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

The Company's core business is "Healthcare and Personal Wellness" products - primarily bird-nest based, which include manufacturing and retail (retail chain and online). With our expertise in online applications platforms, we will be developing an online network platform to market and sell our products, and also create a system to source and purchase raw materials we required.

In mid of October 2019, the Company's 49% subsidiary Fellazo Berhad ("FB") started purchases of 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, so that we would not have to maintain a facility to store these raw bird-nests at an early stage of our business development.

FB had an arrangement to utilize a raw bird-nest processing factory located at our office building as a show factory for visits by our potential customers for processed bird-nest and bird-nest based health supplement.

FB had also placed an initial deposit for our OEM personal cleansing and nourishing facial products, these initial batches of products would generally be used for marketing purposes, such as trial samples for potential customers. FB is working with our Management Agent to seek out potential partners for our wellness and personal care products






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Due to the outbreak of Covid-19 pandemic and a government-imposed lockdown, we ceased operations mid-January 2020, and have yet to fully recover even with partial lifting of lockdown.

In view of the still unknown market, economy uncertainty and further regional and district lockdowns, and the fact that bird-nest has been considered a prestige product, our market may take a longer time to recover than other industries.

On August 1, 2020, FB executed an Addendum and Update to the existing Management Agent agreement with Swipypay Berhad to include additional functions (which include provision of the show factory) and a new monthly management fee increase from $5,000 to $10,000 per month, in anticipation of FB's increase in operational volume in the 2021.

Further to the Memorandum of Understanding (MOU) with PT Hyppe Teknologi Indonesia signed on December 8, 2020; the progress of the project was further delayed due to the Covid-19 pandemic, and presently any further actions are solely dependent on the progress of the pandemic.

Our office has relocated to T2-L8-3, Level 8, IOI City Tower Two, Lebuh IRC,

IOI Resort City, 62502 Putrajaya, Malaysia since March 2021. Our corporate website is http://fellazo.com.

We have never declared bankruptcy, been in receivership, or involved in any kind of legal proceeding.





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, 2021 and 2020





                                        Three months ended
                                              May 31,
                                         2021          2020        Change       %
Revenue                               $   21,460     $      -     $ 21,460        -
Cost of Goods Sold                        18,376            -       18,376        -

General and administrative expenses 90,309 80,353 9,956 12 % Net loss

$   87,225     $ 80,353     $  6,872        9 %

For the three months ended May 31, 2021, we had revenue of $21,460 and cost of goods sold of $18,376, as compared to $0 and $0 for the same period in 2020. The Company started with trading of raw bird-nest since fiscal year 2020 and it is an initial stage of our operations. Due to the outbreak of Covid-19 pandemic and a government-imposed lockdown, we ceased operations mid-January 2020, and have yet to fully recover even with partial lifting of lockdown.

Our general and administrative expenses were $90,309 for the three months ended May 31, 2021, as compared to $80,353 for the same period in 2020. The increase in general and administrative expenses was primarily due to increased management fees and payroll expense.

Our net loss increased by $6,872 due to an increase in operating expense offset by an increase in gross.






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Comparison of the nine months ended May 31, 2021 and 2020





                                         Nine Months Ended
                                              May 31,
                                        2021          2020         Change         %
Revenue                               $ 224,436     $  56,138     $ 168,298       300 %
Cost of Goods Sold                      168,390        40,531       127,859       315 %

General and administrative expenses 286,157 233,591 52,566 23 % Net loss

$ 230,111     $ 217,984     $  12,127         6 %

For the nine months ended May 31, 2021, we had revenue of $224,436 and cost of goods sold of $168,390, as compared to $56,138 and $40,531 for the same period in 2020. We started with trading of raw bird-nest since fiscal year 2020 and it is an initial stage of our operations and due to the outbreak of Covid-19 pandemic and a government-imposed lockdown, we ceased operations mid-January 2020, and have yet to fully recover even with partial lifting of lockdown.

Our general and administrative expenses were $286,157 for the nine months ended May 31, 2021, as compared to $233,591 for the same period in 2020. The increase in general and administrative expenses was primarily due to increased management fees and payroll expense.

Our net loss increased by $12,127 due to an increase in operating expense offset by an increase in gross profit.

Liquidity and Capital Resources





Working Capital



                               May 31,         August 31,
                                 2021             2020           Change        %
Current assets               $      7,412     $     14,393     $   (6,981 )    (49 %)
Current liabilities          $  1,327,767     $  1,103,389     $  224,378       20 %
Working capital deficiency   $ (1,320,355 )   $ (1,088,996 )   $ (231,359 )     21 %

The Company's current assets consists of cash of $6,279 and prepaid expense of $1,113 at May 31, 2021, as compared to cash of $6,665 and prepaid expense and deposit of $7,728 at August 31, 2020.

As at May 31, 2021, current liabilities consisted of accounts payable and accrued liabilities of $16,480 and due to a related party of $1,311,287, as compared to August 31, 2020, current liabilities consisted of accounts payable and accrued liabilities of $30,137 and due to a related party of $1,073,252. The increase in current liabilities is primarily due to the operating expenses paid by the related party.





Cash Flows



                                            Nine Months Ended
                                                 May 31,
                                           2021          2020         Change           %

Cash provided by operating activities $ 61,909 $ 2,877 $ 59,032 2,052 % Cash used in financing activities (62,180 ) (45,761 ) (16,419 ) 36 % Effects on changes in foreign exchange

                                                  (125
rate                                          (115 )         466          (581 )             %)
Net change in cash and cash                                                              (99
equivalents                              $    (386 )   $ (42,418 )   $  42,032               %)





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Cash Flow from Operating Activities

Cash flows provided by operations was $61,909 during the nine months ended May 31, 2021, compared with $2,877 during the same period in 2020. The increase in cash provided by operating activities is mainly due to expenses paid by related party.

Cash Flow from Financing Activities

During the nine months ended May 31, 2021, the Company received $10,458 from a related party, and repaid $72,638 to a related party. During the nine months ended May 31, 2020, the Company received $309,249 from a related party, paid $350,642 for expenses on behalf of a related party and repaid $4,368 to 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.

For a complete description of our critical accounting policies and estimates, refer to our 2020 Annual Report on Form 10-K filed with the Securities and Exchange Commission on December 28, 2020.

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