UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-Q

 


Mark One

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


For the quarterly period ended October 31, 2017


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


For the transition period from ______ to _______


COMMISSION FILE NO. 333-215000



REMARO GROUP CORP.

 (Exact name of registrant as specified in its charter)



Nevada

(State or Other Jurisdiction of Incorporation or Organization)

36-4833921

IRS Employer Identification Number

4724

Primary Standard Industrial Classification Code Number


Calle Robles, Casa 25,

Quito,  Ecuador

Tel.  +56-2-2979-1247

 (Issuer’s telephone number)




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Indicate by checkmark whether the issuer: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 [X]   No[  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 [ ]   No[X]

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 [   ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ]  No [X ]

Applicable Only to Issuer Involved in Bankruptcy Proceedings During the Preceding Five Years.

N/A

Applicable Only to Corporate Registrants

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

Class

Outstanding as of December 20, 2017

Common Stock, $0.001

10,511,000




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REMARO GROUP CORP.


Form 10-Q



Part 1   


FINANCIAL INFORMATION

 

Item 1

Unaudited Financial Statements

4

   

   Unaudited Balance Sheets

4

      

   Unaudited Statements of Operations

5

 

   Unaudited Statements of Cash Flows

6

 

   Notes to Unaudited Financial Statements

7

Item 2.   

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

10

Item 3.   

Quantitative and Qualitative Disclosures About Market Risk

13

Item 4.

Controls and Procedures

13


Part II.


OTHER INFORMATION

 

Item 1   

Legal Proceedings

14

Item 1A

Risk  Factors

14

Item 2.  

Unregistered Sales of Equity Securities and Use of Proceeds

14

Item 3

Defaults Upon Senior Securities

14

Item 4

Mine Safety Disclosures

14

Item 5  

Other Information

14

Item 6      

Exhibits

15




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REMARO GROUP CORP.

BALANCE SHEETS

(Unaudited)

 

October 31, 2017

JULY 31, 2017

ASSETS

 

 

Current Assets

 

 

 

Cash

$       26,279

$        5,981

 

Total current assets

26,279

5,981

Capital Assets

 

 

 

Equipment, net of depreciation

7,942

5,994

 

Total capital assets

7,942

5,994

Total Assets                                                         

$       34,221

$        11,975

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current  Liabilities

 

Loan from related parties

$      1,064

$     1,064

 

Deferred Revenue

-

2,500

 

Total current liabilities

1,064

3,564

Total Liabilities

1,064

3,564

 

Stockholders’ Equity (Deficit)

  

Common stock, $0.001 par value, 75,000,000 shares authorized;

 

 

10,011,000 shares issued and outstanding

(8,370,000 as of July 31, 2017)

10,011

8,370

 

Subscription receivable

(3,800)

-

 

Additional paid-in capital

18,099

3,330

 

Accumulated Earnings (Deficit)

8,847

(3,289)

Total Stockholders’ Equity (Deficit)

33,157

8,411

 

 

 

Total Liabilities and Stockholders’ Equity

$       34,221

$        11,975        



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





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REMARO GROUP CORP.

STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

Three months ended October 31, 2017

 

Three months ended October 31, 2016

Revenue

 

$    18,055

 

$       2,000

Cost of revenue

 

5,300

 

-

Gross profit

 

12,755

 

2,000

Operating expenses

 

 

 

 

 General and administrative expenses

 

619

 

3,557

Net income (loss) from operations

 

12,136

 

(1,557)

Income (loss) before provision for income taxes

 

12,136

 

(1,557)

 

 

 

 

 

Provision for income taxes

 

-

 

-

 

 

 

 

 

Net income (loss)

 

$     12,136

 

$    (1,557)

 

 

 

 

 

Income (loss) per common share:

 Basic and Diluted

 

$    (0.00)

 

$   (0.00)

 

 

 

 

 

Weighted Average Number of Common Shares  Outstanding:

Basic and Diluted

 

9,389,663

 

8,000,000


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





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REMARO GROUP CORP.

STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

Three months ended October 31, 2017

Three months ended October 31, 2016

Cash flows from Operating Activities

 

 

 

Net income (loss)

$        12,136

   $ (1,557)

 

Depreciation

552

-

 

Deferred Revenue

(2,500)

-

 

Net cash provided by operating activities

10,188

(1,557)

 

 

 

 

Cash flows from Investing Activities

 

 

   Purchase of fixed assets

$        (2,500)

-

  Net cash used in investing activities

(2,500)

-

 

 

 

Cash flows from Financing Activities

 

 

 

Proceeds from sale of common stock

12,610

8,000

 

Proceeds of loan from shareholder

-

-

 

Net cash provided by financing activities

12,610

8,000

 

 

 

 

 

 

 

 

Net increase in cash and equivalents

20,298

6,443

Cash and equivalents at beginning of the period

5,981

86

Cash and equivalents at end of the period

$         26,279

$     6,529

 

Supplemental cash flow information:

 

 

Non-cash Investing and Financing activities

 

 

 

Stock subscription receivable

3,800

-

 

Cash paid for:

 

 

 

Interest

$              -

$        -

 

Taxes

$              -

$        -



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




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REMARO GROUP CORP.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

FOR THE THREE MONTH PERIODS ENDED OCTOBER 31, 2017 AND OCTOBER 31, 2016


NOTE 1 – ORGANIZATION AND BUSINESS

 

REMARO GROUP CORP. (the “Company”) is a corporation established under the corporation laws in the State of Nevada on March 31, 2016.  The Company offers the services of a freelance local guide, known also as a pointman (hereinafter referred as ‘guide’ or ‘local guide’). The Company’s tours are operated exclusively in Ecuador and the Company’s functional currency is the US dollar. The Company has adopted July 31 fiscal year end.


NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Basis of Presentation

 

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.


Cash and Cash Equivalents


For purposes of the statement of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company's bank accounts are deposited in insured institutions. The funds are insured up to $250,000. At October 31, 2017 the Company's bank deposits did not exceed the insured amounts.



Use of Estimates


Preparing 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, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions.




Stock-Based Compensation


As of October 31, 2017, the Company has not issued any stock-based payments to its employees.

Stock-based compensation is accounted for at fair value in accordance with ASC 718, when applicable.  To date, the Company has not adopted a stock option plan and has not granted any stock options.


Revenue Recognition


The Company follows the guidance of the Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition. We record revenue when persuasive evidence of an arrangement exists, the services have been provided, the price to the customer is fixed or determinable and collectability of the revenue is reasonably assured.




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Income Taxes


The Company follows the liability method of accounting for income taxes.  Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.


New Accounting Pronouncements


There were various accounting standards and interpretations issued recently, none of which are expected to a have a material impact on our financial position, operations or cash flows.


Property and Equipment and Depreciation Policy


Property and equipment are stated at cost and depreciated on the straight line method over the estimated life of the asset, which is 3 years.

As of October 31, 2017, we had total net of property and equipment for $7,942 and the total accumulated depreciation was $1,058.


NOTE 3 – 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 had retained earnings of $8,847 as of October 31, 2017, however losses are anticipated in the development of its business.  Accordingly, there is substantial doubt about the Company’s ability to continue as a going concern.  Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses. 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 4 – CAPTIAL STOCK


The Company has 75,000,000 shares of common stock authorized with a par value of $0.001 per share.  Upon formation, the Company issued 8,000,000 shares of its common stock to the director at $0.001 per share for total proceeds of $8,000. The $8,000 was treated as a subscription receivable until paid during the year ended July 31, 2017. For the year ended July 31, 2017, the Company issued 370,000 shares of its common stock at $0.01 per share for total proceeds of $3,700. For the three month period ended October 31, 2017, the Company issued 1,641,000 of its common stock at $0.01 for total proceeds of $16,410 in which $3,800 was treated as a subscription receivables until paid.


As of October 31, 2017, the Company had 10,011,000 shares issued and outstanding.




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NOTE 5 – RELATED PARTY TRANSACTIONS

 

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by officers, directors, or shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.  

Since March 31, 2016 (Inception) through October 31, 2017, the Company’s sole officer and director loaned the Company $1,064 to pay for incorporation costs and operating expenses.  As of October 31, 2017, the amount outstanding was $1,064. The loan is non-interest bearing, due upon demand and unsecured.


Note 6 – INCOME TAXES


As of October 31, 2017, the Company had retained earnings of $8,847. As of October 31, 2017, we have not made a provision for income taxes.



NOTE 7. SUBSEQUENT EVENTS


In accordance with SFAS 165 (ASC 855-10) management has performed an evaluation of subsequent events from October 31, 2017 through the date the financial statements were issued. For the period October 31, 2017 through December 20, 2017, the Company issued 500,000 shares of common stock at $0.01 per share for a proceed of $5,000.



