell preparations for the development of cellular drugs. Through the development of cell medicine, it will become a leading international business group in the fields of regenerative medicine applied to the innovative fields of medicine, preventive health care, beauty, and anti-aging. The “GTP Cell Center” is the basis for its business, which is cross-domain in biotechnology, medical treatment, medicine and medical materials, and focuses on the development of cell medical treatment.
Note 2 – GOING CONCERN
The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”), which contemplate continuation of the Company as a going concern. As of July 31, 2024, the Company had cash of $
The Company’s minimal cash balance, recurring operating losses, and significant working capital raise substantial doubt about its ability to continue as a going concern within one year after the financial statements are issued. The Company has historically financed its operations through advances from related parties and equity issuances. Management plans to continue seeking additional capital through equity financing, strategic partnerships, and related-party support in order to fund operating expenses and meet its obligations as they become due. However, there can be no assurance that such financing will be available on acceptable terms, or at all.
The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Note 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of financial position and the results of operations for the interim period presented, have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K filed with the SEC on March 12, 2026, have been omitted.
Segment Reporting
The Company operates in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting, which establishes standards for reporting information about operating segments in financial statements.
The Company’s chief operating decision maker (“CODM”), who is the Chief Executive Officer, regularly reviews consolidated financial information to make operating decisions, allocate resources, and assess performance. The CODM does not evaluate the business on a disaggregated basis, and discrete financial information is not available by product line, service, or geographic location. The CODM evaluates performance based on net loss and cash position.
As a result, the Company has determined that it operates as a single operating and reportable segment. All revenues are generated from a single line of business, and substantially all long-lived assets are located in the United States. Accordingly, no additional segment disclosures are required.
| F-5 |
| Table of Contents |
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the period. Significant estimates include, but are not limited to, stock-based compensation, lease liabilities, allowance for credit losses, and the assessment of the Company’s ability to continue as a going concern. Management bases its estimates on historical experience, current conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from those estimates.
Cash and Cash Equivalents
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company had no cash equivalents as of July 31, 2024, and January 31, 2024.
Allowance for Credit Loss
Effective February 1, 2022, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires entities to estimate expected credit losses over the life of financial assets measured at amortized cost using a current expected credit loss (CECL) model. The adoption did not have a material impact on the Company’s financial statements.
The allowance for credit losses represents management’s estimate of expected credit losses related to accounts receivable. The Company evaluates the collectability of its accounts receivable based on historical experience, the aging of receivables, and specific customer credit risk, in accordance with the CECL model.
Accounts deemed uncollectible are written off against the allowance when collection efforts have been exhausted. For the fiscal year ended January 31, 2023, the Company established a reserve for credit losses of $
Accounts Receivable, Net
Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for credit loss accounts for estimated losses that may result from the inability of customers to make required payments.
The following table presents the gross accounts receivable, allowance for credit loss, and net accounts receivable as of July 31, 2024, and January 31, 2024.
|
| July 31, |
|
| January 31, |
| ||
|
| 2024 |
|
| 2024 |
| ||
Accounts receivable - Gross |
| $ |
|
| $ |
| ||
Less: Allowance for credit loss |
|
| ( | ) |
|
| ( | ) |
Accounts receivable - net |
| $ |
|
| $ |
| ||
| F-6 |
| Table of Contents |
Prepaid Expenses
Prepaid expenses are recorded at cost, net of amortization.
Impairment of Long-lived Assets
Long-lived assets with finite lives, primarily property and equipment, intangible assets, and operating lease right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. No impairment charges were recorded during the three and six months ended July 31, 2024, or 2023.
Equipment, Depreciation, Amortization, and Capitalization
Equipment and vehicles are stated at cost. The Company records depreciation and amortization when appropriate using the straight-line method over the estimated useful life of the assets. The Company estimates that the useful life of necessary equipment is
As of July 31, 2024, and January 31, 2024, a vehicle and equipment consisted of the following:
|
| July 31, |
|
| January 31, |
| ||
|
| 2024 |
|
| 2024 |
| ||
Vehicle |
| $ |
|
| $ |
| ||
Furniture and equipment |
|
|
|
|
|
| ||
Computers |
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
Accumulated depreciation |
|
| ( | ) |
|
| ( | ) |
Accumulated impairment |
|
| ( | ) |
|
| ( | ) |
Total vehicle and equipment, net |
| $ |
|
| $ |
| ||
Accounts Payable
The Company recognizes accounts payable when obligations arise from the receipt of goods and services in the ordinary course of business. Accounts payable are recorded at cost and represent amounts owed to vendors and service providers that are non-interest-bearing and typically settled within standard payment terms.
The Company regularly evaluates accounts payable balances to ensure completeness and accuracy and considers all amounts current unless otherwise specified. Any significant accrued liabilities for services received but not yet invoiced are included in accrued expenses within the balance sheet.
All accounts payable are classified as current liabilities. The Company did not incur any material interest or penalties on past due balances during the periods presented.
As of July 31, 2024, and January 31, 2024, the Company’s accounts payable – related party totaled $
| F-7 |
| Table of Contents |
Revenue Recognition
The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognizes revenue in accordance with that core principle by applying the following steps: Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. Specifically, Section 606-10-50 requires an entity to provide information about: a. Revenue recognized from contracts with customers, including the disaggregation of revenue into appropriate categories; b. Contract balances, including the opening and closing balances of receivables, contract assets, and contract liabilities; c. Performance obligations, including when the entity typically satisfies its performance obligations and the transaction price that is allocated to the remaining performance obligations in a contract; d. Significant judgments, and changes in judgments, made in applying the requirements to those contracts.
More specifically, the Company contracts with its suppliers (“Vendor”) to buy a specific number of stem cells and exosomes at agreed-upon prices. The Company must pay for those stem cells regardless of whether it is able to resell them. A customer (“Buyer”) generally visits the Company’s website searching for available stem cells and exosomes, obtains a price quotation, and places an order with the Company, which then confirms the purchase order, as a contract with that particular Buyer. The Company has discretion in establishing the prices for the stem cells it sells to the Buyer.
