The information contained in this quarter report on Form 10-Q is intended to
update the information contained in our Annual Report on Form 10-K for the year
ended March 31, 2020 and presumes that readers have access to, and will have
read, the "Management's Discussion and Analysis of Financial Condition and
Results of Operations" and other information contained in such Form 10-K. The
following discussion and analysis also should be read together with our
consolidated financial statements and the notes to the consolidated financial
statements included elsewhere in this Form 10-Q.
The following discussion contains certain statements that may be deemed
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements appear in a number of places in
this Report, including, without limitation, "Management's Discussion and
Analysis of Financial Condition and Results of Operations." These statements are
not guarantees of future performance and involve risks, uncertainties and
requirements that are difficult to predict or are beyond our control.
Forward-looking statements speak only as of the date of this quarterly report.
You should not put undue reliance on any forward-looking statements. We strongly
encourage investors to carefully read the factors described in our Form S-1
Amendment No.8, dated July 20, 2016 in the section entitled "Risk Factors" for a
description of certain risks that could, among other things, cause actual
results to differ from these forward-looking statements. We assume no
responsibility to update the forward-looking statements contained in this
transition report on Form 10-Q. The following should also be read in conjunction
with the unaudited Condensed Consolidated Financial Statements and notes thereto
that appear elsewhere in this report.
ECCO Auto World Corporation, a Nevada corporation ("the Company") was
incorporated under the laws of the State of Nevada on June 6, 2016.
ECCO Auto World Corporation, which is incorporated in Labuan, Malaysia on March
1, 2017, is a wholly owned subsidiary of ECCO Auto World Corporation.
ECCO Auto World Corporation has engaged a third party for the development of
ECCO App, which is a platform that connects users with auto repair shops and
service centers throughout Malaysia and will be made up of a selection of auto
repair shops who join our 'ECCO Partnership' and car owners who use the ECCO
App. Auto repair shops that make use of ECCO user base will be subject to
stringent supervision and entrant requirements in order to ensure quality
service to users. The company has spent approximately $300,000 for the research
and development of the mobile application.
During the year 2020, ECCO Auto World Corporation has expand their business
toward consultancy in providing Finance IT solution to clients. In addition,
Ecco Auto World Corporation was developing Cash & Treasury Management system
that strives to provide clients' businesses with a single view of cash across
their entire operation. It equips clients with innovative but practical tools
aimed at removing inefficiencies, and enhance the client's skill in strategic
planning, carry out effective cash decisions based on clear, actionable
On February 17, 2020, Ecco Auto World Corp (the "ECCO") and Mr Joson Yeo Hung
Kwang Mr Chai Kok Leong and Mr Loke Che Chan, Gilbert, each representing 49.5%
,49.5% and 1% shareholding of Free Share X- Change Limited, an Anguilla
corporation, ("FSX") entered into a Sale and Purchase Agreement (the "FSX
Purchase Agreement"), pursuant to which ECCO acquired 100% of the issued and
outstanding shares of FSX (the "Acquisition"). As consideration thereof, ECCO
agreed to paid cash consideration of US$15 to the sharaeholders
FSX wholly owned a subsidiary Vtrade Technology Sdn Bhd, (the "Vtrade") in
Malaysia, is a private Limited company incorporated in July 12th, 2018. The
company is providing system and software development, Information technology
(IT) consultancy and managed services.
Results of Operation
For Three Months Ended June 30, 2020 and 2019.
For three months ended June 30, 2020, the Company has generate revenue of
$16,500 and gross income of $16,500. For three months ended June 30, 2019, the
Company has not generate revenue and gross income.
The Company has incurred a net gain of $74,488 and net loss of $11,161 for three
months ended June 30, 2020 and 2019. The increase in net gain is mainly due to
the decrease in general and administrative expenses.
Liquidity and Capital Resources
As at June 30 and March 31, 2020, the Company has a current asset entirely
consisting cash and cash equivalents of $12,759 and $8,969 respectively. The
increase of $3,790 in cash flow mainly is due to the increase of cashflow
generated from operating activities during the period.
For the three months ended June 30, 2020 and 2019, net cash generating in
operating activities was $8,459 and net cash used $1,161 respectively consist of
mainly general and administrative transaction. This is mainly due to the
decrease in general and administrative expenses.
For the three months ended June 30, 2020 and 2019, there was no net cash used in
investing activities for business purpose.
For the three months ended June 30, 2020 and 2019, the Company did not have any
capital used in financing activities for business purpose for the current
There was no capital expenditures for three months period ended June 30, 2020
Off-balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in our financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that are material to our
stockholders as of June 30, 2020.
© Edgar Online, source Glimpses