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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 10-Q

 

 

 

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

 

For the quarterly period ended September 30, 2022

 

or

 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from _________ to _________

 

Commission File Number. 033-20966

 

TRANS GLOBAL GROUP INC.

(Exact name of registrant issuer as specified in its charter)

 

Delaware   88-0298190

(State or other jurisdiction

of incorporation or organization)

  

(I.R.S. Employer

Identification No.)

 

Rm 2701, Block A, Zhantao Technology Building, Minzhi Street, Shenzhen 518000, Guangdong Province, China

(Address of principal executive offices, including zip code)

 

+86 138 2338 3535

(Registrant’s phone number, including area code)

 

N/A

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

 

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

 

Title of each class   Trading Symbol   Name of each exchange on which registered
Common stock   TGGI   OTC Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ☒     NO ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES ☐     NO ☒

 

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

 

Large accelerated filer ☐ Accelerated filer ☐
Non-accelerated filer ☒ Smaller reporting company ☒
    Emerging growth company ☒ 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. YES ☒     NO ☐

 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐     NO ☒

 

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

 

Class   Outstanding at January 13, 2023
Common Stock, $.0001 par value   22,131,339,996

 

 

 

 

 

TABLE OF CONTENTS

 

    Page
     
PART I FINANCIAL INFORMATION F-1
     
ITEM 1. FINANCIAL STATEMENTS: F-1
  Condensed Consolidated Balance Sheets as of September 30, 2022 (unaudited) and December 31, 2021 F-1
  Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2022 and 2021 (unaudited) F-2
  Condensed Consolidated Statement of Changes in Stockholders’ Equity (Deficit) for the three and nine months ended September 30, 2021 and 2021 (unaudited) F-3
  Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021 (unaudited) F-4
  Notes to the Condensed Consolidated Financial Statements F-5 – F-14
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 1
ITEM 3. QUANTITATIVE AND QUALITATIVED IS CLOSURES ABOUT MARKET RISK 3
ITEM 4. CONTROLS AND PROCEDURES 3
     
PART II OTHER INFORMATION 5
     
ITEM 1 LEGAL PROCEEDINGS 5
ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 5
ITEM 3 DEFAULTS UPON SENIOR SECURITIES 5
ITEM 4 MINE SAFETY DISCLOSURES 5
ITEM 5 OTHER INFORMATION 5
ITEM 6 EXHIBITS 5
  SIGNATURES 6

 

i

 

 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial statements

 

TRANS GLOBAL GROUP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2022 AND DECEMBER 31, 2021

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

           
   As of 
  

September 30,

2022

   December 31, 2021 
   (Unaudited)   (Audited) 
   $   $ 
ASSETS          
CURRENT ASSETS          
Cash and cash equivalents   48,664    - 
Amount due from the related parties   78,139    - 
Prepayments and other receivables   750,644    - 
TOTAL CURRENT ASSETS   877,447    - 
           
NON-CURRENT ASSETS          
Property, plant and equipment, net   1,293    - 
Intangible assets, net   11,008,356    - 
Operating lease ROU assets   82,217    - 
TOTAL NON-CURRENT ASSETS   11,091,866    - 
           
TOTAL ASSETS  $11,969,313   $- 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)          
CURRENT LIABILITIES          
Accounts payable   383,796    - 
Accrued liabilities and other payables   463,524    18,000 
Contract liabilities   442,556    - 
Amount due to a director   141,356    60,170 
Income tax payables   2,020    - 
Operating lease liabilities   83,084    - 
TOTAL CURRENT LIABILITIES   1,516,336    78,170 
           
TOTAL LIABILITIES  $1,516,336   $78,170 
           
STOCKHOLDERS’ EQUITY (DEFICIT)          
Preferred stock, $0.0001 par value, 1,500,000 shares authorized, 20,000 and 220,000 shares issued and outstanding, September 30, 2022 and December 31, 2021, respectively   2    22 
Common stock, $0.0001 par value, 99,995,000,000 shares authorized, 22,131,339,996 and 8,665,578,306 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively   2,213,134    866,558 
Additional paid-in capital   11,790,319    215,523 
Accumulated other comprehensive loss   (11,241)   - 
Accumulated deficit   (3,539,237)   (1,160,273)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)   10,452,977    (78,170)
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)  $11,969,313   $- 

  

See accompanying notes to the unaudited condensed consolidated financial statements.