The Company obtains control of the stem cell (which it could resell) when stored at a separate/specified liquid nitrogen tank at the Vendor and transfers that product to the Buyer. The common delivery term is Ex Works Warehouse. The Company assists the Buyer in resolving product issues including complaints with the products provided by the Vendor. The Vendor is responsible for fulfilling the obligations associated with the transfer of the stem cell purchased, including coordination with cold chain shipping companies when required. The Company is the principal for the sale of the stem cell to the Buyer and recognizes revenue upon shipment by the Vendor to the Buyer, upon shipping/delivery confirmation. The revenue is recognized on a gross basis. The specified good is a selected type of stem cell, along with the other exosomes provided by the Vendor for the Buyer of that stem cell. The following are indications of control by the Company:
| · | The Vendor is responsible for manufacturing the products, while the Company retains primary responsibility for fulfilling the obligation to deliver the products from the Vendor’s separate storage facility to the Buyer. |
|
|
|
| · | The Company has inventory risk as a result of purchasing the stem cells from the Vendor and will be subject to the risks and rewards of ownership, including loss if it is unable to sell the stem cells. |
|
|
|
| · | The Company has the discretion in establishing the selling price of the stem cells for its contract with the Buyers. |
|
|
|
| · | In Summary, the Company is primarily responsible for fulfillment, inventory risk, and pricing discretion. The Company recognizes revenue equal to the price to be paid by the Buyer for the stem cells upon transfer of control of the stem cells to the Buyer. The Company recognizes the cost of the stem cells at the purchase price to be paid to the Vendor, as cost of sales, upon purchase from the Vendor. |
Cost of Goods Sold
Cost of goods sold includes all direct costs related to the production or purchase of the Company’s products. These costs primarily consist of raw materials, direct labor, and manufacturing overhead, including depreciation of production equipment, inbound freight, packaging, and other production-related expenses.
| F-8 |
| Table of Contents |
Income Taxes
There are inherent uncertainties related to the interpretation of tax regulations in the jurisdictions in which the Company transacts business. The judgments and estimates made at a point in time may change based on the outcome of tax audits, as well as changes to, or further interpretations of, regulations. The Company adjusts its income tax expense in the period in which these events occur. If such changes take place, there is a risk that the tax rate may increase or decrease in any period.
The FASB guidance contained in ASC Topic 740, Income Taxes, addresses the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a threshold of “more likely than not” for recognition and derecognition of tax positions taken or expected to be taken in a tax return.
The Company adopted this guidance and is now required to recognize the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than
The Company’s income tax filings are subject to audit by various taxing authorities. The Company’s open audit periods are three years for federal and four years for California. In evaluating the Company’s tax provisions and accruals, future taxable income, and the reversal of temporary differences, interpretations, and tax planning strategies are considered. The Company had no material adjustments to its liabilities for unrecognized income taxes under the guidelines of the ASC Topic 740 for uncertainty in income taxes and believes their estimates are appropriate based on current facts and circumstances.
Fair Value of Financial Instruments
ASC topic 820 “Fair Value Measurements and Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
These tiers include:
Level 1: | defined as observable inputs such as quoted prices in active markets; |
Level 2: | defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; |
Level 3: | defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
The carrying value of cash and the Company’s loan from shareholders approximates its fair value due to their short-term maturity.
Basic (Loss) Income Per Share
The Company computes income (loss) per share in accordance with FASB ASC 260 “Earnings per Share”. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period.
| F-9 |
| Table of Contents |
Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares when their inclusion would be anti-dilutive. For the three and six months ended July 31, 2024, and 2023, the following common stock equivalents were excluded from the computation of diluted net loss per share as the result of the computation was anti-dilutive.
|
| 2024 |
|
| 2023 |
| ||
|
| Shares |
|
| Shares |
| ||
Unvested restricted common stock |
|
|
|
|
|
| ||
Stock-Based Compensation
The Company measures all stock-based awards granted to employees, directors and non-employees based on the fair value on the date of grant in accordance with ASC 718, Compensation – Stock Compensation. The compensation expense of those awards is recognized over the requisite service period, which is generally the vesting period of the respective award. Generally, the Company issues awards with either service-only vesting conditions and records the expense using the straight-line method or service and performance vesting conditions and records the expense when achievement of the performance condition becomes probable using the graded-vesting method. The Company accounts for forfeitures as they occur.
The fair value of stock-based grant awards is estimated using the fair value of the Company’s most recent historical transaction with third parties, is arm’s-length and requires management judgment. The Company classifies stock-based compensation expense in its statements of operations in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified.
Foreign Currency Translation
The Company’s functional and reporting currency is the U.S. dollar. Transactions may occur in foreign currencies and management has adopted ASC 830, “Foreign Currency Translation Matters.” Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency-denominated transactions or balances are included in selling, general and administrative expenses in the statement of operations.
Leases
The Company determines whether a contract is or contains a lease at contract inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities on our balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities on the Company’s balance sheets.
Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of the Company’s leases do not provide an implicit rate, we use the Company’s incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred and may include certain index-based changes in rent and other non-fixed payments for services provided by the lessor. The Company’s leases do not contain any material residual guarantees or material restrictive covenants.
Lease arrangements with lease and non-lease components are generally accounted for separately. For certain equipment leases, such as vehicles, the Company will account for the lease and non-lease components as a single lease component. Additionally, for certain equipment leases, the Company will apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities.
| F-10 |
| Table of Contents |
Recently Issued Accounting Pronouncements
In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurements of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025-05). The amendments in this update provide a practical expedient for estimating expected credit losses on current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. Under ASU 2025-05, an entity is required to disclose whether it has elected to use the practical expedient. An entity that makes the accounting policy election is required to disclose the date through which subsequent cash collections are evaluated. ASU 2025-05 is effective for the Company beginning in the fiscal year ending December 31, 2026. The Company is currently evaluating the impacts of the adoption of ASU 2025-05 on the Consolidated Financial Statements.
In May 2025, the FASB issued ASU 2025-04 Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer (“ASU 2025-04”) which clarifies the guidance on the accounting for share-based payment awards that are granted by an entity as consideration payable to its customer, with the intent to reduce diversity in practice and improve existing guidance by revising the definition of a “performance condition” and eliminating a forfeiture policy election for service conditions associated with share-based consideration payable to a customer. It also clarifies the guidance in Topic 606 on the variable consideration constraint does not apply to share-based consideration payable to a customer “regardless of whether an award’s grant date has occurred”. ASU 2025-04 will be effective for the annual periods beginning after December 15, 2026, with early adoption permitted. The Company does not believe ASU 2025-04 will have a material impact on its financial position, results of operations or financial statement disclosure.
In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03.
In March 2024, the FASB issued ASU 2024-02 "Codification Improvements – Amendments to Remove References to the Concepts Statements" ("ASU 2024-02"), which contains amendments to the Codification to remove references to various FASB Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. Generally, ASU 2024-02 is not intended to result in significant accounting changes for most entities. ASU 2024-02 is effective for the Company for fiscal years beginning after December 15, 2024. The Company does not expect this update to have a material impact on its financial statements.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which require, among other things, additional disclosures primarily related to the income tax rate reconciliation and income taxes paid. The expanded annual disclosures are effective for our year ending December 31, 2025. The Company is currently evaluating the impact that ASU 2023-09 will have on our consolidated financial statements and whether we will apply the standard prospectively or retrospectively.
