Forward looking statement notice
Statements made in this Form 10-Q that are not historical or current facts are
"forward-looking statements" made pursuant to the safe harbor provisions of
Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the
Securities Exchange Act of 1934. 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.Financial information
contained in this quarterly report and in our unaudited interim financial
statements is stated in
11 IN GENERAL
We were incorporated on 26 of
From inception until the date of this filing we have had limited operating
activities, primarily consisting of the incorporation of our company, the
initial equity funding by our sole officer and director, renting our office
space in
We are a company which is in the business of 3D products. The Company has the
registration location with the following address
INITIAL FOCUS OF OUR BUSINESS
We are in the early stages of developing our plan to distribute 3D goods and
accessories in
We do not have any specific marketing channels in place at this point to be able to market our services to potential customers. But, in the next twelve months, to advertise our business, we plan to contact the marketing companies that will provide services to us to spread our name to the masses. In addition, we will place our own ads on Internet open spaces and create accounts in social networks.
OUR PRODUCTS
Brief History of Our Products
3D printing is a tremendously exciting new technology that is changing the face
of modern manufacturing. The transformative impact of this technology on the way
we produce things is only likely to increase as it continues developing. The 3D
printing has become considerably more visible in recent years, as 3D printing
companies pop up in more communities, and 3D printed products become more
popular. While it may seem like the 3D printing has only recently exploded onto
the scene, the technology has actually been around for three decades. After the
first 3D printing patent was awarded to
A few years later, a team of French inventors applied in
Today, desktop 3D printers are cheaper and better than ever and continuing to improve. While there is a dedicated core group of enthusiasts who benefit from having a machine in their homes, most of the desktop units are actually used in schools and businesses. Besides, the quality achievable by the commercial units is still far above what the more modest consumer-grade printers can produce. For most individuals, 3D printing services are the best way to take advantage of the ever-growing potential of additive manufacturing. Buyers can get access to top-of-the-line printers and materials for the projects they need, without having to invest in buying a machine themselves.
12 Current Market
The market share concentration in the global 3D manufacturing industry increased in recent years because of the demand in the market of manufacturing and services. 3D Printing can be used in all spheres of human activity without exception. This versatile production that allows going beyond the capabilities of a single industry.
The structure of the whole production is divided into small steps that include:
preparation of the necessary materials to create products, build up a model of
certain goods using special programs, followed by a stage of the creation of the
product and its handling after printing. Additionally, 3D printing is a future
of the whole industries, as companies that operate in developed economies
outsource 3D products from emerging economies, such as
There are many well-established 3D companies in our industry. We hope to offer the latest 3D products to our customers, at the lowest price, so we can succeed in the business. We believe we can offer our customers the best possible prices for the similar or better quality products than other companies in same business area.
We have entered into a supply agreement with
MARKETING
Our sole officer and director, Zhang Shufang, will be responsible for marketing of our services. The marketing and advertising will be targeted to small businesses, building company, advertising agencies, home owners and various sectors which have need of 3D products and 3D models. To advertise our business, we plan to contact the marketing companies that will provide services to us to spread our name to the masses. In addition, we will place our own ads on Internet open spaces and create accounts in social networks. We plan to develop a website to market, display and sell our products. Also we will ask our satisfied clients for referrals.
We believe that the best way to market our products is through magazines, banner
advertising, Internet advertising on websites, and through our website
(www.corpchee.com), and various social networking sites. We believe that we can
establish relationships with 3D product distributors in
COMPETITION
There are many well-established 3D manufacturing companies in our industry like
STARTUP EQUIPMENT
We are startup developing company. We believe that the 3D printer business will be successful in the market, as the 3D-printer can print products for different spheres of consumers. The 3D-printer optimally created for small businesses. To start the conduct of our business, we purchase printer (Ultimaker two plus). As of the day of this filing we bought the second 3D printed machine Ultimaker two plus and put it into production. This is due to the fact that 3D printing machine spends a lot of time on one units of product.
13 PRINTERName : Ultimaker 2+ Pros:
Precision- you can independently adjust the thickness of the layer, under the diameter of the nozzle. Well prints all the small details, perfectly drawing out the outline and all the components of the figure.
Ease of use- software management is easy and understandable in operation.
Speed- you can independently regulate speed of the printing, depending on quality and throughput.
Software- with software allows you to start working with 3D printer in no time, and it optimized for an Ultimaker 2+.
Community- if you have some issue with printer, experts can give a hand in any time.
The most obvious cons of our printer are:
No dual extruder- this point reduces the production time frame.
Connectivity- the printer does not have WiFi connectivity, and the only way you can send files without WiFi -is via the SD Card.
Specifications: PRINTER TYPE -FDM
MATERIAL - PLA, ABS, CPE, CPE+, PC, Nylon, TPU 95A
BUILD VOLUME-23 x 22.5 x 20.5 cm
EXTRUDER HEAD -1
XY PRECISION -12.5 microns
PRINTING SPEED -30-300 mm/s
OPEN SOURCE -Hardware & software
CAN YOU USE 3RD PARTY MATERIAL? -Yes
HEATED PLATFORM -Yes FILAMENT DIAMETER -2.85 ON-PRINTER CONTROLS -Yes CONNECTIVITY -SD card SMOOTHING STATION
Description:
COMPUTERName : MacBook Pro Description:
15-inch MacBook Pro Touch Bar and Touch ID 2.9GHz Processor, 512GB Storage.
