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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

(Mark One)

 

x 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended October 31, 2018

 

or 

 

¨

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ________ to ________

 

Commission File Number 333-213744

 

GLOBAL HOUSE HOLDNGS LTD.

(Exact name of registrant as specified in its charter) 

 

Nevada

 

37-1817132 

(State or other jurisdiction of incorporation or organization)    

 

(IRS Employer Identification No.) 

 

 

 

   

No. 9, Alley 27, Section 4, Renai Road, Daan District, Taipei, Taiwan

 

 

(Address of principal executive offices)

 

(Zip Code)

   

852-5238 9111

(Registrant’s telephone number, including area code)

 

N/A

(Former name, former address and former fiscal year, if changed since last report) 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x YES   ¨ NO

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x YES   ¨ NO

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

Large accelerated filer

¨

 

Accelerated filer

¨

Non-accelerated filer

¨

(Do not check if a smaller reporting company)

Smaller reporting company

x

 

 

 

Emerging growth company

x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) x YES   ¨ NO

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

 

Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. ¨ YES   ¨ NO

 

APPLICABLE ONLY TO CORPORATE ISSUERS

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

111,800,000 common shares issued and outstanding as of December 13, 2018.

 

 
 
 
 

 TABLE OF CONTENTS

  

 

 

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

 

Item 1.

Financial Statements

 

3

 

Item 2.

Management's Discussion and Analysis of Financial Condition or Plan of Operation

 

9

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

12

 

Item 4.

Controls and Procedures

 

13

 

 

 

 

 

PART II - OTHER INFORMATION

 

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

14

 

Item 1A.

Risk Factors

 

14

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

14

 

Item 3.

Defaults Upon Senior Securities

 

14

 

Item 4.

Mine Safety Disclosures

 

14

 

Item 5.

Other Information

 

14

 

Item 6.

Exhibits

 

15

 

SIGNATURES 

 

16

 

      

 
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PART I - FINANCIAL INFORMATION

 

Item 1. Condensed Interim Financial Statements

 

GLOBAL HOUSE HOLDINGS LTD.

BALANCE SHEETS

(Unaudited)

  

 

 

October 31,

 

 

April 30,

 

 

 

2018

 

 

2018

 

ASSETS

Current Assets:

 

 

 

 

 

 

Prepaid expenses

 

$ 21,888

 

 

$ 403

 

Total Current Assets

 

 

21,888

 

 

 

403

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$ 21,888

 

 

$ 403

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

650

 

 

 

1,760

 

Due to related party

 

 

72,268

 

 

 

21,218

 

Total Current Liabilities

 

 

72,918

 

 

 

22,978

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

 

72,918

 

 

 

22,978

 

 

 

 

 

 

 

 

 

 

Stockholders' Deficit:

 

 

 

 

 

 

 

 

Common stock, $0.001 par value, 1,500,000,000 shares authorized 111,800,000 shares issued and outstanding

 

 

111,800

 

 

 

111,800

 

Additional paid-in capital (deficiency)

 

 

(83,737 )

 

 

(83,737 )

Accumulated deficit

 

 

(79,093 )

 

 

(50,638 )

Total Stockholders' Deficit

 

 

(51,030 )

 

 

(22,575 )

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

 

$ 21,888

 

 

$ 403

 

 

The accompanying notes are an integral part of these unaudited condensed financial statements.

     

 
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GLOBAL HOUSE HOLDINGS LTD.

STATEMENTS OF OPERATIONS

 (Unaudited)

   

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

October 31,

 

 

October 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$ -

 

 

$ -

 

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

21,013

 

 

 

14,493

 

 

 

28,455

 

 

 

25,181

 

Total Operating Expenses

 

 

21,013

 

 

 

14,493

 

 

 

28,455

 

 

 

25,181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

$ (21,013 )

 

$ (14,493 )

 

$ (28,455 )

 

$ (25,181 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss Per Common Share: Basic and Diluted

 

$ (0.00 )

 

$ (0.00 )

 

$ (0.00 )

 

$ (0.00 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Number of Common Shares Outstanding: Basic and Diluted

 

 

111,800,000

 

 

 

111,800,000

 

 

 

111,800,000

 

 

 

181,039,140

 

 

The accompanying notes are an integral part of these unaudited condensed financial statements.

 

 
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GLOBAL HOUSE HOLDINGS LTD.

STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Six Months Ended

 

 

 

October 31,

 

 

 

2018

 

 

2017

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss

 

$ (28,455 )

 

$ (25,181 )

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

-

 

 

 

616

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses

 

 

(21,485 )

 

 

8

 

Accounts payable and accrued liabilities

 

 

(1,110 )

 

 

-

 

Net cash used in Operating Activities

 

 

(51,050 )

 

 

(24,557 )

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

-

 

 

 

(5,100 )

Net cash used in Investing Activities

 

 

-

 

 

 

(5,100 )

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Repayment of debt to previous sole shareholder

 

 

-

 

 

 

(96 )

Proceeds from loan from shareholders

 

 

51,050

 

 

 

10,000

 

Net cash provided by Financing Activities

 

 

51,050

 

 

 

9,904

 

 

 

 

 

 

 

 

 

 

Net cash decrease for period

 

 

-

 

 

 

(19,753 )

Cash at beginning of period

 

 

-

 

 

 

29,728

 

Cash at end of period

 

$ -

 

 

$ 9,975

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$ -

 

 

$ -

 

Cash paid for interest

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

NON CASH INVESTING AND FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Cancellation of common shares

 

$ -

 

 

$ 7,000

 

Net assets transferred to previous sole shareholder

 

$ -

 

 

$ 7,837

 

 

The accompanying notes are an integral part of these unaudited condensed financial statements.

  

 
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GLOBAL HOUSE HOLDINGS LTD.

NOTES TO THE FINANCIAL STATEMENTS

October 31, 2018

(Unaudited)

 

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION

 

GLOBAL HOUSE HOLDINGS LTD. (the “Company”) is a corporation established under the corporation laws in the State of Nevada on March 29, 2016. The Company’s activities are subject to significant risks and uncertainties including failure to secure additional funding to properly execute the Company’s business plan.

 

On April 2, 2018, the Company approved an agreement and plan of merger for the purposes of changing our corporate name from Koldeck Inc. to Global House Holdings Ltd. Pursuant to the agreement and plan of merger, our company merged with our wholly-owned subsidiary Global House Holdings Ltd., a Nevada corporation. Koldeck Inc. remained the surviving company of the merger, continuing under the name Global House Holdings Ltd. The name change, as well as a 20:1 forward stock split, was approved by FINRA and effective April 3, 2018 (Note 4). Unless otherwise noted, impacted amounts and share information included in the financial statements and notes thereto have been retroactively adjusted to reflect the stock split as if it had occurred on the first day of the earliest period presented.

 

Basis of Presentation

 

The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended October 31, 2018 are not necessarily indicative of the results that may be expected for the year ending April 30, 2019. Notes to the unaudited interim financial statements that would substantially duplicate the disclosures contained in the audited financial statements for fiscal year 2018 have been omitted. This report should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended April 30, 2018 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on September 11, 2018.

 

NOTE 2 – GOING CONCERN

 

The Company’s condensed interim financial statements as of October 31, 2018, been prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The Company has incurred a cumulative net loss from inception (March 29, 2016) to October 31, 2018 of $79,093. These factors among others raise substantial doubt about the ability of the company to continue as a going concern for a reasonable period of time.

 

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These condensed interim financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

  

 
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NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Use of Estimates

 

Preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions.

 

Cash and Cash Equivalents

 

For purposes of the statement of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company's bank accounts are deposited in insured institutions. The funds are insured up to $250,000. At October 31, 2018, the Company's bank deposits did not exceed the insured amounts.

 

Financial Instruments

 

The Company’s financial instruments consist primarily of accounts payable and debts. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short-term maturities and approximate market interest rates of these instruments.

 

Basic and Diluted Loss Per Share

 

Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. The Company had no potentially dilutive instruments outstanding during the periods presented.

 

Revenue Recognition

 

The Company recognizes revenue from the sale of products and services in accordance with ASC 606,”Revenue Recognition” following the five steps procedure:

 

Step 1: Identify the contract(s) with customers

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to performance obligations

Step 5: Recognize revenue when the entity satisfies a performance obligation

 

The Company recognizes revenue when it satisfies its obligation by transferring control of the good or service to the customer. A performance obligation is satisfied over time if one of the following criteria are met:

   

  

a.

the customer simultaneously receives and consumes the benefits as the entity performs;

 

  

b.

the entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or

  

c.

the entity’s performance does not create an asset with an alternative use to the entity, and the entity has an enforceable right to payment for performance completed to date.

