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EX-32.1 - CERTIFICATION - RAYONT INC.f10q1219ex32-1_rayontinc.htm
EX-31.1 - CERTIFICATION - RAYONT INC.f10q1219ex31-1_rayontinc.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

 

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

 

For the quarterly period ended December 31, 2019

 

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

 

For the transition period from __________ to _________

 

SEC File No. 000-56020

 

RAYONT INC.
(Exact name of registrant as specified in its charter)

 

Nevada   7371   27-5159463
(State or other jurisdiction of
incorporation or organization)
 

(Primary Standard Industrial
Classification Code Number)

  (IRS I.D.)

 

14, Jalan Penguasa B U1/53B

Temasya Glenmarie, Shah Alam, Selangor, Malaysia

  40150
(Address of principal executive offices)   (Zip Code)

 

Issuer’s telephone number: 323-713-3244

 

(Former name, former address and telephone number, if changed since last report)

 

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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. Yes ☒   No ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files). Yes  ☐   No ☒

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting 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 Smaller Reporting Company
    Emerging growth company ☒ 

 

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. ☐

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock, par value $0.001 per share   RAYT   OTC Markets Group

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐   No ☒

 

As of March 24, 2020, there were 12,907,532 shares issued and outstanding of the registrant’s common stock.

 

 

 

 

  

RAYONT, INC. AND SUBSIDIARY

 

(formerly Velt International Group Inc.)

 

Unaudited Condensed Consolidated Financial Statements  

 

For the three months ended December 31, 2019 and 2018

 

Table of Contents

 

Unaudited Condensed Consolidated Balance Sheets 2
   
Unaudited Condensed Consolidated Statements of Operations and Other Comprehensive Income 3
   
Unaudited Condensed Consolidated Statements of Stockholders’ Equity 4
   
Unaudited Condensed Consolidated Statements of Cash Flows 5
   
Notes to Condensed Consolidated Financial Statements 6

  

1

 

  

RAYONT, INC. AND SUBSIDIARY

 

CONSOLIDATED BALANCE SHEETS

 

   December 31,   September 30, 
   2019   2019 
   (Unaudited)     
ASSETS        
Current assets:        
Cash  $4,222   $836 
Loan receivable owed by a related party   93,000    93,000 
Other receivables   5,500    5,500 
Total Current Assets   102,722    99,336 
           
Loan receivable owed by a related party   -    191,360 
Property and equipment, net   908,519    899,142 
Other assets   94    114 
           
TOTAL ASSETS  $1,011,335   $1,189,952 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
Current liabilities:          
Loans from a shareholder  $87,270   $87,136 
Accrued expenses   4,900    13,661 
Total Current Liabilities   92,170    100,797 
           
Note payable  $103,000    103,000 
           
TOTAL LIABILITIES   195,170    203,797 
           
COMMITMENTS AND CONTINGENCIES          
           
Stockholders’ Equity:          
Common stock, $0.001 par value; 500,000,000 shares authorized; 12,907,532 shares issued and outstanding as of December 31, 2019 and September 30, 2019, respectively   12,908    12,908 
Preferred stock, $0.001 par value; 20,000,000 shares authorized; nil share issued and outstanding as of December 31, 2019 and September 30, 2019, respectively   -    - 
Additional paid-in capital   3,569,537    3,534,466 
Accumulated deficit   (2,747,358)   (2,506,428)
Accumulated other comprehensive loss   (18,922)   (54,791)
TOTAL STOCKHOLDERS’ EQUITY   816,165    986,155 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $1,011,335   $1,189,952 

  

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

 

2

 

 

RAYONT, INC. AND SUBSIDIARY

 

 CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME

 

(Unaudited)

 

   Three Months Ended
December 31,
 
   2019   2018 
         
Revenues  $-   $- 
Cost of goods sold   -    - 
Gross profit   -    - 
           
Operating expenses:          
Selling, general and administrative expenses   212,171    8,136 
Depreciation expense   25,553    369 
Total operating expenses   237,724    8,505 
           
