EDGAR 10-K Filing

Company CIK: 1510518
Filing Year: 2021
Filename: 1510518_10-K_2021_0001213900-21-001893.json

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ITEM 1. BUSINESS
ITEM 1. BUSINESS
The discussion of the business of Genufood Energy Enzymes Corp. and its wholly-owned subsidiaries (“Genufood” or the “Company”), is as of the date of filing this report, unless otherwise indicated.
Original Business
During our historic period, we were a start-up company whose main focus was to promote, market, distribute and export a range of enzyme products manufactured in the United States for sale for human and animal consumption in certain Asian markets, including the Association of Southeast Asian Nations (“ASEAN”). Our objective was to commence marketing and distribution of a range of enzyme products for human and animal consumption to sole country distributors, wholesalers, dealers and retailers, as well as to the general public following a Multi-Level Marketing - Franchise Investor Dealer Related (MLM-FIDR) concept, beginning in Taiwan, and then China, Hong Kong, Macau, Thailand, Malaysia, Singapore and Sri Lanka.
At some point, which we believe may have occurred approximately mid- to late-2016, previous management ceased operating our original business. We have not generated any revenue from operations since that time.
Recent Developments
In 2019 and through early 2020, as previously reported, we had planned to import enzyme supplements from the United States for sale in Taiwan. However, due to the COVID-19 pandemic, all non COVID-19 related matters, including obtaining an import license from Taiwan’s Ministry of Economic Affairs and the Taiwan Food and Drug Administration (“FDA”), have been delayed or are taking longer than usual in Taiwan since late-January 2020. For various reasons, including the fact that without a reasonably foreseeable end of the pandemic and Taiwan government resources being shifted to dealing with the pandemic, our current management, which took office in March 2020, we decided to abandon the plan to restart our enzyme products business.
In May 2020, we announced that we were in the preliminary stage of developing a new business plan to sell and distribute physiological sea water and nasal spray in Taiwan and the United States. However, after exploring this possible business as a result of several factors, including but not limited to difficulties in commencing a new business during the ongoing COVID-19 pandemic, in September 2020 we announced that we will not pursue the nasal spray business.
Hukui Investment
While we consider our future plans for a possible business combination and/or an operating business that we would pursue on our own, in late September 2020, we announced that Hukui and we had entered into a Series C Preferred Shares Subscription Agreement dated September 23, 2020 (the “Hukui Agreement”), pursuant to which we have agreed to purchase an aggregate 200,000 shares of Hukui’s Series C Preferred Stock (“Series C Preferred Shares”) at $10.00 per share, for an aggregate investment of $2,000,000.
We will purchase the Series C Preferred Shares in three tranches, through a date on or before June 30, 2022, as follows:
● The first tranche is 80,000 Series C Preferred Shares in the amount of $800,000
(the “First Tranche Investment”), such shares having been purchased by us on December 15, 2020
(the “First Tranche Closing”);
● The second tranche is 60,000 Series C Preferred Shares in the amount of $600,000
(the “Second Tranche Investment”), such shares to be purchased on or before June 30, 2021
(the “Second Tranche Closing”); and
● The third tranche is 60,000 Series C Preferred Shares in the amount of $600,000
(the “Third Tranche Investment”), such shares to be purchased on or before June 30, 2022
(the “Third Tranche Closing”).
After the First Tranche Closing, if Hukui does not achieve further milestones or meet further conditions, we will have the option either to (i) abandon the Second Tranche Investment and/or the Third Tranche Investment, or (ii) waive the failure of Hukui to meet such conditions and proceed with the Second Tranche Investment and/or the Third Tranche Investment.
Notwithstanding the foregoing, management and the Board of Directors may amend or abandon at any time our current intended investment in Hukui. and/or develop a business plan for a new or additional business and/or pursue a reverse merger with another company.
Other Opportunities
Over the course of the next several months, we intend to develop a plan of operations for a business that we would operate. While we are considering a business in the healthcare or a related industry, there is no guarantee that we will develop a plan for such a business, or any business. If we are able to develop such a plan of operations, we will need to raise capital to pursue such a business. There are no commitments in place to fund any such business and no guarantee can be given that we will be able to secure such funding on terms that are favorable to us, or at all.
Either alone, or in combination with our current intent to develop a plan of operations for a business that we would operate, we will also consider opportunities to engage in a reverse merger with another company.
Certain Regulatory Matters
Blank Check Company
Based on the current and proposed business activities described above, the Company is a “blank check” company pursuant to Rule 419(a)(2) under the Securities Act. The Securities and Exchange Commission (the “SEC”) defines a blank check company as “any development stage company that is issuing a penny stock, within the meaning of Section 3 (a)(51) of the Exchange Act, and that has no specific business plan or purpose, or has indicated that its business plan is to merge with an unidentified company or companies.”
Rule 419 requires, among other things, that the proceeds of any public offering of penny stock securities by a blank check company, and all securities issued by a blank check company in such an offering, must be placed in a formal escrow or trust account until certain conditions specified in Rule 419 have been satisfied. In addition, many states have enacted statutes, rules and regulations limiting the sale of securities of “blank check” companies in their respective jurisdictions.
Shell Company
Pursuant to Rule 12b-2 under the Exchange Act, we are also a “shell company” because we have no or nominal assets (other than cash) and no or nominal operations. As such, we are subject to a variety of regulations. As we have also previously disclosed, certain specific rules and regulations of the SEC apply to shell companies, including the following:
● Shell companies may not register securities in connection with an employee benefit plan while they are a shell company and for 60 days after reporting certain current public information to the SEC regarding transactions or events resulting in the termination of shell company status.
● Stockholders of shell companies may not rely on the exemption from registration provided by Rule 144, until the following primary requirements have been satisfied: (i) one year has elapsed since the company ceases to be a shell company and certain current information has been timely filed with the SEC regarding the cessation of the company’s status as a shell company; (ii) the company is subject to the reporting requirements under the Exchange Act; and (iii) the company has been current in all of its periodic SEC filings for the 12 months preceding the contemplated sale of stock.