 

New Accounting Pronouncements

 

There were various accounting standards and interpretations issued recently, none of which are expected to a have a material impact on our financial position, operations or cash flows.

  

 
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NOTE 4 – CAPITAL STOCK

 

As of October 31, 2018, and April 30, 2018, the Company had 111,800,000 shares issued and outstanding.

 

On July 20, 2017, the sole officer and director of the Company returned and cancelled 140,000,000 common shares.

 

On October 26, 2017, our Board of Directors approved a forward stock split of the issued and authorized shares of common stock on the basis of 20 new shares for one (1) old share. The forward stock split was effective April 3, 2018 and resulted in the increase of our authorized capital from 75,000,000 shares of common stock to 1,500,000,000 shares of common stock. The issued and outstanding capital increased from 5,590,000 shares of common stock to 111,800,000 shares of common stock. The $0.001 par value of our common shares remains unchanged. Unless otherwise noted, impacted amounts and share information included in the financial statements and notes thereto have been retroactively adjusted to reflect the stock split as if it had occurred on the first day of the earliest period presented.

 

NOTE 5 – RELATED PARTY TRANSACTIONS

 

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by officers, directors, or shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.

 

During the six months ended October 31, 2018 and 2017, the Company’s sole officer and director loaned the Company $51,050 and $0, respectively, to pay for operating expenses.

 

The amounts are non-interest bearing and due on demand. As of October 31, 2018 and April 30, 2018, $72,268 and $21,218, respectively, is outstanding.

 

NOTE 6 – PREPAID EXPENSES

 

Prepaid expenses relate to prepayment made for future services in advance and will be expensed over time as the benefit of the services is received in the future, expected within one year.

 

Prepaid expenses consisted of the following at October 31, 2018 and April 30, 2018:

 

 

 

October 31,

 

 

April 30,

 

 

 

2018

 

 

2018

 

Legal Fees

 

$ 21,265

 

 

$ -

 

Accounting Fees

 

 

623

 

 

 

-

 

Transfer Agent Fees

 

 

-

 

 

 

403

 

 

 

$ 21,888

 

 

$ 403

 

 

NOTE 7– SUBSEQUENT EVENTS

 

Management has evaluated subsequent events through the date these condensed interim financial statements were issued. Based on our evaluation no material subsequent events have occurred that require disclosure.

  

 
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Item 2. Management's Discussion and Analysis of Financial Condition or Plan of Operation

 

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 financial statements are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our 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” and “our company” mean Global House Holdings Ltd., unless otherwise indicated.

 

General Overview

 

We were incorporated under the laws of the State of Nevada on March 29, 2016, under the name "Koldeck Inc." We are engaged in the business of content writing and editing services.

 

On October 26 2017, our Board of Directors approved a forward stock split of our issued and authorized shares of common stock on the basis of 20 new shares for one (1) old share as a result, our authorized capital would increase from 75,000,000 shares of common stock to 1,500,000,000 shares of common stock. Correspondingly, our issued and outstanding capital would increase from 5,590,000 shares of common stock to 111,800,000 shares of common stock, with no change to our par value.

 

Also on October 26, 2017, our Board of Directors approved an agreement and plan of merger for the purposes of changing our corporate name from Koldeck Inc. to Global House Holdings Ltd. Pursuant to the agreement and plan of merger, our company merged with our wholly-owned subsidiary Global House Holdings Ltd., a Nevada corporation. Koldeck Inc. remained the surviving company of the merger, continuing under the name Global House Holdings Ltd.

 

The resolutions of our Board of Directors approving the above described forward stock split and name change were subject to the prior approval of the Financial Industry Regulatory Authority (FINRA). On January 31, 2018, in anticipation of FINRA approval, we filed a Certificate of Change and Articles of Merger with the Nevada Secretary of State to give effect to the forward stock split and name change. The name change and forward stock split were subsequently approved by FINRA on March 29, 2018 with a market effective date of April 3, 2018. As a result, effective April 3, 2018, we adopted the new trading symbol GHHH.

 

Our business and corporate address is No. 9, Alley 27, Section 4, Renai Road, Daan District, Tapei, Taiwan and our telephone number is +852 5238 9111.