The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements.
Note 4 – Related Party Transactions and Balances
Advances from Related Party
During the six months ended July 31, 2024, and 2023, the Company received cash advances totaling $
| F-11 |
| Table of Contents |
Due to Related Party
The Company sources its inventory exclusively from a vendor wholly owned by shareholders who collectively hold more than 20% of the Company’s outstanding common shares as of July 31, 2024. These shareholders are also family members of the Company’s Chairman. As of July 31, 2024, and January 31, 2024, amounts due to this related party totaled $
Note 5 – EQUITY
Common Stock
The number of authorized shares of common stock under the Certificate of Incorporation is
During the three and six months ended July 31, 2024, and 2023, the Company did not issue any shares of common stock.
Stock-based compensation
The Company’s stock-based compensation programs are long-term retention programs that are intended to attract, retain and provide incentives for employees, officers and directors, and to align stockholder and employee interests.
Under the stock-based compensation plan, the Company may grant Incentive Stock Options (“ISO”), Non-statutory Stock Options (“NSO”), Restricted Stock (“RS”) and Restricted Stock Units (“RSU”). ISO and NSO are granted under service conditions. RS and RSU are granted under vesting criteria set by the Administrator and could be based upon the achievement of Company-wide, business unit, or individual goals (including, but not limited to, continued employment or service), or any other basis determined by the Administrator in its discretion. Stock options granted to employees generally vest over a four-year period, although certain grants may vest over a longer or shorter period. Stock options granted to non-employees generally vest over a one-year period.
Valuation of Stock-Based Compensation
Stock-based compensation cost is measured at the grant date based on the fair value of the award. The fair value of the awards is fixed at the grant date and amortized over the longer of the remaining performance or service period. The fair value of stock-based grant awards is estimated using the fair value of the Company’s most recent historical transaction with third parties.
Compensation costs
The Company recognizes the estimated compensation cost of all stock-based awards generally on a straight-line basis over the requisite service period of the entire award, which is generally the vesting period. The estimated compensation cost is based on the fair value of the common stock on the date of the grant. The Company accounts for forfeitures as they occur.
| F-12 |
| Table of Contents |
Common stock activities for the six months ended July 31, 2024, are summarized as follows:
|
| Number of Shares |
|
| Weighted Average Remaining Contractual Life (Years) |
|
| Weighted Average Grant Date Fair Value |
| |||
|
|
|
|
|
|
|
|
|
| |||
January 31, 2024 |
|
|
|
|
|
|
| $ |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Vested |
|
|
|
|
| - |
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
July 31, 2024 - Expected to Vest |
|
|
|
|
|
|
| $ |
| |||
As of July 31, 2024, there was $
Stock-based compensation recognized for the three months ended July 31, 2024, and 2023 amounted to $
Note 6 – OPERATING LEASES
In July 2021, the Company entered into a non-cancelable operating lease for an office facility in Irvine, California.
There are no lease transactions classified as finance leases for the six months ended July 31, 2024.
The table below summarizes the components of operating lease costs related to operating leases for the three and six months ended July 31, 2024, and 2023.
The components of lease expense were as follows:
|
| Three Months Ended |
|
| Six Months Ended |
| ||||||||||
|
| July 31, |
|
| July 31, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
Operating lease cost |
| $ |
|
| $ |
|
| $ |
|
| $ |
| ||||
Short-term lease cost |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Variable lease cost |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total lease cost |
| $ |
|
| $ |
|
| $ |
|
| $ |
| ||||
| F-13 |
| Table of Contents |
Supplementary information on cash flow and other information for leasing activities for the six months ended July 31, 2024, and 2023 are as follows:
|
| Six Months Ended |
| |||||
|
| July 31, |
| |||||
|
| 2024 |
|
| 2023 |
| ||
Cash paid for operating cash flows from operating leases |
| $ |
|
| $ |
| ||
Right-of-use asset obtained in exchange for new operating lease liabilities |
| $ | - |
|
| $ | - |
|
|
|
|
|
|
|
|
|
|
Remaining lease term - operating leases (year) |
|
| 0.00 |
|
|
|
| |
Discount rate — operating leases |
|
| % |
|
| % | ||
Supplemental balance sheet information related to leases consists of:
|
| July 31, |
|
| January 31, |
| ||
|
| 2024 |
|
| 2024 |
| ||
Operating lease right-of-use asset |
| $ |
|
| $ |
| ||
|
|
|
|
|
|
|
|
|
Operating lease liabilities: |
|
|
|
|
|
|
|
|
Current portion |
| $ |
|
| $ |
| ||
Non-current portion |
|
|
|
|
|
| ||
|
| $ |
|
| $ |
| ||
Note 7 – COMMITMENTS AND CONTINGENCIES
Legal Proceedings
The Company is from time to time involved in routine litigation incidental to the conduct of our business. Management believes that no pending litigation matters to which it is a party is likely to have a material adverse effect on the Company’s financial condition or results of operations.
As previously disclosed in our Company’s Form 10-K for the fiscal year ended January 31, 2023, and in our Report on Form 8-K filed August 11, 2025, certain of our former officers are involved in civil and criminal proceedings in Taiwan relating to alleged unauthorized use of proprietary know-how and intellectual property. The Company is not a named party to these proceedings.
As of July 31, 2024, and through the date of issuance of these financial statements, management is not aware of any developments that would cause the Company to conclude that these matters will have a material adverse effect on its financial condition or results of operations.
Note 8 – SUBSEQUENT EVENTS
The Company has evaluated subsequent events in accordance with Accounting Standards Codification (“ASC”) Topic 855, Subsequent Events. Management reviewed all events and transactions that occurred after the balance sheet date of July 31, 2024, through the date the financial statements were issued.
| F-14 |
| Table of Contents |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with our unaudited financial statements and the related notes included in this Quarterly Report on Form 10-Q. The discussion below contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements due to various factors, including those described in our filings with the Securities and Exchange Commission (“SEC”).
Forward-Looking Statements
This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. These statements often can be identified by the use of terms such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “approximate” or “continue,” or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management’s best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.
Unless otherwise indicated, references to “we,” “us,” “our,” or “the Company,” mean VitaSpring Biomedical Co., Ltd.
All dollar amounts refer to US dollars unless otherwise indicated.
Overview
We are a development-stage biomedical company focused on cell-based technologies for regenerative and preventative health applications. Our business model historically involved sourcing stem cells and exosome products from a related-party vendor and reselling those products to customers.
During the six months ended July 31, 2024, and 2023, we did not generate any revenue as we restructured our commercial strategy, evaluated supplier and regulatory considerations, and assessed future business direction.
