Hoops Scouting USA
12/12/2024 | Press release | Distributed by Public on 12/12/2024 16:21
Amendment to Quarterly Report (Form 10-Q/A)
hsct_10qa.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
(Amendment No. 1)
☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended
December 31, 2022
Or
☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (For the transition period from to).
Commission File Number: 333-260704
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HOOPS SCOUTING USA |
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(Exact name of registrant as specified in its charter) |
|
Wyoming |
7389 |
38-4010393 |
||
|
(State or other jurisdiction of incorporation or organization) |
(Primary Standard Industrial Classification Code Number) |
(I.R.S. Employer Identification Number) |
63 Rocio Court
Palm Desert, CA 92260
Tel: (760) 636-4353
(Address, including zip code, and telephone number, including
area code, of registrant's principal executive offices)
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 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 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.
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Large, accelerated filer |
☐ |
Accelerated filer |
☐ |
|
Non-accelerated filer |
☒ |
Smaller Reporting Company |
☒ |
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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 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
The number of shares of the Registrant's common stock, par value $0.0001 per share, outstanding as of December 10, 2024 was 63,750,000.
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PART I |
FINANCIAL INFORMATION: |
3 |
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Item 1. |
Financial Statements |
3 |
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Unaudited Balance Sheets as of December 31, 2022 (Restated) and June 30, 2022 |
4 |
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Unaudited Statements of Operations for the three and six months ended December 31, 2022 (Restated), and 2021 |
5 |
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Unaudited Statements of Stockholders' Deficit for the three and six months ended December 31, 2022 (Restated), and 2021 |
6 |
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Unaudited Statements of Cash Flows for the six months ended December 31, 2022 (Restated), and 2021 |
7 |
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Notes to the Financial Statements |
8 |
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Item 2. |
Management's Discussion and Analysis of Financial Condition and Results of Operations |
15 |
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Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
17 |
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Item 4. |
Controls and Procedures |
17 |
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PART II |
OTHER INFORMATION: |
18 |
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Item 1. |
Legal Proceedings |
18 |
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Item 1A. |
Risk Factors |
18 |
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Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
18 |
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Item 3. |
Defaults Upon Senior Securities |
18 |
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Item 4. |
Submission of Matters to a Vote of Securities Holders |
18 |
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Item 5. |
Other Information |
18 |
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Item 6. |
Exhibits |
19 |
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Signatures |
20 |
| 2 |
| Table of Contents |
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
The accompanying interim financial statements of Hoops Scouting USA. ("the Company", "we", "us" or "our"), have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations.
The interim financial statements should be read in conjunction with the Company's latest annual financial statements.
In the opinion of management, the financial statements contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented.
| 3 |
| Table of Contents |
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HOOPS SCOUTING USA |
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Condensed Balance Sheets (Unaudited) |
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December 31, 2022 |
June 30, 2022 |
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(Restated) |
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Assets |
||||||||
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Current assets |
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Cash |
$ | 28 | $ | 392 | ||||
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Total current assets |
28 | 392 | ||||||
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Total assets |
$ | 28 | $ | 392 | ||||
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Liabilities and stockholders' deficit |
||||||||
|
Current liabilities |
||||||||
|
Accounts payable and accrued liabilities |
$ | 3,503 | $ | 4,903 | ||||
|
Due to related party (Note 3) |
73,381 | 61,581 | ||||||
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Total current liabilities |
76,884 | 66,484 | ||||||
