UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarter ended: February 28, 2019

 

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: 333-208237

 

FELLAZO CORP.

(Exact name of registrant as specified in its charter)

 

Nevada

 

3990

 

30-0840869

(State or Other Jurisdiction

of Incorporation or Organization)

 

(Primary Standard Industrial

Classification Code Number)

 

I.R.S. Employer

Identification Number

 

8 th Floor, Wisma Huazong, Lot 15285, 0.7km Lebuhraya Sungei Besi, 43300 Seri Kembangan,

Selangor Darul Ehsan, Malaysia

(Address and telephone number of principal executive offices)

 

Website: http://fellazo.com Phone: +603-8938 5638 Email: info@fellazo.com

(Address and telephone number of 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 past 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes x 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 and post such files). YES x NO ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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

¨

Smaller reporting company

x

Emerging growth company

¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes x No ¨

 

As of April 19, 2019 there were 86,264,000 shares outstanding of the registrant’s common stock.

 

 
 
 
 

 

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements.

 

3

 

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition or Plan of Operation.

 

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.

 

9

 

 

 

 

Item 1A.

Risk Factors.

 

9

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

 

9

 

 

 

 

Item 3.

Defaults Upon Senior Securities.

 

9

 

 

 

 

Item 4.

Mine Safety Disclosures.

 

9

 

 

 

 

Item 5.

Other Information.

 

9

 

 

 

 

Item 6.

Exhibits.

 

10

 

 

 

 

SIGNATURES.

 

11

 

 

 
2
 
 

 

 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

Index to Interim Consolidated Financial Statements (Unaudited)

 

 

Page

 

Consolidated Balance Sheets

F-1

 

Consolidated Statements of Operations and Comprehensive Loss

 F-2

 

Consolidated Statements of Changes in Stockholders' Deficit

 

 F-3

 

Consolidated Statements of Cash Flows

F-5

 

Notes to the Consolidated Financial Statements

F-6

 

 

3
 
Table of Contents

 

FELLAZO CORP.

Consolidated Balance Sheets

(Unaudited)

 

 

 

February 28,

 

 

August 31,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

(Restated)

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalent

 

$ 2,671

 

 

$ 2,503

 

Total Current Assets

 

 

2,671

 

 

 

2,503

 

TOTAL ASSETS

 

$ 2,671

 

 

$ 2,503

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$ 11,793

 

 

$ 18,777

 

Due to related party

 

 

597,997

 

 

 

502,226

 

Total Current Liabilities

 

 

609,790

 

 

 

521,003

 

TOTAL LIABILITIES

 

 

609,790

 

 

 

521,003

 

 

 

 

 

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

 

 

 

Common stock, $0.001 par value, 1,000,000,000 shares authorized; 86,264,000 and 75,000,000 shares issued and outstanding as of February 28, 2019 and August 31, 2018, respectively

 

 

86,264

 

 

 

75,000

 

Additional paid-in capital

 

 

36,122

 

 

 

47,386

 

Accumulated deficit

 

 

(739,979 )

 

 

(651,637 )

Accumulated other comprehensive loss

 

 

(183 )

 

 

(284 )

Total Fellazo Corp. Stockholders’ Deficit

 

 

(617,776 )

 

 

(529,535 )

Non-controlling interest

 

 

10,657

 

 

 

11,035

 

Total Stockholders’ Deficit

 

 

(607,119 )

 

 

(518,500 )

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$ 2,671

 

 

$ 2,503

 

 

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

 

 
F-1
 
Table of Contents

 

FELLAZO CORP.

Consolidated Statements of Operations and  Comprehensive Loss

(Unaudited)

 

 

 

Three months ended

 

 

Six months ended

 

 

 

February 28,

 

 

February 28,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues

 

$ -

 

 

$ -

 

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

44,014

 

 

 

64,302

 

 

 

88,824

 

 

 

149,948

 

Total operating expenses

 

 

44,014

 

 

 

64,302

 

 

 

88,824

 

 

 

149,948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(44,014 )

 

 

(64,302 )

 

 

(88,824 )

 

 

(149,948 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before taxes

 

 

(44,014 )

 

 

(64,302 )

 

 

(88,824 )

 

 

(149,948 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(44,014 )

 

 

(64,302 )

 

 

(88,824 )

 

 

(149,948 )

Net loss attributable to the non-controlling interest

 

 

(131 )

 

 

-

 

 

 

(482 )

 

 

-

 

Net Loss Attributable To The Shareholders of Fellazo Corp.

 

$ (43,883 )

 

$ (64,302 )

 

$ (88,342 )

 

$ (149,948 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation gain

 

 

589

 

 

 

-

 

 

 

205

 

 

 

-

 

Total comprehensive loss

 

 

(43,425 )

 

 

(64,302 )

 

 

(88,619 )

 

 

(149,948 )

Comprehensive Income (Loss) attributable to the non-controlling interest

 

 

169

 

 

 

-

 

 

 

(378 )

 

 

-

 

Comprehensive Loss Attributable To The Shareholders of Fellazo Corp.

 

$ (43,594 )

 

$ (64,302 )

 

$ (88,241 )

 

$ (149,948 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and dilutive net loss per common share

 

$ (0.00 )

 

$ (0.00 )

 

$ (0.00 )

 

$ (0.00 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic and diluted

 

 

82,384,678

 

 

 

75,000,000

 

 

 

78,672,064

 

 

 

75,000,000

 

 

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

 

 
F-2
 
Table of Contents

 

FELLAZO CORP.

Consolidated Statements of Changes in Stockholders’ Deficit

For the Three and Six Months Ended February 28, 2019

(Unaudited)

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Accumulated

other

 

 

Non

 

 

 

 

 

 

Common Stock

 

 

Paid in

 

 

Accumulated

 

 

comprehensive

 

 

controlling

 

 

 

 

 

 

 Shares

 

 

 Amount

 

 

Capital

 

 

 Deficit

 

 

 loss

 

 

 Interest

 

 

 Total

 

Balance, August 31, 2018 (Restated)

 

 

75,000,000

 

 

$ 75,000

 

 

$ 47,386

 

 

$ (651,637 )

 

$ (284 )

 

$ 11,035

 

 

$ (518,500 )

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(44,459 )

 

 

-

 

 

 

(351 )

 

 

(44,810 )

Foreign currency translation gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(188 )

 

 

(196 )

 

 

(384 )

Balance, November 30, 2018 (Restated)

 

 

75,000,000

 

 

 

75,000

 

 

 

47,386

 

 

 

(696,096 )

 

 

(472 )

 

 

10,488

 

 

 

(563,694 )

Acquisition of subsidiary under common control

 

 

11,264,000

 

 

 

11,264

 

 

 

(11,264 )

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(43,883 )

 

 

-

 

 

 

(131 )

 

 

(44,014 )

Foreign currency translation gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

289

 

 

 

300

 

 

 

589

 

Balance, February 28, 2019

 

 

86,264,000

 

 

$ 86,264

 

 

$ 36,122

 

 

$ (739,979 )

 

$ (183 )

 

$ 10,657

 

 

$ (607,119 )

 

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

 

 
F-3
 
Table of Contents

 

FELLAZO CORP.

Consolidated Statements of Changes in Stockholders’ Deficit

For the Three and Six Months Ended February 28, 2018

(Unaudited)

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Accumulated

other

 

 

Non

 

 

 

 

 

Common Stock

 

 

Paid in

 

 

Accumulated

 

 

comprehensive

 

 

controlling

 

 

 

 

 

 

 Shares

 

 

 Amount

 

 

Capital

 

 

 Deficit

 

 

 loss

 

 

 Interest

 

 

 Total

 

Balance, August 31, 2017

 

 

75,000,000

 

 

$ 75,000

 

 

$ 36,116

 

 

$ (413,035 )

 

$           -

 

 

 

          -

 

 

$ (301,919 )

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(85,646 )

 

 

-

 

 

 

-

 

 

 

(85,646 )

Balance, November 30, 2017

 

 

75,000,000

 

 

 

75,000

 

 

 

36,116

 

 

 

(498,681 )

 

 

-

 

 

 

-

 

 

 

(387,565 )

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(64,302 )

 

 

-

 

 

 

-

 

 

 

(64,302 )

Balance, February 28, 2018

 

 

75,000,000

 

 

$ 75,000

 

 

$ 36,116

 

 

$ (562,983 )

 

$ -

 

 

$ -

 

 

$ (451,867 )

 

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

 

 
F-4
 
Table of Contents

 

FELLAZO CORP.