● Reporting shell companies are required to disclose transactions and events that result in a shell company ceasing to be a shell company. Such disclosure is typically made on a Current Report on Form 8-K, which requires extensive information about the transactions and events in issue.
Investment Company Act
By purchasing 80,000 shares of Hukui’s Series C Preferred Stock for $800,000 in the First Tranche Investment, we may be subject to registration and regulation under the Investment Company Act of 1940 (the “Investment Company Act”), since we may be considered to be engaged in the business of investing or trading in securities of other entities, and the investment in Hukui represents more than 40% of our consolidated assets (excluding cash and government securities) as of the date of the First Tranche Closing.
If we become subject to registration and regulation under the Investment Company Act, we would seek to rely on an exemption under Rule 3a-2 of the Investment Company Act, referred to as the “transient investment company” exemption, which would provide us one year to have our investment represent less than 40% of our consolidated assets (excluding cash and government securities), together with our bona fide intent to be primarily engaged in an operating business within that period of time. However, there is no guarantee that we would be able to comply with the “transient investment company” exemption or any other exemption under the Investment Company Act. That includes, but is not limited to, our ability to develop a viable plan of operations for an operating business and raise the capital necessary to pursue such a business.
Any requirement to register under the Investment Company and be regulated as an investment company would fundamentally change the way we do business and how we may raise capital in the future. For example, strict financial requirements are imposed on registered and regulated investment companies. Investment companies are subject to periodic audit by the SEC. Investment companies may not operate their own business and are strictly limited in raising their own equity and debt. There are strict director independence requirements imposed on investment companies. Many types of related party transactions between investment companies and their directors, officers and other corporate affiliates, such as subsidiaries, are prohibited. Investment companies may be required to maintain a diversified investment portfolio, requiring management to change its original investment strategy upon registration and regulation under the Investment Company Act.
Among other things, investment companies may be required to recapitalize and create a capital structure that allows investors to buy and sell interests in the investment company at will based on the concept of “net asset value” (“NAV”), that changes based on the value of the investment(s) in the company. The accounting of NAV is exceedingly complex and must be made on a daily basis. These and other strict SEC accounting requirements applicable to investment companies mean that a professionally trained administrative staff is essential to maintain the status of the investment company properly. We do not currently have personnel who would be capable of providing the required administration of an investment company, and our management also lacks this expertise.
Additionally, we would incur significant registration and additional compliance costs, as well as substantive regulation of our business. Any violation of the provisions of the Investment Company Act, or the rules and regulations thereunder, could subject us to material adverse consequences including but not limited to significant fines.
GEEC was incorporated in Nevada on June 21, 2010. Our principal place of business is located at 1108 S. Baldwin Avenue, Suite 107, Arcadia, California 91007 and our telephone number is (855) 707-2077. Our website is www.geecenzymes.com. No part of our website is incorporated into this report.
Employees
As of September 30, 2020, we had four part time employees. All our employees are employed in Taiwan.

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ITEM 1A. RISK FACTORS
ITEM 1A. RISK FACTORS
Not required for smaller reporting companies.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
ITEM 1B. UNRESOLVED STAFF COMMENTS
Not required for smaller reporting companies.

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ITEM 2. PROPERTIES
ITEM 2. PROPERTIES
Our principal executive offices are located at 1108 S. Baldwin Avenue, Suite 107, Arcadia, California 91007. The arrangement is on a month-to-month basis at a cost of $200 per month.

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ITEM 3. LEGAL PROCEEDINGS
ITEM 3. LEGAL PROCEEDINGS
There are presently no material pending legal proceedings to which we are a party or as to which any of our property is subject, and no such proceedings are known to us to be threatened or contemplated against us.

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ITEM 4. MINE SAFETY DISCLOSURE
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
Our common stock (“Common Stock”) is not traded on any stock exchange and is occasionally quoted on the OTC Pink Market. As of January 11, 2021, there were approximately 279 record holders of our Common Stock.
Dividend Policy
We have not paid any cash dividends to date and do not anticipate or contemplate paying dividends in the foreseeable future. It is the present intention of management to utilize all available funds for the execution of our business model.
Securities Authorized for Issuance Under Equity Compensation Plans
We have not authorized the issuance of, or issued, any securities under a retirement, pension, profit sharing, stock option or other equity compensation plans.
Recent Sales of Unregistered Securities
Pursuant to a Settlement Agreement and Mutual Release effective September 30, 2019, as amended and restated that we entered into with John Lin (the “Lin Settlement Agreement”), we agreed to issue to John Lin 27,000,000 shares of Common Stock. Of this amount, in October 2019 we issued 18,000,000 shares of Common Stock and agreed to issue the remaining 9,000,000 shares at such time as we may lawfully issue such shares, whether as a result of amending our Articles of Incorporation to increase the authorized number of shares of our Common Stock, a reverse split of our Common Stock or another recapitalization transaction. We conducted a 1-for-100 stock that was effective with the Financial Regulatory Authority and in the marketplace on July 23, 2020 and we issued the remaining 9,000,000 shares to Mr, Lin in September 2020.
Our Board of Directors authorized that all accrued and unpaid amounts of compensation, as of March 31, 2019, and thereafter, may be converted, at the option of our directors, and present and certain former executive officers, into shares of our Common Stock, at a rate of $0.05 per share. Certain of our present and former directors and officers elected to convert all of such accrued compensation through September 30, 2020 into shares of our Common Stock. As a result of these conversions, we issued an aggregate 3,834,000 shares of our Common Stock, as follows:
Name Accrued Compensation Conversion Rate Shares Issued
Kuang Ming (James) Tsai(a) $ 79,000 $ 0.05 1,580,000
Ching Ming (James) Hsu $ 42,700 $ 0.05 854,000
Yi Ling (Betty) Chen(b) $ 70,000 $ 0.05 1,400,000
Total $ 191,700
3,834,000
(a) Consists of (i) $16,000 of compensation prior to fiscal year 2019 and (ii) $63,000 of compensation for fiscal years 2019 and 2020.