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Non-current liabilities |
||||||||
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Loans payable (Note 5) |
16,000 | 16,000 | ||||||
|
Total liabilities |
$ | 92,884 | $ | 82,484 | ||||
|
Stockholders' deficit |
||||||||
|
Common stock authorized: 10,000,000,000 common shares, $0.0001 par value 63,750,000 shares issued and outstanding as of December 31, 2022 and June 30, 2022 |
$ | 6,375 | $ | 6,375 | ||||
|
Additional paid-in capital |
28,675 | 28,675 | ||||||
|
Accumulated deficit |
(127,906 | ) | (117,142 | ) | ||||
|
Total stockholders' deficit |
$ | (92,856 | ) | $ | (82,092 | ) | ||
|
Total liabilities and stockholders' deficit |
$ | 28 | $ | 392 |
(The accompanying notes are an integral part of these unaudited condensed financial statements)
| 4 |
| Table of Contents |
|
HOOPS SCOUTING USA |
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Condensed statements of operations |
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(Unaudited) |
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For the three months ended December 31, 2022 |
For the three months ended December 31, 2021 |
For the six months ended December 31, 2022 |
For the six months ended December 31, 2021 |
|||||||||||||
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(Restated) |
(Restated) |
|||||||||||||||
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Expenses |
||||||||||||||||
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General and administrative |
$ | 48 | $ | 58 | $ | 151 | $ | 623 | ||||||||
|
Professional fees |
8,800 | 5,750 | 8,800 | 21,200 | ||||||||||||
|
Transfer agent and filing fees |
1,503 | 2,824 | 1,813 | 3,639 | ||||||||||||
|
Total expenses |
$ | 10,351 | $ | 8,632 | $ | 10,764 | $ | 25,462 | ||||||||
|
Net loss for the period |
$ | (10,351 | ) | $ | (8,632 | ) | $ | (10,764 | ) | $ | (25,462 | ) | ||||
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Net loss per common share - basic and diluted |
(0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
|
Weighted average number of shares of common stock outstanding - basic and diluted |
63,750,000 | 37,500,000 | 63,750,000 | 37,500,000 |
(The accompanying notes are an integral part of these unaudited condensed financial statements)
| 5 |
| Table of Contents |
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HOOPS SCOUTING USA |
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Condensed Statements of Stockholders' Deficit |
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(Unaudited) |
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Common stock |
Additional |
Share | Total | |||||||||||||||||||||
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Number of shares |
Amount |
paid-in capital |
subscriptions received |
Accumulated deficit |
stockholders' deficit |
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For the three and six months ended December 31, 2021 |
||||||||||||||||||||||||
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Balance, June 30, 2021 |
37,500,000 | $ | 3,750 | $ | (3,700 | ) | $ | 32,000 | $ | (64,699 | ) | $ | (32,649 | ) | ||||||||||
|
Share subscriptions received |
- | - | - | 3,000 | - | 3,000 | ||||||||||||||||||
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Net loss for the period |
- | - | - | (16,830 | ) | (16,830 | ) | |||||||||||||||||
|
Balance, September 30, 2021 |
37,500,000 | $ | 3,750 | $ | (3,700 | ) | $ | 35,000 | $ | (81,529 | ) | $ | (46,479 | ) | ||||||||||
|
Balance, September 30, 2021 |
37,500,000 | $ | 3,750 | $ | (3,700 | ) | $ | 35,000 | $ | (81,529 | ) | $ | (46,479 | ) | ||||||||||
|
Share subscriptions received |
26,250,000 | 2,625 | 32,375 | (35,000 | ) | - | - | |||||||||||||||||
|
Net loss for the period |
- | - | - | (8,632 | ) | (8,632 | ) | |||||||||||||||||
|
Balance, December 31, 2021 |
63,750,000 | $ | 6,375 | $ | 28,675 | $ | - | $ | (90,161 | ) | $ | (55,111 | ) | |||||||||||
|
For the three and six months ended December 31, 2022 (Restated) |
||||||||||||||||||||||||
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Balance, June 30, 2022 |
63,750,000 | $ | 6,375 | $ | 28,675 | $ | - | $ | (117,142 | ) | $ | (82,092 | ) | |||||||||||
|
Net loss for the period |
- | - | - | - | (413 | ) | (413 | ) | ||||||||||||||||
|
Balance, September 30, 2022 |
63,750,000 | $ | 6,375 | $ | 28,675 | $ | - | $ | (117,555 | ) | $ | (82,505 | ) | |||||||||||
|
Balance, September 30, 2022 |
63,750,000 | $ | 6,375 | $ | 28,675 | $ | - | $ | (117,555 | ) | $ | (82,505 | ) | |||||||||||
|
Net loss for the period |
- | - | - | - | (10,351 | ) | (10,351 | ) | ||||||||||||||||
|
Balance, December 31, 2022 |
63,750,000 | $ | 6,375 | $ | 28,675 | $ | - | $ | (127,906 | ) | $ | (92,856 | ) |
(The accompanying notes are an integral part of these unaudited condensed financial statements)
| 6 |
| Table of Contents |
|
HOOPS SCOUTING USA |
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Condensed statements of cash flows |
||||||||
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(Unaudited) |
||||||||
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For the six months ended December 31, 2022 |
For the six months ended December 31, 2021 |
|||||||
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(Unaudited) |
||||||||
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Cash Flows from Operating Activities: |