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

Six months ended

 

 

 

February 28,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net loss

 

$ (88,824 )

 

$ (149,948 )

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expense

 

 

-

 

 

 

10,000

 

Due to related party

 

 

95,771

 

 

 

140,720

 

Accounts payable and accrued liabilities

 

 

(6,984 )

 

 

14,300

 

Net Cash Provided by (Used in) Operating Activities

 

 

(37 )

 

 

15,072

 

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

Repayment of loan from director

 

 

-

 

 

 

(13,785 )

Net Cash Used in Financing Activities

 

 

-

 

 

 

(13,785 )

 

 

 

 

 

 

 

 

 

Effects on changes in foreign exchange rate

 

 

205

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

168

 

 

 

1,287

 

Cash and cash equivalents, beginning of period

 

 

2,503

 

 

 

70,115

 

Cash and cash equivalents, end of period

 

$ 2,671

 

 

$ 71,402

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information

 

 

 

 

 

 

 

 

Interest paid

 

$ -

 

 

$ -

 

Income taxes paid

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

Non-cash financing transactions:

 

 

 

 

 

 

 

 

Stock issued for acquisition of subsidiary under common control

 

$ 11,264

 

 

$ -

 

  

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

 

 
F-5
 
Table of Contents

 

FELLAZO CORP.

Notes to the Consolidated Financial Statements

For the Period Ended February 28, 2019

(Unaudited)

 

NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN

 

Fellazo Corp. (“the Company”, “we”, “us” or “our”) was incorporated in the State of Nevada on May 28, 2014.

 

During the quarter ending February 28, 2019 the Company had continued its transformation process into an IT based company specialized in Mobile Application Developments with worldwide clientele and a portfolio investment company in primary industries such as healthcare, energy, development and capital market.

 

Our office is located at 8 th Floor, Wisma Huazong, Lot 15285, 0.7km Lebuhraya SungeiBesi, 43300 Seri Kembangan, Selangor Darul Ehsan, Malaysia.

 

Acquisition Under Common Control

 

On January 2, 2019, the Company issued 11,264,000 shares of common stock to Yap Kit Chuan, the director, President, CEO, CFO, and the majority shareholder of the Company, who is also one of the shareholder of Fellazo Berhad (“FB”), a company incorporated in Malaysia, to acquire 49,000 common shares of FB. Before the acquisition, Yap owned 98% of the Company on June 19, 2018 and 80% of FB on April 17, 2018. After the acquisition which was concluded on February 22, 2019, the Company holds 49% of the shareholding of FB. The Company and FB were under common control before the acquisitionas a variable interest entity (VIE), and is consolidated in accordance to ASC-805-50, in which the assets and liabilities of FB have been presented at their carrying values at the date of common control on June 19, 2018.

 

Going Concern Uncertainties

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.

 

 
F-6
 
Table of Contents

 

As of February 28, 2019, the Company had an accumulated deficit of $739,979 and net loss of $88,824 and net cash used in operations of $37 for the six months ended February 28, 2019. Losses have principally occurred as a result of the substantial resources required for general and administrative expenses associated with our operations. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders or external financing. Management believes the existing stockholders will provide the additional cash to meet with the Company’s obligations as they become due. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations.

 

These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern.

 

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 (“GAAP”) for interim financial statements 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 February 28, 2019 and the results of operations and cash flows for the periods presented. The results of operations for the six months ended February 28, 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 for the year ended August 31, 2018, and related notes thereto included in the elsewhere in this filing.

 

Principles of Consolidation

 

The accompanying consolidated financial statements include the financial statements of the Company and its 49% owned subsidiary Fellazo Berhad, an entity under common control. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

 

Variable Interest Entities

 

The Company holds both the power to direct the most significant activities of FB, as well as an economic interest in FB and, as such, is deemed to be the primary beneficiary or consolidator of FB. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity.

 

 
F-7
 
Table of Contents

 

Foreign Currency Translation

 

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations.

 

The reporting currency of the Company is the United States Dollar (“USD”). The Company’s subsidiary in Malaysia maintains their books and records in their local currency, the Malaysia Ringgit (“RM”), which is the functional currency as being the primary currency of the economic environment in which these entities operate.

 

In general, for consolidation purposes, assets and liabilities of its subsidiary whose functional currency is not the USD are translated into USD, in accordance with ASC 830, “Translation of Financial Statements”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income within the statement of stockholders’ equity.

 

Exchange Rates

 

2/28/2019

 

 

8/31/2018

 

 

2/28/2018

 

Spot rate RM : USD exchange rate

 

 

0.2459

 

 

 

0.2434

 

 

 

0.2553

 

Average period RM : USD exchange rate

 

 

0.2415

 

 

 

N/A

 

 

 

0.2444

 

 

Reclassification

 

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

 

Recent Accounting Pronouncements

 

In October 2018, FASB issued ASU No. 2018-17, Consolidation - Targeted Improvements to Related Party Guidance for Variable Interest Entities (Topic 810). ASU No. 2018-17 guidance eliminates the requirement that entities consider indirect interests held through related parties under common control in their entirety when assessing whether a decision-making fee is a variable interest. Instead, the reporting entity will consider such indirect interests on a proportionate basis. This pronouncement is effective for public entities for fiscal years ending after December 15, 2019, with early adoption permitted. The Company does not expect the adoption to have a material impact on its consolidated financial statements.

 

 
F-8
 
Table of Contents

 

NOTE 3 – RELATED PARTY TRANSACTIONS

 

Our Management Agent, SwipypayBerhad (a company established in Malaysia) is 80% owned by our Director – Mr Yap Kit Chuan. Total outstanding amount due to our Management Agent was $597,997 and $502,226 as at February 28, 2019 and August 31, 2018 respectively. The additional amount of $95,771 incurred in the six months ended February 28 2019 consisted of operating expenses paid on behalf of the Company

 

On January 2, 2019, 11,264,000 shares of common stock were issued to Yap Kit Chuan, the director, President, CEO, CFO, and the majority shareholder for the acquisition of FB (see Note 1).

 

NOTE 4 - STOCKHOLDERS’ DEFICIT

 

The Company is authorized to issue 1,000,000,000 shares of common stock at a par value $0.001.

 

During the period ended February 28, 2018, there were no issuances of common stock.

 

On January 2, 2019, the Company issued 11,264,000 shares of common stock of the Company to our officer and majority shareholder for the acquisition of FB.

 

As of February 28, 2019 and August 31, 2018, 86,264,000 and 75,000,000 shares of common stock were issued and outstanding, respectively.

  

 
F-9
 
Table of Contents

 

NOTE 5 - RESTATEMENT

 

Due to the acquisition of FB, an entity under common control since June 18, 2018 (see Note 1), the Company has disclosed the balance sheet as of August 31, 2018, to restate the information on a consolidated basis as follows:

 

 

 

 

 

Acquired

 

 

 

 

 

 

 

Originally

Reported

 

 

Entity

under common control

 

 

Restatement

Adjustment

 

 

As

Restated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalent

 

$ 631

 

 

$ 1,872

 

 

$ -

 

 

$ 2,503

 

Total Current Assets

 

 

631

 

 

 

1,872

 

 

 

-

 

 

 

2,503

 

TOTAL ASSETS

 

$ 631

 

 

$ 1,872

 

 

$ -

 

 

$ 2,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$ -

 

 

$ 930

 

 

$ 17,847

 

 

$ 18,777

 

Due to related party

 

 

540,766

 

 

 

(20,693 )

 

 

(17,847 )

 

 

502,226

 

Total Current Liabilities

 

 

540,766

 

 

 

(19,763 )

 

 

-

 

 

 

521,003

 

TOTAL LIABILITIES

 

 

540,766

 

 

 

(19,763 )

 

 

-

 

 

 

521,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value, 20,000,000 shares authorized;