Operating loss   (237,724)   (8,505)
           
Other expense (income):          
Interest expense   3,206    750 
Total other expense, net   3,206    750 
           
Loss before income taxes   (240,930)   (9,255)
Income tax expense   -    - 
Net loss   (240,930)   (9,255)
           
Other comprehensive income, net of tax:          
Foreign currency translation gain   35,869    - 
Other comprehensive income   35,869    - 
           
Comprehensive loss  $(205,061)  $(9,255)
           
Earnings per common share:          
Weighted average shares outstanding, basic and diluted   12,907,532    1,886,622 
Net loss per common share, basic and diluted  $(0.02)  $(0.00)

   

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

 

3

 

  

RAYONT, INC. AND SUBSIDIARY  

 

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

 

(Unaudited)

 

                   Accumulated     
           Additional       Other     
   Common Stock   Paid-In   Accumulated   Comprehensive     
   Shares   Amount   Capital   Deficit   Loss   Total 
                         
Balance as of September 30, 2018   1,886,622   $1,887   $1,020,563   $(1,243,712)  $-   $(221,262)
                               
Net loss   -    -    -    (9,255)   -    (9,255)
Debt forgiveness   -    -    224,790    -    -    224,790 
                               
Balance as of December 31, 2018   1,886,622   $1,887   $1,245,353   $(1,252,967)   -   $(5,727)
                               
                               
Balance as of September 30, 2019   12,907,532   $12,908   $3,534,466   $(2,506,428)  $(54,7911)  $986,155 
                               
Net loss   -    -    -    (240,930)   -    (240,930)
Foreign currency translation gain   -    -    -    -    35,869    35,869 
Debt forgiveness   -    -    35,071    -    -    35,071 
                               
Balance as of December 31, 2019   12,907,532   $12,908   $3,569,537   $(2,747,358)  $(18,922)  $816,165 

 

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

 

4

 

 

RAYONT, INC. AND SUBSIDIARY

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(Unaudited)

 

   Three Months Ended
December 31,
 
   2019   2018 
         
Operating Activities:        
Net loss  $(240,930)  $(9,255)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation expense   25,553    369 
Bad debt expense   197,426      
Changes in operating assets and liabilities:          
Other assets   24    - 
Accrued expenses   (8,717)   5,097 
Net cash used in operating activities   (26,644)   (3,789)
           
Financing Activities:          
Loans from related parties   30,776    3,722 
Net cash provided by financing activities   30,776    3,722 
           
EFFECT OF EXCHANGE RATE ON CASH   (746)   - 
           
Net increase (decrease) in cash   3,386    (67)
Cash at beginning of the period   836    127 
Cash at end of the period  $4,222   $60 
           
SUPPLEMENTAL DISCLOSURE:          
Interest paid  $-   $- 
Income tax paid  $-   $- 
           
SUPPLEMENTAL DISCLOSURE FOR NONCASH INVESTING AND FINANCING ACITIVIES:          
Forgiveness of debt from a related party  $34,195   $224,790 

 

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

 

5

 

 

RAYONT, INC. AND SUBSIDIARY

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

 

NOTE 1 - ORGANIZATION AND BUSINESS DESCRIPTION

 

Rayont, Inc. (formerly Velt International Group Inc., or “Rayont” or the “Company”) is a Nevada corporation formed on February 7, 2011. The Company’s common stock are currently traded on the Over the Counter Pink Sheet under the symbol “RAYT”.   

 

On November 19, 2018, the Company’s former principal shareholder, Mr. Chin Kha Foo, entered into a stock purchase agreement to transfer 60% of the Company’s issued and outstanding shares to Rural Asset Management Services, Inc., a Malaysian company (“Rural”). On December 14, 2018, Rural became the principal shareholder of the Company and Mr. Ali Kasa was appointed to be the Company’s President, CEO, CFO, and Secretary due to the change in control of the Company. Rural is an equity investment company with portfolio of interest in biotechnology, healthcare, cancer treatment research and technology, ICT and Crypto Currency. Rural has invested to companies located in Malaysia, Australia and the USA.

