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ASSISTED 4 LIVING, INC. - Quarter Report: 2020 February (Form 10-Q)

 
 
UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  
 For the quarterly period ended: February 29, 2020

 

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: 333-226979

 

Assisted 4 Living, Inc.
(Exact name of registrant as specified in its charter)

 

Nevada 82-1884480
(State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.)
   
2382 Bartek Pl, North Port FL 34289
(Address of principal executive offices) (Zip Code)

 

(888) 609-1169

(Registrant’s telephone number, including area code)

 

N/A

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

 

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

 

Title of each classTrading Symbol(s)Name of each exchange on which registered
NoneNoneNone

 

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. ☒ 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). ☒ Yes ☐ No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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 filerAccelerated filer  
Non-accelerated filerSmaller 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. ☐

 

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

 

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

14,150,000 common shares issued and outstanding as of April 8, 2020.

 
 
 
 

TABLE OF CONTENTS  
 
 
 
2
 
 
 
PART I - FINANCIAL INFORMATION

 
ASSISTED 4 LIVING, INC.
INTERIM UNAUDITED 
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED FEBRUARY 29, 2020
 
INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 
 
 
F-1
 
 
ASSISTED 4 LIVING, INC.
Consolidated Balance Sheets
(Unaudited)
 

 

 

February 29,

 

 

November 30,

 

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

    Cash

 

$4,737

 

 

$8,164

 

Prepaid expenses

 

 

 

 

 

1,690

 

Total Current Assets

 

 

4,737

 

 

 

9,854

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$4,737

 

 

$9,854

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$36,156

 

 

$42,581

 

Line of credit

  

12,339

   

 

Deferred revenue and customer deposits

  

800

   

6,700

 

Due to related parties

 

 

5,556

 

 

 

5,556

 

Total Current Liabilities

 

 

54,851

 

 

 

54,837

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

 

54,851

 

 

 

54,837

 

 

 

 

 

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

 

 

 

Preferred stock: 25,000,000 shares authorized; $0.0001 par value no shares issued and outstanding

 

 

 

 

 

 

Common stock: 100,000,000 shares authorized; $0.0001 par value 14,150,000 shares issued and outstanding

 

 

1,415

 

 

 

1,415

 

Additional paid in capital

 

 

71,085

 

 

 

71,085

 

Accumulated deficit

 

 

(122,614)

 

 

(117,483)

Total Stockholders’ Deficit

 

 

(50,114

)

 

 

(44,983

)

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$4,737

 

 

$9,854

 

 

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

 
F-2
 
 
ASSISTED 4 LIVING, INC.
Consolidated Statements of Operations
(Unaudited)
 
  

Three Months Ended

 

 

 

February 29,

 

 

February 28,

 

 

 

2020

 

 

2019

 

       

Revenue

 

$212,896

 

 

$4,500

 

Cost of service

 

 

(113,502

)

 

 

 

Gross Profit

  

99,394

   

4,500

 
         

Operating Expenses:

 

 

 

 

 

 

 

 

General and administrative

 

 

92,313

 

 

 

5,352

 

Professional fees

 

 

12,225

 

 

 

8,615

 

Total operating expenses

 

 

104,538

 

 

 

13,967

 

 

 

 

 

 

 

 

 

 

Operating Loss

 

 

(5,144)

 

 

(9,467)

 

 

 

 

 

 

 

 

 

Other income (expense)

        

Interest expense, net

  

(803

)  

 

    Other income

  

816

   

 

Total other expenses

  

13

   

 
         

Net loss before income taxes

  

(5,131)

   

(9,467)

 

Provision for income tax

 

 

 

 

 

 

Net Loss

 

$(5,131)

 

$(9,467)

 

 

 

 

 

 

 

 

 

Basic and Diluted Loss per Common Share

 

$(0.00)

 

$(0.00)

Basic and Diluted Weighted Average Common Shares Outstanding

 

 

14,150,000

 

 

 

13,536,667

 


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

 
F-3
 
 
 
ASSISTED 4 LIVING, INC.
Consolidated Statements of Changes in Stockholders’ Equity (Deficit)
(Unaudited)
For the Three Months Ended February 29, 2020
 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid in

 

 

