NOVAGANT CORP. GENERAL
The Company was initially incorporated as
As of
On
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Business Overview
EFLL is a one-stop logistics service provider in
Novagant Corp. 100% > Ever Full Logistics Limited
Directors
operation clerk account clerk 10 freelance sales representatives
CRITICAL ACCOUNTING POLICIES, JUDGMENTS AND ESTIMATES
Our discussion and analysis of our financial condition and results of operations
is based upon our consolidated financial statements, which have been prepared in
accordance with
An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimate that are reasonably likely to occur, could materially impact the consolidated financial statements. We believe that the following critical accounting policies reflect the more significant estimates and assumptions used in the preparation of the consolidated financial statements.
Revenue recognition
ASU No. 2014-09, Revenue from Contracts with Customers ("Topic 606"), became
effective for the Company on
Under the new revenue standards, the Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation.
The Company's revenue is derived from provision of air or ocean freight services
to the customers located in
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Accounts receivable
The Group reviews accounts receivable periodically for collectability and
establishes an allowance for doubtful accounts and records bad debt expense when
deemed necessary. The allowance for doubtful accounts is maintained to provide
for losses arising from customers' inability to make required payments. If there
is deterioration of our customers' credit worthiness and/or there is an increase
in the length of time that the receivables are past due greater than the
historical assumptions used, additional allowances may be required. The
management of the Company considered as of
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Business Acquired
On
Results Of Operations During The Three Months Ended
Revenue
During the three months ended
Operating Expenses
During the three months ended
Net Profit (Loss)
During the three months ended
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Results Of Operations During The Three months ended
Revenue
For the three months ended
Three months ended June Three months ended June
30, 2022 30, 2021
USD % USD %
Transportation - Air Freight 16,208 28 2,358 9
Transportation - Ocean Freight 41,677 72 22,783 91
57,885 100 25,141 100
We provide logistics services for
Air Freight
For air freight, we will send the booking details and draft airway bill to the customers for confirmation. Then we will arrange pick of the goods and measure the correct kilograms for customers confirmation. At last, we will arrange the goods to the airline for upload to the cargo plane at the airport.
Ocean Freight
Customers will first provide us a booking form and information of the bill of lading, which includes the shipping details, like details of the products, destination, carrier and details of the consignee. We will then arrange a pick up of the goods at the customers' warehouse by a third party local transportation provider. We will store the goods at the public warehouse where we will measure the accurate cubic metres ("CBM") for final determination of the correct ocean freight. Upon receipt of the confirmation of the final CBM with the customers, we will arrange upload of goods to the container at the port and make sure the shipment arrive the destination port on time. This for Loose Cargo Load service ("LCL").
For Full Container Load service, it is more or less the same as LCL, the only different procedure is that we will arrange the container directly to the customers' warehouse for the upload of the goods. We need not measure the CBM as the customers pay the fee of using the whole container.
Cost of services
Our direct cost of services was mainly in the air/ocean freight service
provision, it has increased from
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Expenses
For the three months ended
Net Profit (Loss)
For the three months ended
Liquidity
As of
To the extent that our capital resources are insufficient to meet planned operating requirements, we will seek additional funds through equity or debt financing, collaborative or other arrangements with corporate partners, licensees or others, and from other sources, which may have the effect of diluting the holdings of existing shareholders. The Company has no current arrangements with respect to, or sources of, such additional financing and we do not anticipate that existing shareholders will provide any portion of our future financing requirements.
No assurance can be given that additional financing will be available when needed or that such financing will be available on terms acceptable to the Company. If adequate funds are not available, we may be required to delay or terminate expenditures for certain of its programs that it would otherwise seek to develop and commercialize. This would have a material adverse effect on the Company.
Off-Balance Sheet Arrangements
As of
We do not have any interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing or hedging or research and development or other services with us.
Critical Accounting Policies
Our significant accounting policies are described in the notes to our financial
statements for the three months ended
GOING CONCERN
The accompanying financial statements have been prepared assuming that the Group
will continue as a going concern. As shown in the accompanying financial
statements, we have a net deficit of
Management believes the Group will improve the operation and generated positive cash inflows from operating activities for the foreseeable future. Management plans to seek additional debt and/or equity financing for the Group but cannot assure that such financing will be available on acceptable terms. The Group's continuation as a going concern is dependent upon its ability to ultimately attain profitable operations, generate sufficient cash flow to meet its obligations, and obtain additional financing as may be required.
The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. There can be no assurance that management will be successful in implementing its business plan or that the successful implementation of such business plan will actually improve our operating results.
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