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Net loss |
$ | (10,764 | ) | $ | (25,462 | ) | ||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
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Changes in operating assets and liabilities: |
||||||||
|
Due to related party |
- | 7,501 | ||||||
|
Increase (Decrease) in accounts payable and accrued liabilities |
(1,400 | ) | 4,400 | |||||
|
Net cash used in operating activities |
$ | (12,164 | ) | $ | (13,561 | ) | ||
|
Cash Flows from Financing Activities: |
||||||||
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Proceeds from related parties |
11,800 | 5,000 | ||||||
|
Proceeds from share subscriptions received |
- | 3,000 | ||||||
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Net cash provided by financing activities |
$ | 11,800 | $ | 8,000 | ||||
|
.. |
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Net increase (decrease) in cash, cash equivalents and restricted cash |
(364 | ) | (5,561 | ) | ||||
|
Cash, cash equivalents and restricted cash at beginning of the period |
392 | 10,586 | ||||||
|
Cash, cash equivalents and restricted cash at end of the period |
$ | 28 | $ | 5,025 | ||||
|
Supplemental Cash Flow Information: |
||||||||
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Cash paid for interest |
$ | - | $ | - | ||||
|
Cash paid for income taxes |
$ | - | $ | - |
(The accompanying notes are an integral part of these condensed unaudited financial statements)
| 7 |
| Table of Contents |
HOOPS SCOUTING USA
Notes to the condensed financial statements
December 31, 2022
(Expressed in US dollars)
(unaudited)
1. Nature of Operations and Continuance of Business
Hoops Scouting USA (the "Company") was incorporated in the State of Wyoming on October 31, 2016. The Company is in the business of scouting high school and college basketball players in Colorado.
On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic. This contagious disease outbreak and any related adverse public health developments has adversely affected workforces, economies, and financial markets globally, leading to an economic downturn. The impact on the Company has not been significant, but management continues to monitor the situation.
These condensed financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and ultimately the attainment of profitable operations. During the period ended December 31, 2022, the Company had no revenues and incurred a net loss of $10,764. As at December 31, 2022, the Company has a working capital deficit of $(76,856) and an accumulated deficit of $127,906. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. These condensed financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
2. Significant Accounting Policies
(a) Basis of Presentation
The accompanying condensed financial statements of the Company should be read in conjunction with the financial statements and accompanying notes filed with the U.S. Securities and Exchange Commission for the fiscal year ended June 30, 2022. In the opinion of management, the accompanying condensed financial statements reflect all adjustments of a recurring nature considered necessary to present fairly the Company's financial position and the results of its operations and its cash flows for the periods shown.
(b) Use of Estimates and Judgments
The preparation of these condensed financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. It also requires management to exercise its judgment in the processing of applying the Company's accounting policies. The Company regularly evaluates estimates and assumptions related to deferred income tax valuation allowances. The Company bases its estimates and assumptions on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The impacts of such estimates and judgments are pervasive throughout the financial statements and may require accounting adjustments based on future occurrences. Revisions to accounting estimates and judgments are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. The actual results experienced by the Company may differ materially and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
| 8 |
| Table of Contents |
HOOPS SCOUTING USA
Notes to the condensed financial statements
December 31, 2022
(Expressed in US dollars)
(unaudited)
(c) Recent Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
3. Related Party Transactions
During the six months ended December 31, 2022, president of the company contributed $11,800 towards operating expenses.
As at December 31, 2022, the Company owed $73,381 (June 30, 2022 - $61,581) to the President and Director of the Company, which is unsecured, non-interest bearing, and due on demand.
4. Common Stock
During the six months period ended December 31, 2021, the Company received zero proceeds (As of December 31, 2021, $3,000) relating to share subscriptions for the issuance of common shares at $0.10 per share.
On October 15, 2021, the Company issued (350,000 before split) 26,250,000 common shares at $0.10 per share for proceeds of $35,000, of which $32,000 were received during the year ended June 30, 2021.
On June 9, 2023, the Company executed forward stock split at 75:1
As at December 31, 2022 and June 30, 2021 common shares issued and outstanding is 63,750,000 (850,000 before split) and 63,750,000 (850,000 before split) shares respectively.