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0 shares issued and outstanding

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Common stock, $0.001 par value, 1,000,000,000 shares authorized;

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

75,000,000 shares issued and outstanding as of August 31, 2018

 

 

75,000

 

 

 

24,977

 

 

 

(24,977 )

 

 

75,000

 

Additional paid-in capital

 

 

36,116

 

 

 

-

 

 

 

11,270

 

 

 

47,386

 

Accumulated deficit

 

 

(651,251 )

 

 

(2,763 )

 

 

2,377

 

 

 

(651,637 )

Accumulated other comprehensive loss

 

 

-

 

 

 

(579 )

 

 

295

 

 

 

(284 )

Total Fellazo Corp. Stockholders’ Deficit

 

 

(540,135 )

 

 

21,635

 

 

 

(11,035 )

 

 

(529,535 )

Non-controlling interest

 

 

-

 

 

 

-

 

 

 

11,035

 

 

 

11,035

 

Total Stockholders’ Deficit

 

 

(540,135 )

 

 

21,635

 

 

 

-

 

 

 

(518,500 )

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$ 631

 

 

$ 1,872

 

 

$ -

 

 

$ 2,503

 

 

 
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Item 2. Management’s Discussion and Analysis of Financial Condition or Plan of Operation

 

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 FellazoBerhad, 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 February 28, 2019 the Company had continued its transformation process into an IT based company specialized in Mobile Application Developments with worldwide clientele and a portfolio investment company in primary industries such as healthcare, energy, development and capital market.

 

On January 2, 2019, the Company issued 11,264,000 common shares to Yap Kit Chuan, the director, President, CEO, CFO, and the majority shareholder of the Company, who is also one of the shareholders of FellazoBerhad (“FB”), a company incorporated in Malaysia, to acquire 49,000 common shares of FB (“FB Shares”). On February 28, 2019, the FB Shares were issued to the Company, and the acquisition closed. After the acquisition, the Company holds 49% of the issued and outstanding shares of FB.

 

The Company and FB were under common control before the acquisition; therefore, the transaction has been accounted for as a variable interest entity (VIE) under common control in accordance to ASC-810-10, in which the assets and liabilities of FB have been presented at their carrying values at the date of common control on June 19, 2018.

 

Our office is located at 8 th Floor, Wisma Huazong, Lot 15285, 0.7km Lebuhraya SungeiBesi, 43300 Seri Kembangan, Selangor Darul Ehsan, Malaysia.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 February 28, 2019 and February 28, 2018

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

February 28,

 

 

 

 

 

 

 

 

2019

 

 

2018

 

 

Change

 

 

%

 

Revenue

 

$ -

 

 

$ -

 

 

$ -

 

 

 

-

 

General and administrative expenses

 

 

44,014

 

 

 

64,302

 

 

 

(20,288 )

 

(32

%)

Net loss

 

$ 44,014

 

 

$ 64,302

 

 

$ (20,288 )

 

(32

%)

 

Our general and administrative expenses were $44,014for the three months ended February 28, 2019, as compared to $64,302 for the same period in 2018. The decrease in general and administrative expenses was primarily due to decreased payroll expenses and management fees.

 

Comparison of the six months ended February 28, 2019 and February 28, 2018

 

 

 

Six Months Ended

 

 

 

 

 

 

 

 

February 28,

 

 

 

 

 

 

 

 

2019

 

 

2018

 

 

Change

 

 

%

 

Revenue

 

$ -

 

 

$ -

 

 

$ -

 

 

 

-

 

General and administrative expenses

 

 

88,824

 

 

 

149,948

 

 

 

(61,124 )

 

(41%)

 

Net loss

 

$ 88,824

 

 

$ 149,948

 

 

$ (61,124 )

 

(41%)

 

 

Our general and administrative expenses were $88,824for the six months ended February 28, 2019, as compared to $149,948 for the same period in2018. The decrease in general and administrative expenses was primarily due to decreased payroll expenses and management fees.

 

 
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Liquidity and Capital Resources

 

Working Capital

 

 

 

February 28,

 

 

August 31,

 

 

 

 

 

2019

 

 

2018

 

 

Change

 

Current assets

 

$ 2,671

 

 

$ 2,503

 

 

$ 168

 

Current liabilities

 

$ 609,790

 

 

$ 521,003

 

 

$ 88,787

 

Working capital deficiency

 

$ (607,119 )

 

$ (518,500 )

 

$ (88,619 )

 

The Company’s current assets consists of cash and cash equivalents of $2,671at February 28, 2019, as compared to cash and cash equivalents of $2,503 at August 31, 2018.

 

As at February 28, 2019, current liabilities consisted of accounts payable and accrued liabilities of $11,793and due to a related party of $597,997, as compared to August 31, 2018, current liabilities consisted of accounts payable and accrued liabilities of $18,777and due to a related party of $502,226. The increase in current liabilities is primarily due to the operating expenses paid by the related party.

 

Cash Flows

 

 

 

Six Months Ended

 

 

 

 

 

February 28,

 

 

 

 

 

2019

 

 

2018

 

 

Change

 

Cash provided by (used in) operating activities

 

$ (37 )

 

$ 15,072

 

 

$ (15,109 )

Cash used in financing activities

 

 

-

 

 

 

(13,785 )

 

 

13,785

 

Effects on changes in foreign exchange rate

 

 

205

 

 

 

-

 

 

 

205

 

Net change in cash and cash equivalents for the period

 

$ 168

 

 

$ 1,287

 

 

$ (1,119 )

 

Cash Flow from Operating Activities

 

Cash flows used in operations was $37 during the six months ended February 28, 2019, compared with cash flows provided by operations of $15,072 during the same period in 2018. The decrease is mainly due to the change in other creditors – related party, partially offset by the decreased net loss.

 

Cash Flow from Financing Activities

 

During the six months ended February 28, 2019 and 2018, the Company repaid $0 and $13,785 toa director, respectively.

 

 
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Off-Balance Sheet Arrangements

 

None.

 

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 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on November 29, 2018.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable to smaller reporting companies.

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

 
7
 
Table of Contents

 

An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of February 28, 2019. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms as a result of the following material weaknesses:

 

(1) lack of a functioning audit committee and lack of a majority of outside directors on the Company’s board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures;

 

(2) inadequate segregation of duties consistent with control objectives;

 

(3) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of U.S. GAAP and SEC disclosure requirements; and

 

(4) ineffective controls over period end financial disclosure and reporting processes.

 

The specific material weakness identified by our management was ineffective controls over certain aspects of the financial reporting process because of a lack of a sufficient complement of personnel with a level of accounting expertise and an adequate supervisory review structure that is commensurate with our financial reporting requirements and inadequate segregation of duties. A “material weakness” is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements would not be prevented or detected on a timely basis.

 

We expect to be materially dependent upon third parties to provide us with accounting consulting services for the foreseeable future which we believe mitigates the impact of the material weaknesses discussed above. Until such time as we have a chief financial officer with the requisite expertise in U.S. GAAP and establish an audit committee and implement internal controls and procedures, there are no assurances that the material weaknesses and significant deficiencies in our disclosure controls and procedures will not result in errors in our financial statements which could lead to a restatement of those financial statements.

 

Changes in Internal Controls

 

There have been no changes in our internal controls over financial reporting identified in connection with the evaluation required by paragraph (d) of Securities Exchange Act Rule 13a-15 or Rule 15d-15 that occurred in the quarter ended February 28, 2019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 
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Table of Contents

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

As of the date of this Quarterly Report on Form 10-Q, we are not a party to any legal proceedings that could have a material adverse effect on the Company’s business, financial condition or operating results. Further, to the Company’s knowledge no such proceedings have been threatened against the Company.

 

Item 1A. Risk Factors

 

Not Applicable to smaller reporting companies.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

The company issued 11,264,000 shares of common stock to an affiliate. The shares were issued pursuant to an exemption from registration under Section 4(a)(2) of the Securities Act of 1933.

 

Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

Not Applicable.