Accumulated

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance - November 30, 2019

 

 

14,150,000

 

 

$

1,415

 

 

$

71,085

 

 

$(117,483)

 

$

(44,983

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period

 

 

 

 

 

 

 

 

 

 

 

(5,131)

 

 

(5,131)

Balance - February 28, 2020

 

 

14,150,000

 

 

$

1,415

 

 

$

71,085

 

 

$(122,614)

 

$

(50,114

)


For the Three Months Ended February 28, 2019

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid in

 

 

Accumulated

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance - November 30, 2018

 

 

13,050,000

 

 

$1,305

 

 

$49,195

 

 

$(32,362)

 

$18,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common shares at $0.02 per share

 

 

1,100,000

 

 

 

110

 

 

 

21,890

 

 

 

 

 

 

22,000

 

Net loss for the period

 

 

 

 

 

 

 

 

 

 

 

(9,467)

 

 

(9,467)

Balance - February 28, 2019

 

 

14,150,000

 

 

$1,415

 

 

$71,085

 

 

$(41,829)

 

$30,671

 

 

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

 
F-4
 
 
ASSISTED 4 LIVING, INC.
Consolidated Statements of Cash Flows
(Unaudited)
 

 

 

Three Months Ended

 

  

February 29,

  

February 28,

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss

 

$(5,131)

 

$(9,467)

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

        

Changes in current assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses

 

 

1,690

 

 

 

 

Accounts payable and accrued liabilities

 

 

(6,425)

 

 

 

2,526

 

Deferred revenue and customer deposists

 

 

(5,900)

 

 

 

Net Cash Used in Operating Activities

 

 

(15,766)

 

 

(6,941)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Issuance of common stock

 

 

 

 

 

22,000

 

Net proceeds from line of credit

  12,339    

Net Cash Provided by Financing Activities

 

 

12,339

 

 

 

22,000

 

 

 

 

 

 

 

 

 

 

Net change in cash for the period

 

 

(3,427

)

 

 

15,059

 

Cash at beginning of period

 

 

8,164

 

 

 

21,019

 

Cash at end of period

 

$4,737

 

 

$36,078

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$

 

 

$

 

Cash paid for interest

 

$

 

 

$

 

 

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

 

 
F-5
Table of Contents
 

ASSISTED 4 LIVING, INC.

Notes to the Consolidated Financial Statements

February 29, 2020

(Unaudited)

NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN

 

Assisted 4 Living, Inc., (“Assisted 4 Living,” “the Company,” “we” or “us”) was incorporated in the state of Nevada on May 24, 2017. It is based in North Port, Florida. The Company incorporated a wholly-owned subsidiary, “Assisted 2 Live, Inc.” in the state of Florida on June 15, 2017. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America, and the Company’s fiscal year end is November 30.

 

The Company operates as an assisted living consulting company that specializes in acquiring, licensing, staffing, and operating assisted living facilities (“ALF”). The Company offers clients that wish to enter the ALF field an opportunity to purchase and run its own center(s), and will also act as a referral agent for finding and placing clients that are in search of quality residential care. The Company will also offer a la carte consulting services such as submitting license applications, developing emergency plans, as well as other regulatory and compliance needs. The Company has operated its assisted living facility operation since March 1, 2019.

 

Going Concern

 

The accompanying unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As of February 29, 2020, the Company has an accumulated deficit.

 

The ability of the Company to obtain profitability is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan. In response to these problems, management intends to raise additional operating funds through equity and/or debt offerings. However, there can be no assurance management will be successful in its endeavors.

 

There are no assurances that the Company will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support its working capital requirements. To the extent that funds generated from operations and any private placements, public offerings and/or bank financing are insufficient, the Company will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital is not available to the Company, it may be required to curtail or cease its operations.

 

These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements.

 

In the opinion of the Company’s management, the accompanying unaudited consolidated financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of February 29, 2020 and the results of operations and cash flows for the periods presented. The results of operations for the three months ended February 29, 2020 are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended November 30, 2019 filed with the SEC on February 28, 2020.

 

 

Basis of Consolidation

 

These consolidated financial statements include the accounts of the Company and the wholly-owned subsidiary, Assisted 2 Live, Inc. All material intercompany balances and transactions have been eliminated.