 

F-1

 

 

 TRANS GLOBAL GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

                     
   Three months ended
September 30,		   Nine months ended
September 30,		 
   2022   2021   2022   2021 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
REVENUES  $422,548   $-   $422,548   $- 
COST OF REVENUES   (669,975)   -    (669,975)   - 
GROSS PROFIT   (247,427)   -    (247,427)   - 
                     
OPERATING EXPENSES                    
Sales & marketing expenses   (482,892)   -    (482,892)   - 
General & administrative expenses   (106,011)   (18,500)   (211,103)   (39,763)
TOTAL OPERATING EXPENSES   (588,903)   (18,500)   (693,995)   (39,763)
                     
OPERATING LOSS   (836,330)   (18,500)   (941,422)   (39,763)
                     
OTHER INCOME                    
Bank interest income   68    -    68    - 
Non-operating income   3,684    -    3,684    - 
TOTAL OTHER INCOME   3,752    -    3,752    - 
                     
LOSS BEFORE INCOME TAX   (832,578)   (18,500)   (937,670)   (39,763)
                     
INCOME TAX EXPENSE   (2,179)   -    (2,179)   - 
                     
NET LOSS  $(834,757)  $(18,500)  $(939,849)  $(39,763)
                     
Other comprehensive loss                    
Foreign currency translation adjustment   (11,241)   -    (11,241)   - 
COMPREHENSIVE LOSS  $(845,998)  $(18,500)  $(951,090)  $(39,763)
                     
Net loss per share- Basic and diluted  $(0.00)  $(0.00)  $(0.00)  $(0.00)
                     
Weighted Average Number of shares outstanding   18,307,760,860    8,665,578,306    18,307,760,860    8,665,578,306 

  

See accompanying notes to the unaudited condensed consolidated financial statements.

 

F-2

 

 

TRANS GLOBAL GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(DEFICIT)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

For the three and nine months ended September 30, 2022

 

                                         
   Preferred stock   Common stock  Additional
   Accumulated other         
  Number of shares   Amount   Number of
shares		   Amount  

Paid-in

capital

   comprehensive loss   Accumulated deficit   Total equity (deficit) 
Balance as of December 31, 2021 (Audited)   220,000   $22    8,665,578,306   $866,558   $215,523   $         -   $(1,160,273)  $(78,170)
Conversion, series AA preferred stock converted into common stock   (200,000)   (20)   12,000,000,000    1,200,000    (215,523)           -    (984,457)        - 
Net loss        -         -         -         -         -          -    (4,234)   (4,234)
Balance as of March 31, 2022 (Unaudited)   20,000   $2    20,665,578,306   $2,066,558   $-   $     -   $(2,148,964)  $(82,404)
Net loss        -       -        -        -         -            -    (100,858)   (100,858)
Balance as of June 30, 2022 (Unaudited)   20,000   $2    20,665,578,306   $2,066,558   $     -   $     -   $(2,249,822)  $(183,262)
Acquisition of ZXG Holdings       -         -    1,465,761,690    146,576    11,790,319        -    (454,658)   11,482,222 
Accumulated other comprehensive loss        -         -        -          -         -    (11,241)        -    (11,241)
Net loss       -        -         -         -          -         -    (834,757)   (834,757)
Balance as of September 30, 2022 (Unaudited)   20,000   $2    22,131,339,996   $2,213,134   $11,790,319   $(11,241)  $(3,539,237)  $10,452,977 

 

For the three and nine months ended September 30, 2021

 

   Preferred stock   Common stock   Additional     Accumulated other           
   Number of
shares		   Amount   Number of
shares		   Amount  

Paid-in
capital

     comprehensive
loss		     Accumulated deficit   Total deficit 
Balance as of December 31, 2020 (Audited)   220,000   $22    8,665,578,306   $866,558   $215,523     $ -     $(1,111,335)  $(29,232)
Net loss         -         -         -         -        -       -      (10,820)   (10,820)
Balance as of March 31, 2021 (Unaudited)   220,000   $22    8,665,578,306   $866,558   $215,523     $ -     $(1,122,155)  $(40,052)
Net loss       -         -       -        -        -       -      (10,443)   (10,443)
Balance as of June 30, 2021 (Unaudited)   220,000   $22    8,665,578,306   $866,558   $215,523     $ -     $(1,132,598)  $(50,495)
Net loss        -        -        -        -       -       -      (18,500)   (18,500)
Balance as of September 30, 2021 (Unaudited)   220,000   $22    8,665,578,306   $866,558   $215,523     $ -     $(1,151,098)  $(68,995)

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

F-3

 

 

TRANS GLOBAL GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

           
   Nine months ended
September 30,		 
   2022   2021 
   (Unaudited)   (Unaudited) 
CASH FLOWS FROM OPERATING ACTIVITIES:          
           
Net loss  $(939,849)  $(39,763)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:          
Depreciation and amortization expenses   588,827    - 
Non-cash lease expenses   68,815    - 
Changes in operating assets and liabilities:          
Prepayments and other receivables   (446,100)   - 
Accounts payable   53,874    1,243 
Accrued liabilities and other payables   458,708    - 
Contract liabilities   237,382    - 
Income tax payables   2,179    - 
Operating lease obligations   (64,031)   - 
Net cash used in operating activities   (40,195)   (38,520)
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Proceeds from the acquisition of ZXG Holdings   52,523    - 
Purchases of property, plant and equipment   (630)   - 
Net cash provided by investing activities   51,893    - 
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Advanced to the related parties   (34,909)   - 
Advanced from a director   79,671    38,520 
Net cash provided by financing activities   44,762    38,520 
           
