The information contained in this quarter report on Form 10-Q is intended to
update the information contained in our Form S-1 Amendment No.3, dated March 19,
2021, for the period ended August 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 S-1. 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.3, dated March 19, 2021, 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.
Company Overview
AsiaFIN Holdings Corp, the US Company, operates through its wholly owned
subsidiary, AsiaFIN Holdings Corp, a Labuan Company; which operates through its
wholly owned subsidiary, AsiaFIN Holdings Limited, a Hong Kong Company; The US,
Labuan act solely for holding purposes whereas all current and future operations
in Hong Kong are planned to be carried out via AsiaFIN Holdings Limited, the
Hong Kong Company. The purpose of the Hong Kong Company is to function as the
current regional hub, carrying out the majority of operations of the Company.
All of the previous entities share the same exact business plan with the goal of
providing business mentoring services, nurturing and incubation services
relating to client businesses and corporate development advisory services to
entrepreneurs in the broader technology industry, but with a specific focus on
the information and communication technology industry. We will, at least
initially, primarily focus our efforts on nurturing ICT entrepreneurs in Asia.
Our advisory services will center on our "ICT Start-Up Mentorship Program",
which is designed to assist tech-based entrepreneurs in solving ICT industry
pain points caused by technical insufficiencies, inappropriate financial
modelling and weak strategic positioning within a competitive environment.
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Results of Operation
For the three months ended September 30, 2022 and 2021
Revenues
For three months ended September 30, 2022 and 2021, the Company has generated
revenue of $0.
Cost of Revenue and Gross Margin
For the three months ended September 30, 2022 and 2021, cost incurred arise in
providing corporate development advisory services is $0 and generate a gross
profit of $0 the for the three months ended September 30, 2022 and 2021.
General and administrative expenses
For the three months ended September 30, 2022 and 2021, we had general and
administrative expenses in the amount of $12,629 and $32,661 respectively, which
was primarily comprised of company consultation fee and review fee.
Net Loss
For the three months ended September 30, 2022 and 2021, the Company has incurred
a net loss of $10,879 and $29,852 respectively. The loss is mainly derived from
the general and administrative expenses.
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Liquidity and Capital Resources
As of September 30, 2022 and December 31, 2021, we had cash and cash
equivalents of $916,874 and $980,681 respectively. We had negative operating
cash flows due to minimal operating activity we expect increased levels of
operating activities going forward will result in more significant cash
outflows.
We depend substantially on financing activities to provide us with the liquidity
and capital resources we need to meet our working capital requirements and to
make capital investments in connection with ongoing operations. For the three
months ended September 30, 2022 and 2021, we have met these requirements
primarily from previous sales of our common stock.
Cash Used In Operating Activities
For the nine months ended September 30, 2022 and 2021 net cash used in operating
activities was negative $63,807 and $345,301 which were the result of our net
loss attributable to administration expenses.
Credit Facilities
We do not have any credit facilities or other access to bank credit.
Off-balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in our financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that are material to our
stockholders as of September 30, 2022.
Recent Accounting Pronouncements
The Company has reviewed all recently issued, but not yet effective, accounting
pronouncements and do not believe the future adoption of any such pronouncements
may be expected to cause a material impact on its financial condition or the
results of its operations.
In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No.
2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit
Losses on Financial Instruments, which introduced the expected credit losses
methodology for the measurement of credit losses on financial assets measured at
amortized cost basis, replacing the previous incurred loss methodology. The
amendments in Update 2016-13 added Topic 326, Financial Instruments-Credit
Losses, and made several consequential amendments to the Codification. The
amendments in this Update address those stakeholders' concerns by providing an
option to irrevocably elect the fair value option for certain financial assets
previously measured at amortized cost basis. For those entities, the targeted
transition relief will increase comparability of financial statement information
by providing an option to align measurement methodologies for similar financial
assets. Furthermore, the targeted transition relief also may reduce the costs
for some entities to comply with the amendments in Update 2016-13 while still
providing financial statement users with decision-useful information. In
November 2019, the FASB issued ASU No. 2019-10, which to update the effective
date of ASU No. 2016-13 for private companies, not-for-profit organizations and
certain smaller reporting companies applying for credit losses, leases, and
hedging standard. The new effective date for these preparers is for fiscal years
beginning after December 15, 2022. ASU 2019-05 is effective for the Company for
annual and interim reporting periods beginning January 1, 2023 as the Company is
qualified as a smaller reporting company. The Company is currently evaluating
the impact ASU 2019-05 may have on its consolidated financial statements.
FASB issues various Accounting Standards Updates relating to the treatment and
recording of certain accounting transactions. On June 10, 2014, the Financial
Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-10,
Development Stage Entities (Topic 915) Elimination of Certain Financial
Reporting Requirements, including an Amendment to Variable Interest Entities
Guidance in Topic 810, Consolidation, which eliminates the concept of a
development stage entity (DSE) entirely from current accounting guidance. The
Company has elected adoption of this standard, which eliminates the designation
of DSEs and the requirement to disclose results of operations and cash flows
since inception.
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