(b) Ms. Chen is our former Treasurer and Secretary, and is a former director of the Company.
Our Board of Directors also agreed that all accrued and unpaid amounts of director fees, as of March 31, 2019, and thereafter, may be converted upon the occurrence of certain events, at the option of the director, into shares of our Common Stock, at a rate of $0.05 per share. As of September 30, 2020, Mr. Hsu converted $12,600 of director fees into 252,000 shares of our Common Stock and $30,100 of officer fees into 602,000 shares of our Common Stock, in addition to the amount shown for Mr. Hsu in the table above.
We offered and issued all of the foregoing securities under the exemption from registration provided by Section 4(a)(2) of the Securities Act, or Regulation D or Regulation S promulgated thereunder.

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ITEM 6. SELECTED FINANCIAL DATA
ITEM 6. SELECTED FINANCIAL DATA
Not required for smaller reporting companies.

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This discussion should be read in conjunction with the Company’s consolidated financial statements, including the Notes thereto, for the years ended September 30, 2019 and September 30, 2020, beginning on Page.
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Overview
During our historic period, we were a start-up company whose main focus was to promote, market, distribute and export a range of enzyme products manufactured in the United States for sale for human and animal consumption in certain Asian markets, including the Association of Southeast Asian Nations (“ASEAN”). Our objective was to commence marketing and distribution of a range of enzyme products for human and animal consumption to sole country distributors, wholesalers, dealers and retailers, as well as to the general public following a Multi-Level Marketing - Franchise Investor Dealer Related (MLM-FIDR) concept, beginning in Taiwan, and then China, Hong Kong, Macau, Thailand, Malaysia, Singapore and Sri Lanka.
At some point, which we believe may have occurred approximately mid- to late-2016, previous management ceased operating our original business. We have not generated any revenue from operations since that time.
In 2019 and through early 2020, as previously reported, we had planned to import enzyme supplements from the United States for sale in Taiwan. However, due to the COVID-19 pandemic, all non COVID-19 related matters, including obtaining an import license from Taiwan’s Ministry of Economic Affairs and the Taiwan Food and Drug Administration (“FDA”), have been delayed or are taking longer than usual in Taiwan since late-January 2020. For various reasons, including the fact that without a reasonably foreseeable end of the pandemic and Taiwan government resources being shifted to dealing with the pandemic, our current management, which took office in March 2020, we decided to abandon the plan to restart our enzyme products business.
In May 2020, we announced that we were in the preliminary stage of developing a new business plan to sell and distribute physiological sea water and nasal spray in Taiwan and the United States. However, after exploring this possible business as a result of several factors, including but not limited to difficulties in commencing a new business during the ongoing COVID-19 pandemic, in September 2020 we announced that we will not pursue the nasal spray business.
Over the course of the next several months, we intend to develop a plan of operations for a business that we would operate. While we are considering a business in the healthcare or a related industry, there is no guarantee that we will develop a plan for such a business, or any business. If we are able to develop such a plan of operations, we will need to raise capital to pursue such a business. There are no commitments in place to fund any such business and no guarantee can be given that we will be able to secure such funding on terms that are favorable to us, or at all.
Either alone, or in combination with our current intent to develop a plan of operations for a business that we would operate, we will also consider opportunities to engage in a reverse merger with another company.
While we consider our future plans for a possible business combination and/or an operating business that we would pursue on our own, in September 2020 we announced that Hukui and we had entered into the Hukui Agreement, pursuant to which we have agreed to purchase an aggregate 200,000 shares of Hukui’s Series C Preferred Shares at $10.00 per share, for an aggregate investment of $2,000,000.
We will purchase the Series C Preferred Shares in three tranches, through a date on or before June 30, 2022, as follows:
● The First Tranche Investment is 80,000 Series C Preferred Shares in the amount of $800,000, such shares having been purchased by us at the First Tranche Closing on December 15, 2020;
● The Second Tranche Investment is 60,000 Series C Preferred Shares in the amount of $600,000, such shares to be purchased at the Second Tranche Closing on or before June 30, 2021; and
● The Third Tranche Investment is 60,000 Series C Preferred Shares in the amount of $600,000, such shares to be purchased at the Third Tranche Closing on or before June 30, 2022.
After the First Tranche Closing, if Hukui does not achieve further milestones or meet further conditions, we will have the option either to (i) abandon the Second Tranche Investment and/or the Third Tranche Investment, or (ii) waive the failure of Hukui to meet such conditions and proceed with the Second Tranche Investment and/or the Third Tranche Investment.
Regardless of which overall business strategy we pursue - reverse merger, starting our own operating business or being an investment company - we will continue to need capital to meet our expenses, primarily overhead and the professional fees related to the cost of compliance as a reporting company. We must also raise funds to meet our obligation to invest $1.4 million in Hukui on or before June 30, 2021.
For the fiscal year ended September 30, 2020, Jui Pin (John) Lin, our President and Chief Executive Officer, has provided such capital periodically in the form of loans in the aggregate principal amount of $120,410, the principal and accrued and unpaid interest of which are convertible, at his option, into shares of our Common Stock at $0.05 per share. On December 28, 2020, we repaid Mr. Lin $65,410 of the principal amount of loans due and payable plus accrued interest in the amount of $1,162, for a total of $66,572. On January 5, 2021, we repaid Mr. Lin $20,000 of the principal amount of another such loan due and payable plus accrued interest in the amount of $403, for a total of $20,403.
