See accompanying notes and independent accountant's review report.
See accompanying notes and independent auditor's report.
See accompanying notes and independent auditor's report.
See accompanying notes and independent auditor's report.
NOTES
TO THE FINANCIAL STATEMENTS
April 30, 2022
(UNAUDITED)
Note 1 – ORGANIZATION AND NATURE OF BUSINESS
VitaSpring Biomedical Co., Ltd (formerly Shemn Corp.) (“the
Company”) was incorporated in the State of Nevada
on September 6, 2016. The Company aims
to build a cell medical industry, invest in research and development of stem cell applications in regenerative medicine, establish advanced
medical research centers and high standard cell production centers, and provide “GTP” standard stem cell preparations for
the development of cellular drugs. Through the development of cell medicine, it will become a leading international business group in
the fields of regenerative medicine applied to the innovative fields of medicine, preventive health care, beauty, and anti-aging. The
“GTP Cell Center” is basis for its business, which is cross-domain in biotechnology medical treatment, medicine and medical
materials, and focuses on the development of cell medical treatment.
Note 2 – GOING CONCERN
The accompanying financial statements
have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going
concern. The Company has retained earnings of $1,093,380 and a negative cash flow from operations amounting to $28,061 for the three months
ended April 30, 2022. The Company had $1,490,000 in revenues for the three months ended April 30, 2022. There is substantial doubt about
the Company’s ability to continue as a going concern due to the limited operating history of the business. As such, no assurance
that the Company will continue to be profitable. Management anticipates that the Company will be dependent, for the near future, on additional
investment capital to fund operating expenses. The Company intends to position itself so that it will be able to raise additional funds
through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this
or any of its endeavors or become financially viable and continue as a going concern.
Note 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying financial statements have been prepared in
accordance with generally accepted accounting principles in the United States of America. The Company’s year-end is January 31.
Use
of Estimates
The preparation of financial statements
in conformity with generally accepted accounting principles 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 the financial statements and the reported
amount of revenues and expenses during the reporting year. Actual results could differ from those estimates.
Cash
and Cash Equivalents
The Company considers all highly liquid investments with
the original maturities of three months or less to be cash equivalents. The Company had $79,151 of cash and cash equivalents as of April
30, 2022.
Allowance
for Doubtful Accounts
The allowance for doubtful accounts
represents an estimate by the Company's management of specific accounts deemed uncollectible. The estimate takes into account prior bad
debt experience and customer receivables outstanding for 90 days or more. Allowance for doubtful accounts was $0 as of April 30, 2022.
Prepaid
Expenses and Deposits
Prepaid Expenses are recorded at cost less amortized value. The
Company had $4,817 in prepaid expenses and deposits as of April 30, 2022.
9
VitaSpring
Biomedical Co., Ltd
NOTES
TO THE FINANCIAL STATEMENTS
April 30, 2022
(UNAUDITED)
Note 3 – SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES (Continued)
Inventories
Inventories are stated at the lower of
cost or market. Cost is principally determined using the first-in, first out (FIFO) method. The Company had $0 in finished goods inventory
as of April 30, 2022. The Company had $0 prepaid inventory as of April 30, 2022.
Depreciation, Amortization,
and Capitalization
The Company records depreciation and
amortization when appropriate using straight-line balance method over the estimated useful life of the assets. The Company estimates that
the useful life of necessary equipment is 5 years. Expenditures for maintenance and repairs are charged to expense as incurred. Additions,
major renewals, and replacements that increase the property's useful life are capitalized. Property sold or retired, together with the
related accumulated depreciation is removed from the appropriated accounts and the resultant gain or loss is included in net income.
Accounts Payable and Accrued
Liabilities
Accounts payable discloses a liability
to a creditor, carried on open account, usually for purchases of goods and services. Accrued liabilities represent unpaid goods and services.
The Company had $0 in accounts payable and accrued liabilities as of April 30, 2022.
Credit Card Liability
Credit card liability represents amounts
owed to credit card issuers for money borrowed to pay merchants for goods and services based on the cardholder’s promise to pay
the card issuer borrowed amounts plus other agreed upon charges. The Company had $0 in credit card liability as of April 30, 2022.