 

Item 5. Other Information

 

On January 2, 2019, the Company issued 11,264,000 common shares to Yap Kit Chuan, the director, President, CEO, CFO, and the majority shareholder of the Company, who is also one of the shareholders of FellazoBerhad (“FB”), a company incorporated in Malaysia, to acquire 49,000 common shares of FB (“FB Shares”). On February 28, 2019, the FB Shares were issued to the Company, and the acquisition closed. After the acquisition, the Company holds 49% of the issued and outstanding shares of FB.

 

 
9
 
Table of Contents

 

Item 6. Exhibits

 

The following exhibits are filed herewith or are incorporated by reference to exhibits previously filed with the SEC:

 

Incorporated by Reference

Exhibit No.

Title

Form

Exhibit

Filing Date

3.1

Articles of Incorporation

S-1

3.1

11/27/2015

3.3

Bylaws

S-1

3.2

11/27/2015

3.4

Certificate of Amendment to Articles of Incorporation, effective as of September 19, 2017

8-K

3.1

09/22/2017

10.1*

 

Stock purchase agreement

 

21.1*

Subsidiaries of the Registrant

31.1*

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

32.1+

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

101.INS+

XBRL Instance Document

101.SCH+

 

XBRL Taxonomy Extension Schema Document

 

101.CAL+

 

XBRL Taxonomy Extension Calculation Linkbase Document

 

101.LAB+

 

XBRL Taxonomy Extension Label Linkbase Document

 

101.PRE+

 

XBRL Taxonomy Extension Presentation Linkbase Document

 

101.DEF+

 

XBRL Taxonomy Extension Definition Linkbase Document

___________

* Filed herewith

+ In accordance with the SEC Release 33-8238, deemed being furnished and not filed.

 

 
10
 
Table of Contents

 

SIGNATURES

 

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

FELLAZO CORP.

 

 

(Registrant)

 

 

 

 

 

Dated: April 23, 2019

 

/s/ YAP KIT CHUAN

 

 

YAP KIT CHUAN

 

 

President, CEO, CFO, Treasurer, Secretary and

Chairman of the Board of Directors of the Company

 

 

 

11 

 

EXHIBIT 10.1

 

Stock Purchase Agreement

 

THIS STOCK PURCHASE AGREEMENT dated January 02, 2019 ("Agreement"), by and among Fellazo Corp, a corporation organized and existing under the laws of Nevada ("Buyer"), and Yap Kit Chuan (the "Seller")

 

W I T N E S S E T H:

 

WHEREAS, the Seller owns eighty thousand shares of the capital stock of Fellazo Berhard, a corporation organized and existing under the laws of Malaysia ("Company"), and

 

WHEREAS, the shares of the Company owned by the Seller constitute eighty percent (80%) of the issued and outstanding stock of the Company, and

 

WHEREAS, Buyer wishes to buy and the Seller wishes to sell to Buyer, on the terms and for the consideration hereinafter provided, forty-nine thousand (49,000) shares equaling forty nine percent (49%) of the issued and outstanding capital stock of the Company.

 

NOW, THEREFORE, in consideration of the promises and the respective agreements hereinafter set forth and other good and valuable consideration, Buyer and Seller hereby agree as follows:

 

1. PURCHASE OF COMPANY COMMON STOCK .

 

1.1 Sale of Common Stock . Upon the terms and subject to the provisions of this Agreement, the Seller agrees that he will sell, convey, transfer, assign and deliver to Buyer at the Closing provided for in Article 2, free and clear of all claims, liens, pledges, encumbrances, mortgages, charges, security interests, options, preemptive rights or other interests or equities whatsoever, forty-nine thousand (49,000) shares of duly and validly issued, fully paid and non‑assessable common stock ("Purchased Stock") of the Company owned by the Seller.

 

 
 
 
 

 

1.2 Consideration for Sale and Transfer of the Purchased Stock . Subject to the terms and conditions of this Agreement and in reliance upon the representations, warranties and covenants of Seller herein contained, and in full consideration of such sale, conveyance, transfer, assignment and delivery of the Purchased Stock to Buyer, Buyer agrees to pay and deliver to the Seller a purchase price for the Purchased Stock of eleven million two hundred sixty-four thousand (11,264,000) voting shares of common stock of the Buyer (the “Shares”), to be executed simultaneously with this agreement (the Shares shall be referred to as the “Stock Purchase Price”).

 

2. THE CLOSING AND PAYMENT OF STOCK PURCHASE PRICE .

 

2.1 Closing. The closing ("Closing") with respect to the acquisition of the Purchased Stock under this Agreement and all other transactions contemplated hereby shall take place at Seri Kembangan, Malaysia on February 28, 2019. The time and date of the Closing is hereinafter called the "Closing Date."

 

2.2 Payment of Stock Purchase Price . At the Closing, the Buyer shall deliver the Stock Purchase Price by way of a stock certificate evidencing the Shares, or in book entry form at the offices of the transfer agent of the Buyer, at the discretion of the Seller, and if in certificate form the Buyer’s Stock will be delivered to the Seller at the location designated by Seller.

 

2.3 Transfer of Purchased Stock . At the Closing, the Seller shall deliver to Buyer or its nominee the Purchased Stock, free and clear of all claims, liens, pledges, encumbrances, mortgages, charges, security interests, options, preemptive rights, restrictions or any other interests or imperfections of title whatsoever. Said transfer shall be effected by delivery to Buyer of one or more stock certificates. The Seller acknowledges that the Purchased Stock is unique and not otherwise available, and agrees that, in addition to any other available remedies; Buyer may seek any equitable remedies to enforce performance by the Seller hereunder, including, without limitation, an action for specific performance, and Buyer agrees and acknowledges that in the event of a breach hereof by Buyer, Seller may seek any equitable remedies to enforce performance by the Buyer hereunder, including without limitation, an action for specific performance.

 

FELLAZO – YAP KIT CHUAN STOCK PURCHASE AGREEMENT - 2

 
 
 

 

3. REPRESENTATIONS AND WARRANTIES OF THE SELLER.

 

Seller hereby represents, warrants and agrees as of the date hereof and as of the date of the Closing as follows:

 

3.1 Organization and Qualification of Company . The Company is duly organized, validly existing and in good standing under the laws of Malaysia. The Company has all requisite corporate power and authority to own or lease all of its properties and assets and to conduct its business in the manner and in the places where such properties are owned or leased or such business is now conducted by it. Company is duly qualified, licensed and authorized to do business as a corporation and is in good standing as a corporation in the jurisdictions in which it conducts business, and is not required to be so licensed, qualified or authorized to conduct its business or own its property in any other jurisdiction, except where the failure to be so qualified would not result in a material adverse effect on the Seller’s property, operations or financial condition (“Company Material Adverse Effect”).

 

The minute books of the Company contain correct and complete copies of the Certificate of Incorporation and Bylaws of the Company, including all amendments thereto and restatements thereof.

 

3.2 Authority of Company and the Seller . This Agreement and each of the agreements and other documents and instruments delivered or to be delivered to Buyer pursuant to or in contemplation of this Agreement will constitute, when so delivered, the valid and binding obligations of Seller as party thereto and shall be enforceable in accordance with their respective terms, except as enforceability may be limited by applicable equitable principles (whether applied in a proceeding at law or in equity) or by bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting creditors' rights generally, by the exercise of judicial discretion in accordance with general equitable principles, and by equitable defenses that may be applied to the remedy of specific performance. The execution, delivery and performance of this Agreement and each of the agreements and other documents and instruments delivered or to be delivered to Buyer by Seller or the Company have been duly authorized by all necessary action of Seller and, with respect to Company, are within Company's corporate powers, and will not:

 

FELLAZO – YAP KIT CHUAN STOCK PURCHASE AGREEMENT - 3

 
 
 

 

(i) result in a breach of or constitute a default or result in any right of termination or other Company Material Adverse Effect under any indenture or loan or credit agreement of any of the Seller or the Company, or any other material agreement, lease or instrument to which any of the Seller or the Company is a party or by which the property of any of the Seller or the Company is bound or affected;

 

(ii) result in, or require, the creation or imposition of any mortgage, deed of trust, pledge, lien, security interest or other charge or encumbrance or claim of any nature whatsoever on the Purchased Stock or any property or assets now owned, leased or used by the Company;

 

(iii) result in a violation of or default under any law, rule, or regulation, or any order, writ, judgment, injunction, decree, determination, award, now in effect having applicability to Seller;

 

(iv) violate any provisions of the Certificate of Incorporation or By‑Laws of the Company, or

 

(v) require any approval, consent or waiver of, or filing with, any entity, private or governmental.