 

Use of Estimates and Assumptions

 

The preparation of financial statements in conformity with GAAP 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. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.

 

Revenue Recognition

 

The Company follows ASC 606, “Revenue from Contracts with Customers.” Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company derives its revenues from the rendering of business advisory services, such as training, implementation, consulting, and other customer-specific services. The five step model defined by ASC Topic 606 requires us to: (1) identify our contracts with customers, (2) identify our performance obligations under those contracts, (3) determine the transaction prices of those contracts, (4) allocate the transaction prices to our performance obligations in those contracts and (5) recognize revenue when each performance obligation under those contracts is satisfied. Revenue is recognized when promised goods or services are transferred to the customer in an amount that reflects the consideration expected in exchange for those goods or services.


Resident fees at our independent senior living and assisted living community consists of regular monthly charges for basic housing and support services and fees for additional requested services, such as assisted living services, personalized health services and ancillary services. Fees are specified in our agreements with residents, which are generally 30-day terms, with regular monthly charges billed in advance on the first day of each month.

 

Leases

 

In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on balance sheet and disclose key information about the leasing arrangements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months.Leases with a lease term of 12 months or less at inception are not recorded on our consolidated balance sheet and are expensed on a straight-line basis over the lease term in our consolidated statement of income.
 

The new standard was effective for the Company on December 1, 2019, with early adoption permitted. The Company chose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Company adopted the new standard on December 1, 2019 and will use the effective date as our date of initial application. Consequently, financial information is not provided for the dates and periods before December 1, 2019. The new standard provides a number of optional expedients in transition. The Company elected the package of practical expedients which permits the Company not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The Company continues expensing leases that have a term of 12 months of less.

 

Recent Accounting Pronouncements

 

The Company has reviewed all other recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on our financial statements.

 

F-7

 

 

NOTE 3 – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

 

Accounts payable and accrued liabilities at February 29, 2020 and November 30, 2019 consist of the following:

 

  February 29,  November 30, 
  2020  2019 
Trade accounts $11,632  $9,282 
Credit card  18,569   

18,240

 
Accrued salary  5,620   

14,724

 
Sales tax payable  335   

335

 

Total

 $36,156  $42,581 

 

NOTE 4 - RELATED PARTY TRANSACTIONS

 

During the three months ended February 29, 2020 and February 28, 2019, the Company incurred consulting fees from a company controlled by our CEO, in the total amount of $7,500 and $0, respectively.

 

The Company does not have employment contracts with its officers.

 

NOTE 5 – COMMITMENT

 

On March 7, 2019, the Company entered into the commercial real estate lease agreement. The Company leases an adult living facility building for $3,713 monthly, from March 7, 2019 until January 7, 2020. The term may be extended at the sole discretion of the landlord.

 

On January 8, 2020, the Company entered into the commercial real estate lease agreement. The Company leases an adult living facility building for $3,713 monthly, from January 8 until January 7, 2021.

Our lease meets the definition of a short-term lease because the lease term is 12 months or less. Consequently, consistent with Company’s accounting policy election, the Company does not recognize the right-of-use asset and the lease liability arising from this lease.

 

During the three months ended February 29, 2020 and February 28, 2019, the Company recorded rent expense of $11,139 and $0, respectively.

 

NOTE 6 – Subsequent Events

 

Subsequent to February 29, 2020, and through the date these financial statements were issued, the Company had no subsequent events to report.

 

 
F-8
Table of Contents
 
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
 
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 Assisted 4 Living, Inc. (“A4L” or the “Company”), and our wholly owned subsidiary, Assisted 2 Live, Inc. a Florida corporation, unless otherwise indicated.
 
General Overview
 
We were incorporated in Nevada on May 24, 2017, with an objective to operate as a facilitator of assisted living projects and related services. Our Company has positioned itself as a go-to resource for individuals or private groups that wish to enter and operate within the Assisted Living Facility (“ALF”) industry. Our Company’s first target market will be Florida, and will operate within the State through our solely owned subsidiary Assisted 2 Live, Inc. The goal being to use Florida as a test market to streamline our consulting processes and ultimately transition to a national company in the assisted living field. The barriers to entering the ALF space are considerable and require a detailed understanding of each State’s regulatory environment and processes. There are a myriad of steps that must be navigated to properly set up an ALF residence; including, but not limited to, licensing, complying with building codes, medical care requirements, staffing and industry regulations. Our Company is designed to mentor prospective ALF clients and guide them through every step of the start-up process, working hand-in-hand with them to ensure that their facility begins operating properly and sustainably.
 
