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 June 30, 2019

 

 

 

or

 

 

¨

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

For the transition period from _________ to _________

 

 

Commission File Number 333-192387

 

BALLY, CORP.

(Exact name of registrant as specified in its charter)

 

Nevada

 

800917804

(State or other jurisdiction

of incorporation or organization)

 

(IRS Employer

Identification No.)

 

986 Dongfang Rd., One Hundred Shanshan Bldg 25 th Fl

Pudong Shanghai China

 

 

200122

(Address of principal executive offices)

 

(Zip Code)

 

(86) 138 1833 3008

(Registrant’s telephone number, including area code)

 

N/A

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

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

None

None

None

 

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.

 

x

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 for such shorter period that the registrant was required to submit such files).

 

x

YES

¨

NO

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

x

Smaller reporting company

x

 

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 any 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)

 

x

YES

¨

NO

 

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

 

Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.

 

¨

YES

¨

NO

 

APPLICABLE ONLY TO CORPORATE ISSUERS

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

9,850,000 common shares issued and outstanding as of August 7, 2019

 

 
 
 
 

 

FORM 10-Q

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements

3

 

Item 2.

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

4

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

7

 

Item 4.

Controls and Procedures

7

 

 

 

 

PART II - OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

8

 

Item 1A.

Risk Factors

8

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

8

 

Item 3.

Defaults Upon Senior Securities

8

 

Item 4.

Mine Safety Disclosures

8

 

Item 5.

Other Information

8

 

Item 6.

Exhibits

9

 

SIGNATURES

10

 

 
2
 
 

 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

BALLY, CORP.

 

INDEX TO UNAUDITED INTERIM FINANCIAL STATEMENTS

 

FOR THE PERIOD ENDED JUNE 30, 2019

 

Page

Unaudited Balance Sheets

F-1

Unaudited Statements of Operations

F-2

 

Unaudited Statements of Changes in Stockholders’ Deficit

 

F-3

 

Unaudited Statements of Cash Flows

F-5

Notes to the Unaudited Financial Statements

F-6

 

 
3
 
Table of Contents

 

BALLY, CORP.

Balance Sheets

(Unaudited)

 

 

 

June 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

ASSETS

Current Assets

 

 

 

 

 

 

Cash

 

$ -

 

 

$ -

 

Total Current Assets

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Liabilities

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$ 1,189

 

 

$ 900

 

Due to an officer

 

 

29,860

 

 

 

9,571

 

Total Current Liabilities and Total Liabilities

 

 

31,049

 

 

 

10,471

 

 

 

 

 

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value, 20,000,000 shares authorized

 

 

 

 

 

 

 

 

0 shares issued and outstanding;

 

 

-

 

 

 

-

 

Common stock, $0.0001 par value, 100,000,000 shares authorized

 

 

 

 

 

 

 

 

9,850,000 shares issued and outstanding

 

 

985

 

 

 

985

 

Additional paid-in capital

 

 

178,395

 

 

 

178,395

 

Accumulated deficit

 

 

(210,429 )

 

 

(189,851 )

Total Stockholders ’ Deficit

 

 

(31,049 )

 

 

(10,471 )

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders ’ Deficit

 

$ -

 

 

$ -

 

 

The accompanying notes are an integral part of these unaudited interim financial statements.

 

 
F-1
 
Table of Contents

 

BALLY, CORP.

Statements of Operations

(Unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$ -

 

 

$ -

 

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

4,296

 

 

 

8,971

 

 

 

20,578

 

 

 

21,645

 

Total expenses

 

 

4,296

 

 

 

8,971

 

 

 

20,578

 

 

 

21,645

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income tax

 

 

(4,296 )

 

 

(8,971 )

 

 

(20,578 )

 

 

(21,645 )

Income tax provision

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net loss

 

$ (4,296 )

 

$ (8,971 )

 

$ (20,578 )

 

$ (21,645 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Loss per Common Share

 

$ (0.00 )

 

$ (0.00 )

 

$ (0.00 )

 

$ (0.00 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Weighted Average Number of Common Shares Outstanding

 

 

9,850,000

 

 

 

9,850,000

 

 

 

9,850,000

 

 

 

9,850,000

 

 

The accompanying notes are an integral part of these unaudited interim financial statements.