Effect of exchange rate changes on cash and cash equivalents   (7,796)   - 
           
Net change in cash and cash equivalents   48,664    - 
Cash and cash equivalents, beginning of period   -    - 
CASH AND CASH EQUIVALENTS, END OF PERIOD  $48,664   $- 
           
SUPPLEMENTAL CASH FLOWS INFORMATION          
Cash paid for income taxes  $2,179   $- 
Cash paid for interest paid  $-   $- 
           
NON-CASH INVESTING AND FINANCING ACTIVITIES          
Expenses paid by the related parties on behalf of the Company  $346,505   $- 
Shares issued for acquisition of ZXG Holding  $11,450,545   $- 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

F-4

 

 

TRANS GLOBAL GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

NOTE 1 – ORGANIZATION AND BUSINESS BACKGROUND

 

Trans Global Group, Inc. (the “Company”) was formed in the State of Delaware on December 31, 1993 as Teletek, Inc. On October, 2007, the Company changed its name to Trans Global Group, Inc., its current name. The Company’s purpose is to seek, investigate and, if such investigation warrants, acquire an interest in business opportunities presented to it by persons or firms who or which desire to seek the perceived advantages of an issuer who has complied with the Exchange Act. The Company will not restrict its search to any specific business, industry, or geographical location and the Company may participate in a business venture of virtually any kind or nature and we have not established any particular criteria upon which we consider a business opportunity. This discussion of the proposed business herein is purposefully general and is not meant to be restrictive of the Company’s virtually unlimited discretion to search for and enter into potential business opportunities. Management anticipates that it may be able to participate in only one potential business venture because the Company has nominal assets and limited financial resources.

 

On August 8, 2022, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with ZXG Holdings Limited (“ZXGBVI”), a BVI Business company. the sole shareholder of ZXGBVI, Southsea Global Limited. (“Southsea”), a BVI Business Company, which is wholly 100% owned by Mrs. Woo Shuk Fan (“Woo”), and Woo, as the officer, director and shareholder of Southsea. Under the Share Exchange Agreement, One Hundred Percent (100%) of the ownership interest of ZXGBVI was exchanged for 1,465,761,689 shares of common stock and closed the acquisition of ZXGBVI on June 30, 2022. 

 

The Company’s accounting year-end is December 31.

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented.

 

Basis of consolidation

 

The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. The results of subsidiaries acquired during the respective periods are included in the consolidated statements of operations from the effective date of acquisition or up to the effective date of disposal, as appropriate. The portion of the income or loss applicable to noncontrolling interests in subsidiaries is reflected in the consolidated statements of operations.

 

F-5

 

 

TRANS GLOBAL GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

As of September 30, 2022, details of the Company’s major subsidiaries were as follows:

               
Entity Name   Date of Incorporation   Parent Entity   Nature of Operation   Place of Incorporation
ZXG Holdings Limited (“ZXGBVI”)   May 16, 2022   Trans Global Group, Inc.   Investment holding   The British Virgin Islands (“BVI”)
Hong Kong Zuixiangui International Holding Co., Ltd. (“ZXGHK”)   March 22, 2021   ZXG Holdings Limited   Investment holding   Hong Kong, PRC
Zui Xian Gui International Holding (Shenzhen) Ltd. (“ZXGWFOE”)   September 15, 2021   Hong Kong Zuixiangui International Holding Co., Ltd.   Investment holding   PRC
Shenzhen Zui Xian Gui Brewery Technology Ltd. (“ZXGSZ”)   July 24, 2019   Zui Xian Gui International Holding (Shenzhen) Ltd.   Trading of beverages   PRC

 

Use of Estimates

 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.

 

Foreign currency translation and re-measurement

 

The functional currency of the Company is the Chinese Renminbi (“RMB”).

 

The Company, whose translates their accounts into the U.S. dollar as follows:

 

  ● Assets and liabilities at the rate of exchange in effect at the balance sheet date
  ● Equities at the historical rate
  ● Revenue and expense items at the average rate of exchange prevailing during the period

 

Adjustments arising from such translations are included in accumulated other comprehensive income in stockholders’ equity.

          
   As of and for the nine months ended September 30, 
   2022   2021 
Spot USD: RMB exchange rate  $7.11594   $6.44664 
Average USD: RMB exchange rate  $6.59807   $6.47166 

 

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US Dollars at the rates used in translation.

 

Cash and Cash Equivalents

 

Cash equivalents consist of highly liquid investments with maturities of three months or less when purchased. Cash and cash equivalents are on deposit with financial institutions without any restrictions. As of September 30, 2022 and December 31, 2021, cash equivalents amounted to $48,664 and nil, respectively.