Subsequent to the end of the fiscal year ended September 30, 2020, another stockholder loaned us $30,000, on substantially the same terms as the terms of the loans from Mr. Lin. We may also raise equity, debt, convertible debt or a combination of any of the foregoing, from other parties for the capital we may need for any of the purposes specified in this report. There is no agreement in place between the Company and Mr. Lin, or anyone else, for such capital to continue to be made available to us as needed, and we cannot guarantee that any such capital will continue to be available to us on favorable terms, or at all, in the future.
Results of Operations
Year Ended September 30, 2020 compared to the Year Ended September 30, 2019
Revenues
We did not generate any revenues during the years ended September 30, 2020 and 2019.
Operating Expenses
We incurred total operating expenses of $309,907 and $303,509 for the years ended September 30, 2020 and 2019, respectively. Our operating expenses consist of professional fees, payroll expenses, rent, miscellaneous overhead, bank charges, license and permits. The increase in operating expenses for the year ended September 30, 2020 compared to the year ended September 30, 2019 was primarily due to increase in officers’ compensation for our new officers, who took office in March 2020, as well as legal fees.
Net Loss
As a result of the above, our net loss increased from $303,576 in the year ended September 30, 2019 to $311,109 in the year ended September 30, 2020.
Effect of the COVID-19 Pandemic on our Business
We have been affected by the COVID-19 pandemic to the extent that it was one of a number of contributing factors in our decision to change our plan of operations from restarting our enzyme products business to selling the nasal spray product and then deciding not to pursue the nasal spray product business, although the first of those two decisions was largely made prior to the full impact of the COVID-19 pandemic. Our personnel are in Taiwan, which has been relatively less affected by the pandemic compared to many other countries in Asia, Europe and the United States. Nonetheless, we expect to experience delays in obtaining business licenses and permits, and any other governmental approvals that may be required for a future business, since government offices are continuing to work with reduced staff during the pandemic.
Nonetheless, depending upon the extent and duration of the pandemic and the resulting global economic crisis, these conditions may have an adverse impact on our ability to raise capital and commence any other business we may pursue. Depending upon possible changes in consumer demand, shopping and spending habits as a result of the pandemic and the resulting global economic crisis, we may also face challenges of consumer acceptance if and when we start to market any products.
Liquidity and Capital Resources
Working Capital
September 30, September 30,
Current Assets $ 18,092 $ 121,707
Current Liabilities 371,035 354,051
Working Capital Deficit $ (352,943 ) $ (232,344 )
As of September 30, 2020, we had cash and cash equivalents of $18,092 and a working capital deficit of $352,943. By comparison, as of September 30, 2019, we had cash and cash equivalents of $121,657 and a working capital deficit of $232,344.
As of September 30, 2020, we had total assets of $18,092, compared with total assets of $121,707 at September 30, 2019. The decrease in total assets was primarily due to decrease in cash and cash equivalents.
We had $371,035 in total current liabilities as of September 30, 2020, consisting of $129,154 in accounts payable, $96,035 due to related parties, $120,410 in notes payable - related party, and $25,436 in accrued expenses. This is compared to total current liabilities of $354,051 as of September 30, 2019, which included $128,971 in accounts payable, $211,383 due to related parties and $13,697 in accrued expenses. The increase in total current liabilities is mainly due to an increase in notes payable - related party, which is partially offset by the decrease in amount due to related parties due to the conversion of officers’ compensation to shares of our Common Stock.
We had a total stockholders’ deficiency of $352,943 and an accumulated deficit of $8,158,389 as of September 30, 2020. By comparison, we had a total stockholders’ deficiency of $232,344 and an accumulated deficit of $7,847,280 as of September 30, 2019
During the year ended September 30, 2020, our President and Chief Executive Officer, Jui Pin Lin, loaned us the aggregate principal amount of $120,410, primarily to pay our expenses. On April 24, 2020, Mr. Lin loaned us the principal amount of $25,000 (the “April 2020 Loan”). The April 2020 Loan bears simple interest at a rate of 1% per annum and is payable as to both principal and interest on October 24, 2020.
On May 18, 2020, Mr. Lin loaned us the additional principal amount of $40,410 (the “May 2020 Loan”). The May 2020 Loan bears simple interest at a rate of 4% per annum and is payable as to both principal and interest on November 18, 2020.
On July 3, 2020, Mr. Lin loaned us the additional principal amount of $20,000 (the “July 2020 Loan”). The July 2020 Loan bears simple interest at a rate of 4% per annum and is payable as to both principal and interest on January 3, 2021.
On August 26, 2020, Mr. Lin loaned us the principal amount of $35,000 (the “August 2020 Loan”). The August 2020 Loan bears simple interest at a rate of 4% per annum and is payable as to both principal and interest on February 26, 2021.
On October 13, 2020, another shareholder loaned us the principal amount of $30,000 (the “October 2020 Loan”). The October 2020 Loan bears simple interest at a rate of 4% per annum and is payable as to both principal and interest on April 13, 2021.
Mr. Lin, as the holder of the promissory notes evidencing the April 2020 Loan, the May 2020 Loan, the July 2020 Loan and the August Loan (collectively, the “Lin Notes”), may, at his sole option, convert (a “Voluntary Conversion”) the outstanding principal and accrued and unpaid interested on the Notes into shares of our Common Stock at a rate of $0.05 per share. The holder of the promissory note evidencing the October 2020 Loan (the “Shareholder Note and, together with the Lin Notes, the “Notes”) has similar rights.
The Notes also provide for events of default and remedies in such event, including without limitation interest at a rate equal to the lesser of 10% per annum or the maximum interest rate allowed under usury or other similar laws from the respective maturity date of the April 2020 Loan, the May 2020 Loan, the July 2020 Loan, the August 2020 Loan and the October 2020 Loan, until the related Note is paid in full. The Notes also contain other terms and conditions typical for a transaction of this type. There is no commitment from Mr. Lin, the shareholder who provided the October 2020 Loan, or anyone else, to continue to lend us any amount to fund our expenses. On December 28, 2020, we repaid Mr. Lin $65,410 of the principal amount of loans due and payable plus accrued interest in the amount of $1,162, for a total of $66,572, with respect to the April 2020 Loan and the May 2020 Loan. On January 5, 2021, we repaid Mr. Lin $20,000 of the principal amount of another such loan due and payable plus accrued interest in the amount of $403, for a total of $20,403, with respect to the July 2020 Loan.