Accordingly, our activities during the current fiscal year have primarily consisted of:
| · | Administrative and corporate compliance activities, |
| · | Evaluation of future commercialization strategy, |
| · | Maintenance of regulatory positioning, |
| · | Management of related party obligations, and |
| · | Seeking additional capital to support future operations. |
As of July 31, 2024, we have not reinitiated revenue-generating operations.
Results of Operation
The following summary of our results of operations should be read in conjunction with our unaudited financial statements for the period ended July 31, 2024, which are included herein.
| 4 |
| Table of Contents |
Our operating results for the three months ended July 31, 2024, and 2023 and the changes between those periods for the respective items are summarized as follows.
For the three months ended July 31, 2024, compared to the three months ended July 31, 2023
|
| July 31, |
|
|
|
| ||||||
|
| 2024 |
|
| 2023 |
|
| Changes |
| |||
Revenues |
| $ | - |
|
| $ | - |
|
| $ | - |
|
Operating expenses |
|
| 218,662 |
|
|
| 353,583 |
|
|
| (134,921 | ) |
Income (loss) from operations |
|
| (218,662 | ) |
|
| (353,583 | ) |
|
| 134,921 |
|
Net income (loss) |
| $ | (218,662 | ) |
| $ | (353,583 | ) |
| $ | 134,921 |
|
Revenue
During the three months ended July 31, 2024, and 2023, we did not generate any revenue. During the year 2023, we suspended commercial sales activity while evaluating our operating model and funding alternatives. We are currently focusing on restructuring our product strategy and developing long-term partnerships rather than pursuing short-term sales.
Operating Expenses
For the three months ended July 31, 2024, and 2023, the operating expenses were primarily attributed to professional fees of $61,004 and $78,945, stock-based compensation of $41,216 and $41,216, lease expenses of $50,103 and $72,465, payroll expenses of $51,838 and $78,883, depreciation of $2,489 and $3,766, and general and administrative expenses of $12,012 and $78,449, respectively.
Net Loss
We had a net loss from operations of $218,662 for the three months ended July 31, 2024, and $353,583 for the three months ended July 31, 2023. The decrease in net loss of $134,921 was primarily due to lower operating expenses, including reductions in professional fees, payroll, and general and administrative costs.
For the six months ended July 31, 2024, compared to the six months ended July 31, 2023
|
| Six Months ended |
|
|
|
| ||||||
|
| July 31, |
|
|
|
| ||||||
|
| 2024 |
|
| 2023 |
|
| Changes |
| |||
Revenues |
| $ | - |
|
| $ | - |
|
| $ | - |
|
Operating expenses |
|
| 435,493 |
|
|
| 658,184 |
|
|
| (222,691 | ) |
Income (loss) from operations |
|
| (435,493 | ) |
|
| (658,184 | ) |
|
| 222,691 |
|
Net income (loss) |
| $ | (435,493 | ) |
| $ | (658,184 | ) |
| $ | 222,691 |
|
| 5 |
| Table of Contents |
Revenue
During the six months ended July 31, 2024, and 2023, we did not generate any revenue. During the year 2023, we suspended commercial sales activity while evaluating our operating model and funding alternatives. We are currently focusing on restructuring our product strategy and developing long-term partnerships rather than pursuing short-term sales.
Operating Expenses
For the six months ended July 31, 2024, and 2023, the operating expenses were primarily attributed to professional fees of $95,860 and $160,792, stock-based compensation of $82,433 and $82,432, lease expenses of $107,732 and $136,445, depreciation expenses of $4,979 and $7,531, payroll expenses of $136,686 and $150,169 and general and administrative expenses of $7,803 and $120,815, respectively.
Net Loss
We had a net loss from operations of $435,493 for the six months ended July 31, 2024, and $658,184 for the six months ended July 31, 2023. The decrease in net loss of $222,691 was due to a reduction in operating expenses of $222,691.
Balance Sheet Data
Liquidity and Capital Resources
The following table summarizes our changes in working capital deficiency from July 31, 2024, to January 31, 2024:
|
| July 31, |
|
| January 31, |
|
|
|
| |||
|
| 2024 |
|
| 2024 |
|
| Change |
| |||
Current assets |
| $ | 45,250 |
|
| $ | 23,627 |
|
| $ | 21,623 |
|
Current liabilities |
| $ | 3,767,583 |
|
| $ | 3,487,531 |
|
| $ | 280,052 |
|
Working capital deficiency |
| $ | (3,722,333 | ) |
| $ | (3,463,904 | ) |
| $ | (258,429 | ) |
As of July 31, 2024, and January 31, 2024, current assets were comprised of $5,525 and $13 in cash, $39,725 and $0 in prepaid expenses and $0 and $23,614 in deposits, respectively.
As of July 31, 2024, and January 31, 2024, current liabilities were comprised of $2,411,000 and $2,411,000 in accounts payable - related party, $364,433 and $339,001 in accounts payable and other payables, $218,714 and $218,714 in income tax payable, $0 and $93,334 in operating lease liabilities and $773,436 and $425,482 in advances from related party, respectively.
Our working capital deficiency increased by $258,429, or 7.46%, to $3,722,333 as of July 31, 2024, compared to working capital deficiency of $3,463,904 as of January 31, 2024. The increase was primarily due to an increase in advances from related party and accounts payable and other payables, offset by a decrease in operating lease liabilities and an increase in current assets. Advances paid directly by related parties on behalf of the Company for operating expenses are reflected as operating activities, while cash proceeds received directly from related parties are classified as financing activities.
The income tax payable balance primarily relates to historical tax liabilities, and no current period income tax expense was recorded due to our net operating loss position and full valuation allowance.
| 6 |
| Table of Contents |
Cash Flow Data
The following table summarizes our cash flows for the six months ended July 31, 2024, and 2023:
|
| Six Months ended |
|
|
|
| ||||||
|
| July 31, |
|
|
|
| ||||||
|
| 2024 |
|
| 2023 |
|
| Change |
| |||
Cash used in operating activities |
| $ | (6,444 | ) |
| $ | (27,752 | ) |
| $ | 21,308 |
|
Cash provided by financing activity |
| $ | 11,956 |
|
| $ | 5,277 |
|
| $ | 6,679 |
|
Net change in cash |
| $ | 5,512 |
|
| $ | (22,475 | ) |
| $ | 27,987 |
|
As of July 31, 2024, we had cash of $5,525, compared with cash of $13 at January 31, 2024. The increase of $5,512 was mainly due to cash provided in our financing activities.
We have funded our activities primarily through shareholder advances, which were discretionary and not subject to a written agreement. For the six months ended July 31, 2024, we incurred a net loss of $435,493. We continue to rely on external funding and available cash balances to meet our working-capital needs. Management believes that additional capital will be required to support operations over the next twelve months.