 

F-6

 

 

TRANS GLOBAL GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

Account and other receivables

 

Account and other receivables are stated at the customer obligations due under normal trade terms net of allowance for doubtful accounts.

 

Property, plant and equipment, net

 

Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the property and equipment are as follows:

 

 
Office equipment5 years

 

The cost of maintenance and repairs is charged to expenses as incurred, whereas significant renewals and betterments are capitalized.

 

Intangible assets, net

 

Intangible assets with definite lives are stated at cost less accumulated amortization and consist mainly of distribution channel that was acquired in the acquisition of ZXGBVI.

 

Amortization is calculated on the straight-line basis over the following estimated useful lives:

 
Categories Estimated useful life
Distribution channel 5 years

 

Operating leases

 

The Company recognizes its leases in accordance with ASC 842 - Leases. Under ASC 842, operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The initial lease liability is equal to the future fixed minimum lease payments discounted using the Company’s incremental borrowing rate, on a secured basis. The lease term includes option renewal periods and early termination payments when it is reasonably certain that the Company will exercise those rights. The initial measurement of the ROU asset is equal to the initial lease liability plus any initial direct costs and prepayments, less any lease incentives. The Company elected the short-term lease exemption for contracts with lease terms of 12 months or less. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term.

 

Revenue recognition

 

The Company follows the guidance of ASC 606, revenue from contracts with customers is recognized using the following five steps:

 

  1. Identify the contract(s) with a customer;
  2. Identify the performance obligations in the contract;
  3. Determine the transaction price;
  4. Allocate the transaction price to the performance obligations in the contract; and
  5. Recognize revenue when (or as) the entity satisfies a performance obligation.

 

Under Topic 606, revenues are recognized when the promised products have been confirmed of delivery or services have been transferred to the consumers in amounts that reflect the consideration the customer expects to be entitled to in exchange for those services. The Company presents value added taxes (“VAT”) as reductions of revenues. The Company recognizes revenues net of value added taxes (“VAT”) and relevant charges.

 

We generate revenue primarily from the sales of beverages directly to agents, wholesalers and end users. We recognize product revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or delivered to our customers. We account for packaging, shipping and handling fees as a fulfillment cost.

 

F-7

 

 

TRANS GLOBAL GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

Contract liabilities

 

Contract liabilities consist mainly of advances from customers. On certain occasions, the Company may receive prepayments from downstream retailers or wholesales customers for wines prior to them taking possession of the Company’s products. The Company records these receipts as customer advances until the control of the products has been transferred the customers. As of September 30, 2022 and December 31, 2021, the Company had customer advances of $442,556 and nil, respectively. During the nine months ended September 30, 2022 and 2021, the Company recognized $237,382 and nil, respectively, of customer advances in the opening balance.

 

Value-added taxes

 

Revenue is recognized net of value-added taxes (“VAT”). The VAT is based on gross sales price and VAT rates applicable to the Company is 3% for the period from the beginning of July 2019 till the end of February 2020, then changed to 1% from the beginning of 2020 till the end of September 2022. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is recorded as VAT recoverable if input VAT is larger than output VAT. For entities that are VAT small taxpayers, VAT rate applicable is 3% for the period from the beginning of July 2019, then during the COVID-19, the small taxpayers are allowed to enjoy the preferred tax policy, tax rate from 3% to 1% for the period from March 1, 2020 to September 30, 2021. All of the VAT returns filed by the Company’s subsidiaries in the PRC, have been and remain subject to examination by the PRC tax authorities for five years from the date of filing. VAT payables are included in accrued liabilities.

 

Income Taxes

 

The Company follows FASB ASC Subtopic 740, Income Taxes, for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled.

 

Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change.

 

Stock-based Compensation

 

The Company follows FASB ASC Subtopic 718, Stock Compensation, for accounting for stock-based compensation. The guidance requires that new, modified and unvested share-based payment transactions with employees, such as grants of stock options and restricted stock, be recognized in the consolidated financial statements based on their fair value at the grant date and recognized as compensation expense over their vesting periods. The Company also follows the guidance for equity instruments issued to consultants.

 

Earnings (loss) per Share

 

The Company computes earnings (loss) per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

 

Related party transactions

 

Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated.

 

Recent Accounting Pronouncements

 

There are no recent accounting pronouncements that impact the Company’s operations.

 

F-8

 

 

TRANS GLOBAL GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

NOTE 3 - GOING CONCERN

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.

 

As reflected in the accompanying financial statements, the Company had accumulated losses of $3,539,237, and working capital deficit of $638,889 as of September 30, 2022. These conditions among others, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include adjustments that might result from the outcome of this uncertainty.