Reverse Stock Split
On June 23, 2020, our Board of Directors approved a reverse stock split of our Common Stock, at a ratio of 1-for-100 (the “Reverse Stock Split”), as of the Effective Date. The Effective Date of the Reverse Stock Split with the Secretary of State of the State of Nevada was 9:00 a.m. on July 6, 2020 and July 23, 2020 with the Financial Industry Regulatory Authority and in the marketplace.
On the Effective Date, the total number of shares of our Common Stock held by each shareholder was converted automatically into the number of whole shares of Common Stock equal to (i) the number of issued and outstanding shares of Common Stock held by such shareholder immediately prior to the Reverse Stock Split, divided by (ii) 100.
No fractional shares were issued in connection with the Reverse Stock Split, and no cash or other consideration was be paid. Instead, we issued one whole share of the post-Reverse Stock Split Common Stock to any shareholder who otherwise would have received a fractional share as a result of the Reverse Stock Split.
We are authorized to issue 10,000,000,000 shares of Common Stock and that number did not change as a result of the Reverse Stock Split.
The Reverse Stock Split did not have any effect on the stated par value of our Common Stock. The rights and privileges of the holders of shares of Common Stock are unaffected by the Reverse Stock Split. All of our options, warrants and convertible securities outstanding immediately prior to the Reverse Stock Split will be appropriately adjusted by dividing the number of shares of Common Stock into which the options, warrants and convertible securities are exercisable or convertible by 100 and multiplying the exercise or conversion price thereof by 100.
Cash Flows
Year ended
September 30,
Year ended
September 30,
Cash flows used in provided by operating activities $ (223,974 ) $ (189,627 )
Cash flows provided by financing activities 120,410 179,586
Effect of exchange rate changes on cash (1 ) (22 )
Net decrease in cash during period $ (103,565 ) $ (10,063 )
During the year ended September 30, 2020, we used $223,974 of cash in operating activities which was attributable primarily to our net loss of $311,109 offset by the change in operating assets and liabilities of $87,135. In comparison, during the year ended September 30, 2019, we used $189,627 of cash in operating activities which was attributable to our net loss of $303,576 and the change in operating assets and liabilities of $113,949.
With respect to our investing activities, we had no cash activity in either period presented and we do not anticipate any significant capital expenditures in the near future as such items are not required by us at this time.
During the year ended September 30, 2020, we received $120,410 from notes payable - related party. Our President and Chief Executive Officer, Jui Pin Lin, loaned us the aggregate principal amount of $120,410, primarily to pay our expenses. In October 2020, another shareholder loaned us the aggregate principal amount of $30,000, primarily to pay our expenses.
There is substantial doubt that we can continue as an ongoing business for the next twelve months unless we obtain additional capital to pay our expenses as they become due. We do not anticipate any significant additional revenue until and unless we begin to execute on a plan of operations involving the start of a new operating business, and/or effect a reverse merger with another company. There is no assurance that we will ever reach that stage. The consolidated financial statements presented herein do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that we cannot continue as a going concern.
Our ability to continue as a going concern is dependent upon our ability to successfully execute our business plan and generate profitable operations in the future, and, until and unless we achieve that, to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operation as and when they become due. Management intends to finance operating costs for the foreseeable future with the issuance of equity and/or debt. While we have received certain loans from our President and Chief Executive Officer, Jui Pin (John) Lin and another shareholder, there is no standing commitment from Mr. Lin, or any other person, for any such capital and there can be no assurances that capital will be available to us on favorable terms, or at all. Our failure to obtain adequate funding would be detrimental to us and result in the inability to execute our plan of operations, or even having to cease operations completely.
To date, our capital requirements have primarily been funded by shareholders through the purchase of our Common Stock in private offerings. Over the next 12 months, we currently estimate that we will need to raise additional capital of approximately $0.6 million, to meet our obligation for the Second Tranche Investment with Hukui, plus approximately $0.2 million to meet other corporate expenses.. We are exploring options of raising additional capital through issuing more Common Stock or other securities, including debt, convertible into Common Stock At this time, we do not know what additional amount we might need to raise if we were to start a new operating business and/or pay our expenses in the event of a reverse merger, but such amounts would be in addition to the amounts mentioned above and could be substantial. There are no agreements, arrangements or understandings in place with respect to raising any additional capital from any person. There can be no assurance that we will be able to raise such capital when and as needed on terms that are favorable to us, or at all.
Contractual Obligations
We do not have material contractual obligations and commitments. We only have one lease, which is for office space, and that is renewed on a month-to-month basis.
Off-Balance Sheet Arrangements
We have not entered into any other financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder’s equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us.
Critical accounting policies and estimates
Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We continually evaluate our estimates, including those related to bad debts, inventories, recovery of long-lived assets, income taxes, and the valuation of equity transactions. We base our estimates on historical experience and on various other assumptions that we believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. For the years ended September 30, 2020 and 2019, no significant estimates and assumptions have been made in the consolidated financial statements. The following are some of the critical accounting policies in relation to the preparation of the consolidated financial statements. For a full summary of our critical accounting policies, please refer to Note 2 of Notes to Consolidated Financial Statements.
Foreign currency translation
The financial statements of our subsidiary denominated in currencies other than the U.S. Dollar (“USD”) are translated into USD using the closing rate method. The balance sheet items are translated into USD using the exchange rates at the respective balance sheet dates. The capital and various reserves are translated at historical exchange rates prevailing at the time of the transactions while income and expenses items are translated at the average exchange rate for the period. All exchange differences are recorded in stockholders’ equity (deficiency).