We expect to continue to require additional capital to support operations, research, and regulatory initiatives. Management is exploring potential sources of financing, including private placements of equity or debt securities and strategic partnerships. There is no assurance that additional funding will be available on acceptable terms. If we cannot secure sufficient financing, we may need to delay or scale back parts of our business plan.
We believe our current cash resources will not be sufficient to fund planned operations for the next twelve months without additional capital. The continuation of our business depends on our ability to raise funds and generate future revenue.
Historically, substantially all of our product inventory was sourced from a single, related-party vendor.
Cash Flows from Operating Activities
Net cash used in operating activities of $6,444 for the six months ended July 31, 2024 compared to $27,752 for the six months ended July 31, 2023.
For the six months ended July 31, 2024, net cash used in operating activities was primarily driven by a net loss of $435,493, partially offset by non-cash adjustments, including $82,433 of stock-based compensation, $89,652 of non-cash lease expense, and $4,979 of depreciation expense. Changes in working capital provided a net source of cash of approximately $251,985, primarily due to increases in advances from related parties for operating expenses of $335,998 and increased in accounts payable and other payables of $25,432, partially offset by an increase of prepaid expenses of $39,725 and a decrease in operating lease liabilities of $93,334 following the expiration of the Company’s lease.
For the six months ended July 31, 2023, net cash used in operating activities was primarily attributable to a net loss of $658,184, partially offset by non-cash items, including $82,432 of stock-based compensation, $80,912 of non-cash lease expense, and $7,531 of depreciation. Changes in working capital provided a net source of cash of approximately $459,557, primarily driven by a reduction in accounts receivable of $250,000, increases in accounts payable and other payables of $151,389, and advances from related parties for operating expenses of $138,890, partially offset by increases in deposits and other working capital items.
The decrease in net cash used in operating activities for the six months ended July 31, 2024, as compared to the prior year period, was primarily attributable to a reduction in net loss and changes in working capital, including increased reliance on related-party support to fund operating expenses.
| 7 |
| Table of Contents |
Cash Flows from Investing Activities
We had no investing activities during the six months ended July 31, 2024, and 2023.
Cash Flows from Financing Activities
We had financing inflow of $11,956 from advances from related parties in the six months ended July 31, 2024.
We had financing inflow of $5,277 from advances from related parties in the six months ended July 31, 2023.
We expect to continue to rely on equity financing and, where available, strategic partnerships or grants to meet our capital needs. Our ability to raise additional capital will depend on market conditions, investor interest, and our progress in commercializing our stem-cell and biomedical technologies.
Capital Requirements and Liquidity Outlook
We have incurred losses and negative cash flow from operations. We believe that our current cash resources are not sufficient to fund our operations for the next twelve months without additional financing. To meet our capital needs, we plan to seek additional equity or debt financing and may also pursue strategic partnerships or licensing opportunities. There is no assurance that such financing will be available on favorable terms or at all. If we cannot obtain adequate funding, we may need to delay, scale back, or discontinue some of our business activities.
Going Concern
We evaluate our ability to continue as a going concern in accordance with ASC 205-40, Presentation of Financial Statements — Going Concern. This evaluation requires us to assess whether conditions or events raise substantial doubt about our ability to meet our obligations as they become due during the twelve months following the issuance of these financial statements.
Our financial statements have been prepared assuming we will continue as a going concern. As disclosed in Note 2 to our financial statements, as of July 31, 2024, we had an accumulated deficit of $4,942,074, a working capital deficiency of $3,722,333, and negative operating cash flow of $6,444, which is due to our limited operations. These factors raise substantial doubt about our ability to continue as a going concern within one year from the issuance of these financial statements. Our ability to continue as a going concern depends upon our ability to obtain additional funding, restructuring related-party obligations, and implement a business plan that generates sustainable revenues. There can be no assurance that we will be successful in these efforts.
Off-Balance Sheet Arrangements
As of July 31, 2024, we did not have any off-balance sheet arrangements.
Plan of Operation and Funding
We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.
While existing working capital and anticipated financing sources may provide limited support for our operations, our current cash resources are not sufficient to fund our operations over the next twelve months without additional financing. We will require additional capital to continue operations and execute our business plan. There can be no assurance that such financing will be available on acceptable terms, or at all. If we are unable to obtain adequate funding, we may be required to delay, scale back, or discontinue certain or all of our operations.
| 8 |
| Table of Contents |
Critical Accounting Policies and Estimates
Use of Estimates
Our financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements requires management to make estimates and assumptions, including, but not limited to, stock-based compensation, lease liabilities, and going concern assessment. Our significant accounting policies are described in Note 3 to the financial statements. We consider the following policies and estimates to be critical because they involve significant judgments and assumptions and could materially affect our financial condition and results of operations. Critical estimates are those estimates that in accordance with U.S. GAAP, involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial statements. Management has determined that our most critical accounting estimates are those relating to stock-based compensation, lease accounting, and going concern assessment.
Significant estimates and assumptions reflected in the financial statements for the quarter ended July 31, 2024, include, but are not limited to:
Allowance for Credit Losses
We evaluate financial assets measured at amortized cost, including accounts receivable, for expected credit losses under ASC 326. The estimate incorporates historical loss experience, current economic conditions, and reasonable and supportable forecasts. Changes in these factors could materially affect the allowance recorded.
Lease Accounting
Under ASC 842, we recognize right-of-use assets and lease liabilities for operating leases. When the implicit rate in a lease is not readily determinable, we estimate an incremental borrowing rate based on available market information and our credit profile. Changes in assumptions regarding discount rates could impact lease liabilities and related expense.
Deferred Tax Assets
We recognize deferred tax assets and liabilities for temporary differences between financial statement carrying amounts and tax bases. We evaluate the realizability of deferred tax assets and record a valuation allowance when it is more likely than not that some or all of the deferred tax assets will not be realized. This assessment requires significant judgment regarding future taxable income.
Stock-Based Compensation
We account for equity-based awards under ASC 718. The fair value of equity awards is measured at the grant date and recognized over the requisite service period. The determination of fair value may require management to make assumptions regarding expected term, volatility, and other valuation inputs, as applicable.
Going Concern Assessment
In accordance with ASC 205-40, we evaluate whether conditions or events raise substantial doubt about our ability to continue as a going concern within one year from the issuance date of the financial statements. This assessment requires management to evaluate liquidity, forecasted cash flows, and the availability of financing or related-party support.
Because these estimates require management judgment, actual results could differ materially from those estimates.
| 9 |
| Table of Contents |
Income Taxes and Deferred Tax Assets
We account for income taxes using the liability method under ASC 740. Deferred tax assets are recognized for temporary differences between financial statement and tax bases of assets and liabilities. A valuation allowance is established when it is more likely than not that all or part of a deferred tax asset will not be realized. Determining the amount of valuation allowance requires significant judgment in estimating future taxable income, applicable tax strategies, and the expected timing of reversals of temporary differences.