Fair Value of Financial Instruments
Financial Accounting Standards Board
(“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures,
establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs
into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
These tiers include:
Level 1: defined as observable inputs such as quoted
prices in active markets;
Level 2: defined as inputs other
than quoted prices in active markets that are either directly or indirectly observable;
Level 3: defined as unobservable
inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
The carrying value of cash and the
Company’s loan from shareholder approximates its fair value due to their short- term maturity.
Income Taxes
Income taxes are computed using the
asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the
differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates
and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected
to be realized.
10
VitaSpring
Biomedical Co., Ltd
NOTES
TO THE FINANCIAL STATEMENTS
April 30, 2022
(UNAUDITED)
Note 3 – SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES (Continued)
Revenue Recognition
The Company recognizes revenue in accordance
with ASC Topic 606, Revenue from Contracts with Customers. The core principle of ASC 606 is that an entity recognizes revenue to
depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects
to be entitled in exchange for those goods or services. An entity recognizes revenue in accordance with that core principle by applying
the following steps: Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligations in the contract Step
3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize
revenue when (or as) the entity satisfies a performance obligation.
Specifically, Section 606-10-50 requires
an entity to provide information about: a. Revenue recognized from contracts with customers, including the disaggregation of revenue into
appropriate categories; b. Contract balances, including the opening and closing balances of receivables, contract assets, and contract
liabilities; c. Performance obligations, including when the entity typically satisfies its performance obligations and the transaction
price that is allocated to the remaining performance obligations in a contract; d. Significant judgments, and changes in judgments, made
in applying the requirements to those contracts. For the three months ended April 30, 2022, the Company generated
$1,490,000 in revenue.
Basic Income (Loss) Per
Share
The Company computes income (loss) per
share in accordance with ASC Topic 260, Earnings per Share. Basic loss per share is computed by dividing net income (loss) available
to common shareholders by the weighted average number of outstanding common shares during the year.
Diluted income (loss) per share gives
effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares
if their effect is anti-dilutive. As of April 30, 2022, there were no potentially dilutive debt or equity instruments issued or outstanding.
Comprehensive Income (Loss)
Comprehensive income (loss) is defined
as all changes in stockholders’ equity, exclusive of transactions with owners, such as capital investments. Comprehensive income
(loss) includes net income (loss), changes in certain assets and liabilities that are reported directly in equity such as translation
adjustments on investments in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. As of April 30, 2022,
there were no differences between our comprehensive income (loss) and net income (loss).
Stock-Based Compensation
The Company measures all stock-based awards
granted to employees, directors and non-employees based on the fair value on the date of grant in accordance with ASC Topic 718, Compensation
– Stock Compensation. Compensation expense of those awards is recognized over the requisite service period, which is generally
the vesting period of the respective award. Generally, the Company issues awards with either service-only vesting conditions and records
the expense using the straight-line method or service and performance vesting conditions and records the expense when achievement of the
performance condition becomes probable using the graded-vesting method. The Company accounts for forfeitures as they occur.
The fair value of stock-based
grant awards is estimated using the fair value of the Company’s most recent historical transaction with third parties. The Company
classifies stock-based compensation expense in its statements of operations in the same manner in which the award recipient’s payroll
costs are classified or in which the award recipient’s service payments are classified.
11
VitaSpring
Biomedical Co., Ltd
NOTES
TO THE FINANCIAL STATEMENTS
April 30, 2022
(UNAUDITED)
Note 3 – SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES (Continued)
Foreign Currency Translation
The Company’s functional and reporting
currency is the U.S. dollar. Transactions may occur in foreign currencies and management has adopted ASC Topic 830, Foreign Currency
Matters. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the
balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect
at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains (losses) arising on translation
or settlement of foreign currency denominated transactions or balances are included in the statement of operations.
Leases
The Company determines whether a contract
is or contains a lease at contract inception. Operating leases are included in operating lease right-of-use (“ROU”) assets,
other current liabilities, and operating lease liabilities on our balance sheets. Finance leases are included in property and equipment,
other current liabilities, and other long-term liabilities on the Company’s balance sheets.