 

3.4 Capitalization . The Purchased Stock has been duly and validly authorized, and is duly and validly issued, fully paid and non‑assessable. The Purchased Stock is free and clear of any and all claims, liens, pledges, charges, encumbrances, mortgages, security interests, options, preemptive or other rights, restrictions on transfer, or other interests or equities or imperfections of title whatsoever. There are no other type of equity securities of Company outstanding on the date hereof and there are no existing warrants, preemptive or other rights, options, calls, commitments, conversion privileges, or other agreements (all of the foregoing being collectively called "Options") obligating the Company to issue any or all of its authorized and unissued capital stock, or any security convertible into and/or exchangeable for capital stock of the Company. The Company has no capital stock of any class authorized or outstanding except as identified herein. The Purchased Stock represents forty-nine percent (49%) of the issued and outstanding capital stock of the Company.

 

3.5 Valid Title to Purchased Stock . The Seller will deliver to Buyer valid and marketable title to the Purchased Stock at the Closing, free and clear of any claims, liens, pledges, charges, encumbrances, mortgages, security, interests, options, preemptive or other rights, restrictions on transfer or other interest or equities or any other imperfections of title whatsoever.

  

FELLAZO – YAP KIT CHUAN STOCK PURCHASE AGREEMENT - 4

 
 
 

 

3.7 Conduct of the Business . The Company is not a party to, or subject to or bound by nor are any of its assets subject to or bound by any agreement, oral or written, or any judgment, law, rule, regulation, order, writ, injunction or decree of any court or governmental or administrative body which prohibits or materially adversely affects or upon the consummation of the transactions contemplated hereby would prohibit or materially adversely affect: (i) the use of any or all of the assets and property of Company necessary for operation in the ordinary and usual course of business; or (ii) the conduct of its business and operations, in each case, in all material respects in substantially the same manner as such business has been conducted by it. The Company has all properties and rights, as of the date hereof, necessary to conduct the business and operations of the Company in all material respects in substantially the same manner as such business has been conducted by it prior to the date hereof.

 

3.8 Certificate of Incorporation . The Certificate of Incorporation of the Company and all amendments thereto to the Articles have been validly adopted by the stockholders and directors of the Company and the Certificate of Incorporation, as amended, is in full force and effect and is legal, valid, binding and enforceable in accordance with its terms.

 

3.9 Bylaws . The Bylaws of the Company, and all amendments to the Bylaws, have been validly adopted, and the Bylaws, as amended, are in full force and effect and are legal, valid, binding and enforceable in accordance with their terms.

 

3.10 Shareholders . The Company has three (3) other stockholders other than the Buyer, who when combined with the remaining shares of the Company’s stock, will collectively control fifty-one percent (51%) of the issued capital stock of the Company.

 

3.11 Disclosure . No representation or warranty in this Agreement contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact or any fact necessary to make the statements contained therein not materially misleading.

  

FELLAZO – YAP KIT CHUAN STOCK PURCHASE AGREEMENT - 5

 
 
 

 

3.12 Subsidiaries and Investments . The Company has no subsidiaries and does not own any securities of or other interests or interests in, any firm, corporation, partnership, joint venture, trust, association, estate, joint stock company, organization, enterprise or entity, except temporary investments in the ordinary course of business.

 

3.13 Assets .

 

(a) Physical Assets, Cash, Machinery . All assets of the Company included in Company's unaudited Balance Sheet for month ended September 30, 2018, (as hereinafter defined as “Financial Statement”), other than those disposed of since Financial Statement date in the ordinary course of business, together with the Company’s contract and other third party rights, are at the date of the Closing, the material assets associated with and necessary to the business and operations of Company as presently conducted, provided. With respect to any machinery, equipment and personal property owned by the Company, Seller makes no representation, warranty, express or implied, including in particular the implied warranties of merchantability and fitness for a particular purpose or condition, other than the warranty of title and that such machinery, equipment and personal property is substantially adequate for current needs and production levels of the Company, including the processing of the existing backlog on a basis consistent with the Company's past practice. The machinery, equipment and other like assets will be, up to the Closing, operated in a manner substantially consistent with the Company's present operating practices.

 

(b) Liens . The Company has good and marketable title to all its assets, including, without limiting the generality of the foregoing, those reflected in the Financial Statements, except as since sold or otherwise disposed of in the ordinary and normal course of business on commercially reasonable terms, free and clear of all claims, liens, pledges, charges, mortgages, security interests, encumbrances, equities or other imperfections of title of any nature whatsoever, except for liens for current taxes and assessments not yet due and payable.

 

(c) Inventory . The inventory of the Company reflected in the Financial Statement or existing at the date hereof has been acquired in the ordinary course of the Company's business, and is of a quality and quantity saleable in the ordinary course of the Company's business at prevailing market prices; is valued at lower of cost or market and reflects write‑downs to realizable values in the case of items which have become unsalable or slow moving (except at prices less than cost) through regular distribution channels in the Company's business.

  

FELLAZO – YAP KIT CHUAN STOCK PURCHASE AGREEMENT - 6

 
 
 

 

Subject to write‑downs complying with the preceding paragraph, the values of the inventory stated in the balance sheet and on the books of the Company reflect the Company's normal inventory valuation policies and were determined in accordance with internationally accepted accounting principles, practices and methods consistently applied. Since the Financial Statement date, no inventory items have been sold or disposed of except through sales in the ordinary course of business.

 

3.14 Patents, Trade Names, Trademarks and Copyrights .

 

All patents, patent applications, trade names, registered or common law trademarks, trademark applications and copyrights owned by or licensed to Company are listed in the Financial Statement, and as and to the extent indicated in the Financial Statement have been duly registered in, filed in the corresponding offices of other countries or other jurisdictions and have been properly maintained and renewed in accordance with all applicable provisions of law and administrative regulations in each such country or other jurisdictions, as and to the Seller’s knowledge, use of said patents, trade names, trademarks or copyrights does not require the consent of any third party and the same are freely transferable and are owned exclusively by Company free and clear of any attachments, liens, encumbrances or adverse claims. No outstanding order, decree, judgment or stipulation, and no proceeding charging Company with infringement of any adversely held patent, trade name, trademark or copyright has been filed or, to the Seller’s knowledge, is threatened to be filed. The Company does not currently use or rely upon any third party patent, trade name, trademark or copyright in order to conduct its business as presently being conducted.

 

To the Seller’s knowledge, the Company has the right to use, free and clear of any claims or rights of any third party, all trade secrets, customer lists, know‑how and any other confidential information required for or used in the marketing of all products being sold by Company, including, without limitation, any products licensed by Company from others. To the Seller’s knowledge, the Company is not in any way making any unlawful or wrongful use of any trade secrets, customer lists, know‑how or any other confidential information of any third party, including, without limitation, any former employer of any present or past employee of Company. Neither the Seller nor, to the Seller’s knowledge, any officer, director or key employee (which shall mean any person at or above the office of Vice President) of the Company is a party to any non‑competition agreement, non‑disclosure agreement, or similar agreement with any third party.