Material Commitments
None.
Purchase of Significant Equipment
We do not intend to purchase any significant equipment during the next twelve months.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
We are a smaller reporting company and not required to provide this information.
Item 4. Controls and Procedures
Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer (CEO), is responsible for establishing and maintaining disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”). Disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the CEO, to allow timely decisions regarding required disclosure.
As of the end of the fiscal quarter ended July 31, 2024, management conducted an evaluation, under the supervision and with the participation of our CEO, of the effectiveness of our disclosure controls and procedures. Based on this evaluation, our CEO concluded that our disclosure controls and procedures were not effective as of July 31, 2024, due to a material weakness in our internal control over financial reporting, as described below.
| 10 |
| Table of Contents |
Management’s Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”).
Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, evaluations of effectiveness to future periods are subject to the risk that controls may become inadequate due to changes in conditions or deterioration in compliance with policies or procedures.
Management assessed the effectiveness of our internal control over financial reporting as of July 31, 2024, using the criteria set forth in the Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on this assessment, management concluded that our internal control over financial reporting was not effective as of that date, due to the following material weakness:
| · | Material Weakness Identified: We did not maintain an adequate segregation of duties or employ sufficient accounting personnel with appropriate experience in U.S. GAAP and SEC reporting requirements. This deficiency increased the risk of material misstatements in the financial reporting process. |
Remediation Plan
We are committed to strengthening our internal control over financial reporting and remediating the identified material weakness related to insufficient accounting personnel and lack of segregation of duties.
We intend to adopt the following remediation plan subject to funding and retaining the appropriate personnel:
1. | Engagement of External Accounting Support |
We intend to begin implementation during fiscal 2026, subject to available resources. We intend for the consultant to assist management with:
| · | Review of quarterly and annual financial statements, |
|
|
|
| · | Technical accounting research and documentation, |
|
|
|
| · | Preparation and review of SEC filings, |
|
|
|
| · | Implementation of formalized closing procedures and documentation standards. |
| 11 |
| Table of Contents |
2. | Implementation of Formalized Closing and Review Controls |
We intend to implement enhanced month-end and quarter-end closing procedures, including:
| · | Standardized account reconciliation templates, |
|
|
|
| · | Documented supervisory review controls, |
|
|
|
| · | Checklist-driven SEC filing review procedures, |
|
|
|
| · | Formal review and approval of journal entries. |
3. | Segregation of Duties Enhancement |
By January 31, 2027, we intend to establish improved segregation of duties through a combination of:
| · | Clearly documented role assignments, |
|
|
|
| · | Independent review of financial reporting by the external consultant or qualified third party, |
|
|
|
| · | Enhanced board-level oversight of financial reporting processes. |
4. | Ongoing Monitoring and Documentation |
We will document the design and implementation of revised controls and evaluate their operating effectiveness over a sufficient period of time prior to concluding that the material weakness has been remediated.
The remediation efforts described above are dependent on our ability to secure adequate financial resources. We do not make any assurances that we will be able to secure the necessary resources to implement the foregoing plan. We expect to substantially complete implementation of these remediation measures by January 31, 2027. However, the material weakness will not be considered remediated until the applicable controls have been designed, implemented, and tested for operating effectiveness over a sustained period. Since management has not yet completed testing of these remediation measures, it cannot conclude that the material weakness has been remediated.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting during the fiscal quarter ended July 31, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
| 12 |
| Table of Contents |
PART II – OTHER INFORMATION
Item 1. Legal Proceedings
The Company is from time to time involved in routine litigation incidental to the conduct of our business. Management believes that no pending litigation matters to which it is a party is likely to have a material adverse effect on the Company’s financial condition or results of operations.
As previously disclosed in our Company’s Form 10-K for the fiscal year ended January 31, 2023, and in our Report on Form 8-K filed August 11, 2025, certain of our former officers are involved in civil and criminal proceedings in Taiwan relating to alleged unauthorized use of proprietary know-how and intellectual property. The Company is not a named party to these proceedings.
As of July 31, 2024, and through the date of issuance of these financial statements, management is not aware of any developments that would cause the Company to conclude that these matters will have a material adverse effect on its financial condition or results of operations.
Item 1A. Risk Factors
RISKS RELATED TO OUR FINANCIAL CONDITION, LIQUIDITY AND GOING CONCERN
Substantial doubt exists regarding our ability to continue as a going concern.
We have not generated revenue during the six months ended July 31, 2024. As of July 31, 2024, we had cash of $5,525, total assets of $64,334, total liabilities of $3,767,583, an accumulated deficit of $4,942,074, and a stockholders’ deficit of $3,703,249. We have incurred recurring losses since inception and expect to continue incurring losses for the foreseeable future. Based on our current cash position and expected expenditure, we do not have sufficient liquidity to fund operations for the next twelve months without additional financing.
Our financial statements have been prepared assuming we will continue as a going concern. Management has concluded that substantial doubt exists regarding our ability to continue as a going concern within twelve months from the issuance of our financial statements. Our independent registered public accounting firm has included a going concern explanatory paragraph in prior audit reports.
We have no committed financing arrangements and no revenue-generating operations. Our ability to continue operations depends entirely upon raising additional capital or obtaining continued financial support from related parties. There can be no assurance that such capital will be available on acceptable terms, if at all. If we are unable to secure adequate funding, we may be forced to significantly curtail or cease operations, seek protection under applicable insolvency laws, or liquidate our assets. We do not have written agreements with related parties that contractually defer repayment of these obligations.
Our liabilities substantially exceed our assets, which may impair our ability to obtain financing and satisfy uplisting requirements.
Our negative stockholders’ equity position may adversely affect investor confidence and impair our ability to obtain financing on favorable terms. Certain trading platforms and exchanges impose minimum stockholders’ equity requirements. Our current financial condition may limit our ability to satisfy such requirements, thereby restricting our ability to uplist our common stock to OTCQB or a national securities exchange. Certain markets, including the OTCQB and the national securities exchanges, require minimum stockholders’ equity thresholds that we currently do not meet.
We may not be able to satisfy our obligations as they become due.
A substantial portion of our liabilities consists of unsecured obligations to related parties and vendors. These obligations may be payable on demand. If creditors demand repayment or decline to extend payment terms, we may be unable to satisfy such obligations when due, which could result in default, litigation, or insolvency proceedings. To date, no formal demand for repayment has been made.
| 13 |
| Table of Contents |
RISKS RELATED TO OUR DEVELOPMENT-STAGE STATUS AND BUSINESS STRATEGY
We have not commenced commercial operations and have no history of revenue generation.
