BACKGROUND

Adaiah Distribution Inc. was incorporated in the State of Nevada as a for-profit company on September 12, 2013 and established a fiscal year end of October 31. The Company in January 2015 raised funds of $40,000 thru the issuance of 1,000,000 common shares to 30 shareholders and started operations in manufacturing and selling Pillows.

During the third fiscal quarter ending July 31, 2018 the Company had ceased its operations of its Pillow manufacturing and sales and is not currently engaged in any business operations. We are however in the process of attempting to identify locate, and if warranted, acquire new commercial opportunities.

RESULTS OF AND PLAN OF OPERATION

Our revenue for the years ended October 31, 2019 and 2018 was 0 and $20,544, respectively. Our cost of goods sold for the years ended October 31, 2019 and 2018 was $0 and $15,347 resulting in a gross profit of $0 and $5,207, respectively. Our operating expenses for the years ended October 31, 2019 and 2018 were $126,097 and $15,347 respectively.

In the third quarter of the current fiscal year ending October 31, 2018 the Company ceased it's operations and wrote off its net assets as an expense with no further economic value in the amount of $6,943 and hence the net (loss) for the years ended October 31, 2019 and 2018 was $(126,097) and $(6,368) respectively.

LIQUIDITY AND CAPITAL RESOURCES

At October 31 2019 the Company had zero in cash but had the following liabilities, of a convertible note to the CEO in the amount of $9,956 and $11,141 of accrued operating expenses. Our new director has agreed, verbally, to continue to loan the company funds for operating expenses in a limited scenario, but he has no legal obligation to do so.

The company anticipates over the next 12 months the cost of being a reporting public company will be approximately $12,000.

The company is not currently eligible to register securities on Form S-3 and will be unable to use short-form registration until it has timely filed all required reports under the Exchange Act for the 12 months before filing a registration statement. This may increase the Company's transaction costs and adversely impact its ability to raise capital in a timely manner, as discussed in more detail elsewhere in this Form 10-K.





Cash Flows

For the fiscal years ending October 31, 2019 and October 31, 2018 the Company used cash in operating activities of $14,956 and $33 respectively and received cash from financing activities of $14,956 and $0 respectively. There we no investing activities in either fiscal year.

OTHER CONTRACTUAL OBLIGATIONS





NONE

OFF-BALANCE SHEET ARRANGEMENTS





NONE

RECENTLY ISSUED ACCOUNTING PRINCIPLES

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company's results of operations, financial position or cash flow.






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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates and Assumptions

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

Due to the limited level of operations, the Company has not had to make material assumptions or estimates.





Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Fair Value of Financial Instruments

ASC 825, "Disclosures about Fair Value of Financial Instruments", requires disclosure of fair value information about financial instruments. ASC 820, "Fair Value Measurements" defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of October 31, 2019.

The respective carrying values of certain on-balance-sheet financial instruments approximate their fair values. These financial instruments include cash, accrued liabilities and notes payable. Fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair value.

Basic and Diluted Loss Per Share

The Company computes earnings (loss) per share in accordance with ASC 260-10-45 "Earnings per Share", which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings (loss) per share excludes all potential common shares if their effect is anti-dilutive. The Company has no potential dilutive instruments, and therefore, basic and diluted earnings (loss) per share are equal.





Revenue Recognition

The company follows the guidelines of ASC 605-15 for revenue recognition.





Income Taxes

We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, "Income Taxes." Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.

ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.






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