 

FELLAZO YAP KIT CHUAN STOCK PURCHASE AGREEMENT - 7  

 
 
 
 

  

3.16 List of Contracts . Except for the contracts, commitments, plans, agreements and licenses described in the Financial Statement, and except for items involving less than twenty-five thousand dollars (US$25,000), the Company is not a party to, nor is any of its properties or assets subject to or otherwise bound by, any:

 

(a) Contract with any present or former stockholder, director, officer or employee, agent or consultant;

 

(b) Collective bargaining agreement (or any side agreement, local understanding or settlement agreement relating to any such collective bargaining agreement) or any agreement or contract with any labor union or other employees' association;

 

(c) Lease or similar agreement regarding any real property or personal property involving annualized payments or potential payments by or to the Company of at least twenty-five thousand dollars (US$25,000);

 

(d) Any contract involving more than twenty-five thousand dollars (US$25,000) for the future purchase of commodities, inventory, supplies, products, merchandise, services or equipment;

 

(e) Bonus, pension, profit‑sharing, retirement or any hospitalization, or insurance or similar plan or practice, formal or informal, in effect with respect to employees of the Company or any other person or entity;

(f) Franchise, dealer, distribution, sales or agency contract or commitment;

 

(g) Any other outstanding contract of sale or any distribution agreement, representative or sales agency agreement, creating any obligation of Company to sell or distribute products in each case involving more than twenty-five thousand dollars (US$25,000);

  

FELLAZO – YAP KIT CHUAN STOCK PURCHASE AGREEMENT - 8

 
 
 

 

(h) Guarantees or indemnities, direct or indirect, current or contingent, of the obligations of customers of the Company or any other person or entity;

 

(i) Contracts with suppliers, vendors, distributors, clients, customers or others for the future performance of services or provision of goods by or for Company involving more than twenty-five thousand dollars (US$25,000) which are not terminable by the Company on less than sixty (60) days prior notice without penalty;

 

(j) Insurance policy;

 

(k) Advertising contract or commitment involving more than twenty-five thousand dollars (US$25,000);

 

(l) Bank account, lock box or similar depository arrangements;

 

(m) Any real estate mortgage, loan or credit agreement with any lender, any indenture, pledge, conditional sale or title retention agreement, equipment obligation or lease, or lease purchase agreement in each case that involves more than twenty-five thousand dollars (US$25,000);

 

(n) Any agreement restricting the freedom of the Company or of its employees, to compete in any line of business, in any geographic area or with any person or entity.

 

(o) Any other material contracts affecting the Company.

 

All the contracts and commitments are valid and binding obligations of the Company and, to the Seller’s knowledge, of the other parties thereto in accordance with their respective terms and conditions.

 

There has been no breach or default of any provisions of any such contract, commitment, lease or other agreement by the Company, or to the Seller’s knowledge, any other party thereto, and nothing has occurred which, with lapse of time or the giving of notice or both, would reasonably be expected to constitute a breach or default by the Company, or to the Seller’s knowledge, by any other party thereto with respect to any such contract or commitment or which would reasonably be expected to cause acceleration of any obligation of any party thereto or the creation of any lien, encumbrance, security interest in or upon the Purchased Stock, or the assets of Company. Buyer has been furnished with true and complete copies of all scheduled contracts and commitments.

   

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3.18 Potential Loss of Investment. Buyer understands that an investment in the Shares is a speculative investment which involves a high degree of risk and the potential loss of his entire investment.

 

3.19 Investment Purposes. The Seller is acquiring the Shares for his own account as principal, not as a nominee or agent, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof in whole or in part and no other person has a direct or indirect beneficial interest in the amount of restricted Shares the Seller is acquiring herein. Further, the Seller does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to the restricted Purchased Stock the Seller is acquiring.

 

3.21 Restricted Shares . The Seller is aware that the Shares issued hereunder have not been registered with the Securities and Exchange Commission under the Securities Act of 1933, as amended, and have been offered pursuant to the exemption from registration contained in Section 4(2) of said Act and Regulation D promulgated thereunder on the ground that no public offering is involved, which reliance is based in part upon the representations set forth herein. It is further understood and agreed that the Shares subscribed for hereunder may not be offered, sold, transferred, pledged or hypothecated to any persons in the absence of registration under the Securities Act of 1933 and applicable state securities laws, or an opinion of counsel satisfactory to the Company that such registration is not required.

 

4. REPRESENTATIONS AND WARRANTIES BY BUYER .

 

As of the date hereof and as of the date of the Closing, Buyer represents and warrants as follows:

 

4.1 Organization and Qualification of Buyer . Buyer is duly organized, validly existing and in good standing under the laws of Nevada. Buyer has full corporate power and authority to own or lease all of its properties and assets and to conduct its business in the manner and in the places where such properties are owned and leased or such business is now conducted by it.

  

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4.2 Authority of Buyer . This Agreement and each of the agreements and other documents and instruments delivered or to be delivered by Buyer pursuant to or in contemplation of this Agreement will constitute, when so delivered, the valid and binding obligation of Buyer and shall be enforceable in accordance with their respective terms, except as enforceability may be limited by applicable equitable principles (whether applied in a proceeding at law or in equity) or by bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting creditors' rights generally, by the exercise of judicial discretion in accordance with general equitable principles, and by equitable defenses that may be applied to the remedy of specific performance. The execution, delivery and performance of this Agreement and each such agreement, document and instrument has been duly authorized by all necessary corporate action of Buyer and is within Buyer's corporate powers. The execution, delivery and performance of any such agreement, document or instrument by Buyer and the execution, delivery and performance of this Agreement or any other agreement, document or instrument by the Buyer does not and will not with the passage of time or the giving of notice or both:

 

(i) result in a breach of or constitute a default under any indenture or loan or credit agreement or under any agreement of the Buyer, or any other material agreement, lease or instrument to which Buyer is a party or by which the property of Buyer is bound or affected;

 

(ii) result in a violation of or default under any law, rule, or regulation, or any order, writ, judgment, injunction, decree, determination, award, indenture, material agreement, lease or instrument now in effect having applicability to Buyer;

 

(iii) violate any provisions of the Certificate of Incorporation or Bylaws of Buyer; or

 

(iv) require any approval, consent or waiver of, or filing with, any entity, private or governmental, which has not been obtained.

 

4.3 Governmental Approvals . All requisite consents, authorizations, licenses, permits, orders, certificates and approvals of all third parties and/or governmental agencies, including without limitation any governmental agency or authority of the United States, or other jurisdiction whose approval is necessary for Buyer to consummate the transactions contemplated by this Agreement have been obtained.

   

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4.5 Disclosure . No representation or warranty in this Article 4, and no statement contained elsewhere in this Agreement or in any schedule, exhibit, certificate or other document furnished or to be furnished by Buyer to Seller pursuant hereto or in connection with the transactions contemplated under this Agreement contains any untrue statement of a material fact or omits or will omit to state a material fact or any fact necessary to make the statements contained therein not materially misleading.

 

4.6 Purchase for Investment . Buyer hereby represents and warrants to the Seller that Buyer is acquiring the Purchased Stock for its own account, for investment, and not with a view to the distribution thereof in violation of the Securities Act of 1933 or of the State Laws. Buyer understands that the Purchased Stock has not been registered under the Securities Act of 1933 (the “Act”) or any state securities law, by reason of its sale to the Seller in one or more transactions exempt from registration; and that the Purchased Stock must be held by Buyer indefinitely unless a subsequent disposition thereof is registered under the Act and the state securities laws or is exempt from registration.

 

Buyer represents and warrants to the Seller that the sale of the Purchased Stock to it hereunder is exempt from registration under the provisions of Section 4(2) of the Act.

 

4.7 Acknowledgment of Disclaimer of Profits . Buyer expressly acknowledges and agrees that Seller has not made any representation or warranty with respect to the future profitability or financial prospects of the Company after the Closing Date.

 

4.8 No General Solicitation or Advertising. Neither any Buyer nor any of its affiliates nor any person acting on its or their behalf (i) has conducted or will conduct any general solicitation (as that term is used in Rule 502(c) of Regulation D) or general advertising with respect to any of the Shares, or (ii) made any offers or sales of any security or solicited any offers to buy any security under any circumstances that would require registration of the Shares under the Securities Act of 1933, as amended (the "Securities Act").

  

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5. COVENANTS OF THE SELLER .