 

On January 22, 2019, the Company entered into an acquisition agreement with THF Holdings Pty Ltd., an Australian corporation (“THF”) and Rural, pursuant to which the Company acquired 100% of the issued and outstanding capital stock of THF in exchange for 4,000,000 shares of the Company’s common stock, valued on January 22, 2019 at $1,000,000. THF is an Australian Cancer treatment and medical device company. Rural is the majority shareholder of THF. In March 2019, the acquisition of THF was completed and THF became a subsidiary of the Company. In addition, the acquisition was accounted for business combination under common control of Rural.

 

On January 24, 2019, the Company entered into an acquisition agreement with THF International (Hong Kong) Ltd., a Hong Kong company (“THF Hong Kong”) and the shareholders of THF Hong Kong, pursuant to which the Company acquired 100% of the issued and outstanding capital stock of THF Hong Kong in exchange for 8,000,000 shares of the Company’s common stock, valued at $2,000,000 on January 24, 2019. On May 13, 2019, the Company executed an amendment to the acquisition agreement, wherein the Company agreed to acquire only 85% of THF Hong Kong and reduce the purchase price to 6,800,000 shares from 8,000,000 shares. On August 4, 2019, the Company and the THF Hong Kong agreed to terminate the acquisition.

 

On January 24, 2019, the Company entered into an acquisition agreement with Natural Health Farm (Labuan) Inc. (“NHF”) and the shareholders of NHF, pursuant to which the Company acquired 100% of the issued and outstanding capital stock of NHF in exchange for 40,000,000 shares of the Company’s common stock, valued at $10,000,000 on January 24, 2019. NHF is a Malaysian company concentrating on clinical life sciences and holds an exclusive license for registering and commercializing Photosoft technology for treatment of all cancers in the Sub-Sahara African region. The technology has been licensed in Australia, New Zealand, China, Malaysia and Sub-Sahara Africa. The human clinical trial efforts have started in Australia and China conducted by Hudson Medical Institute, Australia. On August 4, 2019, the Company and NHF agreed to terminate the acquisition.

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the unaudited interim financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. 

 

6

 

 

Use of Estimates

 

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgements and assumptions that affect certain amounts reported in the financial statements and footnotes. Accordingly, actual results could differ from those estimates.

 

Going Concern

 

The Company demonstrates adverse conditions that raise substantial doubt about the Company’s ability to continue as a going concern. These adverse conditions are negative financial trends, specifically negative working capital, recurring operating losses, accumulated deficit and other adverse key financial ratios.

 

The Company did not generate revenues to cover its operating expense during the three months ended December 31, 2019. The Company plans to continue obtaining funding from the majority shareholder and the President of the Company to support the Company’s normal business operating. There is no assurance, however, that the Company will be successful in raising the needed capital and, if funding is available, that it will be available on terms acceptable to the Company.

 

The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue as a going concern.

 

Concentration of Credit Risk

 

The Company maintains its cash in bank accounts which, at times, may exceed the federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash in bank.

 

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. As of December 31, 2019 and September 30, 2019, the Company had cash in bank of $4,222 and $836, respectively.

 

Earnings Per Share

  

Basic earnings per share is computed by dividing net income (loss) attribute to stockholders of common stock by the weighted-average number of common shares outstanding for the period. Diluted net earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding plus equivalent shares.

 

Diluted earnings per share reflects the potential dilution that could occur from common shares issuable through convertible notes and preferred stock when the effect would be dilutive. The Company only issued common stock and does not have any potentially dilutive instrument as of December 31, 2019 and 2018.

 

Property and equipment

 

Property and equipment are carried at cost and, less accumulated depreciation. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposal. The Company examines the possibility of decreases in the value of property and equipment when events or changes in circumstances reflect the fact that their recorded value may not be recoverable.