Operating lease ROU assets and
operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement
date. As most of the Company’s leases do not provide an implicit rate, we use the Company’s incremental borrowing rate based
on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also
includes any lease payments made and excludes lease incentives and initial direct costs incurred. The Company’s lease terms may
include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease
expense for fixed lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed
as incurred and may include certain index-based changes in rent and other non-fixed payments for services provided by the lessor. The
Company’s leases do not contain any material residual guarantees or material restrictive covenants.
Lease arrangements with lease and non-lease
components are generally accounted for separately. For certain equipment leases, such as vehicles, the Company will account for the lease
and non-lease components as a single lease component. Additionally, for certain equipment leases, the Company will apply a portfolio approach
to effectively account for the operating lease ROU assets and liabilities.
Risk Factors
The following risks could adversely
affect the Company’s business, financial condition, cash flows, and results of operations. These risk factors do not identify all
risks that we face; our operations could also be affected by factors that are not presently known to us or that we currently consider
to be immaterial to our operations. Due to risks and uncertainties, known and unknown, our past financial results may not be a reliable
indicator of future performance, and historical trends should not be used to anticipate results or trends in future years.
The COVID-19 pandemic has adversely affected
significant portions of our business and could have a material adverse effect on our financial condition and results of operations. The
Company is subject to numerous pandemic-related risks, including those described below. The degree to which COVID-19 impacts the results
will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to, the duration and
severity of the pandemic, the actions taken to contain the virus or treat its impact, other actions taken by governments, businesses,
and individuals in response to the virus and resulting economic disruption, and how quickly and to what extent normal economic and operating
conditions can resume. We are similarly unable to predict the extent of the impact of the pandemic on our customers, suppliers, vendors,
and other partners, and their financial conditions, but a material effect on these parties could also materially adversely affect us.
12
VitaSpring
Biomedical Co., Ltd
NOTES
TO THE FINANCIAL STATEMENTS
April 30, 2022
(UNAUDITED)
Note 3 – SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES (Continued)
Risk Factors (Continued)
The pandemic has resulted in authorities
imposing, and businesses and individuals implementing, numerous measures to try to contain the virus, such as travel bans and restrictions,
quarantines, shelter-in-place/stay-at-home and social distancing orders, and shutdowns. These measures have impacted and may further impact
our workforce and operations, the operations of our customers, and those of our respective vendors, suppliers, and partners.
There is considerable uncertainty
regarding the business impacts from such measures and potential future measures. Shelter-in-place orders and other measures, including
work-from-home and social distancing policies implemented to protect employees.
The pandemic has caused the Company
to modify its business practices, including with respect to employee travel; employee work locations; cancellation of physical participation
in meetings, events, and conferences; and social distancing measures.
The Company may take further actions
as required by government authorities or others, or that we determine are in the best interests of our employees, customers, suppliers,
vendors, and partners. Work-from-home and other measures introduce additional operational risks, including cybersecurity risks, and have
affected the way we conduct our product development, validation, and qualification, customer support, and other activities, which could
have an adverse effect on our operations. There is no certainty that such measures will be sufficient to mitigate the risks posed by the
virus, and illness and workforce disruptions could lead to unavailability of key personnel and harm our ability to perform critical functions.
Note 4 – ADVANCES FROM
RELATED PARTY
For the three months ended April 30, 2022,
one of the Company's major shareholders, a related party, had outstanding advances to the Company. Advances are unsecured, non-interest
bearing and due on demand and amounted to $94,358 as of April 30, 2022.
Note 5 – COMMON STOCK
The number of authorized shares of
common stock under the Certificate of Incorporation was 75,000,000, $0.001 par value, when the Company was incorporated on September 6,
2016. The number of authorized shares of common stock under the Certificate of Incorporation was amended to 225,000,000 shares on November
29, 2018. The number of authorized shares of common stock under the Certificate of Incorporation was amended to 500,000,000 shares,
$0.0001 par value, on May 22, 2020.