5. Loans Payable
As at December 31, 2022, the Company owed $16,000 (June 30, 2022 - $16,000) to non-related parties for loans payable. The amounts owing is unsecured, non-interest bearing, and due on or before December 31, 2022.
| 9 |
| Table of Contents |
HOOPS SCOUTING USA
Notes to the condensed financial statements
December 31, 2022
(Expressed in US dollars)
(unaudited)
6. Restatement
The following are previously recorded and restated balances as of December 31, 2022.
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HOOPS SCOUTING USA |
|
Restated Balance Sheets (Unaudited) |
|
December 31, 2022 |
December 31, 2022 |
December 31, 2022 |
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(As Previously Reported) |
(Restatement Adjustments) |
(As Restated) |
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Assets |
||||||||||||
|
Current assets |
||||||||||||
|
Cash |
$ | 28 | $ | - | $ | 28 | ||||||
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Total current assets |
28 | - | 28 | |||||||||
|
Total assets |
$ | 28 | $ | - | $ | 28 | ||||||
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Liability and stockholders' deficit |
||||||||||||
|
Current liabilities |
||||||||||||
|
Accounts payable and accrued liabilities |
$ | 6,503 | $ | (3,000 | ) | $ | 3,503 | |||||
|
Due to related party (Note 3) |
73,381 | - | 73,381 | |||||||||
|
Total current liabilities |
79,884 | (3,000 | ) | 76,884 | ||||||||
|
Non-current liabilities |
||||||||||||
|
Loans payable (Note 5) |
16,000 | - | 16,000 | |||||||||
|
Total liabilities |
$ | 95,884 | $ | (3,000 | ) | $ | 92,884 | |||||
|
Stockholders' deficit |
||||||||||||
|
Common stock authorized: 10,000,000,000 common shares, $0.0001 par value 63,750,000 shares issued and outstanding as of December 31, 2022 and June 30, 2022 |
$ | 6,375 | $ | - | $ | 6,375 | ||||||
|
Additional paid-in capital |
28,675 | - | 28,675 | |||||||||
|
Accumulated deficit |
(130,906 | ) | 3,000 | (127,906 | ) | |||||||
|
Total stockholders' deficit |
$ | (95,856 | ) | $ | 3,000 | $ | (92,856 | ) | ||||
|
Total liabilities and stockholders' deficit |
$ | 28 | $ | - | $ | 28 |
(The accompanying notes are an integral part of these condensed unaudited financial statements)
| 10 |
| Table of Contents |
HOOPS SCOUTING USA
Notes to the condensed financial statements
December 31, 2022
(Expressed in US dollars)
(unaudited)
|
HOOPS SCOUTING USA |
|
Restated Statement of Operations |
|
(Unaudited) |
|
For the three months ended December 31, 2022 |
For the three months ended December 31, 2022 |
For the three months ended December 31, 2022 |
||||||||||
|
(As Previously Reported) |
(Restatement Adjustments) |
(As Restated) |
||||||||||
|
Expenses |
||||||||||||
|
General and administrative |
$ | 48 | $ | - | $ | 48 | ||||||
|
Professional fees |
8,800 | 8,800 | ||||||||||
|
Transfer agent |
1,503 | - | 1,503 | |||||||||
|
Total expenses |
$ | 10,351 | $ | - | $ | 10,351 | ||||||
|
Net loss |
$ | (10,351 | ) | $ | - | $ | (10,351 | ) | ||||
|
Net loss per common share - basic and diluted |
(0.00 | ) | - | (0.00 | ) | |||||||
|
Weighted average number of shares of common stock outstanding - basic and diluted |
63,750,000 | 63,750,000 | 63,750,000 |
(The accompanying notes are an integral part of these condensed unaudited financial statements)
| 11 |
| Table of Contents |
HOOPS SCOUTING USA
Notes to the condensed financial statements
December 31, 2022
(Expressed in US dollars)
(unaudited)
|
HOOPS SCOUTING USA |
|
Restated Statement of Operations |
|
(Unaudited) |
|
For the six months ended December 31, 2022 |
For the six months ended December 31 2022 |
For the six months ended December 31, 2022 |
||||||||||
|
(As Previously Reported) |
(Restatement Adjustments) |
(As Restated) |
||||||||||
|
Expenses |
||||||||||||
|
General and administrative |
$ | 151 | $ | - | $ | 151 | ||||||
|
Professional fees |
11,800 | (3,000 | ) | 8,800 | ||||||||
|
Transfer agent |
1,813 | - | 1,813 | |||||||||
|
Total expenses |
$ | 13,764 | $ | (3,000 | ) | $ | 10,764 | |||||
|
Net loss |
$ | (13,764 | ) | $ | 3,000 | $ | (10,764 | ) | ||||
|
Net loss per common share - basic and diluted |
(0.00 | ) | 0.00 | (0.00 | ) | |||||||
|
Weighted average number of shares of common stock outstanding - basic and diluted |
63,750,000 | 63,750,000 | 63,750,000 |
(The accompanying notes are an integral part of these condensed unaudited financial statements)
| 12 |