 

The Company’s property and equipment mainly consists of computer and laser equipment. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from 5-12 years. 

 

7

 

 

Recent Accounting Pronouncements

 

Management believes none of the recently issued accounting pronouncements will have a material impact on the consolidated financial statements. 

 

NOTE 3 - RELATED PARTY TRANSACTIONS

 

Loans receivable owed by related parties

 

On August 20, 2019, the Company agreed to grant a loan to Anvia Holdings Corporation (“Anvia”) for the amount of $93,000. The Company’s President and CEO, CFO is also the President and CEO of Anvia. The loan bears an interest rate at 8% and matures on February 19, 2020. Due to the short maturity of the loan, the Company had a current loans receivable of $93,000 as of December 31, 2019 and September 30, 2019, respectively.

 

As of September 30, 2019, the Company had noncurrent loan receivable of $191,360 from the Company’s affiliate company, HCC Century City. The amount owed by HCC Century City bears no interest and unsecured. The Company was not able to collect the amount, and the total amount of the loan receivable were written off as of December 31, 2019.

 

Loans from a shareholder

 

As of December 31, 2019 and September 30, 2019, the Company had loans from a shareholder of $87,270 and 87,136, respectively, to support its operation and the amount bears no interest and due on demand.

 

NOTE 4 –  PROPERTY AND EQUIPMENT, NET

 

As of December 31, 2019 and September 30, 2019, property and equipment consisted of the following:

 

   December 31,   September 30, 
   2019   2019 
Laser equipment  $1,218,333   $1,171,725 
Computer equipment   7,378    7,378 
Total   1,225,711    1,179,103 
Less: accumulated depreciation   (317,192)   (279,961)
Total property and equipment, net  $908,519   $899,142 

 

For the three months ended December 31, 2019 and 2018, the depreciation expenses were $25,553 and $369, respectively.

 

NOTE 5 – NOTE PAYABLE

 

On August 12, 2019, the Company executed a securities purchase agreement with Power Up Lending Group Ltd. (the “Holder”). Pursuant to the agreement, the Holder purchased a convertible note (the “Note”) from the Company in the aggregate principal amount of $103,000. The Note bears interest at the rate of 8% per annum and the maturity date is February 12, 2021. The amount under the Note may be converted into common stock , $0.001 par value per share, by the Holder at any time during the period beginning on the date which is 180 days following the date of this Note and ending on the later on the later of the maturity date and the date of payment of the default amount.

 

For the three months ended December 31, 2019 and 2018, the interest expense related to the note payable were $3,206 and nil, respectively.

 

8

 

 

NOTE 6 - INCOME TAXES

 

The Company recorded no income tax expense or benefit during the three months ended December 31, 2019 and 2018 since the Company incurred net operating losses and recorded a full valuation allowance against net deferred tax assets for all periods presented. As of December 31, 2019 and September 30, 2019, the aggregate balances of our gross unrecognized tax benefits were $311 thousand and $307 thousand, respectively, of which a valuation allowance recognized against the unrecognized tax benefits.

 

NOTE 7 - COMMITMENTS AND CONTINGENCIES

 

The Company has no commitment or contingency as of December 31, 2019.

 

NOTE 8 – SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events through the date these consolidated financial statements were issued and determined that there were no subsequent events or transactions that require recognition or disclosures in the consolidated financial statements.

 

9

 

  

Item 2. Management’s Discussion and Analysis or Plan of Operation

 

The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes, and other financial information included in this Form 10-Q.

 

Our Management’s Discussion and Analysis contains not only statements that are historical facts, but also statements that are forward-looking. Forward-looking statements are, by their very nature, uncertain and risky. These risks and uncertainties include international, national, and local general economic and market conditions; our ability to sustain, manage, or forecast growth; our ability to successfully make and integrate acquisitions; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; change in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; the risk of foreign currency exchange rate; and other risks that might be detailed from time to time in our filings with the Securities and Exchange Commission.

 

Although the forward-looking statements in this Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.

