The information in this Form 10-Q is intended to update the information in our annual report on Form 10-K for the year ended. July 31, 2021 deposited with the Security and Trade Commission to November 15, 2021
(the “Form 10-K”) and assumes 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 this Form 10-K / A . The following discussion and analysis should also be read in conjunction with our financial statements and the notes to financial statements included elsewhere in this Form 10-Q.
Certain statements contained in this report constitute forward-looking statements. These forward-looking statements include statements, which involve risks and uncertainties, concerning, among other things, (a) our sales, profitability and cash flow forecasts, (b) our growth strategy, (c) expected trends in our industry, (d) our future financing plans, and (e) our anticipated working capital requirements and use of such funds. They are generally identifiable by the use of the words “may”, “will”, “should”, “anticipate”, “estimate”, “plan”, “potential”, “project”, “continue”, “in progress”. , “expect”, “management believes”, “we believe”, “we intend” or the negative of these words or other variations of these words or comparable terminology. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this report will actually occur. You should not place undue reliance on these forward-looking statements.
Forward-looking statements speak only as of the date on which they are made and, except to the extent required by federal securities laws, we do not undertake to update any forward-looking statements to reflect events or developments. circumstances after the date on which the reports are made or to reflect the occurrence of unforeseen events.
MU Global Holding Limited, the American Society, operates through its wholly owned subsidiary, MU Worldwide Group Limited, a Seychellois company; which operates through its wholly owned subsidiary, MU Global Holding Limited, a Hong Kong Company; which operates through its wholly owned subsidiary, MU Global Health Management (Shanghai) Limited, a Shanghai company. United States, Seychelles and Hong Kong companies are acting for detention purposes only while all current and future transactions in China are planned to be carried out via MU Global Health Management (Shanghai) Limited, the Shanghai company. The purpose of the Hong Kong Company is to function as the current regional center of the Society.
At present, we have a physical office at Shanghai with address of Room 205, Building # 2, Driveway 1343 Tongpu Road, Putuo District, Shanghai City, 200234, People’s Republic from China. Going forward, we do not have definitive plans for which the markets intend to expand, but we base our operations on Shanghai, as we prepare for future unidentified expansion efforts.
All the previous entities share exactly the same business plan with the aim of developing and providing wellness and beauty services to our future clients. We aim to promote the improvement of the overall health and beauty of our customers through a holistic detox method. We will, at least initially, concentrate our efforts mainly on attracting customers in China. We intend, but no definitive plans or timetables, to expand to Singapore, Malaysia, Hong Kong, and the countries of the Middle East in the years to come, and thereafter, we intend to make efforts to develop ourselves through Asia. We plan to spend substantial amounts on marketing and advertising in the coming year.
Results of Operation
For the three months ended October 31, 2021 and 2020
For the three months ended October 31, 2021 and 2020, the Company generated revenues of $ 593 and $ 21,695 respectively. Revenue represents income from wellness and beauty services provided to customers and sales of products through
Shanghai points of sale and revenue sharing of rental equipment with the commercial alliance and the franchisee.
Cost of revenues and gross margin
For the three months ended October 31, 2021 and 2020, the costs incurred for the provision of wellness and beauty services and the sale of essential oils are $ 187 and
$ 1,711 respectively, and generate gross profit on for the three months ended
October 31, 2021 and 2020 of $ 406 and $ 19,984.
Sales and marketing costs
For the three months ended October 31, 2021 and 2020, we had incurred marketing expenses in the amount of $ 144 and $ 44 respectively. The expense included travel costs.
General and administrative expenses
For the three months ended October 31, 2021 and 2020, we had incurred general and administrative expenses in the amount of $ 71,098 and $ 121,207 respectively. These expenses include salary, allowances, professional fees, consultancy fees for IT and system management, office and point-of-sale operating costs and depreciation.
The Company recorded an amount of $ 21,546 and $ 4,666 as other income for the three months ended October 31, 2021 and 2020. This income comes from interest income, foreign exchange gain and disposal gain.
Our three month net loss ended October 31, 2021 and 2020 were $ 49,290 and
$ 96,601. The net loss comes mainly from general and administrative costs incurred. The decrease in the net loss of $ 47,311 due to the increase in other income recorded on the disposal of assets during the closed period October 31, 2021
Liquidity and capital resources
From October 31, 2021 and 2020 we had cash and cash equivalents of $ 5,478 and
$ 10,925 respectively. We anticipate that increasing operating levels going forward will result in greater cash flow and, therefore, work.
We depend heavily on financing activities to provide us with the liquidity and capital resources we need to meet our working capital needs and to make capital investments in the course of our day-to-day operations. During the period ended October 31, 2021, the Company had met these requirements mainly through the financial support of the director and the related company.
Cash used in operating activities
For the three months ended October 31, 2021, the net cash used in operating activities was $ 44,599 compared to the net cash used in the operating activities of
$ 22,274 for the three months ended October 31, 2020. The increase in cash used in operating activities is mainly attributable to the payment of general and administrative expenses.
Cash provided in fundraising activities
For the three months ended October 31, 2021 and 2020, the net cash provided by financing activities was $ 3,000 and $ 17,057 respectively. Funding cash flow performance primarily reflects the granting of a long term loan by the administrator.
Cash provided in investing activities
For the three months ended October 31, 2021 and 2020, the net cash generated by investing activities was $ 27,159 and the net cash used was $ 4,760. The performance of investing cash flow mainly reflects the purchase of property, plant and equipment.
We have no credit facility or other access to bank credit.
Off-balance sheet provisions
We have no material off-balance sheet arrangement that has or is reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, income or expenses, results of operations, liquidity, our capital expenditures or our capital resources which are material to our shareholders as of October 31, 2021.
Recent accounting positions
The Company has implemented all the new accounting positions in force. These positions did not have a material impact on the financial statements, unless otherwise indicated, and the Company does not believe that there are any other new accounting positions that could have a material impact on its financial position or operating results.
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