For starting 3D business, we are going to expand materials we use and develop our creativeness in 3d business. There are 3(three) kinds of materials that we are going to use firstly:
ABS (acrylonitrile butadiene styrene) and PLA (polylactic acid) - are great starter materials: affordable, durable and widely available. They`re available in all colors, and well-suited for prototyping mechanical parts and designs that don`t have a lot of overhangs.
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Printing with general purpose plastics come with some design restrictions. Models with an outward facing wall angle sharper than 45 degrees can`t be printed without extra support material and parts under 1 mm will most likely not print.
Ideal for: -Low-cost prototyping -Mechanical parts -Cases, holders, adapters -Games, toys -Scale models Not recommended for: -Intriate designs
SLS Nylon - it's the perfect all-rounder: easy design rules, strong and slightly flexible. Nylon allows for functional end products and complex designs. Its surface is a bit grainy, but it can be polished for a smooth finish.
Nylon prints are laser sintered on industrial 3D printers. The technology gives you a high degree of form freedom and you can even print moving parts in one go.
Ideal for:
-Functional prototypes and end products
-Complex designs with intricate details
-Moving and assembled parts -Cases, holders, adapters Not recommended for:
-Cavities within design (unless making use of escape holes)
For the first time we are going to buy 5 coils of the lead material (PLA and ABS) and one extra spool of ABS, that we are ready to put into production of the exhibition samples of our products. As auxiliary material we are going to use Nylon (three coils) for extra cases and our more advanced features. Our customers will be able to independently create a suitable model for 3D printing, which we will manufacture later on 3D machine, or else our company itself can provide or create models for individual orders. As a complement to our overall operations, we plan to use 3D pen and then buy a 3D scan to improve the quality and accuracy of finished products.
We believe that this is enough to start operation, further more we will buy additional portion of the equipment.
RESEARCH AND DEVELOPMENT EXPENDITURES
We have not incurred any research expenditures since our incorporation.
BANKRUPTCY OR SIMILAR PROCEEDINGS
There has been no bankruptcy, receivership or similar proceeding.
REORGANIZATIONS, PURCHASE OR SALE OF ASSETS
There have been no material reclassifications, mergers, consolidations, or purchase or sale of a significant amount of assets not in the ordinary course of business.
COMPLIANCE WITH GOVERNMENT REGULATION
We will be required to comply with all regulations, rules and directives of governmental authorities and agencies applicable to the construction and operation of any facility in any jurisdiction which we would conduct activities.
We do not believe that any existing or probable government regulation on our
business, including any applicable export or import regulation or control
imposed by
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PATENTS, TRADEMARKS AND COPYRIGHTS
We do not own, either legally or beneficially, any patents or trademarks. We intend to protect our website (www.corpchee.com) with copyright laws. Beyond our trade name, we do not hold any other intellectual property.
FACILITIES
We are renting property in
EMPLOYEES AND EMPLOYMENT AGREEMENTS
We have no employees except our Director Zhang Shufang. Our sole officer and director, Zhang Shufang, currently devotes approximately 20 hours per week to company matters. After receiving funding, Zhang Shufang plans to devote as much time to the operation of the Company as he determines is necessary for him to manage the affairs of the Company. As our business and operations will be increase, we will assess the need for full time management and administrative support personnel.
RESULTS OF OPERATIONS
We have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.
We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.
Revenue and cost of goods sold
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Operating expenses
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16 Net Loss
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LIQUIDITY AND CAPITAL RESOURCES
As at
As at
CASH FLOWS FROM OPERATING ACTIVITIES
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CASH FLOWS FROM INVESTING ACTIVITIES
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CASH FLOWS FROM FINANCING ACTIVITIES
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MANAGEMENT'S DISCUSSION AND ANALYSIS
You should read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and the related notes and other financial information. Some of the information contained in this discussion and analysis, including information with respect to our plans and strategy for our business and related financing.
We qualify as an "emerging growth company" under the JOBS Act. As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long as we are an emerging growth company, we will not be required to:
· Have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;
· Provide an auditor attestation with respect to management's report on the effectiveness of our internal controls over financial reporting;
· Comply with any requirement that may be adopted by the
· Submit certain executive compensation matters to shareholder advisory votes, such as "say-on-pay" and "say-on-frequency;" and
· Disclose certain executive compensation related items such as the correlation between executive compensation and performance comparisons of the CEO's compensation to median employee compensation.
In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.
We will remain an "emerging growth company" for up to five years, or until the
earliest of (i) the last day of the first fiscal year in which our total annual
gross revenues exceed
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We believe that we will be able to raise enough money through the offering to continue our proposed operations, but we cannot guarantee that once we continue operations we will stay in business after doing so. If we are unable to successfully find customers, we may quickly use up the proceeds from this offering and will need to find alternative sources.
OFF-BALANCE SHEET ARRANGEMENTS
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
LIMITED OPERATING HISTORY; NEED FOR ADDITIONAL CAPITAL
There is no historical financial information about us upon which to base an evaluation of our performance. We are in start-up stage operations and have generated limited revenues. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services and products.
We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholders.
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