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New Momentum Corp. - Quarter Report: 2015 September (Form 10-Q)

UNITED STATES

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 September 30, 2015


OR


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


For the transition period from ____________ to ___________


Commission File No. 000-52273


EASON EDUCATION KINGDOM HOLDINGS, INC.

(Exact name of registrant as specified in its charter)


Nevada

 

88-0435998

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)


Unit 19, 35/F., Tower 1,

Millennium City 1, No. 388 Kwun Tong Road,

Kwun Tong, Kowloon, Hong Kong

 (Address of principal executive offices, zip code)


+852 2111-0810

 (Registrant’s telephone number, including area code)

 

_____________________________________________________________

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


Indicate by check mark whether the issuer (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 x No o


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 o No x


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” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (check one):




 

Large accelerated filer

o

Accelerated filer

o

Non-accelerated filer

o

Smaller reporting company

x

(Do not check if a smaller reporting company)

 

 

 

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

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:


Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes o No o

 

APPLICABLE ONLY TO CORPORATE ISSUERS


As of November 5, 2015, there were 10,368,500 shares of common stock, $0.001 par value per share, outstanding.

 

 














2




 

EASON EDUCATION KINGDOM HOLDINGS, INC.

 

QUARTERLY REPORT ON FORM 10-Q

FOR THE PERIOD ENDED SEPTEMBER 30, 2015

 

INDEX

 

Index

 

 

Page

 

 

 

 

 

 

Part I. Financial Information

 

 

 

 

 

 

 

 

Item 1.

Financial Statements.

 

5  

 

 

 

 

 

 

 

Condensed Balance Sheets as of September 30, 2015 (unaudited) and December 31, 2014.

 

 

5

 

 

 

 

 

 

 

 

Condensed Statements of Operations for the Three and Nine Months ended September 30, 2015 and 2014 (unaudited).

 

 

6

 

 

 

 

 

 

 

 

Condensed Statements of Cash Flows for the Nine Months ended September 30, 2015 and 2014 (unaudited).

 

 

7

 

 

 

 

 

 

 

 

Notes to Condensed Financial Statements (unaudited).

 

 

8

 

 

 

 

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

 

13

 

 

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

 

 

15

 

 

 

 

 

 

 

Item 4.

Controls and Procedures.

 

 

15

 

 

 

 

 

 

 

Part II. Other Information

 

 

 

 

 

 

 

 

 

Item 1.

Legal Proceedings.

 

 

15

 

 

 

 

 

 

 

Item 1A.

Risk Factors.

 

 

15

 

 

 

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

 

 

16

 

 

 

 

 

 

 

Item 3.

Defaults Upon Senior Securities.

 

 

16

 

 

 

 

 

 

 

Item 4.

Mine Safety Disclosures.

 

 

16

 

 

 

 

 

 

 

Item 5.

Other Information.

 

 

16

 

 

 

 

 

 

 

Item 6.

Exhibits.

 

 

16

 

 

 

 

 

 

 

Signatures

 

 

17

 

 

 



3





CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS


This Quarterly Report on Form 10-Q of Eason Education Kingdom Holdings, Inc., a Nevada corporation (the “Company”), contains “forward-looking statements,” as defined in the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. 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. Actual results may differ materially from the predictions discussed in these forward-looking statements. The economic environment within which we operate could materially affect our actual results. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things to product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions.; and other factors discussed in the Company’s filings with the Securities and Exchange Commission (“SEC”).


Our management has included projections and estimates in this Form 10-Q, which are based primarily on management’s experience in the industry, assessments of our results of operations, discussions and negotiations with third parties and a review of information filed by our competitors with the SEC or otherwise publicly available. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

 

 

 



4





PART I. FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS. 



Eason Education Kingdom Holdings, Inc.