 

 
F-2
 
Table of Contents
 

BALLY, CORP.

Statements of Changes in Stockholders’ Deficit

For the Nine Months Ended June 30, 2019

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Total

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Paid-In

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance – September 30, 2018

 

 

-

 

 

$ -

 

 

 

9,850,000

 

 

$ 985

 

 

$ 178,395

 

 

$ (189,851 )

 

$ (10,471 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(9,989 )

 

 

(9,989 )

Balance – December 31, 2018

 

 

-

 

 

 

-

 

 

 

9,850,000

 

 

 

985

 

 

 

178,395

 

 

 

(199,840 )

 

 

(20,460 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(6,293 )

 

 

(6,293 )

Balance – March 31, 2019

 

 

-

 

 

 

-

 

 

 

9,850,000

 

 

 

985

 

 

 

178,395

 

 

 

(206,133 )

 

 

(26,753 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,296 )

 

 

(4,296 )

Balance – June 30, 2019

 

 

-

 

 

$ -

 

 

 

9,850,000

 

 

$ 985

 

 

$ 178,395

 

 

$ (210,429 )

 

$ (31,049 )

 

The accompanying notes are an integral part of these unaudited interim financial statements.

 

 
F-3
 
Table of Contents

 

BALLY, CORP.

Statements of Changes in Stockholders’ Deficit

For the Nine Months Ended June 30, 2018

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Total

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Paid-In

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Deficit

 

Balance – September 30, 2017

 

 

-

 

 

$ -

 

 

 

9,850,000

 

 

$ 985

 

 

$ 111,269

 

 

$ (167,606 )

 

$ (55,352 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(8,300 )

 

 

(8,300 )

Balance – December 31, 2017

 

 

-

 

 

 

-

 

 

 

9,850,000

 

 

 

985

 

 

 

111,269

 

 

 

(175,906 )

 

 

(63,652 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,374 )

 

 

(4,374 )

Balance – March 31, 2018

 

 

-

 

 

 

-

 

 

 

9,850,000

 

 

 

985

 

 

 

111,269

 

 

 

(180,280 )

 

 

(68,026 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related party debt forgiven

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

67,126

 

 

 

-

 

 

 

67,126

 

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(8,971 )

 

 

(8,971 )

Balance – June 30, 2018

 

 

-

 

 

$ -

 

 

 

9,850,000

 

 

$ 985

 

 

$ 178,395

 

 

$ (189,251 )

 

$ (9,871 )

 

The accompanying notes are an integral part of these unaudited interim financial statements.

 

 
F-4
 
Table of Contents

 

BALLY, CORP.

Statements of Cash Flows

(Unaudited)

 

 

 

Nine Months Ended

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net loss

 

$ (20,578 )

 

$ (21,645 )

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Shareholder advances funding operations

 

 

20,289

 

 

 

19,382

 

Accounts payable and accrued liabilities

 

 

289

 

 

 

2,263

 

Net Cash Used in Operating Activities

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Net change in cash

 

 

-

 

 

 

-

 

Cash - beginning of period

 

 

-

 

 

 

-

 

Cash - end of period

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

Supplemental Cash Flow Disclosure:

 

 

 

 

 

 

 

 

Interest paid

 

$ -

 

 

$ -

 

Taxes paid

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

Non-cash Investing and Financing Activities:

 

 

 

 

 

 

 

 

Related party debt forgiven recorded as additional paid in capital

 

$ -

 

 

$ 67,126

 

 

The accompanying notes are an integral part of these unaudited interim financial statements

 

 
F-5
 
Table of Contents

 

BALLY, CORP.

Notes to Financial Statements

June 30, 2019

(Unaudited)

 

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

 

BALLY, CORP. (the “Company”) was incorporated in the State of Nevada on March 13, 2013 and it is based in Shanghai, China. The Company is seeking an acquisition candidate. To date, the Company’s activities have been limited to its formation and the raising of equity capital.

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of June 30, 2019 and the results of operations and cash flows for the periods presented. The results of operations for the period ended June 30, 2019 are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2018 filed with the SEC on December 11, 2018.