Stock-Based Compensation
We account for stock-based compensation in which we obtain employee services in share-based payment transactions under FASB ASC Topic 718, Compensation - Stock Compensation, which requires us to expense the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of such instruments over the vesting period.
We also adopted FASB ASC Topic 505-50, Equity-Based Payments to Non-Employees, to account for equity instruments issued to parties other than employees for acquiring goods or services. Such awards for services are recorded at either the fair value of the consideration received or the fair value of the instruments issued in exchange for such services, whichever is more reliably measurable.
Recent accounting pronouncements
We do not expect that the adoption of recently issued accounting pronouncements will have a material impact on its financial position, results of operations, or cash flows. For a full summary of recent accounting pronouncements, please refer to Note 2 of Notes to Consolidated Financial Statements.
Currency exchange rates
Our functional currency is the USD, and the functional currency of our operations is the New Taiwan Dollar (“TWD”). We anticipate that all of our sales, if any, will be denominated in TWD. As a result, changes in the relative values of USD and TWD affect our reported amounts of revenues and profit (or loss) as the results of our operations are translated into USD for reporting purposes. In particular, fluctuations in currency exchange rates could have a significant impact on our financial stability. Fluctuations in exchange rates between the USD and the TWD would also affect our gross and net profit margins and could result in foreign exchange and operating losses.
Our exposure to foreign exchange risk primarily relates to currency gains or losses resulting from timing differences between the signing of sales contracts and the settling of these contracts. Furthermore, we translate monetary assets and liabilities denominated in other currencies into TWD, the functional currency of our operations. Our results of operations and cash flow are translated at average exchange rates during the period, and assets and liabilities are translated at the unified exchange rate at the end of the period. Translation adjustments resulting from this process are included in accumulated other comprehensive income in our statement of shareholders’ equity. We have not used any forward contracts, currency options or borrowings to hedge our exposure to foreign currency exchange risk. We cannot predict the impact of future exchange rate fluctuations on our results of operations and may incur net foreign currency losses in the future.
To the extent that we hold assets denominated in USD, any appreciation of the TWD against the USD could result in a charge in our statement of operations and a reduction in the value of our USD-denominated assets. On the other hand, a decline in the value of the TWD against the USD could reduce the USD equivalent amounts of our financial results.
For financial reporting purposes, the financial statements of our Singapore subsidiary, which are prepared using the Singapore Dollar, are translated into the Company’s reporting currency, USD. Assets and liabilities are translated using the exchange rate on the balance sheet date, which was 0.7325 and 0.7236 as of September 30, 2020 and 2019, respectively. Revenue and expenses are translated using average exchange rates prevailing during each reporting period. The 0.7228 and 0.7315 average exchange rates were used to translate revenues and expenses for the years ended September 30, 2020 and 2019. Stockholders’ equity (deficiency) is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income (loss) in stockholders’ equity (deficiency).

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not required for smaller reporting companies.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
See pages through.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.

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ITEM 9A. CONTROLS AND PROCEDURES
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our disclosure controls and procedures are designed to ensure that the information relating to our Company, including our consolidated subsidiaries, required to be disclosed in our SEC reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow for timely decisions regarding required disclosure. We conducted an evaluation, under the supervision and with the participation of management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this annual report. Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of the evaluation date, our disclosure controls and procedures were not effective due to material weaknesses in our internal control over financial reporting, as described below.
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of management, including our chief executive officer and chief financial officer, we conducted an evaluation of the design and operating effectiveness of our internal controls over financial reporting based on the framework in “Internal Control-Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).
Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the consolidated financial statements.
Management assessed the effectiveness of the Company’s internal control over financial reporting as of evaluation date and identified the following material weaknesses:
Inadequate Segregation of Duties: We have an inadequate number of personnel to properly implement control procedures.
Lack of Audit Committee: We do not have a functioning audit committee, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures.
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. As a result of the material weaknesses in internal control over financial reporting identified above, management concluded that the Company’s internal control over financial reporting was not effective as of September 30, 2020 based on the criteria set forth in “Internal Control-Integrated Framework” issued by COSO.
Due to the nature of the material weaknesses, there is a more than remote likelihood that misstatements which could be material to the annual or interim financial statements could occur that would not be prevented or detected. The material weaknesses identified above either individually or in aggregation did not result in any identified misstatements or errors in the Company’s consolidated financial statements as at and for the year ended September 30, 2020.
Management’s Plan for Remediation
Management has discussed the material weaknesses noted above with our independent registered public accounting firm. Management is committed to improving its internal controls and, subject to having adequate financial resources, will (1) increase the frequency of independent reconciliations of significant accounts which will mitigate the lack of segregation of duties until there are sufficient personnel and (2) consider appointing outside directors and audit committee members in the future.
Inherent Limitations on Effectiveness of Controls
A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Because of its inherent limitations, internal control over financial reporting may not prevent or detect all control issues or misstatements. Accordingly, our controls and procedures are designed to provide reasonable, not absolute, assurance that the objectives of our control system are met. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become adequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Changes in Internal Control
There have been no changes in our internal control over financial reporting that occurred during the year ended September 30, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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ITEM 9B. OTHER INFORMATION
ITEM 9B. OTHER INFORMATION
None.