Condensed Balance Sheets

 

 

 

 

 

 

 

 

 

September 30, 2015 (Unaudited)

 

December 31,

 2014

 (Audited)

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash

 

 

$                    -

 

 $                         -

       Total Current Assets

 

 

                     -

 

                            -

 

 

 

 

 

 

TOTAL ASSETS

 

 

$                    -

 

 $                         -

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

    Accounts payable

 

 

$                    -

 

 $             237,707

    Accounts payable-related parties

 

 

               -

 

                    8,250

    Accrued interest

 

 

                -

 

                  10,783

    Accrued interest-related parties

 

 

               -

 

                  89,506

    Accrued liabilities

 

 

         9,000

 

                            -

    Amount due to shareholder

 

 

      28,000

 

                            -

    Notes payable

 

 

                -

 

                  23,000

    Notes payable-related parties

 

 

                -

 

                170,529

 

 

 

 

 

 

        Total Current Liabilities

 

 

        37,000

 

                539,775

 

 

 

 

 

 

Stockholders' Deficit:

 

 

 

 

 

    Preferred stock, Class A Preferred Stock; $0.001 par value;

      175,000,000  shares authorized; no shares issued and

      outstanding

 

 

                   -  

 

                            -  

    Common stock, $0.001 par value; 500,000,000 shares

       authorized; 10,368,500 shares issued and outstanding

 

 

          10,369 

 

                  10,369 

    Additional paid-in capital

 

 

        413,349 

 

                110,533 

    Accumulated deficit

 

 

    (460,718)

 

               (660,677)

 

 

 

 

 

 

         Total Stockholders' Deficit

 

 

       (37,000)

 

               (539,775)

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

$                    -

 

 $                         -


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




5





Eason Education Kingdom Holdings, Inc.

Condensed Statements of Operations

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$             -  

 

$             -  

 

$             -  

 

$                 -  

 

 

 

 

 

 

 

 

 

 

 

Gross Revenues

 

             -  

 

        -  

 

            -  

 

           -  

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

    General and administrative expenses

 

     21,000 

 

     10,963 

 

    37,000 

 

       39,248 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Expenses

 

    21,000 

 

   10,963 

 

     37,000 

 

      39,248 

 

 

 

 

 

 

 

 

 

 

 

Loss from Operations

 

  (21,000)

 

  (10,963)

 

   (37,000)

 

    (39,248)

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense)

 

 

 

 

 

 

 

 

 

    Gain on release of liabilities

 

            -  

 

       -  

 

    236,959 

 

         -  

 

    Interest (expense)

 

       -  

 

     (522)

 

          - 

 

      (1,548)

 

    Interest (expense) - Related Parties

 

         -  

 

     (3,872)

 

         - 

 

  (10,956)

 

 

 

 

 

 

 

 

 

 

 

Total Other Income (Expense)

 

        -  

 

     (4,394)

 

  236,959 

 

     (12,504)

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) before Income Taxes

 

  (21,000)

 

  (15,357)

 

  199,959 

 

   (51,752)

 

 

 

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

         -  

 

         -  

 

        - 

 

            -  

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$  (21,000)

 

$  (15,357)

 

$   199,959 

 

$     (51,752)

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) per Share-Basic and Diluted

 

$      (0.00)

 

$      (0.01)

 

$          0.02

 

$         (0.01)

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Number of Common Shares

 

 

 

 

 

 

 

 

 

Outstanding-Basic and Diluted

 

10,368,500

 

10,368,500

 

10,368,500

 

 10,368,500

 


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




6




Eason Education Kingdom Holdings, Inc.

Condensed Statements of Cash Flows

(Unaudited)


 

 

Nine Months Ended

September 30,

 

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities:

 

 

 

 

Net Income (Loss) from operations

 

$             199,959 

 

$          (51,752)

Adjustment to reconcile of net income (loss) to net cash provided by (used in) operating activities:

 

 

 

 

    Gain on release of liabilities

 

     (236,959)

 

                 -  

    Changes in assets and liabilities:

 

 

 

 

        Increase in accrued liabilities

 

          9,000 

 

                -  

        Increase in accounts payable

 

                 - 

 

         16,073  

        Increase in accrued expenses

 

                - 

 

       12,504  

 

 

 

 

 

        Net cash (used in) operating activities

 

        (28,000)

 

          (23,175)

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

 

       Net cash used in investing activities

 

                   - 

 

                 - 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

Increase in amount due to shareholder

 

       28,000 

 