FORWARD LOOKING STATEMENTS


Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.





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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION


General

 

 

We are a touristic agency, currently located in Ecuador, that provides tour guides for individual or group tours in particular localities. We offer services of a freelance local guide, known also as a pointman (hereinafter referred as ‘guide’ or ‘local guide’) around the vicinities of our customers’ choice. The services are aimed at private persons, or groups of them on a collective voyage. The customers (to whom we may refer as “tourists”) are assigned to a particular guide once they complete their request, receive and sign the contract.


We operate our tours exclusively in Ecuador. Ecuador is a land of rich cultural and historical attractions such as: City of Quito, City of Cuenca, El Cajas National Park, Pailon Del Diablo Waterfall, Cotopaxi Summit, The Galapagos Islands, Tena Jungles, Cuyabeno Wildlife Reserve etc.


RESULTS OF OPERATIONS


Three Month Period Ended October 31, 2017 compared to Three Months Period Ended October 31, 2016


Revenue


During the three month period ended October 31, 2017 we have generated $18,055 in revenue compared to $2,000 during the three month period ended October 31, 2016. Cost of revenue was $5,300 for the three month period ended October 31, 2017. The company provided tour guide services in Ecuador which earned revenue. The cost of revenue consists of the payment to outsource travel guide.


Operating Expenses


During the three month period ended October 31, 2017, we incurred $619 general and administrative expenses compared to $3,557 during the three month period ended October 31, 2016. General and administrative expenses incurred generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting and developmental costs.


Net Income


Our net income for the three months period ended October 31, 2017 was $12,136 compared to net loss of $1,557 during the three month period ended October 31, 2016.




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LIQUIDITY AND CAPITAL RESOURCES


As of October 31, 2017


As of October 31, 2017 our total assets were $34,221 compared to $11,975 in total assets at July 31, 2017. As of October 31, 2017 our current liabilities were $1,064, compared to $3,564 as of July 31, 2017


Stockholders’ equity was $33,157 as of October 31, 2017 compared to $8,411 as of July 31, 2017.   



Cash Flows from Operating Activities



For the three months ended October 31, 2017, cash flow provided by operating activities was $10,188 consisting of a net income of $12,136 and depreciation expenses of $552 and decrease in deferred revenue of $2,500. Net cash flows used in operating activities was $1,557 for the three month period ended October 31, 2016.


Cash flows from Investing Activities


For the three months ended October 31, 2017, cash flow used in investing activities was $2,500 compared to none for the three month period ended October 31, 2016.


Cash Flows from Financing Activities


We have financed our operations primarily from either advancements or the issuance of equity and debt instruments. For the three month period ended October 31, 2017 net cash provided by financing activities was $12,610 from proceeds from sale of common stock compared to $8,000 from the sale of common stock for the three month period ended October 31, 2016.




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PLAN OF OPERATION AND FUNDING


We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.


Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next three months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) developmental expenses associated with a start-up business and (ii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.


MATERIAL COMMITMENTS


As of the date of this Quarterly Report, we do not have any material commitments.


PURCHASE OF SIGNIFICANT EQUIPMENT


We do not intend to purchase any significant equipment during the next twelve months.


OFF-BALANCE SHEET ARRANGEMENTS


As of the date of this Quarterly Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.


GOING CONCERN


The independent auditors' report accompanying our July 31, 2017 financial statements contains an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.




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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 this information.


ITEM 4.  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.


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 October 31, 2017. Based on that evaluation, our management concluded that our disclosure controls and procedures were 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. Such officer also confirmed that there was no change in our internal control over financial reporting during the nine month period ended October 31, 2017 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.




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PART II. OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS


Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.


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


No unregistered shares were sold during the three month period ended October 31, 2017.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES


No senior securities were issued and outstanding during nine month period ended October 31, 2017.


ITEM 4. MINE SAFETY DISCLOSURES


Not applicable to our Company.


ITEM 4. OTHER INFORMATION


None.


ITEM 5. EXHIBITS


Exhibits:

31.1 Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a)


32.1 Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted 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.DEF XBRL Taxonomy Extension Definition Document

101.LAB XBRL Taxonomy Extension Label Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document



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SIGNATURES


In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


 

REMARO GROUP CORP.

Dated: December 20, 2017

By:/s/Marina Funt

 

Marina Funt, President and Chief Executive Officer and Chief Financial Officer





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