 

Overview

 

Rayont, Inc. (formerly Velt International Group Inc., or “Rayont” or the “Company”) is a Nevada corporation formed on February 7, 2011. The Company’s common stock are currently traded on the Over the Counter Pink Sheet under the symbol “RAYT”.   

 

On November 19, 2018, the Company’s former principal shareholder, Mr. Chin Kha Foo, entered into a stock purchase agreement to transfer 60% of the Company’s issued and outstanding shares to Rural Asset Management Services, Inc., a Malaysian company (“Rural”). On December 14, 2018, Rural became the principal shareholder of the Company and Mr. Ali Kasa was appointed to be the Company’s President, CEO, CFO, and Secretary due to the change in control of the Company. Rural is an equity investment company with portfolio of interest in biotechnology, healthcare, cancer treatment research and technology, ICT and Crypto Currency. Rural has invested to companies located in Malaysia, Australia and the USA.

 

On January 22, 2019, the Company entered into an acquisition agreement with THF Holdings Pty Ltd., an Australian corporation (“THF”) and Rural, pursuant to which the Company acquired 100% of the issued and outstanding capital stock of THF in exchange for 4,000,000 shares of the Company’s common stock, valued on January 22, 2019 at $1,000,000. THF is an Australian Cancer treatment and medical device company. Rural is the majority shareholder of THF. In March 2019, the acquisition of THF was completed and THF became a subsidiary of the Company. In addition, the acquisition was accounted for business combination under common control of Rural.

 

10

 

 

On January 24, 2019, the Company entered into an acquisition agreement with THF International (Hong Kong) Ltd., a Hong Kong company (“THF Hong Kong”) and the shareholders of THF Hong Kong, pursuant to which the Company acquired 100% of the issued and outstanding capital stock of THF Hong Kong in exchange for 8,000,000 shares of the Company’s common stock, valued at $2,000,000 on January 24, 2019. On May 13, 2019, the Company executed an amendment to the acquisition agreement, wherein the Company agreed to acquire only 85% of THF Hong Kong and reduce the purchase price to 6,800,000 shares from 8,000,000 shares. On August 4, 2019, the Company and the THF Hong Kong agreed to terminate the acquisition.

 

On January 24, 2019, the Company entered into an acquisition agreement with Natural Health Farm (Labuan) Inc. (“NHF”) and the shareholders of NHF, pursuant to which the Company acquired 100% of the issued and outstanding capital stock of NHF in exchange for 40,000,000 shares of the Company’s common stock, valued at $10,000,000 on January 24, 2019. NHF is a Malaysian company concentrating on clinical life sciences and holds an exclusive license for registering and commercializing Photosoft technology for treatment of all cancers in the Sub-Sahara African region. The technology has been licensed in Australia, New Zealand, China, Malaysia and Sub-Sahara Africa. The human clinical trial efforts have started in Australia and China conducted by Hudson Medical Institute, Australia. On August 4, 2019, the Company and NHF agreed to terminate the acquisition.

 

The Company continues to look for other opportunities which could potentially increase the profits of the Company.

 

Current Operational Activities

 

With acquisition of THF Holdings Pty Ltd, the Company has decided to embark in life science as a sector to operate and cancer treatment as an area that it will develop its expertise and business. Prior to the change in the control, the Company was to focus on the development and designs of a mobile application for a third-party company in Hong Kong.

 

Results of Operations

 

For the three months ended December 31, 2019 and 2018

 

Revenue

 

The Company did not generate any revenue for the three months ended December 31, 2019 and 2018 and continues to look for other business opportunities.

 

Cost of Goods Sold

 

There was $nil cost of goods sold incurred for the three months ended December 31, 2019 and 2018 due to no business operations during the periods.

 

Operating Expense 

 

Our expenses consist of selling, general and administrative expenses, depreciation expense and bad debt expense. For the three months ended December 31, 2019 and 2018, there was a total of $237,724 and $8,505 operating expenses, respectively. Increases were primarily because loan receivable of $212,171 was written off during this period.