                 - 

Proceeds from notes payable-related parties

 

                 - 

 

       23,125 

 

 

 

 

 

       Net cash provided by financing activities

 

         28,000 

 

       23,125 

 

 

 

 

 

Net decrease in cash

 

                 - 

 

          (50)

 

 

 

 

 

Cash, at the beginning of period

 

                  - 

 

          117 

 

 

 

 

 

Cash, at the end of period

 

$                        - 

 

$                    67 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

    Cash paid for income taxes

 

$                        -

 

$                       - 

    Cash paid for interest expense

 

$                        -

 

$                       - 

 

 

 

 

 


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




7




Eason Education Kingdom Holdings, Inc.

Notes to Condensed Financial Statements

(Unaudited)


NOTE 1 – Organization, History and Business Activity


Eason Education Kingdom Holdings, Inc. (formerly known as Han Logistics, Inc.) (the "Company") was incorporated under the laws of the State of Nevada on July 1, 1999. The Company was organized to engage in the business of development, marketing and delivering of logistical analysis, problem solving and other logistics and general business services.  The Company is currently seeking potential business opportunities.  


On February 12, 2015, Michael Vardakis ("Then Majority Shareholder") entered into a Stock Purchase Agreement with Kin Hon Chu ("New Majority Shareholder") wherein Mr. Vardakis sold 8,813,225 shares of the Company’s common stock, representing approximately 85% of all issued and outstanding shares to Mr. Chu.  The aggregate purchase price paid was $400,000.


NOTE 2 – Basis of Preparation and Significant Accounting Policies


Basis of Preparation


The condensed balance sheets of the Company as of September 30, 2015, the related condensed statements of operations and the condensed statements of cash flows for the nine months and three months ended September 30, 2015 and 2014 include all adjustments (consisting of normal recurring adjustments) necessary to summarize fairly the Company's financial position and results of operations. The results of operations for the nine months and three months ended September 30, 2015 are not necessarily indicative of the results of operations for the full year or any other interim period. The information included in this Form 10-Q should be read in conjunction with Management's Discussion and Analysis and Financial Statements and notes thereto for the fiscal year ended December 31, 2014 included in the Company's Annual Report on Form 10-K.


Significant Accounting Policies


This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements.  The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity.  These accounting policies conform to accounting principles generally accepted in the United States of America ("GAAP") and have been consistently applied in the preparation of the financial statements.


Cash and Cash Equivalents


The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company currently has no cash and cash equivalents.  


Fair Value of Financial Instruments


Effective January 1, 2008, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 820, Fair Value Measurements, which provides a framework for measuring fair value under GAAP.  Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  The standard also expands disclosures about instruments measured at fair value and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:




8




Level 1 – Quoted prices for identical assets and liabilities in active markets;

Level 2 – Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and

Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.


The Company designates cash equivalents as Level 1.  The total amount of the Company’s investment classified as Level 3 is de minimis.


The fair value of the Company’s debt as of September 30, 2015 approximated fair value at those times.


Fair value of financial instruments: The carrying amounts of financial instruments, including accounts payable, and accrued expenses approximated fair value as of December 31, 2014 because of the relative short term nature of these instruments.


Revenue Recognition


The Company currently has no significant source of revenue.


Use of Estimates


The preparation of condensed financial statements in conformity with generally accepted accounting principles in the United States of America 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 condensed financial statements,  and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ significantly from those estimates.


Income Taxes


The Company accounts for income taxes under an asset and liability approach. This process involves calculating the temporary and permanent differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The temporary differences result in deferred tax assets and liabilities, which would be recorded on the Company’s balance sheets in accordance with ASC 740, which established financial accounting and reporting standards for the effect of income taxes. The Company must assess the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes that recovery is not likely, the Company must establish a valuation allowance. Changes in the Company’s valuation allowance in a period are recorded through the income tax provision on the statements of operations.


The Company records interest and penalties arising from the underpayment of income taxes in the statement of income under general and administrative expenses. As of September 30, 2015, the Company had no accrued interest or penalties related to uncertain tax positions. The company also did not have any uncertain tax benefits during these periods. The tax years 2014, 2013 and 2012 remain open to examination.


