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 consolidated financial statements are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our consolidated 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", "our company" or "the Company" mean Fellazo Corp., and Fellazo Berhad, a Malaysian company, of which we own 49%, unless otherwise indicated.

Overview of Corporate History

Fellazo Corp. was incorporated in the State of Nevada on May 28, 2014. The Company's fiscal year end is August 31.

Overview of Current Business

During the quarter ending May 31, 2020, the Company is still in the process of commencement of its operations with heavy emphasis into healthcare - primarily bird-nest based health supplement and bird-nest related health products, which include manufacturing and retail (retail chain and online). With our expertise in online applications platform, we expect to develop an online network platform to market and sell our products, and also create a system to source and purchase raw materials we required.

Since October 2019, the Company's 49% subsidiary Fellazo Berhad (FB) started purchasing raw bird-nests directly from bird-nest farmers or their agents and re-selling them to bird-nest processors; wherever possible these raw bird-nests are delivered directly from the farmer to the processor.

Due to outbreak of Covid-19 pandemic and government imposed lockdown, we ceased operations mid-January 2020, and have yet to recover sales, even with partial lifting of lockdown; only total of 17 invoices were issued for the year ending August 31, 2020, and some sales were made to our own directors during the recent quarter.

In view of the still unknown market, economy sentiment and further regional and district lockdowns, and with bird-nest recently being considered a prestige product, the market may take a longer time to recover.

On August 1, 2020; FB had executed an Addendum and Update to the existing Management Agent agreement with Swipypay Berhad to include the additional functions, and the monthly management fee was increased from $5,000 to $10,000; this was in anticipation of FB's increase in operational volume in the near future.

Our office is located at 8th Floor, Wisma Huazong, Lot 15285, 0.7 km Lebuhraya Sungei Besi, 43300 Seri Kembangan, Selangor Darul Ehsan, Malaysia and the bird-nest show factory is located at Level B1 in the same office building. Our corporate website is http://fellazo.com.






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Results of Operations

The following summary of our results of operations should be read in conjunction with our financial statements included elsewhere in this quarterly report.

Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation. We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

Comparison of the three months ended May 31, 2020 and 2019





                                        Three months ended
                                              May 31,
                                         2020          2019        Change       %
Revenue                               $        -     $      -     $      -        -
Cost of Goods Sold                             -            -            -        -

General and administrative expenses 80,353 52,012 28,341 54 % Net loss

$   80,353     $ 52,012     $ 28,341       54 %

For the three months ended May 31, 2020, we had revenue of $0 and cost of revenue of $0, as compared to $0 and $0 for the same period in 2019. We had no revenue for the three months ended May 31, 2020, directly due to the impact of Covid-19 and not being able to offer products.

Our general and administrative expenses were $80,353 for the three months ended May 31, 2020, as compared to $52,012 for the same period in 2019. The increase in general and administrative expenses was primarily due to increased management fees and traveling expense.

Comparison of the nine months ended May 31, 2020 and 2019





                                         Nine Months Ended
                                              May 31,
                                        2020          2019         Change       %
Revenue                               $  56,138     $       -     $ 56,138        -
Cost of Goods Sold                       40,531             -       40,531        -

General and administrative expenses 233,591 140,836 92,755 66 % Net loss

$ 217,984     $ 140,836     $ 77,148       55 %

For the nine months ended May 31, 2020, we had revenue of $56,138 and cost of revenue of $40,531, as compared to $0 and $0 for the same period in 2019. The Company started with trading of raw bird-nest and it is an initial stage of our operations.

Our general and administrative expenses were $233,591 for the nine months ended May 31, 2020, as compared to $140,836 for the same period in 2019. The increase in general and administrative expenses was primarily due to increased management fees and traveling expense.






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Liquidity and Capital Resources





Working Capital



                               May 31,       August 31,
                                2020            2019           Change          %
Current assets               $    21,366     $    73,572     $  (52,206 )     (71%)
Current liabilities          $ 1,014,621     $   851,699     $  162,922          19 %
Working capital deficiency   $  (993,255 )   $  (778,127 )   $ (215,128 )        28 %

The Company's current assets consists of cash and cash equivalents of $12,049 and prepaid expense and deposit of $9,317 at May 31, 2020, as compared to cash and cash equivalents of $54,467 and prepaid expense of $19,105 at August 31, 2019.

As at May 31, 2020, current liabilities consisted of accounts payable and accrued liabilities of $16,248 and due to a related party of $998,373, as compared to August 31, 2019, current liabilities consisted of accounts payable and accrued liabilities of $27,000 and due to a related party of $824,699. The increase in current liabilities is primarily due to the operating expenses paid by the related party.





Cash Flows



                                                     Nine Months Ended
                                                          May 31,
                                                    2020           2019          Change

Cash provided by (used in) operating activities $ 2,877 $ (102,069 ) $ 104,946 Cash provided by (used in) financing activities (45,761 ) 120,625 (166,386 ) Effects on changes in foreign exchange rate

             466           (411 )          877
Net change in cash and cash equivalents           $ (42,418 )   $   18,145     $  (60,563 )

Cash Flow from Operating Activities

Cash flows provided by operations was $2,877 during the nine months ended May 31, 2020, compared with cash used in operating activities of $102,069 during the same period in 2019. The increase in cash provided by operating activities is mainly due to an expense paid by related party.

Cash Flow from Financing Activities

During the nine months ended May 31, 2020, the Company received $309,249 from a related party, and repaid $4,368 to a related party and paid $350,642 for expenses on behalf of a related party. During the nine months ended May 31, 2019, the Company received $120,625 from a related party,

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 and Estimates

Management's discussion and analysis of our financial condition and results of operations are based upon our unaudited consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. We review the accounting policies used in reporting our financial results on a regular basis. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, net sales and expenses and related disclosure of contingent liabilities. We base our estimates on historical experience and on various other assumptions that we believe are reasonable for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Our actual results may differ materially from these estimates.






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For a complete description of our critical accounting policies and estimates, refer to our 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission on August 10, 2020.

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