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

During the quarter ending November 30, 2019, the Company is still in the process of its commencement its operations with heavy emphasis into healthcare - primarily bird-nest based health supplement and bird-nest related health products which include manufacturing and retail (retail chain and online). With our expertise in online applications platform, 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) had 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 is delivered directly from the farmer to the processor so that we would not have to maintain facility to store these raw bird-nests at this early stage.

FB had also made arrangement to utilize a raw bird-nest processing factory located at our office building as a show factory for visits by our potential customers for processed bird-nest and bird-nest based health supplement. Temporary; this arrangement were based on mutual understanding and no official documents were executed yet.

FB had also placed an initial deposit for our OEM personal cleansing and nourishing facial products, these initial batches of the products would generally be used for marketing purpose ie. As trial samples for potential customers

Our office is located at 8th Floor, Wisma Huazong, Lot 15285, 0.7 km Lebuhraya Sungei Besi, 43300 Seri Kembangan, Selangor Darul Ehsan, Malaysia and the bird-nest show factory is located at Level B1 in the same office building. Our corporate website is http://fellazo.com.






         10

  Table of Contents




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, 2019 and November 30, 2018





                                        Three Months Ended
                                           November 30,
                                         2019          2018        Change       %
Revenue                               $   37,865     $      -     $ 37,865        -
Cost of revenue                           27,089            -       27,089        -

General and administrative expenses 73,329 44,810 28,519 64 % Net loss

$   62,553     $ 44,810     $ 17,743       40 %

For the three months ended November 30, 2019, we had revenue of $37,865 and cost of revenue of $27,089, as compared to $0 and $0 for the same period in 2018. The Company started with trading of raw bird-nest and it is an initial stage of our operations.

Our general and administrative expenses were $73,329 for the three months ended November 30, 2019, as compared to $44,810 for the same period in 2018. The increase in general and administrative expenses was primarily due to increased management fees and traveling expense.

Liquidity and Capital Resources





Working Capital



                              November 30,      August 31,
                                  2019             2019          Change          %
Current assets               $       39,843     $    73,572     $ (33,729 )     (46%)
Current liabilities          $      880,653     $   851,699     $  28,954           3 %
Working capital deficiency   $     (840,810 )   $  (778,127 )   $ (62,683 )         8 %

The Company's current assets consists of cash and cash equivalents of $23,467 and prepaid expense and deposit of $16,376 at November 30, 2019, as compared to cash and cash equivalents of $54,467 and prepaid expense of $19,105 at August 31, 2019.

As at November 30, 2019, current liabilities consisted of accounts payable and accrued liabilities of $14,000 and due to a related party of $866,653, as compared to August 31, 2019, current liabilities consisted of accounts payable and accrued liabilities of $27,000 and due to a related party of $824,699. The increase in current liabilities is primarily due to the operating expenses paid by the related party.






         11

  Table of Contents




Cash Flows



                                                Three Months Ended
                                                   November 30,
                                                 2019          2018        Change

Cash provided by operating activities $ 3,858 $ 59,225 $ (55,367 ) Cash provided by financing activities

            (35,164 )          -       (35,164 )

Effects on changes in foreign exchange rate 306 (384 ) 690 Net change in cash and cash equivalents $ (31,000 ) $ 58,841 $ (89,841 )

Cash Flow from Operating Activities

Cash flows provided by operations was $3,858 during the three months ended November 30, 2019, compared with $59,225 during the same period in 2018. The decrease is mainly due to an increase in net loss offset by expenses paid by related party and a decrease in accounts payable and accrued liabilities.

Cash Flow from Financing Activities

During the three months ended November 30, 2019, the Company received $227,708 from a related party and paid $262,872 for expenses on behalf of 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 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission on August 10, 2020.

© Edgar Online, source Glimpses