Earnings (Loss) per Share


The Company is required to provide basic and dilutive earnings (loss) per common share information.


The basic net loss per common share is computed by dividing the net loss applicable to common stockholders by the weighted average number of common shares outstanding.


Diluted net loss per common share is computed by dividing the net loss applicable to common stockholders, adjusted on an "as if converted" basis, by the weighted average number of common shares outstanding plus potential dilutive securities.  



9





For the nine months and three months ended September 30, 2015 and 2014, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share.


Recent Accounting Pronouncements


From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date.  If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption.


Update No. 2014-09 – Revenue from Contracts with Customers (Topic 606)

·

Section A – Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs – Contracts with Customers (Subtopic 340-40)

·

Section B – Conforming Amendments to Other Topics and Subtopics in the Codification and Status Tables

·

Section C – Background Information and Basis for Conclusion


The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps:


Step 1: Identify the contract(s) with a customer.

Step 2: Identify the performance obligations in the contract.

Step 3: Determine the transaction price.

Step 4: Allocate the transaction price to the performance obligations in the contract.

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.


For a public entity, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period.  Due to lack of revenues in the periods presented, the Company believes the amendment no financial effect to its financials upon adoption.


Update No. 2014-10 – Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements to Variable Interest Entities Guidance in Topic 810, Consolidation


The amendments in this Update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP.  In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage.


The amendments also clarify that the guidance in Topic 275, Risks and Uncertainties, is applicable to entities that have not commenced planned principal operations.


Finally, the amendments remove paragraph 810-10-15-16.  Paragraph 810-10-15-16 states that a development stage entity does not meet the condition in paragraph 810-10-15-14(a) to be a variable interest entity if (1) the entity can demonstrate that the equity invested in the legal entity is sufficient to permit it to finance the activities that it is currently engaged in and (2) the entity’s governing documents and contractual arrangements allow additional equity investments.  Under the amendments, all entities within the scope of the Variable Interest Entities Subsections of Subtopic 810-10 are required to evaluate whether the total equity investment at risk is sufficient using the guidance provided in paragraphs 810-10-25-45 through 25-47, which requires both qualitative and quantitative evaluations. Because the term development stage entity is used in paragraph 810-10-15-16, the definition of a development stage entity has been removed from the Master Glossary concurrent with the effective date of the amendment removing paragraph 810-10-15-16.




10




The amendments related to the elimination of inception-to-date information and the other remaining disclosure of Topic 915 should be applied retrospectively except for the clarification to Topic 275, which shall be applied prospectively.  For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein.  The Company adopted this amendment to its financials in the current reporting period.  The amendment is strictly presentation of the financial statements of development companies and has no financial effect on the statements presented herein.


NOTE 3 – Going Concern


The accompanying condensed financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  The Company incurred a net loss of $37,000 (from operations) for the nine months ended September 30, 2015 and an accumulated deficit of $460,718 at September 30, 2015.  These factors raise substantial doubt as to its ability to obtain debt and/or equity financing and achieve profitable operations.


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.  Ultimately, the Company will need to achieve profitable operations in order to continue as a going concern.


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 Eason Education Kingdom Holdings, Inc.  If adequate working capital is not available Eason Education Kingdom Holdings, Inc. may be required to curtail its operations.


NOTE 4 – Stockholders' Equity


As of September 30, 2015 and December 31, 2014, the Company authorized two classes of stocks, 500,000,000 shares of common stock at par value of $0.001, and 175,000,000 Class A preferred stock at par value of $0.001. There are 10,368,500 common shares issued and outstanding. None of the Class A preferred stock is issued.


NOTE 5 – Related Parties Transactions


The Company currently utilizes office space on a rent-free basis from a director and shareholder, and shall do so until substantial revenue-producing operations commence. Management deemed the rent-free space to be of no nominal value.


A related party had loaned $13,387 to the Company as of December 31, 2004, which is convertible to common stock at a rate of $0.10 per share.  The effect of conversion on the loss per share calculation would be anti-dilutive, as the Company incurred losses in each of the periods presented in the financial statements.


