EVER HARV Ever Harvest International Group Inc. (f/k/aTotally Green Inc. ) is a holding company that, through its subsidiaries, is engaged primarily in the development and sale of STEAM education products and services aimed at serving the primary and secondary school markets. Our Edtech business is operated through our wholly owned subsidiaryK I.T. Network Limited , aHong Kong private limited company ("KIT"). KIT commenced operations inHong Kong inAugust 9, 2016 and sells its products and services primarily inHong Kong . KIT is not required to obtain permission from the Chinese authorities to operate or to issue securities to foreign investors. KIT was organized as a private limited liability company onNovember 8, 2010 , inHong Kong and is a wholly owned subsidiary ofEver Harvest Capital Group Limited ("EHCG"). Our corporate organization chart is below.
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We are at a development stage company and reported a net loss of $105,814 and a
net income of $5,631 for the three months ended March 31, 2022 and 2021,
respectively. We had current assets of $44 and current liabilities of $89,900 as
of March 31, 2022 . As of December 31, 2021 , our current assets and current
liabilities were $7,504 and $81,473 , respectively.
We have prepared our condensed consolidated financial statements for the three
months ended March 31, 2022 and 2021, assuming that we will continue as a going
concern. Our continuation as a going concern is dependent upon improving our
profitability and the continuing financial support from our stockholders. Our
sources of capital in the past have included the sale of equity securities,
which include common stock sold in private transactions and public offerings,
capital leases and short-term and long-term debts. We believe that our current
cash and other sources of liquidity discussed below are adequate to support
general operations for at least the next 12 months.
22
Results of Operations.
Comparison of the three months ended
The following table sets forth certain operational data for the three months
ended
Three months ended
March 31,
2022 2021
Revenue $ 75,717 $ 21,269
Cost of revenue (82,784 ) (12,891 )
Gross profit (loss) (7,067 ) 8,378General and administrative expenses (98,747 ) (2,747 ) Income (loss) from operation
(105,814 ) 5,631
Income tax expense - -
NET INCOME (LOSS) $ (105,814 ) $ 5,631
Revenue
During the three months ended
Three months ended March 31, 2022 March 31, 2022
Percentage Accounts
Customer Revenues of revenues receivable
IOT Solution Limited (related party) $ 75,714
100% $ -
Three months ended March 31, 2021 March 31, 2021
Percentage
Customer Revenues of revenues Accounts receivable
IOT Solution Limited (related party) $ 21,269
100% $ -
All customers are located in
Cost of Revenue.
Cost of Revenue for the three months ended
23 Gross (Loss) Profit.
We achieved a gross loss of
General and Administrative Expenses ("G&A").
We incurred G&A expenses of$98,747 and$2,747 for the three months endedMarch 31, 2022 and 2021, respectively. The increase in G&A is primarily attributable to the accounting fee and stock-based consulting expenses. Income Tax Expense.
Our income tax expenses for the three months ended
Net Loss. As a result of the above factors, the Company incurred a net loss of$105,814 and a net income of$5,631 for the three months endedMarch 31, 2022 and 2021, respectively.
Liquidity and Capital Resources
We have never paid dividends on our Common Stock. Our present policy is to apply cash to investments in product development, acquisitions or expansion; consequently, we do not expect to pay dividends on Common Stock in the foreseeable future.
We expect to incur significantly greater expenses in the near future as we expand our business or enter into strategic partnerships. We also expect our general and administrative expenses to increase as we expand our finance and administrative staff, add infrastructure, and incur additional costs related to being reporting act company, including directors' and officers' insurance and increased professional fees.
We have never paid dividends on our Common Stock. Our present policy is to apply cash to investments in product development, acquisitions or expansion; consequently, we do not expect to pay dividends on Common Stock in the foreseeable future.
Going Concern Uncertainties
Our continuation as a going concern is dependent upon improving our
profitability and the continuing financial support from our stockholders. Our
sources of capital may include the sale of equity securities, which include
common stock sold in private transactions, capital leases and short-term and
long-term debts. While we believe that we will obtain external financing and the
existing shareholders will continue to provide the additional cash to meet our
obligations as they become due, there can be no assurance that we will be able
to raise such additional capital resources on satisfactory terms. We believe
that our current cash and other sources of liquidity discussed below are
adequate to support operations for at least the next 12 months.
Three Months Ended March 31,
2022 2021
Net cash (used in) provided by operating activities
$ 1,260 Net cash provided by investing activities - - Net cash provided by financing activities $ -
$ 450 24
For the three months ended
For the three months ended
We expect to continue to rely on cash generated through financing from our existing shareholders and private placements of our securities, however, to finance our operations and future acquisitions.
Net Cash Provided By Investing Activities.
For the three months ended
Net Cash Provided by Financing Activities.
For the three months ended
For the three months ended
Off-Balance Sheet Arrangements
We have no outstanding off-balance sheet guarantees, interest rate swap transactions or foreign currency contracts. We do not engage in trading activities involving non-exchange traded contracts.
Contractual Obligations and Commercial Commitments
As of
Material Cash Requirements We have not achieved profitability since our inception and we expect to continue to incur net losses for the foreseeable future. We expect net cash expended in 2022 to be slightly higher than 2021. As ofMarch 31, 2022 , we had an accumulated deficit of$2,463,253 . Our material cash requirements are highly dependent upon the additional financial support from our major shareholders
in the next 12 -18 months. Going Concern We require additional funding to meet its ongoing obligations and to fund anticipated operating losses. Our auditor has expressed substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might result from this uncertainty. We expect to incur marketing and professional and administrative expenses as well expenses associated with maintaining our filings with the Commission. We will require additional funds during this time and will seek to raise the necessary additional capital. If we are unable to obtain additional financing, we may be required to reduce the scope of our business development activities, which could harm our business plans, financial condition and operating results. Additional funding may not be available on favorable terms, if at all. We intend to continue to fund its business by way of equity or debt financing and advances from related parties. Any inability to raise capital as needed would have a material adverse effect on our business, financial condition and results of
operations. 25
If we cannot raise additional funds, we will have to cease business operations. As a result, our common stock investors would lose all of their investments.
Basis of preparation Our financial statements and accompanying notes have been prepared in accordance withUnited States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity withUnited States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting periods. Use of estimates The preparation of the financial statements in conformity withU.S. 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, as well as 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 materially from those estimates. Income Taxes We account for income taxes as outlined in ASC 740, "Income Taxes". Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled.
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