 

The ability of the Company to continue as a going concern is dependent on the undertaking of its shareholders to provide continuing financial support to enable the Company to meet its liabilities as and when they fall due.

 

NOTE 4 – PREPAYMENTS AND OTHER RECEIVABLES

 

Prepayments and other receivables consisted of the following as of September 30, 2022 and December 31, 2021:

 

          
   As of 
   September 30,
2022		   December 31,
2021		 
         
Prepayments  $598,384   $    - 
           
Other receivables   179,791    - 
Less: Allowance for doubtful accounts   (27,531)   - 
Other receivables, net   152,260    - 
Total prepayments and other receivables  $750,644   $- 

 

Balance of prepayments represented the advanced payments to suppliers. And the balance of other receivables included deposit of office rent and JD platform, and FA consulting fee.

 

NOTE 5 – AMOUNT DUE FROM THE RELATED PARTIES

 

             
      As of 
      September 30,
2022		   December 31,
2021		 
            
Guizhou Zui Xian Gui Liquor Co., Ltd.  Ren Chen is the legal representative and shareholder of the Guizhou Zui Xian Gui Liquor Co., Ltd.  $45,770   $       - 
Shenzhen Zui Xian Gui Supply Chain Co., Ltd.  Ren Chen is the legal representative and shareholder of the Shenzhen Zui Xian Gui Supply Chain Co., Ltd.   10,365    - 
Zhiyu Lv  Manager of the ZXGSZ   22,004    - 
Total amount due from the related party     $78,139   $- 

 

The amount due from the related parties are unsecured with non-interest bearing, that are expected to be collect at the year ended 2022.

 

F-9

 

 

TRANS GLOBAL GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

NOTE 6 – PROPERTY, PLANT AND EQUIPMENT

 

Property, plant and equipment consisted of the following as of September 30, 2022 and December 31, 2021:

 

          
   As of 
   September 30,
2022		   December 31,
2021		 
Office equipment  $1,369   $- 
Less: Accumulated depreciations – pre-acquisition   (14)     
Less: Accumulated depreciations – post-acquisition   (62)   - 
Total property, plant and equipment, net  $1,293   $- 

 

Depreciation expense, which was included in general and administrative expenses, for the nine months ended September 30, 2022 and 2021 was $62 and nil, respectively.

 

NOTE 7 – INTANGIBLE ASSETS

 

Intangible assets and related accumulated amortization were as follows:

 

          
   As of 
   September 30,
2022		   December 31,
2021		 
Distributor channel  $11,597,106   $- 
Less: Accumulated amortization   (588,765)        - 
Total  $11,008,356   $- 

 

Amortization expense for the nine months ended September 30, 2022 and December 31, 2021 was $588,765 and nil, respectively, included in cost of revenues.

 

As of September 30, 2022, the future estimated amortization costs for distribution channel are as follows:

 

     
2023  $2,183,668 
2024   2,183,668 
2025   2,183,668 
2026   2,183,668 
Thereafter   1,637,749 
Finite-Lived Intangible Assets, Gross   10,372,421 
Effect on exchange rate   635,935 
Total  $11,008,356 

 

F-10

 

 

TRANS GLOBAL GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

NOTE 8 – ACCRUED LIABILITIES AND OTHER PAYABLES

 

Accrued liabilities and other payables consisted of the following as of September 30, 2022 and December 31, 2021:

 

          
   As of 
   September 30,
2022		   December 31,
2021		 
         
Accrued liabilities  $23,103   $18,000 
Other payables   440,421    - 
Total Accrued liabilities and other payables  $463,524   $18,000 

 

Balance of accrued liabilities included the audit & related expenses. And the balance of other payables included the accrual staff’s salaries & individual tax, VAT surcharge taxes, and payables to marketing fees.

 

NOTE 9 – CONTRACT LIABILITIES

 

Contract liabilities consisted of the following as of September 30, 2022 and December 31, 2021:

 

               
    As of  
    September 30,
2022		     December 31,
2021		  
                 
Contract liabilities   $ 442,556     $        -  

 

Balance of contract liabilities are the prepayment from the customers which are expected to be recognized as revenue during the year of 2022.

 

NOTE 10 – AMOUNT DUE TO A DIRECTOR

 

As of September 30, 2022 and December 31, 2021, the amount due to a director are $141,356 and $60,170, respectively, which are unsecured with non-interest bearing.

 

F-11

 

 

TRANS GLOBAL GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

NOTE 11 – INCOME TAXES

 

The Company’s primary operations are in the PRC, and in accordance with the relevant tax laws and regulations. The corporate income tax rate for each country is as follows:

 

United States of America

 

The Company is registered in the State of Delaware and is subject to United States of America tax law. The U.S. federal income tax rate is 21%.

 

The British Virgin Islands

 

Under the current laws of the British Virgin Islands, ZXG Holding Ltd. is registered as a BVI business company which governs by the International Business Companies Act of British Islands and there is no income tax charged in British Virgin Islands.