We have a wholly-owned subsidiary, Assisted 2 Live, Inc., a Florida corporation ("A2L"), which was incorporated on June 15, 2017.
 
Our principal executive office is located at 2382 Bartek Pl., North Port, FL 34289 and our telephone number is (888) 609-1169. Our corporate website is www.assisted4living.com.
 

We have not been subject to any bankruptcy, receivership or similar proceeding.

 
Our Current Business
 
On March 1, 2019, our Company took over the management of a 28-bed assisted living facility in Punta Gorda, FL. Our Company is responsible for all aspects of its operations from the care of the residents, to the staffing, cooking, and collection of rent.
 
Our Company leases the assisted living facility premises from a third-party landlord and is contracted to pay monthly rent of $3,713. We possess all of our State and County accreditations (licenses) to run the facility for the next 2 years.
 

In growing the business solely from a consulting firm to also operating a physical brick and mortar facility, our Company seeks to diversify our business model and capitalize on opportunities, to expand our revnue stream, as they arise. Our Company will still assist outside clients that wish to start and operate their own facility, however, in securing our own physical location our Company can grow revenues, secure our foothold in a growing assisted living market, and use our location as a training center for new clients wishing to enter the field. Our Company is also actively searching for other nearby properties to convert into an assisted living facility, or that perhaps are already currently operating as an assisted living facility but need new management.

 
Our Company foresees utilizing this revised business model for the next number of years and intends to become more involved in the assisted living industry in the Southwest Florida market. Being located in Florida presents many opportunities for operating assisted living facilities, as well as potential consulting clients that wish to enter the assisted living facility operations field.
 
Results of Operations
 
The following summary of our operations should be read in conjunction with our unaudited interim financial statements for the three months ended February 29, 2020 and February 28, 2019, which are included in this report. On March 1, 2019, we commenced our operation of an assisted living facility (“ALF”) in Florida. Historical results will not reflect our current operations and will not be comparable to results of operations being reporting in the current period.
 
For the Three Months Ended February 29, 2020 Compared to the Three Months Ended February 28, 2019
 
 
 
Three Months Ended
 
 
 
 
 
 
February 29,
 
 
 
 
 
 
2019
 
 
2018
 
 
Change
 
Revenue
 
$

212,896

 
 
$4,500
 
 
$

208,396

 
Cost of service
 
 

113,502

 
 
 
 
 
 

113,502

 
Operating expenses
 
 

104,538

 
 
 

13,967

 
 
 

90,571

 
Other expense
 
 13
 
 
 
 
 
 

13

 
Net loss
 
$

5,131

 
 
$

9,467

 
 
$

(4,336

)
  
We recognized revenue of $212,896 for the three months ended February 29, 2020, compared to $4,500 for the three months ended February 28, 2019. The increase in revenue is due to commencing an ALF business in March 2019.
 
Cost of service is direct labor directly related to the operations of our assisted living facility. Cost of service expenses commenced with the operations of our ALF. For the three months ended February 29, 2020, our gross profit was $99,394 or 46.7%.
 
4
 
Table of Contents
 

Operating expenses for the three months ended February 29, 2020 increased $90,571 from $13,967 for the three months ended February 28, 2019. Our increase in operating expenses were primarily due to increased general and administrative expenses related to the new ALF operations.


Our net loss for the three months ended February 29, 2020 decreased $4,336 from $9,467 for the three months ended February 28, 2019.
 

Liquidity and Capital Resources
 
 
The following table provides selected financial data about our Company as of February 29, 2020, and November 30, 2019, respectively.
  