 

11

 

 

Net Loss

 

We incurred net loss of $240,930 and $9,255 for the three months ended December 31, 2019 and 2018, respectively.

 

Taxation

 

The Company recorded no income tax expense during the three months ended December 31, 2019 and 2018 since the Company incurred net operating losses and recorded a full valuation allowance against net deferred tax assets for all periods presented. 

 

Equity and Capital Resources

 

We continued incurring losses for the three months ended December 31, 2019 and had an accumulated deficit of $2,747,358 as of December 31, 2019. During the three months ended December 31, 2019, we had negative cash flows from operating activities of $26,644, compared to negative cash flows from operating activities of $3,789 for the three months ended December 31, 2018.

 

We had no material commitments for capital expenditures as of December 31, 2019. We expect our expenses will continue to increase during the foreseeable future as a result of increased operational expenses and the development of potential business opportunities. However, we do not anticipate that the Company will generate revenue sufficient to cover its planned operating expenses in the foreseeable future, and we are dependent on the proceeds from future debt or equity investments to sustain our operations and implement our business plan. If we are unable to raise sufficient capital, we will be required to delay or forego some portion of our business plan, which would have a material adversely effect on our anticipated results from operations and financial condition. There is no assurance that we will be able to obtain necessary amounts of additional capital or that our estimates of our capital requirements will prove to be accurate. As of the date of this Report, we did not have any commitments from any source to provide such additional capital. Even if we are able to secure outside financing, it may not be available in the amounts or the times when we require. Furthermore, such financing would likely take the form of bank loans, private placement of debt or equity securities or some combination of these. The issuance of additional equity securities would dilute the stock ownership of current investors while incurring loans, leases or debt would increase our capital requirements and possible loss of valuable assets if such obligations were not repaid in accordance with their terms.

 

Off-Balance Sheet Arrangements 

  

We do not have any off-balance sheet arrangements that we are required to disclose pursuant to these regulations.

 

12

 

 

Item 3. Quantitative and Qualitative Disclosure about Market Risk

 

Not applicable.

 

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

The Company has established disclosure controls and procedures to ensure that information required to be disclosed in this quarterly report on Form 10-Q was properly recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms. The Company’s controls and procedures are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officer to allow timely decisions regarding required disclosure.

 

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) at December 31, 2019 based on the evaluation of these controls and procedures required by paragraph (b) of Rule 13a-15 or Rule 15d-15 under the Exchange Act. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer/Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer/Chief Financial Officer concluded that, at December 31, 2019, our disclosure controls and procedures were not effective.

 

Changes in Internal Control over Financial Reporting

 

There have been no changes in the Company’s internal control over financial reporting that occurred during the Company’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

13

 

  

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

None.

 

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

 

None.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosure.

 

Not applicable.

 

Item 5. Other Information.

 

Not Applicable.

  

Item 6. Exhibits.

 

(a) Exhibits.

 

Exhibit No.   Document Description
     
31.1   CERTIFICATION of CEO/CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
     
32.1   CERTIFICATION of CEO/CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002
     
Exhibit 101   Interactive data files formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Cash Flows, and (iv) the Notes to the Consolidated Financial Statements. *
     
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

 

 

 

* This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 of the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in any filings.

  

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SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  RAYONT INC.
     
Date: March 30, 2020 By: /s/ Gregory Jackson
    Gregory Jackson
    President and
    Chief Executive Officer

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacity and on the dates indicated.

 

Signature   Title   Date
         
/s/ Gregory Jackson   Principal Executive Officer & Principal    
Gregory Jackson   Accounting Officer & Director   March 30, 2020

  

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EXHIBIT INDEX

 

Exhibit No.   Document Description
     
31.1   CERTIFICATION of CEO/CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
     
32.1   CERTIFICATION of CEO/CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002
     
Exhibit 101   Interactive data files formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Cash Flows, and (iv) the Notes to the Consolidated Financial Statements. *
     
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

 

 

* This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 of the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in any filings.

 

 

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