 

Hong Kong

 

Hong Kong Zuixiangui International Holding Co., Ltd. is subject to Hong Kong Profits Tax, which is charged at the statutory income rate of 16.5% on its assessable income.

 

People’s Republic of China

 

Zui Xian Gui International Holding (Shenzhen) Ltd. and Shenzhen Zui Xian Gui Brewery Technology Ltd. are operating in the People’s Republic of China (“PRC”) subject to the Corporate Income Tax governed by the Income Tax Law of the People’s Republic of China with a unified statutory income tax rate of 25%. During the period ended September 30, 2022, the operations in People’s Republic of China incurred the net loss of $245,492 which can be used to offset the carry forwards retained earnings within 5 years that started from year 2023 to year 2027.

 

The following tables provide the reconciliation of the differences between the statutory and effective tax expenses for the nine months ended September, 2022, and 2021:

 

          
   Nine months ended
September 30,		 
   2022   2021 
         
Loss attributed to PRC operations  $(245,492)  $        - 
PRC Statutory tax at 25% rate   -    - 
Effect of PRC deductions and other reconciling items   -    - 
Income tax  $-   $- 

 

The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows for the period ended September 30, 2022, and 2021:

 

          
   Nine months ended
September 30,		 
   2022   2021 
         
U.S. federal statutory income tax rate   21.0%   21.0%
Higher rate in PRC, net   4.0%   4.0%
Reconciling items, net operating losses in PRC, election to not recognize tax asset   -25.0%   -25.0%
The Company’s effective tax rate      -%   -%

 

F-12

 

 

TRANS GLOBAL GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

NOTE 12 – OPERATING LEASES

 

As of September 30, 2022, the Company has one operating lease agreements for office space in PRC with remaining lease terms of 11 months. The operating lease agreement entered with a non-related party, is for the premises in Shenzhen City, PRC from September 1, 2021 to August 31, 2023, the monthly rent expense of RMB48,040 (approximately $7,445).

 

The components of lease expense and supplemental cash flow information related to leases for the nine months ended September 30, 2022 and 2021 are as follows:

 

          
   Nine months ended
September 30,		 
Other information for the nine months ended  2022   2021 
Cash paid for amounts included in the measurement of lease obligations  $68,815   $        - 
Weighted average remaining lease term (in years)   0.92    - 
Weighted average discount rate   4.75%   -%

 

The supplemental balance sheet information related to leases for the period is as follows:

 

          
   As of 
Operating leases  September 30,
2022		   December 31,
2021		 
Operating right-of-use assets  $82,217   $- 
Total operating right-of-use assets  $82,217   $- 
           
Operating lease liabilities- current portion  $83,084   $- 
Operating lease liabilities- non-current portion   -    - 
Total operating lease liabilities  $83,084   $- 

 

Maturities of the Company’s lease obligations are as follows:

 

          
Years ending September 30,        
2023  $85,070   $     - 
Thereafter        -          - 
Total lease payment   85,070        - 
Less: Imputed interest   (1,986)       - 
Operating lease obligations  $83,084   $- 

 

NOTE 13 – RELATED PARTIES’ TRANSACTIONS

 

For the nine months ended September 30, 2022 and 2021, the director, Chen Ren paid $346,505 and nil, respectively.

 

F-13

 

 

 

TRANS GLOBAL GROUP INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

NOTE 14 – NET LOSS PER SHARE

 

Basic net loss per share is computed using the weighted average number of common shares outstanding during the periods. The dilutive effect of potential common shares outstanding is included in diluted net loss per share. Due to the Company’s net loss from its continuing operations, all potential common share issuances had anti-dilutive effect on net loss per share. The following table sets forth the computation of basic and diluted net loss per share for the nine months ended September 30, 2022, and 2021:

 

          
   Nine months ended
September 30,		 
   2022   2021 
Total net loss attributable to common shareholders  $951,090   $39,763 
           
Weighted average common shares outstanding – Basic and diluted   18,307,760,860    8,665,578,306 
           
Loss per shares – basic and diluted:          
Loss per shares – basic and diluted:  $(0.00)  $(0.00)

 

NOTE 15 - STOCKHOLDERS’ EQUITY (DEFICIT)

 

Authorized Capital Stock

 

Common Stock

 

The Company is authorized to issue 99,995,000,000 shares of common stock with a par value of $0.0001 per share. As of September 30, 2022, 22,131,339,996 shares were issued and outstanding.

 

Preferred Stock

 

The Company is authorized to issue 1,500,000 shares of preferred stock with a par value of $0.0001 per share. As of September 30, 2022, 20,000 shares of series B preferred stock were issued and outstanding.

