QDM INTERNATIONAL INC. The following discussion and analysis is based on, and should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this Report. Management's Discussion and Analysis of Financial Condition and Results of Operations contains statements that are forward-looking. These statements are based on current expectations and assumptions that are subject to risk, uncertainties and other factors. These statements are often identified by the use of words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate," or "continue," and similar expressions or variations. Actual results could differ materially because of the factors discussed in "Risk Factors" elsewhere in this Report, and other factors that we may not know.
Overview
From 2016 to 2020, we were a telemedicine company that provides Connect-a-Doc telemedicine kits to schools. Our services aimed to provide alternatives to schools that desire to provide a higher level of healthcare to their students but are unable to keep a full-time school nurse available. In 2020 this business was discontinued and we became a non-operating "shell" company.
Following the change in control in
On
As a result of the consummation of the Share Exchange, we acquired QDM BVI and
its indirect subsidiary, YeeTah, an insurance brokerage company primarily
engaged in the sales and distribution of insurance products in
Impact of COVID-19 and Protests
Impact of COVID-19
An outbreak of a novel strain of the coronavirus, COVID-19, was identified in
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With social distancing measures having been implemented to curtail the spread of
COVID-19, insurance brokers in
Customers from mainland
Impact of Protests in
Since early 2019, a number of political protests and conflicts have occurred in
Under the Basic Law of the
Our revenue is susceptible to
It is unclear whether there will be other political or social unrest in the near
future or that there will not be other events that could lead to the disruption
of the economic, political and social conditions in
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Results of Operations
Years Ended
The following table presents an overview of the results of operations for the
years ended
For The Year For The Year
Ended Ended
March 31, March 31,
2021 2020
Revenue $ 123,438 $ 221,289
Cost of sales 123,046 200,011
Gross profit 392 21,278
Operating costs and expenses:
General and administrative expenses 314,867 592,789
Total operating costs and expenses 314,867 592,789
Loss from operations (314,475 ) (571,511 )
Total other income 6,773 82,512
Net loss $ (307,702 ) $ (488,999 )
Revenue
Revenue decreased by approximately
Cost of sales
Cost of sales represented commissions paid to individuals or companies
Gross margin
Gross margin was 0.3% for the year ended
General and administrative expenses
General and administrative expenses consist primarily of stock-based payments,
employee salaries, office rents, insurance costs, general office operating
expenses (e.g. utilities, repairs and maintenance) and professional fees.
General and administrative expenses decreased by approximately
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Other income
Other income decreased by approximately
Net loss
As a result of the factors described above, net loss for the year ended
Foreign Currency Translation
The Company's reporting currency is
Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currency at the prevailing rates of exchange at the balance date. The resulting exchange differences are reported in the statements of operations and comprehensive income.
The exchanges rate used for translation from
Liquidity and Capital Resources
The Company
We have financed our operations primarily through cash generated by operating
activities, equity financings and advances from our principal stockholder. We
are a holding company and conduct substantially all of our operations through
YeeTah, which is our only entity that has cash inflows and outflows. Our
expenses are paid directly either by YeeTah or our principal stockholder. There
have been no cash and any asset transactions between us and our subsidiaries
since the Share Exchange. As of
March 31, March 31,
2021 2020
Net cash used in operating activities $ (350,728 ) $ (132,632 ) Net cash provided by (used in) financing activities 323,553 17,856 Net increase (decrease) in cash, cash equivalents (27,175 ) (114,776 ) Cash and cash equivalents at beginning of year
62,780 177,556
Cash and cash equivalents at end of year $ 35,605 $ 62,780 Our working capital requirements mainly comprise of commissions paid to
technical representatives and referral fees, operating lease payments and
employee salaries. Historically, our capital requirements were generally met by
cash generated from our operations, equity financings and funding from our
principal stockholder. In light of impact on our operations from the civilian
protests in
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Operating Activities:
Net cash used in operating activities was approximately
(1) Change in accounts receivable resulted in an approximately $8,000 cash
inflow for the year ended March 31, 2021 , while for the year ended
March 31, 2020 , change in accounts receivable was an approximately
$77,000 cash inflow, which led to an approximately $70,000 decrease in
net cash inflow from operating activities.
(2) Change in prepaid expenses resulted in an approximately $29,000 cash
outflow for the year ended March 31, 2021 , while for the year ended
March 31, 2020 , change in prepaid expenses resulted in a cash inflow of
approximately $6,000 , which led to an approximately $34,000 increase in
net cash outflow from operating activities.
(3) Change in accounts payable and accrued liabilities resulted in an
approximately $14,000 cash outflow for the year ended March 31, 2021 ,
while for the year ended March 31, 2020 , change in accounts payable and
accrued liabilities generated a cash inflow of approximately $30,000 ,
which led to an approximately $44,000 increase in net cash outflow from
operating activities.
(4) Change in non-cash operating items resulted in an approximately $21,000
cash inflow for 2021, while for 2020, change in non-cash operating
items resulted in a cash inflow of approximately $276,000 , which led to
an approximately $255,000 decrease in net cash inflow from operating
activities
Financing Activities:
Net cash generated from financing activities was approximately
Net cash generated from financing activities was approximately
Material Commitments
We have no material commitments for the next twelve months. We will, however, require additional capital to meet our liquidity needs.
We had one office lease agreement and our lease commitments as of
Payments due by period
Less than Over
Total 1 year 1-3 years 3 years
Operating lease obligations
Critical Accounting Policies
Please refer to the notes to the Company's consolidated financial statements included in this Report for details of critical accounting policies. There were no areas requiring significant management judgments and estimates for the periods covered by this Report.
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Off-balance Sheet Commitments and Arrangements
As of
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