 

Reclassification

 

Certain amounts from prior periods have been reclassified to conform to the current period presentation.

 

NOTE 3 - GOING CONCERN AND LIQUIDITY CONSIDERATIONS

 

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has not generated any revenues since inception, and has an accumulated deficit of $210,429. These factors among others raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

The continuing operations of the Company are dependent upon its ability to continue to raise adequate financing and to commence profitable operations in the future and repay its liabilities arising from normal business operations as they become due. We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholders.

 

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders or directors.

 

NOTE 4 - RELATED PARTY TRANSACTIONS

 

During the nine months ended June 30, 2019, the Company’s sole officer advanced to the Company an amount of $20,289 by paying for expenses on behalf of the Company. As of June 30, 2019 and September 30, 2018, the Company was obligated to the officer, for an unsecured, non-interest bearing demand loan with a balance of $29,860 and $9,571, respectively.

 

 
F-6
 
Table of Contents

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

FORWARD LOOKING STATEMENTS

 

Except for historical information, this report contains forward-looking statements. Such forward-looking statements involve risks and uncertainties, including, among other things, statements regarding our business strategy, future revenues and anticipated costs and expenses. Such forward-looking statements include, among others, those statements including the words “expects,” “anticipates,” “intends,” “believes” and similar language. Our actual results may differ significantly from those projected in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed herein as well as in the “Description of Business” section in our Form 10-K, as filed with the SEC on December 11, 2018. You should carefully review the risks described in our Annual Report and in other documents we file from time to time with the Securities and Exchange Commission. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. We undertake no obligation to publicly release any revisions to the forward-looking statements or reflect events or circumstances after the date of this document.

 

Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements.

 

All references in this Form 10-Q to the “Company,” “Bally,” “we,” “us,” or “our” are to Bally, Corp.

 

Corporate Overview

 

We were incorporated under the laws of the state of Nevada on March 13, 2013 with the intention to import small farming, household gardening and general small tools directly from manufacturers and market to consumers in the Republic of India. Our plan was to market via our website: http://www.ballycorp.com and sell these products directly to end users through our website.

 

On June 24, 2016, in connection with the sale of a controlling interest in our company, Katiuska Moran, our company’s former Chief Executive Officer and Director and Surjeet Singh (individually and collectively the “Seller(s)”) of our company, entered into and closed on certain share purchase agreements with Aureas Capital Co., Ltd., (“Aureas”), whereby Aureas purchased from the Sellers a total of 6,918,800 shares of our company’s common stock (the “Shares”) for an aggregate price of $100,000.00. The Shares acquired represent approximately 70.6% of the issued and outstanding shares of common stock of our company.

 

On June 24, 2016, Lung Ming Chun was appointed a director and officer of our company and Katiuska Moran and Surjeet Singh resigned from all positions they held as officers and directors of our company. With the change of management, our company intended to pursue business opportunities in tire recycling.

 

On June 8, 2017, Lung Ming Chun reigned from all of the positions he held as an officer and director of our company and Kong Nguan Hong was appointed Chief Executive Officer, President, Secretary, Chief Financial Officer, Treasurer, and as a director.

 

Pursuant to a stock purchase agreement (the “Agreement”), effective as of April 4, 2018, by and among Aureas, Chen Yi-Dou, Ming-Chun Lung, NYJJ Investments, Ti-Jung Chen, Yi-Fang Lin and Zhiqing Wu (together, the “Sellers”) and Haiping Hu, the Sellers sold an aggregate of 9,797,600 shares of Common Stock of our company, to Mr. Hu for cash consideration of $360,000 from personal funds of Mr. Hu (the “Transaction”). Of the net proceeds, $7,500 have been held back in escrow for the payment of past due taxes. The Transaction closed on April 4, 2018. Following consummation of the Transaction, Mr. Hu holds 99.5% of the voting securities of our company, based on 9,850,000 shares issued and outstanding as of April 4, 2018. The Transaction has resulted in a change in control of our company.