Although we describe a long-term strategy involving regenerative medicine technologies, including potential stem-cell and exosome-based applications, we have not commenced commercial manufacturing, distribution, or revenue-generating activities. We did not incur research and development expenses in the current period ended July 31, 2024 or fiscal year ended January 31, 2024, have not initiated clinical trials, and have not obtained regulatory approvals. Our limited operating history makes it difficult for investors to evaluate our prospects. As of the date of this Quarterly Report, we are not actively developing, manufacturing, or marketing any products.
Our business model is speculative and subject to significant execution risk.
| · | Our future success depends on numerous factors, including: |
|
|
|
| · | Securing sufficient capital; |
|
|
|
| · | Recruiting qualified personnel; |
|
|
|
| · | Obtaining regulatory approvals; |
|
|
|
| · | Protecting intellectual property; |
|
|
|
| · | Establishing manufacturing capabilities; |
|
|
|
| · | Entering into strategic partnerships; |
|
|
|
| · | Achieving market acceptance. |
Each of these elements involves significant uncertainty. Failure in any of these areas could materially adversely affect our business.
We may change our business strategy.
Given our financial condition and development-stage status, we may revise or modify our business strategy. Such changes may expose us to additional risks and uncertainties and may not result in successful operations.
RISKS RELATED TO REGULATORY MATTERS
If we pursue regenerative medicine or biologic-based products, we will be subject to extensive regulatory requirements.
Any future commercialization efforts may subject us to regulation by the U.S. Food and Drug Administration and comparable foreign regulatory authorities. Regulatory approval processes require extensive preclinical and clinical data and may take years to complete. Regulatory authorities may impose additional requirements, delay approvals, or deny approval altogether. We have not yet established FDA-compliant manufacturing facilities or submitted any investigational or marketing applications.
Failure to obtain or maintain regulatory approvals would prevent commercialization.
Even if approvals are obtained, regulatory authorities may impose post-marketing requirements, restrict indications, suspend approvals, or withdraw approval. Regulatory compliance requires substantial financial and managerial resources.
The regulatory landscape for stem-cell and exosome technologies is evolving.
Regulatory authorities have increased scrutiny of regenerative medicine therapies. Changes in regulatory policy, interpretation, or enforcement priorities may adversely affect our ability to develop or commercialize products.
| 14 |
| Table of Contents |
RISKS RELATED TO INTELLECTUAL PROPERTY
We do not currently hold issued patents.
As of the date of this report, we do not own issued patents, nor do we have any pending patent applications. We also do not own any registered trademarks. Our competitive position relies primarily on trade secrets and proprietary know-how. Trade secrets are difficult to protect, and we may not be able to prevent unauthorized disclosure or use.
We may become involved in intellectual property disputes.
If we develop technologies in the future, we may face claims of infringement from third parties. Defending against such claims could be costly and time-consuming. We may be required to pay damages, enter into licensing agreements on unfavorable terms, or cease certain operations.
RISKS RELATED TO RELATED-PARTY TRANSACTIONS AND CONFLICTS OF INTEREST
We have significant obligations to related parties, including a former officer who is involved in criminal proceedings unrelated to us.
As of July 31, 2024, we owed $2,411,000 to a related-party vendor, which is owned by our former officer, and $773,436 in advances from related parties, including advances made by a former Chief Executive Officer and Chairman of the Board. These obligations are unsecured, and are not subject to formal long-term repayment schedules, and may be payable on demand. The continuation of related-party financial support is not assured.
The former officer referenced above is involved in criminal proceedings relating to the alleged unauthorized use of intellectual property that was not owned by us and did not arise from our operations. We are not a party to these proceedings, and the allegations do not involve our assets, intellectual property, or current management. Nevertheless, because this individual is a creditor of us, developments in such proceedings could affect repayment discussions, restructuring negotiations, or future financing arrangements. In addition, public association with former management may result in reputational harm or investor concern.
If related parties demand repayment of outstanding amounts or cease providing financial support, our liquidity and ability to continue operations could be materially adversely affected.
Our governance structure may increase conflict-of-interest risk.
We currently have a single director who also serves as our sole executive officer. We do not have independent directors or standing committees. We have not adopted a formal related-party transaction policy. This structure may increase the risk of conflicts of interest and reduce oversight of management decisions.
RISKS RELATED TO FORMER MANAGEMENT AND LEGAL PROCEEDINGS
Former officers are involved in civil and criminal proceedings that could indirectly affect us.
Certain former officers and directors are involved in legal proceedings in Taiwan relating to alleged unauthorized use of intellectual property. Although we are not a named party, these proceedings may result in reputational harm, disruption of business relationships, or derivative claims.
We may be subject to litigation.
We may become involved in disputes related to intellectual property, contracts, securities laws, or other matters. Litigation is inherently uncertain and may result in substantial costs, diversion of management resources, or adverse judgments.
| 15 |
| Table of Contents |
RISKS RELATED TO INTERNAL CONTROL OVER FINANCIAL REPORTING
We have identified a material weakness in internal control over financial reporting.
Management concluded that our internal control over financial reporting was not effective as of July 31, 2024, due to insufficient segregation of duties and lack of personnel with appropriate U.S. GAAP and SEC reporting expertise. If we fail to remediate this material weakness, we may be unable to prevent or detect material misstatements in our financial statements.
If we fail to remediate this material weakness, we may be unable to timely file reports with the SEC, which could result in loss of quotation eligibility or trading market restrictions.
RISKS RELATED TO CAPITAL RAISING AND DILUTION
We will require substantial additional capital to execute our business strategy.
We anticipate funding operations through equity offerings, convertible securities, strategic partnerships, or related-party financing. Such financings may be highly dilutive and may include terms unfavorable to existing stockholders. Our net operating loss carryforwards may be limited under Section 382 of the Internal Revenue Code.
Future issuances of securities may dilute existing stockholders and depress our stock price.
We may issue additional shares of common stock or securities convertible into common stock at prices below current market value. Such issuances may include warrants, anti-dilution adjustments, or other terms that adversely affect existing stockholders.
Our net operating loss carryforwards may be limited under Section 382 of the Internal Revenue Code, which could reduce or eliminate their value.
As of July 31, 2024, we had federal net operating loss (“NOL”) carryforwards. Our ability to utilize these NOLs to offset future taxable income, if any, may be significantly limited under Section 382 of the Internal Revenue Code of 1986, as amended (“Section 382”), if we experience an “ownership change” as defined in Section 382.