Working Capital
 
 
 

February 29,

 
 
November 30,
 
    
 
 
2020
 
 
2019
 
  

Change

 

Cash

 

$

4,737

  

$

8,164

  

$

(3,427

)
             
Current Assets
 
$

4,737

 
 
$

9,854

 
 

$

(5,117

)
Current Liabilities
 
 

54,851

 
 
 

54,837

 
  14 
Working Capital (Deficiency)
 $(50,114)
 
$

(44,983

)
 

$

(5,131

)
 

As at February 29, 2020, and November 30, 2019, our Company’s current assets were $4,737 and $9,854 respectively.
 

As at February 29, 2020, current assets consisted solely of cash. The decrease in current asset is due to a decrease in cash and prepaid expense.

 

As at February 29, 2020, our Company had current and total liabilities of $54,851, compared with current and total liabilities of $54,837 as at November 30, 2019. As at February 29, 2020, liabilities consisted of $36,156 accounts payable, $12,339 line of credit, deferred revenue $800 and $5,556 payable to an officer of our Company. As at November 30, 2019, liabilities consisted of $42,581 accounts payable, deferred revenue and customer deposits $6,700 and $5,556 payable to an officer of our Company.


As of February 29, 2020, our working capital deficiency increased $5,131, primarily due to a decrease in current assets.

 
Cash Flows
 
 
 

Three Months Ended

 
    
  

February 29,

  

February 28,

     
 
 
2020
 
 
2019
 
  

Change

 
Cash used in operating activities
 
$

15,766

 
 
$

(6,941

) 

$

(8,825

)

Cash provided by (used in) investing activities

  

   

   

 
Cash provided by financing activities
 
 

12,339

 
 
$

22,000

 
  

(9,661

)
Net change in cash for period
 
$(3,427)
 
$

15,059

 
 

$

(18,486

)

 

 
Cash Flow from Operating Activities
 
During the three months ended February 29, 2020, our Company used $15,766 in cash from operating activities, compared to $6,941 cash used in operating activities during the nine months ended February 28, 2019. The cash used from operating activities for the three months ended February 29, 2020, was attributed to net loss of $5,131, which was increased by a net change in working capital of $10,635. The cash used from operating activities for the three months ended February 28, 2019, was attributed to net loss of $9,467, which was reduced by a net change in working capital of $2,526.
 
Cash Flow from Financing Activities
 
During the nine months ended February 29, 2020, we received net proceeds of $12,339 from a bank line of credit. During the three months ended February 28, 2019, we received $22,000 from the issuance of 1,100,000 shares of common stock to investors
 
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
 

We prepare our financial statements in conformity with GAAP, which requires management to make certain estimates and apply judgments. We base our estimates and judgments on historical experience, current trends and other factors that management believes to be important at the time the financial statements are prepared. On a regular basis, we review our accounting policies and how they are applied and disclosed in our financial statements.


While we believe that the historical experience, current trends and other factors considered support the preparation of our financial statements in conformity with GAAP, actual results could differ from our estimates and such differences could be material.

 

Refer to Note 2 - Significant Accounting Policies and the unaudited consolidated financial statements that are included in this Report.

 

 
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.

 

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 February 29, 2020. 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. Such officer also confirmed that there was no change in our internal control over financial reporting during the period ended February 29, 2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

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 our Company’s annual or interim financial statements would not be prevented or detected on a timely basis.

 
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Table of Contents
 

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 control over financial reporting during the quarter ended February 29, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 
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.
 
Item 6. Exhibits 
 
 
Exhibit
Number
 
Description
 
Incorporated By Reference
 
   
 
Form
 
Exhibit
 
Filing Date
         
 
 
S-1
 
3.1
 

August 23,2018

 
 
S-1
 
3.2
 

August 23,2018

(21)
 
Subsidiaries of the Registrant
     
 
21.1
 
Assisted 2 Live, Inc., a Florida corporation
     
 
(31)
 
Rule 13a-14 (d)/15d-14d) Certifications
     
 
 
     
 
(32)
 
Section 1350 Certifications
     
 
 
     
 
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
** Furnished herewith
 
SIGNATURES
 
Pursuant to the requirements 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.
 
 
 
ASSISTED 4 LIVING, INC.
 
 
 
(Registrant)
 
 
 
 
 
Dated: April 13, 2020 
/s/ Romulus Barr
 
 
 
Romulus Barr
 
 
 
President, Chief Executive Officer, Chief Financial Officer, Treasurer and Director
 
 
 
(Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)