 

In connection with the Transaction, Kong Nguan Hong, the sole officer and director of our company, resigned from all of his officer positions, including Chief Executive Officer, Chief Financial Officer and Secretary, effective immediately upon the consummation of the Transaction, but remained a director of our company for 10 days following the date on which our company filed a Schedule 14F-1 with the SEC and the mailed the Schedule 14F-1 to the holders of record of our company. The Schedule 14F-1 was filed with the SEC on April 6, 2018. An amended Schedule 14F-1 was filed on April 10, 2018 and mailed to shareholders on or about that same day.

 

 
4
 
Table of Contents

 

In connection with the Transaction, Haiping Hu was appointed as Chief Executive Officer, Chief Financial Officer, Secretary and as a director of our company, effective April 4, 2018.

 

Our fiscal year end is September 30. Our business address is 986 Dongfang Rd., One Hundred Shanshan Bldg 25th Fl, Pudong Shanghai China 200122. Our telephone number is (86) 138 1833 3008. We do not have a corporate website.

 

Results of Operations

 

Three months ended June 30, 2019 compared to June 30, 2018:

 

The following summary of our operations should be read in conjunction with our unaudited financial statements for the three months ended June 30, 2019 and 2018.

 

 

 

Three Months Ended

 

 

 

 

 

June 30,

 

 

 

 

 

2019

 

 

2018

 

 

Change

 

Revenue

 

$ -

 

 

$ -

 

 

$ -

 

General and administrative

 

 

4,296

 

 

 

8,971

 

 

 

(4,675 )

Net loss

 

$ 4,296

 

 

$ 8,971

 

 

$ (4,675 )

 

During the three months ended June 30, 2019 and 2018, we did not have any revenues.

 

Our financial statements report a net loss of $4,296 for the three months ended June 30, 2019 compared to a net loss of $8,971 for the three months ended June 30, 2018.

 

Our operating expenses for the three months ended June 30, 2019 were $4,296 compared to $8,971 for the three months ended June 30, 2018. Operating expenses consists primarily of professional fees.

 

Nine months ended June 30, 2019 compared to June 30, 2018:

 

The following summary of our operations should be read in conjunction with our unaudited financial statements for the nine months ended June 30, 2019 and 2018.

 

 

 

Nine Months Ended

 

 

 

 

 

June 30,

 

 

 

 

 

2019

 

 

2018

 

 

Change

 

Revenue

 

$ -

 

 

$ -

 

 

$ -

 

General and administrative

 

 

20,578

 

 

 

21,645

 

 

 

(1,067 )

Net loss

 

$ 20,578

 

 

$ 21,645

 

 

$ (1,067 )

 

During the nine months ended June 30, 2019 and 2018, we did not have any revenues.

 

Our financial statements report a net loss of $20,578 for the nine months ended June 30, 2019 compared to a net loss of $21,645 for the nine months ended June 30, 2018.

 

Our operating expenses for the nine months ended June 30, 2019 were $20,578 compared to $21,645 for the nine months ended June 30, 2018. Operating expenses consists primarily of professional fees.

 

 
5
 
Table of Contents

 

Liquidity and Capital Resources

 

The following table provides selected financial data about our company as of June 30, 2019 and September 30, 2018, respectively.

 

Working Capital

 

 

 

June 30,

 

 

September 30,

 

 

 

 

 

2019

 

 

2018

 

 

Changes

 

Current Assets

 

$ -

 

 

$ -

 

 

$ -

 

Current Liabilities

 

 

31,049

 

 

 

10,471

 

 

 

20,578

 

Working Capital Deficiency

 

$ 31,049

 

 

$ 10,471

 

 

$ 20,578

 

 

As at June 30, 2019 and September 30, 2018, our total current assets were $0.

 

As at June 30, 2019, our current liabilities were $31,049 compared to $10,471 in current liabilities as at September 30, 2018. Stockholders’ deficit was $31,049 as of June 30, 2019 compared to stockholders’ deficit of $10,471 as of September 30, 2018. The increase in current liabilities is primarily due to an increase in due to an officer for payments made for operating expenses.