PART III

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Our current directors and executive officers and additional information concerning them are as follows:
Name Age Position
Jui Pin (John) Lin President and Chief Executive Officer
Shao-Cheng (Will) Wang Chief Financial Officer, Treasurer and Secretary
Kuang Ming (James) Tsai Director
Ching Ming (James) Hsu Director
Jui Pin (John) Lin has served as our President since March 4, 2020 and as our Chief Executive Officer since March 18, 2020. Mr. Lin previously served as the Company’s President, Chief Executive Officer, Chief Financial Officer, Secretary and Treasurer, and as a director, from April 18, 2017 to August 4, 2017. From November 1983 to the present, Mr. Lin has served as the President of Risesun Electrical & Industry Co. Ltd. located in Taiwan. From March 1994 to the present, he has served as President of Risesun Electric & Industry (Kunshan) Co. Ltd. located in China. From May 1998 to the present, Mr. Lin has served as the Chairman and Director of Yogo Textile Co. Ltd. located in Bangladesh. From September 2015 to the present, he has served as the President of First Empire Corp. located in Seychelles. From November 2018 to the present, Mr. Lin has served as the President of Rekun Electronic Technology (Kunshan) Corp. located in China. Mr. Lin received a bachelor degree from the Oriental Institute of Technology in Taipei, Taiwan in 1977, where he majored in Textile Engineering.
Shao-Cheng (Will) Wang has served as our Chief Financial Officer, Treasurer and Secretary since March 18, 2020. In August 2020, Mr. Wang became the president of Yuhan Trading Company in Taichung, Taiwan. From January 1994 to the present, Mr. Wang has served as an information technology consultant for Hsinlan Chemical, Co, Ltd. located in Taichung City, Taiwan. From May 2018 to the present, he has served as the General Secretary for Chinese Taipei Wushu Confederation of the Koushu/Wushu Federation of the Republic of China (Taiwan). From August 1986 to July 2015, he was a teacher and Director of Academic Affairs for Taichung Sha-Lu Industrial Senior High School in Taichung, Taiwan. Mr. Wang received a bachelor’s degree from the Division of Industrial Technics Education of the National Taiwan Normal University and a master’s degree from the Graduate Institute of Statistics of Chung Hua University in Hsinchu City, Taiwan.	
Kuang Ming (James) Tsai has served as a director since June 11, 2018. Mr. Tsai served as our President from June 29, 2018 to March 4, 2020, our Chief Executive Officer from June 29, 2018 to March 18, 2020 and our Chief Financial Officer from September 12, 2018 to March 18, 2020. From July 2017 to June 2018, Mr. Tsai served as the President of YAMA KAWA Bilingual Club, part of District 67 Toastmasters International. From 2010 to 2017, Mr. Tsai was retired, during which period he was an investor of securities. From 2006 to 2010, he served as the President of Blanfield Pty Ltd., an import company. Mr. Tsai received a Bachelor of Arts Degree from National Taiwan University in 1973, majoring in Economics.
Ching Ming (James) Hsu has served as a director since April 18, 2017. He served as our President and Chief Executive Officer from August 4, 2017 to June 29, 2018 and as our Chief Financial Officer from August 4, 2018 to September 12, 2018. From March 2017 to the present Mr. Hsu has been a manager and tour guide with EZ Tourism in Taiwan. From April 2014 to February 2017, he was a project manager at Pro Rental & Leasing Co. Ltd. in Taiwan. From July 2013 to March 2014, he was a consultant. From July 2012 to June 2013, he was the Development Manager for Opendata.ecnow International Co. Ltd., a company in Taiwan engaged in the business of water purification machinery. From May 2011 to June 2012, Mr. Hsu was the Sales Manager for Union Finances & Leasing Co. Ltd. in Taiwan. From June 2000 to April 2009, he was the Sales Director for Car-Plus Leasing Co. Ltd. in Taiwan. Mr. Hsu received a Bachelor of Soochow University, Taiwan, majoring in Economics.
During the past ten years, there have been no events under any bankruptcy act, no criminal proceedings and no judgments, injunctions, orders or decrees material to the evaluation of the ability and integrity of any director, executive officer, promoter or control person of the Company, including any allegations (not subsequently reversed, suspended or vacated), permanent or temporary injunction, or any other order of any federal or state authority or self-regulatory organization, relating to activities in any phase of the securities, commodities, banking, savings and loan, or insurance businesses in connection with the purchase or sale of any security or commodity, or involving mail or wire fraud in any business. None of our directors presently serves as a director of any other public companies.
In light of our plans to invest in Hukui, our current intent to develop a plan of operations to start a business that we would operate and/or engage in a reverse merger and the need to raise additional capital, we believe that each of our directors has a good working relationship with our shareholders generally, has been engaged in private raises of capital and has good working relations with Hukui, and a general broad background in business, all of which qualities and attributes could help us in the future.
Term of Office
Directors hold office until the next annual meeting of our shareholders and until their successors have been duly elected and qualified. Our Bylaws provide that our Board of Directors will consist of no less than one nor more than nine members, as may be set from time to time by our shareholders. Our officers are appointed by, and serve at the discretion of, the Board of Directors.
Director Independence
Our Board of Directors is currently composed of two members, neither of whom qualifies as an independent director in accordance with the published listing requirements of the Nasdaq Stock Market. The Nasdaq independence definition includes a series of objective tests, such as that the director is not, and has not been for at least three years, one of our employees and that neither the director, nor any of his or her family members has engaged in various types of business dealings with us.
In addition, our Board of Directors has not made a subjective determination as to any of our directors that no relationships exist which, in the opinion of our Board of Directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director, although such subjective determination is required by Nasdaq requirements. Had our Board of Directors made these determinations, our Board of Directors would have reviewed and discussed information provided by our directors and us with regard to each director’s business and personal activities and relationships as they may relate to us and our management.
Involvement in Certain Legal Proceedings
During the past ten years, there have been no events under any bankruptcy act, no criminal proceedings and no judgments, injunctions, orders or decrees material to the evaluation of the ability and integrity of any director, executive officer, promoter or control person of the Company, including any allegations (not subsequently reversed, suspended or vacated), permanent or temporary injunction, or any other order of any federal or state authority or self-regulatory organization, relating to activities in any phase of the securities, commodities, banking, savings and loan, or insurance businesses in connection with the purchase or sale of any security or commodity, or involving mail or wire fraud in any business. None of our directors presently serves as a director of any other public companies.