Effective on January 21, 2020,
Liu Shan Shan, the previous sole officer and director and a majority shareholder of the Company owning a total of 82.55% of the issued
and outstanding shares of common stock of the Company, together with all other minority shareholders (31) of the Company owning an aggregate
of 17.45% of the issued and outstanding shares of common stock of the Company, entered into stock purchase agreement for the sale of 100%
of the outstanding shares of common stock of the Company (10,902,006 shares), to a group of purchasers (32), including Li- Li Chu (2,666,666
shares); the incoming CEO, Chu Pao-Chi (1,666,667 shares); and the incoming Secretary, Kao Chen-Hsiang (800,000 shares).
On May 12, 2020, the Company amended
its articles of incorporation to affect the following: (a) the number of authorized shares of common stock under the Certificate of Incorporation
was amended to 500,000,000 shares, having a $0.0001 par value; (b) a stock split on a 1:5 basis, such that each share of the issued and
outstanding Common stock of the Corporation be forward split into five (5) shares of Common stock of the Corporation, effective on June
8, 2020 (the “Record Date”).
13
VitaSpring
Biomedical Co., Ltd
NOTES
TO THE FINANCIAL STATEMENTS
April 30, 2022
(UNAUDITED)
Note 5 – COMMON STOCK (Continued)
On May 12, 2021, the Company issued 1,000,000 shares of common
stock to investors for cash proceeds of $50,000 at a price of $0.005 per share.
On May 12, 2021, the Company issued 7,135,015 shares of common
stock related to its stock-based compensation plan to certain non-U.S. consultants, directors, and employees of the Company.
There were 206,520,030 and 209,670,030 shares of common stock issued
and outstanding as of January 31, 2022 and 2021, respectively.
There were 206,520,030 shares of common stock issued and outstanding
as of April 30, 2022.
Note 6 – STOCK-BASED COMPENSATION
The Company’s stock-based compensation programs are
long-term retention programs that are intended to attract, retain, and provide incentives for employees, officers, and directors, and
to align stockholder and employee interests.
Under the 2020 Stock Plan, the Company
grants Incentive Stock Options (“ISO”), Nonstatutory Stock Options (“NSO”), Restricted Stock (“RS”)
and Restricted Stock Units (“RSU). ISO and NSO are granted under service conditions. RS and RSU are granted under vesting criteria
set by the Administrator and could be based upon the achievement of Company-wide, business unit, or individual goals (including, but not
limited to, continued employment or service), or any other basis determined by the Administrator at their discretion. Stock options granted
to employees generally vest over a four-year period, although certain grants may vest over a longer or shorter period. Stock options granted
to non-employees generally vest over a one-year period.
Valuation of Stock-Based Compensation
Stock-based compensation cost
is measured at the grant date based on the fair value of the award. The fair value of the awards are fixed at grant date and amortized
over the longer of the remaining performance or service period. The fair value of stock-based grant awards is estimated using the fair
value of the Company’s most recent historical transaction with third parties.
A summary of restricted share activity under the 2020 Stock
Plan for the three months ended April 30, 2022 are as follows:
| |
|
Number of Shares |
|
Weighted
Average
Exercise
Price |
|
Weighted
Average
Remaining
Contractual Life
(Years) |
| January 31, 2022 |
|
53,931,440 |
$ |
- |
|
1 |
| Granted |
|
- |
|
- |
|
|
| Exercised |
|
- |
|
- |
|
|
| Forfeited |
|
- |
|
- |
|
|
| |
|
|
|
|
|
|
| April 30, 2022 |
|
53,931,440 |
$ |
- |
|
1 |
| |
|
|
|
|
|
|
14
VitaSpring Biomedical
Co., Ltd
NOTES TO THE FINANCIAL
STATEMENTS
April 30, 2022
(UNAUDITED)
Note 6 – STOCK-BASED COMPENSATION (Continued)
A summary of the status of the Company’s nonvested shares
for the three months ended as of April 30, 2022, and changes during the three months ended April 30, 2022 are as follows:
| |
|
Number of Shares |
|
Weighted
Average
Grant Date
Fair Value |
| Nonvested at January 31, 2022 |
|
53,931,440 |
$ |
0.005 |
| Granted |
|
- |
|
0.005 |
| Vested |
|
- |
|
- |
| Forfeited |
|
- |
|
0.005 |
| |
|
|
|
|
| Nonvested at April 30, 2022 |
|
53,931,440 |
$ |
0.005 |
| |
|
|
|
|
| Expected to vest |
|
53,931,440 |
$ |
0.005 |
| |
|
|
|
|
Compensation Costs
The Company recognizes the estimated
compensation cost of all stock-based awards generally on a straight-line basis over the requisite service period of the entire award,
which is generally the vesting period. The estimated compensation cost is based on the fair value of the common stock on the date of grant.