 

The Seller covenants and agrees as follows throughout the period from the date hereof through and including the Closing:

 

5.1 Restrictions . Seller shall cause the Company to conduct the business and operations in which it is engaged only in the ordinary course substantially the manner in which such business and operations have been previously conducted and, furthermore, without limiting the generality of the foregoing, Seller shall cause the Company to not (except with the prior written consent of the Buyer which shall not be unreasonably withheld):

 

(a) Redeem, purchase, repurchase or retire any of the capital stock of the Company, or declare or pay any dividends or make any other payments or distribution upon any of the capital stock of the Company;

 

(b) Make or permit any material change in or cease in whole or in significant part its present business;

 

(c) Sell, lease, transfer or otherwise dispose of all or any material portion of its assets including, without limitation, rights to patents, know‑how, intellectual property or other intangible assets or cancel any debts or claims, except sales of inventory in the ordinary course of business or immaterial amounts of other intangible personal property not required in the business;

 

(d) Make any change in the Certificate of Incorporation or Bylaws of the Company;

 

(e) Make any change in the authorized or issued and outstanding capital stock of the Company including any changes involving treasury shares;

(f) Grant any options or rights to purchase any securities of the Company;

 

(g) Effect any dissolution, winding up, liquidation or termination of the business of the Company;

 

5.2 Notice of Breach . To the extent Seller obtains actual knowledge that any of the representations or warranties contained in Article 3 hereof would be incorrect in any material respect were those representations or warranties made immediately after such knowledge was obtained, Seller shall notify Buyer in writing promptly of such fact and exercise their reasonable efforts to remedy same to the extent within Seller’s control.

   

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5.3 Access . Seller will permit Buyer and its advisors, as requested by Buyer, to inspect and copy all Company records and documents in the Company's and Seller’s custody, care or control and to have reasonable access to all places of their business throughout all regular business hours, provided such inspections do not unduly disrupt the conduct of business, provided, further, that Buyer shall not contact the Company's customers, suppliers or employees without the prior written consent of Seller, which consent shall not be unreasonably withheld or delayed.

 

5.4 Authorization from Others . Seller shall use reasonable efforts to obtain all authorizations, consents and approvals of third parties or governmental agencies that may be required to permit the consummation of the transactions contemplated by this Agreement.

 

5.5 Consummation of Agreement . Seller shall use reasonable best efforts to satisfy all conditions to the Closing that are within their control to the end that the transactions contemplated by this Agreement shall be fully carried out.

 

5.7 Business Intact; Relationships with Customers and Suppliers . Seller shall use commercially reasonable efforts to keep intact the business of the Company, to keep available its key employees and to maintain the goodwill of its customers, distributors and suppliers and other persons having business dealings with it.

 

6. COVENANTS OF SELLER AND BUYER .

 

6.1 Consummation of Agreement . Buyer shall use its reasonable best efforts to satisfy all conditions to the Closing that are within its control to the end that the transaction contemplated by this Agreement shall be fully carried out.

 

6.2 Authorization From Others . Buyer shall use its reasonable efforts to obtain all authorizations, consents and approvals of third parties or governmental agencies that may be required to permit the consummation of the transactions contemplated by this Agreement.

   

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7. CONDITIONS PRECEDENT TO THE OBLIGATIONS OF BUYER TO CLOSE .

 

The obligation of Buyer to acquire the Purchased Stock as contemplated hereby, and to perform its other obligations hereunder to be performed on or after the Closing, shall be subject to the fulfillment, on or prior to the Closing Date, unless otherwise waived in writing by Buyer, of the following conditions:

 

7.1 Representations and Warranties . The representations and warranties of Seller set forth in Article 3 hereof shall be true and correct in all material respects on the Closing Date as if made on and as of such date, and Buyer shall have received a certificate to such effect, executed by Seller and dated as of the Closing Date, in form satisfactory to Buyer.

 

7.2 Performance of Covenants . Seller shall have performed in all material respects all of their covenants and obligations contained in this Agreement to be performed on or prior to the Closing Date, and Buyer shall have received a certificate to such effect, executed by the Seller and dated as of the Closing Date, in form satisfactory to Buyer.

 

7.3 Threatened or Pending Proceedings. No proceedings shall have been initiated or threatened by any governmental department, commission, bureau, board, agency or instrumentality, foreign or domestic, or any other bona fide third party seeking to enjoin or otherwise restrain or to obtain an award for damages in connection with the consummation of the transactions contemplated hereby.

 

7.4 Corporate Action . All corporate action necessary to authorize (i) the execution, delivery and performance by Seller of this Agreement and any other agreements or instruments contemplated hereby to which Seller is a party and (ii) the consummation of the transactions and performance of its other obligations contemplated hereby and thereby shall have been duly and validly taken by Seller.

 

8. CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER TO CLOSE .

 

The obligation of Seller to sell the Purchased Stock as contemplated hereby, and to perform their other obligations hereunder to be performed on or after the Closing, shall be subject to the fulfillment, on or prior to the Closing Date, unless otherwise waived in writing by the Seller, of the following conditions:

  

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8.1 Representations and Warranties . The representations and warranties of Buyer set forth in Article 4 hereof shall be true and correct in all material respects on the Closing Date as if made on and as of such date.

 

8.2 Performance of Covenants . Buyer shall have performed in all material respects all of its covenants and obligations contained in this Agreement to be performed on or prior to the Closing Date, and the Seller shall have received a certificate to such effect, executed by the President or any Vice President of the Buyer and dated as of the Closing Date, in form satisfactory to Seller.

 

8.3 Corporate Action . All corporate action necessary to authorize (i) the execution, delivery and performance by Buyer of this Agreement and any other agreements or instruments contemplated hereby to which Buyer is a party and (ii) the consummation of the transactions and performance of its other obligations contemplated hereby and thereby shall have been duly and validly taken by Buyer, and the Seller shall have been furnished with copies of all applicable resolutions adopted by the Board of Directors of Buyer, certified by the CEO, Secretary or Assistant Secretary of Buyer.

 

8.4 Threatened or Pending Proceedings. No proceedings shall have been initiated or threatened by any governmental department, commission, board, bureau, agency or instrumentality, foreign or domestic, or any other bona fide third party seeking to enjoin or otherwise restrain or to obtain an award for damages in connection with the consummation of the transactions contemplated hereby.

 

8.5 Delivery of Certificates and Documents to Seller . If requested by the Seller, Buyer shall have delivered, or cause to be delivered, to the Seller certificates as to the legal existence and good standing of Buyer issued by the State of and/or such other appropriate official thereof.

  

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9. TERMINATION OF AGREEMENT .

 

9.1 Termination . At any time prior to the Closing Date, this Agreement may be terminated (i) by the mutual consent of the Buyer and Seller, (ii) by Seller if there has been a material misrepresentation, breach of warranty or breach of covenant by Buyer in its representations, warranties and covenants set forth herein, (iii) by Buyer if there has been a material misrepresentation, breach of warranty or breach of covenant by the Seller in his representations, warranties and covenants set forth herein that would reasonably be expected to have a Material Adverse Effect, (iv) by the Seller if the conditions stated in Article 8 have not been satisfied at or prior to the Closing Date or (v) by Buyer if the conditions stated in Article 7 have not been satisfied at or prior to the Closing Date.

 

9.2 Effect of Termination . If this Agreement shall be terminated as above provided, this Agreement shall become null and void and have no effect and all obligations of the parties hereunder shall terminate without liability of any party to the other; provided however, that nothing in this Section 9.2 shall prevent any party from seeking or obtaining damages or appropriate equitable relief for the breach of any covenant made by any other party hereto.

 

9.3 Right to Proceed . Anything in this Agreement to the contrary notwithstanding, if any of the conditions specified in Article 7 hereof have not been satisfied at or prior to the Closing, Buyer, having otherwise satisfied its obligations or met conditions to Closing hereunder, shall have the right to proceed with the transactions contemplated hereby without waiving any of its rights hereunder, and if any of the conditions specified in Article 8 hereof have not been satisfied at or prior to the Closing, the Seller, having otherwise satisfied their obligations or met conditions to Closing hereunder, shall have the right to proceed with the transactions contemplated hereby without waiving any of their rights hereunder.

 

9.4 Notice of Breach . To the extent Buyer obtains knowledge before the Closing Date that any of the representations or warranties contained in Article 4 hereof would be incorrect in any material respect were those representations or warranties made immediately after such knowledge was obtained, the Buyer shall notify Seller in writing promptly of such fact and exercise its reasonable efforts to remedy same to the extent within Buyer's control.

 

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10. RIGHTS AND OBLIGATIONS SUBSEQUENT TO CLOSING .

 

10.1 Survival of Representations and Warranties . All representations, warranties, covenants and obligations herein shall be deemed to have been relied upon by the other party, shall survive the execution and delivery of this Agreement for a period of one year at which time all representations, warranties, covenants and obligations shall terminate.