  

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

 

Our Current Business

 

Our main business activity is content writing and editing services. We plan to deliver our services to both individuals and companies, as well as to printed or digital newspapers and magazines. Our main objective is to provide our customers with a quality service of text composing and editing of written materials. As additional services we may offer help with illustrating and designing of book covers, as we plan to hire professional designers if business turns out profitable. We plan to write the texts based on data provided by our customers by mail, by phone or directly in person. We also plan to deliver services on writing creative texts such as pieces of fiction, poetry, blog posts, or articles for magazines or newspapers. We also plan to deliver texts unrelated to fiction, such as business proposals, presentations, bids, customer offers and letters. We also plan to offer turning drafts of our customers into concise texts by editing or rewriting. We also plan to carry out the jobs of editing or rewriting texts to make them more appealing to the final reader, as well as to make them look professionally-written. As business grows we may change our services to the needs of the markets or to the needs of the company or to meet the requirements of our customers.

 

Results of Operations

 

We have earned minimal revenues from our inception on March 29, 2016 (inception) through October 31, 2018, and $0 in revenue during the six months ended October 31, 2018 or 2017.

 

Three Months Ended October 31, 2018 Compared to Three Months Ended October 31, 2017

 

 

 

Three Months Ended

 

 

 

 

 

October 31,

 

 

 

 

 

2018

 

 

2017

 

 

Changes

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$ -

 

 

$ -

 

 

$ -

 

Operating Expenses

 

 

(21,013 )

 

 

(14,493 )

 

 

(6,520 )

Loss From Operations

 

 

(21,013 )

 

 

(14,493 )

 

 

(6,520 )

Net Loss

 

$ (21,013 )

 

$ (14,493 )

 

$ (6,520 )

 

Our condensed interim financial statements report a net loss of $21,013 for the three months ended October 31, 2018 compared to a net loss of $14,493 for the three months ended October 31, 2017. Our losses have increased by $6,520, primarily as a result of an increase in professional fees to fulfill our SEC reporting requirements.

 

Six Months Ended October 31, 2018 Compared to Six Months Ended October 31, 2017

 

 

 

Six Months Ended

 

 

 

 

 

 

October 31,

 

 

 

 

 

 

2018

 

 

2017

 

 

Changes

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$ -

 

 

$ -

 

 

$ -

 

Operating Expenses

 

 

(28,455 )

 

 

(25,181 )

 

 

(3,274 )

Loss From Operations

 

 

(28,455 )

 

 

(25,181 )

 

 

(3,274 )

Net Loss

 

$ (28,455 )

 

$ (25,181 )

 

$ (3,274 )

  

 
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Our condensed interim financial statements report a net loss of $28,455 for the six months ended October 31, 2018 compared to a net loss of $25,181 for the six months ended October 31, 2017. Our losses have increased by $3,274, primarily as a result of an increase in professional fees to fulfill our SEC reporting requirements.

 

Liquidity and Capital Resources

 

Working Capital

 

 

 

October 31,

 

 

April 30,

 

 

 

2018

 

 

2018

 

 

 

 

 

 

 

 

Current Assets

 

$ 21,888

 

 

$ 403

 

Current Liabilities

 

$ 72,918

 

 

$ 22,978

 

Working Capital (Deficiency)

 

$ (51,030 )

 

$ (22,575 )

 

Cash Flows

 

 

 

Six Months Ended

 

 

 

October 31,

 

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

Cash Flows used in Operating Activities

 

$ (51,050 )

 

$ (24,557 )

Cash Flows used in Investing Activities

 

 

-

 

 

 

(5,100 )

Cash Flows provided by Financing Activities

 

 

51,050

 

 

 

9,904

 

Net increase (decrease) in cash during period

 

$ -

 

 

$ (19,753 )

 

Our total current assets as of October 31, 2018 were $21,888 as compared to total current assets of $403 as of April 30, 2018 due to the increase in prepaid expenses.

 

Our total current liabilities as of October 31, 2018 were $72,918 as compared to total current liabilities of $22,978 as of April 30, 2018. The increase was primarily due to the increase in amount due to the director for increased advances made to the Company.

 

The report of our auditors on our audited financial statements for the fiscal year ended April 30, 2018, contains a going concern qualification as we have suffered losses since our inception. We have minimal assets and have achieved minimal operating revenues since our inception. We have been dependent on sales of equity securities and related party advances to conduct operations. Unless and until we commence material operations and achieve material revenues, we will remain dependent on financings to continue our operations.

 

Operating Activities

 

Net cash used in operating activities was $51,050 for the six months ended October 31, 2018 compared with net cash used in operating activities of $24,557 in the same period in 2017.