 

Cash Flows

 

 

 

Nine Months Ended

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Net cash used in operating activities

 

$ -

 

 

$ -

 

Net cash used in investing activities

 

 

-

 

 

 

-

 

Net cash provided by financing activities

 

 

-

 

 

 

-

 

Net change in cash and cash equivalents

 

$ -

 

 

$ -

 

 

Operating Activities

 

The Company did not use any funds for operating activities during the nine months ended June 30, 2019 and June 30, 2018. During the nine months ended June 30, 2019 and June 30, 2018, the Company’s sole officer paid $20,289 and $19,382, respectively, on behalf of the Company for operating expenses.

 

Investing Activities

 

The Company did not use any funds for investing activities during the nine months ended June 30, 2019 and June 30, 2018.

 

Financing Activities

 

The Company did not use any funds for financing activities during the nine months ended June 30, 2019 and June 30, 2018.

 

Going Concern

 

Our auditors issued a going concern opinion on our financial statements as of and for the year ended September 30, 2018. This means that there is substantial doubt that we can continue as an ongoing business for the next twelve months unless we obtain additional capital to pay for our expenses, as we have not generated any revenues and no sales are yet possible. There is no assurance we will ever reach this point. Accordingly, we must raise sufficient capital from sources. Our only other source for cash at this time is investment by our sole director and officer. We must raise cash to stay in business. In response to these problems, management intends to raise additional funds through public or private placement offerings. At this time, however, the Company does not have plans or intentions to raise additional funds by way of the sale of additional securities. We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholders.

 

 
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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, and capital expenditures or capital resources that are material to stockholders.

 

Critical Accounting Policies and Estimates

 

We prepare our financial statements in conformity with GAAP, which requires management to make certain estimates and apply judgments. We base our estimates and judgments on historical experience, current trends and other factors that management believes to be important at the time the financial statements are prepared. On a regular basis, we review our accounting policies and how they are applied and disclosed in our condensed financial statements.

 

While we believe that the historical experience, current trends and other factors considered support the preparation of our condensed financial statements in conformity with GAAP, actual results could differ from our estimates and such differences could be material.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

As a “smaller reporting company”, we are not required to provide the information required by this Item.

 

Item 4. Controls and Procedures

 

Management’s Report on Disclosure Controls and Procedures

 

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and President (who is also our principal executive officer, principal financial officer and principle accounting officer) to allow for timely decisions regarding required disclosure.

 

As of the end of the quarter covered by this report, we carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer (who is also our principal executive officer, principal financial officer and principle accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our Chief Executive Officer and President (who is also our principal executive officer and principal financial officer) concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this quarterly report.

 

The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) lack of a functioning audit committee, (2) lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (3) inadequate segregation of duties consistent with control objectives; and (4) management dominated by a single individual without adequate compensating controls. The aforementioned material weaknesses were identified by our Chief Executive Officer and Chief Financial Officer (who is also our principal executive officer and principal financial officer) in connection with the review of our financial statements as of June 30, 2019.

 

Management believes that the material weaknesses set forth above did not have an effect on our financial results. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.

 

C hanges in Internal Control Over Financial Reporting

 

There have been no changes in our internal controls over financial reporting that occurred during the period ended June 30, 2019, that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

 

 
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PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

From time to time, we may become involved in litigation relating to claims arising out of its operations in the normal course of business. We are not involved in any pending legal proceeding or litigation and, to the best of our knowledge, no governmental authority is contemplating any proceeding to which we area party or to which any of our properties is subject, which would reasonably be likely to have a material adverse effect on us.

 

Item 1A. Risk Factors

 

As a “smaller reporting company”, we are not required to provide the information required by this Item.

 

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

 

Exhibit

Number

 

Description

(31)

 

Rule 13a-14 (d)/15d-14d) Certifications

31.1*

 

Section 302 Certification by the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer

(32)

 

Section 1350 Certifications

32.1**

 

Section 906 Certification by the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer

101 *

 

Interactive Data File

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

__________

* Filed herewith.

** Furnished herewith.

 

 
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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.

 

 

BALLY, CORP.

 

 

(Registrant)

 

 

 

Dated: August 13, 2019

 

/s/ Haiping Hu

 

 

Haiping Hu

 

 

Chief Executive Officer, Chief Financial Officer,

Secretary and Director

 

 

(Principal Executive Officer, Principal Financial

Officer and Principal Accounting Officer)

 

 

 

10

 

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