A related party loaned $23,800 to the Company during 2005, which is convertible to common stock at a rate of $0.10 per share.  The effect of conversion on the loss per share calculation would be anti-dilutive, as the Company incurred losses in each of the periods presented in the financial statements.


A related party loaned $17,100 to the Company during 2007, which is convertible to common stock at a rate of $0.10 per share.  The effect of conversion on the loss per share calculation would be anti-dilutive, as the Company incurred losses in each of the periods presented in the financial statements.  


As of December 31, 2014, the outstanding note payable to a director of $8,700 and $2,500 that available to the Company during 2008 and 2007, respectively, are demand notes and carry an interest rate of 24% per annum.


As of December 31, 2014, the outstanding note payable to a director and other related parties of $8,917 that available to the Company during 2009 are demand notes and carry an interest rate of 9% -18% per annum.



11





As of December 31, 2014, the outstanding note payable to a director of $5,000 that available to the Company during 2010 are demand notes and carry an interest rate of 9% - 10% per annum.


As of December 31, 2014, the outstanding note payable to a director and other related parties loaned $15,850 that available to the Company during 2011 are demand notes and carry an interest rate of 9% per annum.


As of December 31, 2014, the outstanding note payable to a director of $14,500 that available to the Company during 2012 are demand notes and carry an interest rate of 9% per annum.


As of December 31, 2014, the outstanding note payable to a director of $17,950 that available to the Company during 2013 are demand notes and carry an interest rate of 9% per annum.


During 2014, a director loaned $42,425 to the Company. These loans are demand notes and carry an interest rate of 9% per annum.


The Company recorded an interest expense of $0 and $10,956 for the related party notes listed above for the nine months ended September 30, 2015 and 2014 respectively.  


As of December 31, 2014, total notes payable to the related parties and accrued interests amounted to $260,035 in the aggregate. During the period, the New Majority Shareholder settled $158,075 to the related parties.  The remaining outstanding balance of $101,960 was released by the related parties and the amount was credited to condensed statement of operations during the period.


NOTE 6 – Notes Payable


An independent party loaned $9,700 to the Company on March 12, 2008.  The note is unsecured, due upon demand and has an interest rate of 9%.


During 2010, an individual loaned $7,300 to the Company.  The note is a demand note and carries an interest rate of 9%.  The note is unsecured.


During 2011, an individual loaned $6,000 to the Company.  The note is a demand note and carries an interest rate of 9%.  The note is unsecured.


The Company recorded an interest expense of $0 and $1,548 for the nine months ended September 30, 2015 and 2014 respectively.  


As of December 31, 2014, the above notes payable together with accrued interests amounted to $33,783 in aggregate. In February 2015, the New Majority Shareholder settled $23,000.The remaining outstanding balance of $10,783 was released by the creditors and the amount was credited to condensed statement of operations.


NOTE 7 - Accounts Payable


The Company recorded an accrued liability for professional service fees of $9,000 on September 30, 2015. This represents a duplicate payment for first and second quarter review service fees. Due to it is less-than-likely the original payments are to be recovered, the information is available before the financial statements issued, and the amount is reasonably estimated, provision is recorded in third quarter of 2015.   


NOTE 8 – Release of liabilities


On February 12, 2015, Michael Vardakis ("Then Majority Shareholder") entered into a Stock Purchase Agreement with Kin Hon Chu ("New Majority Shareholder") wherein Mr. Vardakis sold 8,813,225 shares of the Company’s common stock, representing approximately 85% of all issued and outstanding shares to Mr. Chu.  Mr. Chu paid $4,406.61 for this control block of shares and also paid off all of the existing liabilities of the Company. Accordingly, certain liabilities of $236,959 in the aggregate, including those notes payable as disclosed in note 5 and



12




note 6, were released by the creditors as a result of the change in ownership.  The amount was credited to condensed statement of operations.


NOTE 9 - Subsequent Events


The Company evaluated subsequent events, which are events or transactions that occurred after September 30, 2015 through the date of the issuance of the accompanying unaudited condensed financial statements.  On October 8, 2015, the Company had accepted ten subscription agreements from private placements for an aggregate of 300,500,000 shares of common stock at $0.001 par value, for an aggregate proceed of up to $300,500.  This event was filed with the SEC on October 13, 2015.


ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.


The following information should be read in conjunction with (i) the financial statements of Eason Education Kingdom Holdings, Inc., a Nevada corporation (the “Company”), and development-stage company, and the notes thereto appearing elsewhere in this Form 10-Q together with (ii) the more detailed business information and the December 31, 2014 audited financial statements and related notes included in the Company’s Form 10-K (File No. 000-52273; the “Form 10-K”), as filed with the Securities and Exchange Commission on April 17, 2015. Statements in this section and elsewhere in this Form 10-Q that are not statements of historical or current fact constitute “forward-looking” statements

 

OVERVIEW


The Company was incorporated in the State of Nevada on July 1, 1999 and established a fiscal year end of December 31.


Going Concern


To date the Company has little operations or revenues and consequently has incurred recurring losses from operations. No revenues are anticipated until we complete the financing we endeavor to obtain, as described in the Form 10-K, and implement our initial business plan. The ability of the Company to continue as a going concern is dependent on raising capital to fund our business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company’s ability to continue as a going concern.

 

The Company plans to raise additional funds through debt or equity offerings. There is no guarantee that the Company will be able to raise any capital through any offerings.


PLAN OF OPERATION


Our plan of operation for the twelve months following the date of this filing is to: (i) consider guidelines of industries in which the Company may have an interest; (ii) adopt a business plan regarding engaging in the business of any selected industry; and (iii) to commence such operations through funding and/or the acquisition of a “going concern” engaged in any industry selected.


During the next 12 months, the Company’s only foreseeable cash requirements will relate to maintaining the Company in good standing or the payment of expenses associated with legal fees, accounting fees and reviewing or investigating any potential business venture, which may be advanced by management or principal stockholders as loans to the Company. Because we have not determined any business or industry in which our operations will be commenced, and we have not identified any prospective venture as of the date of this Quarterly Report, it is impossible to predict the amount of any such loan. Any such loan will be on terms no less favorable to the Company



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than would be available from a commercial lender in an arm’s length transaction. No advance or loan from any affiliate will be required to be repaid as a condition to any agreement with future acquisition partners.


When and if a business will commence or an acquisition be made is presently unknown and will depend upon various factors, including but not limited to the availability of funding and if and when any potential acquisition may become available to the Company on terms acceptable to the Company.  The estimated costs associated with reviewing and verifying information about a potential business venture would be mainly for due diligence and could cost between $5,000 and $25,000.  These funds will either be required to be loaned by management or raised in private offerings; the Company cannot assure you that it can raise funds if needed.

 

RESULTS OF OPERATIONS


Three- and Nine-Month Periods Ended September 30, 2015 and 2014


We recorded no revenues for the three months and nine months ended September 30, 2015.


For the three months ended September 30, 2015, total operating costs were $21,000, consisting solely of general and administrative expenses.  By comparison, for the three months ended September 30, 2014, total operating costs were $10,963, also consisting solely of general and administrative expenses.  The loss from operations was $21,000 and $10,963, respectively, during these periods.  


Our net loss for the three months ended September 30, 2015 was $21,000 and $15,357 for the three months ended September 30, 2014. The increase is mainly due to a $10,037 increase in general and administrative expenses (which included the $9,000 provision stated in Note 7) and a $4,394 decrease in interest expense for the three months ended September 30, 2015.


For the nine months ended September 30, 2015, total operating costs were $37,000, consisting solely of general and administrative expenses.  By comparison, for the nine months ended September 30, 2014, total operating costs were $39,248, also consisting solely of general and administrative expenses.  The losses from operations during these periods were $37,000 and $39,248, respectively.  


Net income for the nine months ended September 30, 2015 was $199,959, as compared to net loss of $51,752 for the nine months ended September 30, 2014. The increase is mainly due to the one-time gain on release of liabilities of $236,959 that recognized in the first quarter of 2015.