The Company accounts for forfeitures as they occur.
As of April 30, 2022, there was $109,528
of unrecognized compensation cost related to non-vested stock-based awards which will be recognized over a weighted average period of
one year. Total unrecognized compensation cost will be adjusted for future changes based on actual forfeitures. Share-based compensation
recognized for the three months ended April 30, 2022 amounted to $36,509.
Note 7 – COMMITMENTS AND CONTINGENCIES
Operating Lease Commitment
In July 2021, the Company entered
into a non-cancelable operating lease for an office facility in Irvine, California. The lease agreement requires 36 monthly lease payments
that range from $14,796 to $16,013 per month. The lease commences in August 2021 and expires in July 2024. The lease has a remaining lease
term of less than three years, with no options to extend.
The components of lease expense are as follows:
For the three months ended April 30, 2022, operating lease
costs amounted to $46,196. Other information related to leases are as follows:
Supplemental Cash Flows Information: for
the three months ended April 30, 2022
Cash
paid for amounts included in the measurement of lease liabilities:
- Operating
cash flows from operating leases: $44,388 Right-of-use assets obtained in exchange for lease obligations:
-
Operating leases: $551,650
Weighted Average Remaining Lease Term for operating
leases: 2.3 years Weighted Average Discount Rate for operating leases: 0.330%
Future minimum lease payments under non-cancelable leases as
of April 30, 2022 are as follows:
| Fiscal Year |
|
Operating Leases |
| 2022 * |
$ |
136,715 |
| 2023 |
|
188,402 |
| 2024 |
|
96,075 |
| Thereafter |
|
- |
| Total future minimum lease payments |
|
421,192 |
| |
|
|
| Less imputed interest |
|
(1,638) |
| |
|
|
| Total |
$ |
419,554 |
*Excluding the three months ended April 30, 2022
| |
|
April 30, 2022 |
| Operating lease liabilities |
$ |
135,825 |
| Operating lease liabilities, net of current |
$ |
283,729 |
Note 8 – SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
For the three months ended April 30, 2022, the Company incurred
$224,873 in selling, general and administrative expenses. See financial statements – supplementary information Schedule I for details.
15
VitaSpring
Biomedical Co., Ltd
NOTES TO THE FINANCIAL STATEMENTS
April 30, 2022
(UNAUDITED)
Note 9 – INCOME TAXES
There are inherent uncertainties related
to the interpretation of tax regulations in the jurisdictions in which the Company transacts business. The judgments and estimates made
at a point in time may change based on the outcome of tax audits, as well as changes to, or further interpretations of, regulations. The
Company adjusts its income tax expense in the period in which these events occur. If such changes take place, there is a risk that the
tax rate may increase or decrease in any period.
The FASB guidance contained in ASC
Topic 740, Income Taxes, addresses the accounting for uncertainty in income taxes recognized in an enterprise’s financial
statements and prescribes a threshold of “more likely than not” for recognition and derecognition of tax positions taken or
expected to be taken in a tax return.
The Company adopted this guidance and
is now required to recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized
income tax positions are measured at the largest amount that is greater than 50% likely of being recognized. Additionally, previously
recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first financial reporting
period in which that threshold is no longer met. Changes in recognition or measurement will be reflected in the period in which the change
in judgment occurs.