  

 
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During the six months ended October 31, 2018, the net cash used in operating activities was attributed to net loss of $28,455, increased by an increase in prepaid expenses of $21,485 and a decrease in accounts payable and accrued liabilities of $1,110.

 

During the six months ended October 31, 2017, the net cash used in operating activities was attributed to net loss of $25,181, reduced by depreciation expense of $616 and a decrease in prepaid expenses of $8.

 

Investing Activities

 

During the six months ended October 31, 2018, we did not use any funds in investing activities. During the six months ended October 31, 2017, net cash used in investing activities was $5,100 from the purchase of property, plant and equipment.

 

Financing Activities

 

During the six months ended October 31, 2018, net cash from financing activities was $51,050 attributed to proceeds from loans from shareholders. During the six months ended October 31, 2017, net cash from financing activities was $9,904 including proceeds from loans from shareholders of $10,000 offset by repayment of debt to previous sold shareholder of $96.

 

Cash Requirements

 

We will require additional cash as we expand our business. Initially, to carry out our business plan, we will need to raise additional capital. There can be no assurance that we will be able to raise additional capital or, if we are able to raise additional capital, the terms we be acceptable to us. Currently we do not have any inventory.

 

These conditions indicate a material uncertainty that casts significant doubt about our ability to continue as a going concern. We require additional debt or equity financing to have the necessary funding to continue operations and meet our obligations. We have continued to adopt the going concern basis of accounting in preparing our financial statements. 

 

Future Financings

 

We anticipate continuing to rely on related party loans and equity sales of our common stock in order to continue to fund our business operations. Issuances of additional shares will result in dilution to our existing stockholders. There is no assurance that we will achieve any additional sales of our equity securities or arrange for debt or other financing to fund our planned business activities.

 

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.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

As a “smaller reporting company,” we are not required to provide the information required by this Item.

 

 
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Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of October 31, 2018. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms as a result of the following material weaknesses:

 

The specific material weakness identified by our management was ineffective controls over certain aspects of the financial reporting process because of a lack of a sufficient complement of personnel with a level of accounting expertise and an adequate supervisory review structure that is commensurate with our financial reporting requirements and inadequate segregation of duties. A "material weakness" is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements would not be prevented or detected on a timely basis.

 

We expect to be materially dependent upon a third party to provide us with accounting consulting services for the foreseeable future. Until such time as we have a chief financial officer with the requisite expertise in U.S. GAAP, there are no assurances that the material weaknesses in our disclosure controls and procedures and internal control over financial reporting will not result in errors in our financial statements which could lead to a restatement of those financial statements.

 

Changes in Internal Controls

 

There have been no changes in our internal controls over financial reporting identified in connection with the evaluation required by paragraph (d) of Securities Exchange Act Rule 13a-15 or Rule 15d-15 that occurred in the quarter ended October 31, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

  

 
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PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

From time to time, we may become involved in litigation relating to claims arising out of its operations in the normal course of business. We are not involved in any pending legal proceeding or litigation and, to the best of our knowledge, no governmental authority is contemplating any proceeding to which we area party or to which any of our properties is subject, which would reasonably be likely to have a material adverse effect on us.

 

Item 1A. Risk Factors

 

As a “smaller reporting company,” we are not required to provide the information required by this Item.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

None.

 

Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

Not Applicable.

 

Item 5. Other Information

 

None.

  

 
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Item 6. Exhibits

 

Exhibit Number

 

Description

(31)

 

Rule 13a-14 (d)/15d-14d) Certifications

31.1*

 

Section 302 Certification by the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer

(32)

 

Section 1350 Certifications

32.1*

 

Section 906 Certification by the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer

101*

 

Interactive Data File

101.INS

 

XBRL Instance Document

101.SCH

 

XBRL Taxonomy Extension Schema Document

101.CAL

 

XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

 

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

 

XBRL Taxonomy Extension Label Linkbase Document

101.PRE

 

XBRL Taxonomy Extension Presentation Linkbase Document

____________

* Filed herewith.

       

 
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SIGNATURES

 

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

GLOBAL HOUSE HOLDINGS LTD.

 

 

(Registrant)

 

 

 

         

 

Dated: December 13, 2018

 

/s/ Jian Han Chen

 

 

Jian Han Chen

 

 

President, Chief Executive Officer, Chief Financial Officer,

Treasurer and Director

 

 

(Principal Executive Officer, Principal Financial

Officer and Principal Accounting Officer)

 

 

         

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