 

10.2 Further Assurances . From time to time after the Closing and without further consideration, the parties will execute and deliver, or arrange for the execution and delivery of such other instruments of conveyance and transfer and take such other action or arrange for such other actions as may reasonably be requested to more effectively complete any of the transactions provided for in this Agreement or any document annexed hereto.

 

11. INDEMNIFICATION AND SETOFF .

 

11.1 Indemnification by the Seller . The Seller hereby agrees to defend, indemnify and hold Buyer harmless from and against any damages, liabilities, losses and expenses, excluding consequential, special, punitive and diminution in value damages (including, without limitation, reasonable attorneys' fees) (“Loss”) which may be sustained or suffered by Buyer arising out of, based upon, or by reason of a breach of any representation or warranty, or a failure to perform any agreement or covenant made by the Seller in this Agreement.

 

11.2 Indemnification by the Buyer . The Buyer hereby agrees to defend, indemnify and hold the Seller harmless from and against any Loss which may be sustained or suffered by the Seller arising out of, based upon, or by reason of a breach of any representation or warranty, or a failure to perform any agreement or covenant, made by the Buyer in this Agreement or in any exhibit, schedule, certificate or financial statement delivered hereunder, or arising out of, based upon, or by reason of any claim, action or proceeding asserted or instituted growing out of any matter or thing covered by such breached representations, warranties or covenants.

  

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11.3 Notice; Defense of Claims . Each party to this Agreement shall give prompt written notice to the other party or parties to this Agreement under each claim for indemnification hereunder specifying the amount and nature of the claim, and of any matter which is likely to give rise to an indemnification claim. Each party to this Agreement has the right to participate at its own expense in the defense of any such matter or its settlement, or the indemnifying party may take over the defense of such matter so long as such defense is reasonably expeditious, and in the event the indemnifying party is defending such matter, the indemnified party shall not consent to the entry of judgment or enter into any settlement by which such indemnifying party is to be bound and which settlement does not include as an unconditional term the giving by the indemnified party and the claimant or plaintiff to such indemnifying party of a release from all liability in respect to such claim or litigation. Failure to give timely notice of a matter which may give rise to an indemnification claim shall not affect the rights of the indemnified party to collect such claims from the indemnifying party except to the extent such failure to so notify adversely affects the indemnifying party's ability to defend such claim against a third party. No indemnifying party, in the defense of any claim or litigation shall, except with the consent of an indemnified party, which consent shall not be unreasonably withheld or delayed, consent to entry of any judgment or enter into any settlement by which such indemnified party is to be bound and which judgment or settlement does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation.

 

11.4 Exclusive Remedy . An indemnified party’s exclusive remedy for Losses arising out of any breach of any representation, warranty, agreement or covenant of another Party contained herein shall be indemnification pursuant to this Section 11.

 

11.5 Cooperation . The indemnified party and indemnifying party shall cooperate with each other in all reasonable respects in connection with the defense of any Third Party Claim, including making available records relating to such claim and furnishing, without expense to the indemnifying party, management employees of the indemnified employees as may be reasonably necessary for the preparation of the defense of any such claim or for testimony as witness in any proceeding relating to such claim.

  

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12. MISCELLANEOUS .

 

12.1 Taxes . Any taxes in the nature of sales or transfer tax and any stock transfer tax, payable on the sale or transfer of all or any portion of the Purchased Stock or the consummation of any other transaction contemplated hereby shall be paid by Seller.

 

12.2 Assignability . Neither this Agreement nor any rights or obligations hereunder, are assignable by Seller or the Company, except that Seller may assign his rights hereunder to an affiliate of Seller. The rights of Buyer under this Agreement are assignable in part or wholly to any company controlled by, controlling or under common control with Buyer and any assignee of Buyer shall succeed to and be possessed of the rights of Buyer hereunder to the extent of the assignment made; provided, however, that and such assignment by Buyer shall not relieve Buyer of its obligations hereunder. In addition, after the Closing, Buyer may assign all of its rights and/or obligations under this Agreement to any person who acquires either the stock of Buyer or the Company, or substantially all of the assets of the Company; provided, however, that any such assignment by Buyer shall not relieve Buyer of its obligations hereunder.

 

12.4 Section Headings . The Section and paragraph headings in this Agreement are for convenience of reference only and shall not be deemed to alter or affect provisions thereof. All Exhibits and/or Schedules hereto shall be initialed for identification or may be physically annexed hereto, but in either event such Exhibits or Schedules shall be deemed to be a part hereof.

 

12.5 Waiver . Neither the failure nor any delay on the part of any party hereto in exercising any right, power or remedy hereunder shall operate as a waiver thereof, or of any other right, power or remedy or preclude any further or other exercise thereof, or the exercise of any other right, power or remedy.

 

12.6 Expenses . Except as otherwise provided herein, the Buyer and Seller shall pay the fees and expenses of their respective accountants and legal counsel incurred in connection with the transactions contemplated by this Agreement.

 

12.7 Notices. Any notices required or permitted to be given hereunder shall be given in writing and delivered in person or sent certified mail, postage prepaid, return receipt requested, to the respective parties at such addresses as may hereinafter be designated by such party in writing to other parties.

   

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12.8 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of Nevada.

 

12.9 Entire Agreement . This Agreement contains the entire agreement between the parties hereto with respect to the transaction contemplated herein and shall not be modified or amended except by an instrument in writing signed by the parties hereto.

 

12.10 Validity . The invalidity or unenforceability of any particular provision of this Agreement shall not affect any other provisions hereof, and this Agreement shall be construed in all other respects as if such invalid and unenforceable provisions were omitted.

 

12.11 Counterparts and Electronic Signatures . This Agreement may be signed in any number of counterparts each of which shall be deemed to be an original and all of which together shall constitute but one and the same instrument. All signatures may be made electronically and such electronic signature is binding as if it were an original.

 

12.12 Amendments . No amendment or modification of any provision of this Agreement shall be effective unless the same shall be set forth in a writing duly executed by the Seller and Buyer, and then only to the extent specifically set forth therein.

   

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IN WITNESS WHEREOF, we have set our hands and seals as of the date first above written.

 

FELLAZO CORP.

 

 

By: HUANG MINXI (DIRECTOR)

 

 

 

Signature: /s/ Huang Minxi _____________________________________

 

 

 

YAP KIT CHUAN:

 

 

 

Signature: /s/ Yap Kit Chuan ________________________________________

 

 

FELLAZO YAP KIT CHUAN STOCK PURCHASE AGREEMENT - 22  

 

 

EXHIBIT 21.1

 

Subsidiary of FELLAZO CORP.

 

Name

 

Jurisdiction of Incorporation/Formation

Fellazo Berhad*

 

Malaysia

 

* The company holds 49% of the shares of this subsidiary

 

EXHIBIT 31.1

 

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Yap Kit Chuan, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Fellazo Corp.;

 

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

 

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

 

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

 

 

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

 

 

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

 

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

 

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: April 23, 2019

 

/s/ Yap Kit Chuan

 

Yap Kit Chuan

President, CEO, CFO, Treasurer, Secretary

and Chairman of the Board of Directors of the Company

(Principal Executive Officer, Principal Financial Officer

and Principal Accounting Officer)

 

 

EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

The undersigned, Yap Kit Chuan, President, CEO, CFO, Treasurer, Secretary and Chairman of the Board of Directors of the Company of Fellazo Corp., hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1) the quarterly report on Form 10-Q of Fellazo Corp. for the period ended February 28, 2019 (the ”Report”) fully complies with the requirements of Section 13(a) or 15(d) of theSecurities Exchange Act of 1934; and

 

 

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Fellazo Corp.

 

Dated: April 23, 2019

 

/s/ Yap Kit Chuan

 

Yap Kit Chuan

President, CEO, CFO, Treasurer, Secretary

and Chairman of the Board of Directors of the Company

(Principal Executive Officer, Principal Financial Officer

and Principal Accounting Officer)

 

 

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Fellazo Corp. and will be retained by Fellazo Corp. and furnished to the Securities and Exchange Commission or its staff upon request.