 

Capital Stock Issued

 

On January 30, 2020, the Company exchanged 1,200,000 shares of old series AA preferred stock for 200,000 shares of new series AA preferred stock. On September 20, 2020, the Company issued 800,000,000 shares of common stock to VS Services, LLC for conversion of note and accrued interests. On September 22, 2020, the Company issued 20,000 series B preferred stock to Chen Ren. On March 7, 2022, 200,000 shares of series AA preferred stock were converted into 12,000,000,000 shares of common stock. On August 8, 2022, under the Share Exchange Agreement, One Hundred Percent (100%) of the ownership interest of ZXGBVI was exchanged for 1,465,761,690 shares of common stock and closed the acquisition of ZXGBVI on June 30, 2022.

 

NOTE 16 – SUBSEQUENT EVENTS

 

On October 5, 2022, the Board of Directors of the Company approved the Reverse Stock Split and the Authorized Shares, subject to Stockholder approval. The Majority Stockholders approved the Reverse Stock Split and the Authorized Shares by written consent in lieu of a meeting on October 6, 2022. Accordingly, your consent is not required and is not being solicited in connection with the approval of the Amendments. The Authorized Shares will become effective when we file the Certificate of Amendment with the Secretary of State of the State of Delaware after this Information Statement is effective.

 

On October 11, 2022, The Company’s wholly-owned subsidiary, ZXGSZ entered into an investment agreement (the “Agreement”) with Guangzhou Jinxin Technology Service Limited (“GJTS”), a PRC company, the major shareholder of Bi Xuan You Pin (Guangzhou) Limited (“BXYP”). BXYP is a PRC business company, which is 70% owned by GJTXS. Under the Agreement, thirty-four percent (34%) of the ownership interest of BXYP was purchased by the Company by the total amount of RMB 88,888.00 from GJTS.

 

F-14

 

 

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

 

The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this 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 Report. Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles. 

 

Results of Operation

 

For the three and nine months ended September 30, 2022 and 2021

 

  

Three months ended
September 30,

   
   2022  2021  2022 vs 2021
          
Revenues  $422,548   $-   $422,548 
Cost of revenues   (669,975)   -    (669,975)
Gross loss   (247,427)   -    (247,427)
Gross loss margin   59%   -%   100%
                
Operating expenses   (588,903)   (18,500)   (570,403)
Other income, net   3,752    -    3,752 
Income tax expense   (2,179)   -    (2,179)
Net loss  $(834,757)  $(18,500)  $(816,257)

 

  

Nine months ended
September 30,

   
   2022  2021  2022 vs 2021
          
Revenues  $422,548   $-   $422,548 
Cost of revenues   (669,975)   -    (669,975)
Gross loss   (247,427)   -    (247,427)
Gross loss margin   59%   -%   100%
                
Operating expenses   (693,995)   (39,763)   (654,232)
Other income, net   3,752    -    3,752 
Income tax expense   (2,179)   -    (2,179)
Net loss  $(939,849)  $(39,763)  $(900,086)

 

Revenues

 

Revenue was $422,548 for the three months ended September 30, 2022, reflecting an increase of $422,548 from $0 for the three months ended September 30, 2021.

 

Revenue was $422,548 for the nine months ended September 30, 2022, reflecting an increase of $422,548 from $0 for the nine months ended September 30, 2021. The increase is the result of the Company’s continued efforts to increase the sales of beverages. 

 

Cost of Revenues

 

Cost of revenue was $669,975 for the three months ended September 30, 2022, reflecting an increase of $669,975 from $0 for the three months ended September 30, 2021. The increase was mainly the amortization cost of intangible assets of $588,765.

 

Cost of revenue was $669,975 for the nine months ended September 30, 2022, reflecting an increase of $669,975 from $0 for the nine months ended September 30, 2021. The cost of revenues fluctuated in line with our revenues, and the increase was mainly the amortization cost of intangible assets of $588,765.

 

1

 

 

Gross Loss

 

Gross loss was $247,427 and $0 for the three months ended September 30, 2022 and 2021, respectively, reflecting an increase of $247,427.

 

Gross loss was $247,427 for the nine months ended September 30, 2022, reflecting an increase of $247,427 from $0 for the nine months ended September 30, 2021. The gross profit margins increased when the periods are compared to each other, but they have yet to show consistency over time, given the amount time measured is still relatively short.

 

Operating Expenses

 

Operating expense was $588,903 for the three months ended September 30, 2022, reflecting an increase of $570,403, from $18,500 for the three months ended September 30, 2021. The increase was mainly the marketing expenses for sales.

 

Operating expense was $693,995 for the nine months ended September 30, 2022, reflecting an increase of $654,232 from $39,763 for the nine months ended September 30, 2021, due to the increase in marketing expenses for expand the brand name and professional service fees. The increase was mainly the marketing expenses for sales.

 

Net loss

 

For the three months ended September 30, 2022, net loss was $834,757, compared to net loss of $18,500 for the three months ended September 30, 2021, reflecting an increase of $816,257. The increase was mainly the amortization cost of intangible assets and marketing expenses for sales.