| Table of Contents |
HOOPS SCOUTING USA
Notes to the condensed financial statements
December 31, 2022
(Expressed in US dollars)
(unaudited)
|
HOOPS SCOUTING USA |
|
Restated Statements of Cash Flows |
|
(Unaudited) |
|
For the six months ended December 31, 2022 |
For the six months ended December 31, 2022 |
For the six months ended December 31, 2022 |
||||||||||
|
(As Previously Reported) |
(Restatement Adjustments) |
(As Restated) |
||||||||||
|
Cash Flows from Operating Activities: |
||||||||||||
|
Net loss |
$ | (13,764 | ) | $ | 3,000 | $ | (10,764 | ) | ||||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||||||
|
Changes in operating assets and liabilities: |
||||||||||||
|
Due to related party |
7,800 | 7,800 | ||||||||||
|
Increase (Decrease) in accounts payable and accrued liabilities |
1,600 | (3,000 | ) | (1,400 | ) | |||||||
|
Net cash used in operating activities |
$ | (4,364 | ) | $ | - | $ | (4,364 | ) | ||||
|
Cash Flows from Financing Activities: |
||||||||||||
|
Proceeds from related parties |
4,000 | - | 4,000 | |||||||||
|
Proceeds from share subscriptions received |
- | - | - | |||||||||
|
Net cash provided by financing activities |
$ | 4,000 | $ | - | $ | 4,000 | ||||||
|
.. |
||||||||||||
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
(364 | ) | - | (364 | ) | |||||||
|
Cash, cash equivalents and restricted cash at beginning of the period |
392 | - | 392 | |||||||||
|
Cash, cash equivalents and restricted cash at end of the period |
$ | 28 | $ | - | $ | 28 | ||||||
|
Supplemental Cash Flow Information: |
||||||||||||
|
Cash paid for interest |
$ | - | $ | - | $ | - | ||||||
|
Cash paid for income taxes |
$ | - | $ | - | $ | - |
(The accompanying notes are an integral part of these condensed unaudited financial statements)
| 13 |
| Table of Contents |
HOOPS SCOUTING USA
Notes to the condensed financial statements
December 31, 2022
(Expressed in US dollars)
(unaudited)
7. Subsequent Event
The Company evaluated all events or transactions that occurred after December 31, 2022, through the date of filing this report.
The Company determined that it does not have any subsequent event requiring recording or disclosure in the financial statements for the period ended December 31, 2022.
| 14 |
| Table of Contents |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
FORWARD-LOOKING STATEMENTS
This Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains forward-looking statements that involve known and unknown risks, significant uncertainties and other factors that may cause our 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 those forward-looking statements. You can identify forward-looking statements by the use of the words may, will, should, could, expects, plans, anticipates, believes, estimates, predicts, intends, potential, proposed, or continue or the negative of those terms. These statements are only predictions. In evaluating these statements, you should consider various factors which may cause our actual results to differ materially from any forward-looking statements. Although we believe that the exceptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
Liquidity and Capital Resources
As of December 31, 2022, we had a cash balance and total assets of $28 compared to cash and total assets of $392 as at June 30, 2022. The decrease in cash and total assets was due to an increase in activity and an increase in general and administrative fees. As at December 31, 2022, and June 30, 2022 we had total liabilities of $92,884 and $82,484 respectively. The increase in liabilities was due to an increase in amounts due to a related party. Our liabilities at December 31, 2022 and June 30, 2022 were comprised of amounts due to our President and Director and for two loans payable to non-related parties for $16,000, which are unsecured, non-interest bearing, and due on or before December 31, 2022.
Our working capital deficit was $76,856 as at December 31, 2022 compared to $66,092 as at June 30, 2022 respectively.
During the period ended December 31, 2022, we did not issue any common shares. During the year ended June 30, 2022, the Company received $3,000 of share subscriptions relating to a private placement of common shares at $0.10 per share. On October 15, 2021, the Company issued 350,000 common shares at $0.10 per share relating to private placement proceeds of $35,000 that was received as at December 31, 2021.
