FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our unaudited consolidated financial statements are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our consolidated financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to "common shares" refer to the common shares in our capital stock.

As used in this quarterly report, the terms "we", "us", "our", "our company" or "the Company" mean Fellazo Corp., and Fellazo Berhad, a Malaysian company, of which we own 49%, unless otherwise indicated.

Overview of Corporate History

Fellazo Corp. was incorporated in the State of Nevada on May 28, 2014. The Company's fiscal year end is August 31.

Overview of Current Business

The Company's core business is "Healthcare and Personal Wellness" products - primarily bird-nest based, which include manufacturing and retail (retail chain and online). With our expertise in online applications platforms, we will be developing an online network platform to market and sell our products. and also create a system to source and purchase raw materials we required.

In mid of October 2019, the Company's 49% subsidiary Fellazo Berhad (FB) started purchases of raw bird-nests directly from bird-nest farmers or their agents and re-sold them to bird-nest processors; wherever possible these raw bird-nests are delivered directly from the farmer to the processor, so that we would not have to maintain a facility to store these raw bird-nests at an early stage of our business development.

FB's show factory had since moved to a new location after our Head-Office moved to Putrajaya, the Malaysian Government's Federal Administrative Center. The new show factory is located within half an hour from our office and continue to be managed by our Management Agent, Swipypay Berhad.

Due to the continuous effects of the Covid-19 pandemic and the economy uncertainty, our operations are on bare minimum and any plan for expansion had been put on hold until the overall economy climate improves.

On April 1, 2021, Yap Kit Chuan, President, director and owner of ninety-six percent (96%) of the issued and outstanding shares of Common Stock of the Company, agreed to transfer, to a number of business associates, up to approximately 26,000,000 shares of the Company's Common Stock, representing thirty percent (30%) of the total issued and outstanding shares of Common Stock of the Company.






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On July 15, 2021, Yap Kit Chuan, agreed to increase the proposed transfers up to a total of 35,000,000 shares, representing up to forty-one percent (41%) of the issued and outstanding shares of the Company's Common Stock. The transfer will occur from time to time and will now be completed on or before November 30, 2022. The transfers will be undertaken pursuant to Regulation S of the Securities Act of 1933, and the shares transferred will continue to carry a restrictive legend.

As of November 30,2022, the total of 38,335,873 shares have been transferred to 249 new and 9 existing shareholders, and the number of shares belonged to Yap Kit Chuan was 47,928,127 shares.

Our office is located at T2-L8-3, Level 8, IOI City Tower Two, Lebuh IRC, IOI Resort City, 62502 Putrajaya, Malaysia. Our corporate website is http://fellazo.com.

We have never declared bankruptcy, been in receivership, or involved in any kind of legal proceeding.





Results of Operations

The following summary of our results of operations should be read in conjunction with our financial statements included elsewhere in this quarterly report.

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.

Comparison of the three months ended November 30, 2022 and 2021





                                        Three months ended
                                           November 30,
                                         2022          2021        Change        %
Revenue                               $   10,249     $ 12,026     $ (1,777 )   (15%)
Cost of Goods Sold                         5,741        7,674       (1,933 )   (25%)

General and administrative expenses 89,636 92,297 (2,661 ) (3%) Net loss

$   85,128     $ 87,945     $ (2,817 )    (3%)

For the three months ended November 30, 2022, we had revenue of $10,249 and cost of goods sold of $5,741, as compared to $12,026 and $7,674 for the same period in 2021. The Company started with trading of raw bird-nest since fiscal year 2020 and it is an initial stage of our operations.

Our general and administrative expenses were $89,636 for the three months ended November 30, 2022, as compared to $92,297 for the same period in 2021. General and administrative expense mainly consisted of management fee and payroll expense.

Our net loss decreased by $2,817 mainly due to a decrease in general administrative expenses.

Liquidity and Capital Resources





Working Capital



                             November 30,       August 31,
                                 2022              2022          Change        %
Current assets               $      24,846     $     20,873     $   3,973       19 %
Current liabilities          $   1,846,346     $  1,756,280     $  90,066        5 %
Working capital deficiency   $  (1,821,500 )   $ (1,735,407 )   $ (86,093 )      5 %





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The Company's current assets consists of cash of $4,464, inventory of $8,485 and deposit for purchases of inventory $11,897 at November 30, 2022, as compared to cash of $9,055 and deposit for purchases of inventory of $11,818 at August 31, 2022.

As at November 30, 2022, current liabilities consisted of accounts payable and accrued liabilities of $18,285 and due to a related party of $1,828,061, as compared to August 31, 2022, current liabilities consisted of accounts payable and accrued liabilities of $18,317 and due to a related party of $1,737,963. The increase in current liabilities is primarily due to the operating expenses paid by the related party.





Cash Flows



                                            Three months ended
                                               November 30,
                                            2022          2021         Change           %
Cash provided by (used in) operating                                                    (189%)
activities                               $   (3,778 )   $   4,260     $  (8,038 )
Cash used in financing activities              (682 )      (5,739 )       5,057          (88%)
Effects on changes in foreign exchange
rate                                           (131 )         (29 )        (102 )          352 %
Net change in cash                       $   (4,591 )   $  (1,508 )   $  (3,083 )          204 %

Cash Flow from Operating Activities

Cash flows used by operations was $3,778 during the three months ended November 30, 2022, compared with cash provided of $4,260 during the same period in 2021. The decrease in cash provided by operating activities is mainly due to an increase in inventory.

Cash Flow from Financing Activities

During the three months ended November 30, 2022, the Company repaid $682 to a related party. During the three months ended November 30, 2021, the Company received $40,732 from a related party and repaid $46,471 to a related party.

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 that is material to stockholders.

Critical Accounting Policies and Estimates

Management's discussion and analysis of our financial condition and results of operations are based upon our unaudited consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. We review the accounting policies used in reporting our financial results on a regular basis. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, net sales and expenses and related disclosure of contingent liabilities. We base our estimates on historical experience and on various other assumptions that we believe are reasonable for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Our actual results may differ materially from these estimates.

For a complete description of our critical accounting policies and estimates, refer to our 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission on December 13, 2022.






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