In general, an ownership change occurs if the percentage of our stock owned by one or more “5-percent shareholders” increases by more than 50 percentage points over a rolling three-year testing period. Because our stock ownership is relatively concentrated and because we may issue additional equity or convertible securities in future financings, we may experience an ownership change under Section 382. An ownership change could materially limit the amount of NOLs that may be utilized annually to offset taxable income. In certain circumstances, such limitations could effectively eliminate the benefit of our NOL carryforwards.
In addition, if we undergo a significant change in business operations or experience future ownership changes, our ability to utilize our NOLs could be further limited. Any such limitation could reduce the potential tax benefits available to us and may adversely affect our financial condition and results of operations.
There can be no assurance that our NOL carryforwards will be available to offset future taxable income, even if we achieve profitability.
RISKS RELATED TO UPLISTING AND MARKET STATUS
Because we currently have a stockholders’ deficit and lack independent directors, we may not satisfy the financial and governance requirements necessary to uplist to OTCQB or a national securities exchange.
We are contemplating an uplisting of our common stock. Uplisting requires compliance with financial, corporate governance, and market-based criteria, including minimum bid price, stockholders’ equity thresholds, and independent board requirements. Our current financial condition and governance structure may prevent us from meeting such criteria. We may need to effect a reverse stock split to meet minimum bid price requirements, which could adversely affect stockholder value.
Our common stock is thinly traded and may experience significant volatility.
Our common stock trades on the OTC Pink marketplace, which generally has lower liquidity and greater volatility than national securities exchanges. Limited trading volume may result in substantial price fluctuations.
| 16 |
| Table of Contents |
Our common stock may be subject to penny stock regulations.
If our common stock is deemed a penny stock, broker-dealers may be subject to additional regulatory requirements before effecting transactions, which may reduce liquidity and investor interest.
RISKS RELATED TO CYBERSECURITY AND DATA PROTECTION
We do not maintain a formal cybersecurity risk management framework.
We do not employ dedicated cybersecurity personnel and rely on third-party service providers. A cybersecurity breach could result in operational disruption, reputational damage, regulatory scrutiny, or financial loss.
GENERAL RISK FACTORS
Economic conditions may adversely affect our ability to raise capital.
Adverse economic conditions, including inflation, rising interest rates, and market volatility, may reduce investor appetite for speculative investments and impair our ability to obtain financing.
An investment in our common stock is highly speculative.
Given our development-stage status, lack of revenue, minimal liquidity, significant liabilities, material weakness in internal controls, governance limitations, regulatory uncertainty, and dependence on future financing, an investment in our common stock is highly speculative and may result in the loss of your entire investment.
We may become subject to securities class action litigation or stockholder derivative actions, which could result in substantial costs and diversion of management attention.
Companies with limited operating histories, development-stage business models, minimal revenues, recurring losses, or significant stock price volatility frequently become the target of securities class action litigation or stockholder derivative lawsuits. Given our development-stage status, going-concern uncertainty, dependence on future financing, related-party transactions, material weakness in internal control over financial reporting, and limited trading liquidity, we may be particularly susceptible to such litigation.
Securities class action lawsuits are often brought against companies following periods of stock price volatility, reverse stock splits, dilutive financings, restatements, regulatory developments, or public disclosures regarding internal control deficiencies. Such lawsuits typically allege violations of federal securities laws, including claims under Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, or under Sections 11 and 12 of the Securities Act in connection with securities offerings. Even if such claims are without merit, defending against them can be costly, time-consuming, and disruptive to our operations.
In addition, we may become subject to stockholder derivative actions alleging breach of fiduciary duties by our officers or director, particularly given our governance structure, related-party transactions, and development-stage operations. Such actions may seek monetary damages, corporate governance changes, or other equitable relief.
The costs of defending securities litigation or derivative actions may be significant and may exceed the limits of our directors’ and officers’ liability insurance coverage, if any. Adverse judgments, settlements, or regulatory findings could materially adversely affect our financial condition, liquidity, reputation, and ability to raise capital. Furthermore, even the initiation of litigation could result in negative publicity, investor concern, and diversion of management attention from our business.
If we are unable to successfully defend against such claims or manage associated costs, our business, financial condition, and results of operations could be materially adversely affected.
| 17 |
| Table of Contents |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
We did not issue any equity securities for the quarter ended July 31, 2024.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
None.
Item 6. Exhibits
The following documents are filed as part of this report:
Exhibit Number |
| Description |
|
|
|
(31) |
| Rule 13a-14(a)/15d-14(a) Certification |
| ||
|
|
|
(32) |
| Section 1350 Certification |
| ||
|
|
|
101* |
| Inline XBRL Document Set for the 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 Exhibit 101 Inline XBRL Document Set. |
* Filed herewith.
| 18 |
| Table of Contents |
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.
|
| VITASPRING BIOMEDICAL CO., LTD. |
|
|
|
|
|
Date: April 22, 2026 |
| /s/ Ssu-Chuan Lai |
|
|
| Ssu-Chuan Lai |
|
|
| President, Chief Executive Officer, and Principal Financial Officer |
|
| 19 |
EXHIBIT 31.1/31.2
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
AND PRINCIPAL FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT AND RULE 13a-14(a)
OR 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934
I, Ssu-Chuan Lai, Chairman and Chief Executive Officer and Principal Financial Officer certify that:
| 1. | I have reviewed this Quarterly Report on Form 10-Q of VitaSpring Biomedical Co., Ltd. (the “registrant”); |
|
|
|
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
|
|
|
| 3. | Based on my knowledge, the financial statements and other financial information included in this quarterly report fairly presents 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 quarterly report; |
|
|
|
| 4. | I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and 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, is made known to us by others within the entity, particularly during the period in which this report is being prepared; |
|
|
|
|
|
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
|
|
|
|
|
| (c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
|
|
|
|
|
| (d) | Disclosed in this report any change in the registrant’s internal controls 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 controls over financial reporting; and |
| 5. | I have disclosed, based on our most recent evaluation of internal controls 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 controls 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 controls over financial reporting. |
| Date: April 22, 2026 |
| /s/ Ssu-Chuan Lai |
|
|
|
| Ssu-Chuan Lai |
|
|
|
| Chief Executive Officer |
|
|
|
| (Principal Executive Officer) and (Principal Financial Officer) |
|
EXHIBIT 32.1/32.2
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
AND PRINCIPAL FINANCIAL OFFICER
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 VitaSpring Biomedical Co., Ltd. (the “Company”) on Form 10-Q for the quarter ended July 31, 2024, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), I, Ssu-Chuan Lai, the Chief Executive Officer and Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:
| 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 results of operations of the Company. |
| Date: April 22, 2026 |
| /s/ Ssu-Chuan Lai |
|
|
|
| Ssu-Chuan Lai |
|
|
|
| Chief Executive Officer |
|
|
|
| (Principal Executive Officer) and (Principal Financial Officer) |
|