 

For the three months ended September 30, 2022, net loss was $939,849, compared to net loss of $39,763 for the nine months ended September 30, 2021, reflecting an increase of $900,086. The increase was mainly the amortization cost of intangible assets and marketing expenses for sales.

 

Liquidity and Capital Resources

 

Working Capital as of September 30, 2022 and December 31, 2021

 

   As of     
   September 30,
2022		   December 31,
2021		   2022 vs 2021 
Total current assets  $877,447   $-   $877,447 
Total current liabilities   (1,516,336)   (78,170)   (1,438,166)
Working capital  $(638,889)  $(78,170)  $(560,719)

 

As of September 30, 2022, we had cash and cash equivalents of $48,664, and we had working capital deficit of $1,516,336 as compared to working capital deficit of $78,170 as of December 31, 2021. The increasing in working capital deficit was mainly reflected in the customer advances that were recognized as revenue during the period. As a result, we depend substantially on our previous financing activities to provide us with the liquidity and capital resources we need to meet our working capital requirements and to make capital investments in connection with ongoing operations. The Company expects its current capital resources to meet our basic operating requirements for approximately twelve months.

 

Cash Flows for the nine months ended September 30, 2022 and 2021

 

   Nine months ended
September 30,		  
   2022  2021  2022 vs 2021
          
Cash flows used in operating activities  $(40,195)  $(38,520)  $(1,675)
Cash flows provided by investing activities   51,893    -    51,893 
Cash flows provided by financing activities   44,762    38,520    6,242 
Effect of exchange rate changes in cash during the year   (7,796)   -    (7,796)
Net changes in cash during the year  $48,664   $-   $48,664 

 

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Cash Flow from Operating Activities

 

For the nine months periods ended September 30, 2022 and 2021, net cash used in operating activities was $40,195 and $38,520, respectively. Such increase was primarily due to the acquisition professional fee of ZXG Holdings Limited.

 

Cash Flow from Investing Activities

 

For the nine months periods ended September 30, 2022 and 2021, net cash provided by investing activities was $51,893 and nil, respectively. Such increase was primarily due to the proceeds from the acquisition of ZXG Holdings Limited.

 

Cash Flow from Financing Activities

 

Net cash used in financing activities was $44,762 and $38,520 for nine months ended September 30, 2022 and 2021, respectively.

 

Off-balance Sheet Arrangements

 

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.

 

Recent accounting pronouncements

 

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

 

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

Disclosure controls and procedures are controls and other procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to our Certifying Officer or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

 

We conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of September 30, 2022. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2022, our disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.

 

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Material Weakness in Internal Control Over Financial Reporting

 

A material weakness is a deficiency, or a 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 will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management to conclude that, as of September 30, 2022, our disclosure controls and procedures were not effective: (i) lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (ii) inadequate segregation of duties consistent with control objectives; and (iii) ineffective controls over period end financial disclosure and reporting processes. Because a material weakness in the Company’s internal controls over financial reporting existed as of September 30, 2022 and has not been remediated, the Company’s disclosure controls and procedures were not effective as of September 30, 2022.

 

In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we plan to initiate, the following series of measures in connection with identifying an operating business to acquire and when funds are available to us:

 

1. We plan to appoint one or more outside directors to our board of directors who would be appointed to an audit committee resulting in a fully functioning audit committee who will undertake oversight in the establishment and monitoring of required internal controls and procedures.
   
2. We plan to create a position to segregate duties consistent with control objectives and will increase our personnel resources and technical accounting expertise within the accounting function.
   
3. We plan to prepare written policies and procedures for accounting and financial reporting to establish a formal process to close our books monthly on an accrual basis and account for all transactions, including equity and debt transactions.

 

We anticipate that we will, at least partially, begin to implement these initiatives in the current fiscal year.

 

This Report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting and none is required.

 

Changes in Internal Control over Financial Reporting

 

As of the end of the period covered by this report, there were no changes in the internal controls over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 

 

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PART II — OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

We know of no materials, active or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceedings or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any beneficial shareholder are an adverse party or has a material interest adverse to us.

 

Item 1A. Risk Factors.

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

 

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

 

None.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

Item 5. Other Information.

 

None.

 

ITEM 6. Exhibits

 

Exhibit No.   Description
31.1   Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1   Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS   Inline XBRL Instance Document
101.SCH   Inline XBRL Taxonomy Extension Schema Document
101.CAL   Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF   Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB   Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE   Inline XBRL Taxonomy Extension Presentation Linkbase Document
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

  

 

* Filed herewith.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  TRANS GLOBAL GROUP INC.
  (Name of Registrant)
     
Date: January 13, 2023 By: /s/ Chen Ren
  Title:

Chief Executive Officer

Chief Financial Officer

Director

 

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