 

Liquidity and Capital Resources


At September 30, 2015, we had a cash balance of $0, total current liabilities of approximately $37,000 and working capital deficit and stockholders’ deficit of approximately $37,000.  We do not have sufficient cash on hand to commence our 12-month plan of operation or to fund our ongoing operational expenses. We will need to raise funds to commence our plan of operation and fund our ongoing operational expenses. Additional funding will likely come from equity financing from the sale of common stock or debt securities.  If we are successful in completing an equity or debt financing, existing shareholders will experience dilution of their interest in our Company. We do not have any financing arranged and we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock or debt securities to fund our planned activities and ongoing operational expenses. In the absence of such financing, our business will likely fail. There are no assurances that we will be able to achieve further sales of our common stock or any other form of additional financing. If we are unable to achieve the financing necessary to continue our plan of operations, then we will not be able to continue our operations and our business will fail.

 

Off-Balance Sheet Arrangements


We had no off-balance sheet arrangements for the nine months ended September 30, 2015.




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Subsequent Events


The Company evaluated subsequent events, which are events or transactions that occurred after September 30, 2015 through the date of the issuance of the accompanying unaudited condensed financial statements.  On October 8, 2015, the Company had accepted ten subscription agreements from private placements for an aggregate of 300,500,000 shares of common stock at $0.001 par value, for an aggregate proceed of up to $300,500.  This event was filed with the SEC on October 13, 2015.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

As a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act), we are not required to provide the information called for by this Item 3.


ITEM 4. CONTROLS AND PROCEDURES.


Evaluation of disclosure controls and procedures


Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) under the Exchange Act as of the end of the period covered by this Quarterly Report on Form 10-Q.  In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.  In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.  The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.


Based on that evaluation, our chief executive officer and chief financial officer concluded that, as of September 30, 2015, our disclosure controls and procedures were not effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in SEC rules, regulations and forms, and (ii) that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.


Changes in internal control over financial reporting


Our management, with the participation of the chief executive officer and chief financial officer, has concluded there were no significant changes in our internal controls over financial reporting that occurred during this quarter 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.


The Company is not currently subject to any legal proceedings. From time to time, the Company may become subject to litigation or proceedings in connection with its business, as either a plaintiff or defendant. There are no such pending legal proceedings to which the Company is a party that, in the opinion of management, is likely to have a material adverse effect on the Company’s business, financial condition or results of operations.

 

ITEM 1A. RISK FACTORS

 

As a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act), we are not required to provide the information called for by this Item 1A.




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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.


None.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES.


None.


ITEM 4. MINE SAFETY DISCLOSURES.


None.


ITEM 5. OTHER INFORMATION.


None.

 

ITEM 6. EXHIBITS.

 

(a) Exhibits required by Item 601 of Regulation SK.

 

Number

 

Description

 

 

 

3.1

 

Articles of Incorporation (1)

 

 

 

3.2

 

Certificate of Amendment dated August 10, 2015(2)

 

 

 

3.2

 

Bylaws (1)

 

 

 

31.1

 

Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 

 

 

31.2

 

Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 

 

 

32.1

 

Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

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

_____________________

(1) Filed and incorporated by reference to the Company’s Registration Statement on Form SB-2 (File No. 333-54002), as filed with the Securities and Exchange Commission on January 19, 2001.

(2) Filed and incorporated by reference to the Company’s Quarterly Report on Form 10-Q (File No. 000-52273), as filed with the Securities and Exchange Commission on August 14, 2015.


 



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* XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

 

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.

 

 

EASON EDUCATION KINGDOM HOLDINGS, INC.

 

(Name of Registrant)

 

 

Date: November 20, 2015

By:

/s/ Cheng Kin Ning, Kenny

 

 

Name:

Cheng Kin Ning, Kenny

 

 

Title:

Chief Financial Officer (principal executive officer, principal financial officer, and principal accounting officer)

 

 

 

 



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EXHIBIT INDEX


Number

 

Description

 

 

 

3.1

 

Articles of Incorporation (1)

 

 

 

3.2

 

Certificate of Amendment dated August 10, 2015(2)

 

 

 

3.2

 

Bylaws (1)

 

 

 

31.1

 

Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 

 

 

31.2

 

Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 

 

 

32.1

 

Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

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






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