Results of Operations
For three months ended December 31, 2022 and 2021.
During the three months ended December 31, 2022, we incurred $10,351 of operating expenditures comprised of general and administrative, professional fees, and transfer agent fees compared to $8,632 for general and administrative bank and transfer agent fees during the three months ended December 31, 2021. In September 2022 the Company changed auditors which resulted in an increase of professional fees during the three months ended December 31, 2022, when compared to the three months ended December 31, 2021.
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For six months ended December 31, 2022 and 2021.
During the six months ended December 31, 2022, we incurred $10,764 of operating expenditures comprised of general and administrative, professional fees and transfer agent fees compared to $25,462 for general and administrative, professional fees and transfer agent fees during the six months ended December 31, 2021. The decrease in operating expenses during the six months ended December 31, 2022, is due to decrease in professional fees.
Cash Flows
During the six months ended December 30, 2022, we used $12,164 of cash for operating activities compared to the use of $21,062 for operating activities during the three months ended December 31, 2021. The decrease in the use of cash for the current period was due to the payment of professional fees relating to our SEC filing requirements in 2021 including the one-time fee of $20,000. Net cash provided by financial activities for the six months ended December 31, 2022, is $11,800 and $8,]000 for the six months ended December 31, 2021. We did not have any investing activities during the six months ended December 31, 2022, and 2021.
Trends
There is no assurance that we will be able to generate cash flows from our operations. The outcome of these matters cannot be predicted with any certainty at this time and raises substantial doubt that we will be able to continue as a going concern.
Off-Balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.
Inflation
The effect of inflation on our revenues and operating results has not been significant.
Critical Accounting Policies
Our financial statements are presented in United States dollars and are prepared using the accrual method of accounting, which conforms to US GAAP.
We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1) of the JOBS Act. This election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.
The financial statements as of and for the three months ended December 31, 2022 included herein, which have not been audited pursuant to the rules and regulations of the Securities and Exchange Commission, reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods on a basis consistent with the annual audited statements. All such adjustments are of a normal recurring nature. The results of operations for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for a full year. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations, although we believe that the disclosures are adequate to make the information presented not misleading.
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GoingConcern
The Company's financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has generated no revenues to date, has a working capital deficit of $76,856 and has an accumulated deficit of $127,906. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from the Company's future business. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
Use of Estimates and Assumptions
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain 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 and the reported amounts of revenues and expenses during the reporting periods presented. We are required to make judgments and estimates about the effect of matters that are inherently uncertain. Although, we believe our judgments and estimates are appropriate, actual future results may be different; if different assumptions or conditions were to prevail, the results could be materially different from our reported results.
Recent AccountingPronouncements
We review new accounting standards as issued. Although some of these accounting standards issued or effective after the end of our previous fiscal year may be applicable to us, we have not identified any standards that we believe merit further discussion. We believe that none of the new standards will have a significant impact on our financial position, future operations or cash flows.
Item 3. Quantitative and Qualitative Disclosure about Market Risk
None
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the evaluation, both the Principal Executive Officer and the Principal Financial Officer concluded that our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, were not effective as of December 31, 2022.
Internal Control over Financial Reporting
There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Securities Act of 1934) that materially affected, or is reasonably likely to materially affect, such internal control over financial reporting during the quarter ended December 31, 2022. Sadler, Gibb & Associates LLC, our independent auditors, were not required and have not performed an assessment of our internal controls over financial reporting for effectiveness.
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Part II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 1A. Risk Factors
Not applicable to smaller reporting companies.
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.
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Item 6. Exhibits
|
No. |
Description |
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31.1 |
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a). |
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32.1 |
Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002. |
|
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101.INS |
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) |
|
|
101.SCH |
Inline XBRL Taxonomy Extension Schema Document |
|
|
101.CAL |
Inline XBRL Taxonomy Calculation Linkbase Document |
|
|
101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document |
|
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101.LAB |
Inline XBRL Taxonomy Label Linkbase Document |
|
|
101.PRE |
Inline XBRL Taxonomy Presentation Linkbase Document |
|
|
104 |
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
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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
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HOOPS SCOUTING USA |
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Date: December 10, 2024 |
By: |
/s/ Jamie Oei |
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Jamie Oei - Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer |
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