The Company’s income tax filings
are subject to audit by various taxing authorities. The Company’s open audit periods are three years for federal and four years
for California. In evaluating the Company’s tax provisions and accruals, future taxable income, and the reversal of temporary differences,
interpretations, and tax planning strategies are considered. The Company had no material adjustments to its liabilities for unrecognized
income taxes under the guidelines of the ASC Topic 740 for uncertainty in income taxes and believes their estimates are appropriate based
on current facts and circumstances.
The components of provision for income taxes
are:
| |
|
April 30,
2022 |
|
January 31,
2022 |
| Income taxes (payable)/receivable currently: |
|
|
|
|
| Federal |
$ |
(75,000) |
$ |
(210,923) |
| State |
|
(800) |
|
- |
| Total income taxes payable currently |
|
|
| Deferred income tax |
|
|
|
|
| Federal |
|
|
|
|
| Deferred tax benefit (liability) – end of period/year |
|
(5,374) |
|
(6,181) |
| Valuation allowance |
|
- |
|
- |
| Total deferred tax benefit (liability) – end of period/year |
|
(5,374) |
|
(6,181) |
| Deferred tax benefit (liability) – beginning of period/year |
|
(6,181) |
|
93,929 |
| Valuation allowance |
|
- |
|
(93,929) |
| Total deferred tax benefit (liability) – beginning of period/year |
|
(6,181) |
|
- |
| Total federal deferred tax benefit (liability) |
|
(807) |
|
(6,181) |
| |
|
|
|
|
| State |
|
|
|
|
| Deferred tax benefit (liability) – end of period/year |
$ |
|
|
- |
| Deferred tax benefit (liability) – beginning of period/year |
|
|
|
- |
| Total state deferred tax benefit (liability) |
|
|
|
- |
| |
|
|
|
|
| Total deferred tax income (expense) |
|
807 |
|
(6,181) |
| Provision for income tax benefit (expense) |
$ |
(74,993) |
|
(217,104) |
| |
|
|
|
|
| Deferred tax asset (liability) - long-term |
$ |
(5,374) |
|
(6,181) |
Note 10 – CONCENTRATION OF CREDIT RISK
The Company had one customer that
accounted for more than 10% of the Company’s total sales for the three months ended April 30, 2022. The one customer represented
$1,490,000 and 100% in aggregate of total sales for the three months ended April 30, 2022.
The Company had one vendor that
accounted for more than 10% of the Company’s total purchases for the three months ended April 30, 2022. The one vendor represented
100% of the Company’s total purchases for the three months ended April 30, 2022. If the Company lost this one vendor, this could
have a negative impact upon the financial well-being of the Company.
Note 11 – SUBSEQUENT EVENTS
In accordance with ASC Subtopic 855-10,
Subsequent Events, the Company has evaluated subsequent events for potential recognition and/or disclosure through June 13, 2022,
the date these financial statements were issued and has determined that there were no material subsequent events to disclose in these
financial statements.
16
VITASPRING
BIOMEDICAL CO., LTD
SUPPLEMENTARY
INFORMATION
SCHEDULE I - SELLING, GENERAL AND ADMINISTRATIVE EXPENSES THREE MONTHS
ENDED APRIL 30, 2022 AND 2021
(UNAUDITED)
| |
| |
|
Three months ended |
| |
|
April 30, 2022 |
|
April 30, 2021 |
| Auto and truck expense |
$ |
915 |
$ |
- |
| Bank charges |
|
406 |
|
670 |
| Depreciation expense |
|
3,766 |
|
- |
| Insurance |
|
8,859 |
|
- |
|
Lease cost |
|
46,146 |
|
- |
| Meals and entertainment |
|
140 |
|
- |
|
Office expense |
|
3,728 |
|
461 |
| Payroll expense |
|
31,050 |
|
- |
| Professional fees |
|
92,256 |
|
24,250 |
| Stock-based compensation |
|
36,509 |
|
35,104 |
| Outside services |
|
370 |
|
- |
| Travel expense |
|
728 |
|
- |
| |
|
|
|
|
| Total selling, general and administrative expenses |
$ |
224,873 |
$ |
537,582 |
17