We have not entered into indemnification agreements with our directors, although they have indemnification protection under the laws of the state of Nevada, in which we are incorporated. We do not currently maintain director and officer liability insurance.
Corporate Governance, Committee Structure and Conflicts of Interest
We do not have standing audit, compensation and nominating/corporate governance committees, or committees performing similar functions. We have not adopted a code of ethics. We anticipate that as we become more familiar with the obligations of U.S. public companies, we will implement appropriate corporate governance structures to comply with SEC and/or stock exchange requirements. We intend to comply with all corporate governance requirements applicable to us at this time.
Since our Board of Directors does not have standing audit, compensation or nominating/corporate governance committees, or any other committees, the functions that would have been performed by such committees are performed by our Board of Directors as a whole. We do not currently have a director who would satisfy the requirements of being an audit committee financial expert. Our Board of Directors has determined that such committees are not necessary at this time, since the Company is in the early stages of its plan of operations, and there is no active trading of our Common Stock. It should be noted that since, at most, only one of our directors is independent, there is a risk of conflicts of interest arising from time to time. During the next fiscal year, our Board of Directors will monitor whether and when it would be appropriate to diversify the Board of Directors to include independent directors and/or establish Audit, Compensation and/or Nominating/Corporate Governance Committees.
Shareholder Communications with the Board of Directors
We have not implemented a formal policy or procedure by which our stockholders can communicate directly with our Board of Directors. Nevertheless, our directors welcome the views of our shareholders. During the next fiscal year, our Board of Directors will continue to monitor whether and when it would be appropriate to adopt such a process.

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ITEM 11. EXECUTIVE COMPENSATION
ITEM 11. EXECUTIVE COMPENSATION
The Summary Compensation Table shows certain compensation information for services rendered in all capacities for the fiscal years ended September 30, 2019 and 2020. Other than as set forth herein, no executive officer’s salary and bonus exceeded $100,000 in any of the applicable years. The following information includes the dollar value of base salaries, bonus awards, the number of stock options granted and certain other compensation, if any, whether paid or deferred.
Summary Compensation Table
Name and Principal Position Fiscal
Year Salary
($) Bonus
($) Stock
Awards
($) Option
Awards
($) All other
compensation
($) Total
($)
Jui Pin (John) Lin(1), - - - - - -
Chief Executive Officer 21,000 - - - - 21,000
Shao-Cheng (Will) Wang(2) - - - - - -
Chief Financial Officer 13,500 - - - - 13,500
Kuang-Ming (James) Tsai(3), 36,000 - - - - 36,000
Former Chief Executive Officer and Chief Financial Officer 27,000 - - - - 27,000
(1) From April 1, 2020 through June 30, 2020, Mr. Lin received compensation in the amount of $4,000 per month. Effective July 1, 2020, this amount was reduced to $3,000 per month. Of the total amount of $21,000 earned by Mr. Lin through September 30, 2020 as executive compensation, $0 has been paid and $21,000 has been accrued.
(2) From April 1, 2020 through June 30, 2020, Mr. Wang received compensation in the amount of $2,500. Effective July 1, 2020, this amount was reduced to $2,000 per month. Of the total amount of $13,500 earned by Mr. Wang through September 30, 2020 as executive compensation, $1,491 has been paid and $11,379 has been accrued.
(3) From October 1, 2019 through March 30, 2020, Mr. Tsai received compensation as CEO of $3,000 a month. From April 1, 2020 through June 30, 2020, Mr. Tsai received compensation as a consultant in the amount of $500 per month. Effective July 1, 2020, this amount was increased to $2,500 per month. Of the total amount of $63,000 earned by Mr. Tsai from October 1, 2018 through September 30, 2020 in all capacities, $0 has been paid and $63,000 has been accrued. As described below, Mr. Tsai has converted this entire amount into shares of our Common Stock.
We have not entered into employment agreements with our named executive officers.
Our Board of Directors has authorized that all accrued and unpaid amounts of compensation, as of March 31, 2019, and thereafter, may be converted, at the option of our directors, and present and certain former executive officers, into shares of our Common Stock, at a rate of $0.05 per share.
Certain of our present and former directors and officers elected to convert all of such accrued compensation through September 30, 2020 into shares of our Common Stock. As a result of these conversions, we issued an aggregate 3,834,000 shares of our Common Stock, as follows:
Name Accrued Compensation Conversion Rate Shares Issued
Kuang Ming (James) Tsai(a) $ 79,000 $ 0.05 1,580,000
Ching Ming (James) Hsu $ 42,700 $ 0.05 854,000
Yi Ling (Betty) Chen(b) $ 70,000 $ 0.05 1,400,000
Total $ 191,700
3,834,000
(a) Consists of (i) $16,000 of compensation prior to fiscal year 2019 and (ii) $63,000 of compensation for fiscal years 2019 and 2020.
(b) Ms. Chen is our former Treasurer and Secretary, and is a former director of the Company.
Outstanding Equity Awards at Fiscal Year-End
There are no outstanding equity awards to any of our named executive officers.
No retirement, pension, profit sharing, stock option or insurance programs or other similar programs have been adopted by the Company. We have no present intention of adopting any such plans in the foreseeable future.
Director Compensation
From October 2018 through March 31, 2020, Mr. Hsu received director fees in the amount of $700 per month. Effective April 1, 2020, Mr. Hsu receives director fees in the amount of $100 for each meeting of the Board of Directors he attends in person, telephonically or by other approved means, in lieu of all other director fees. Of the total amount of $42,700 earned by Mr. Hsu through September 30, 2020 in all capacities, including as a former officer of the Company, $0 has been paid and $42,700 has been accrued. As described above, Mr. Hsu has converted this entire amount into shares of our Common Stock.
Our Board of Directors has agreed that all accrued and unpaid amounts of director fees, as of March 31, 2019, and thereafter, may be converted upon the occurrence of certain events, at the option of the director, into shares of our Common Stock, at a rate of $0.05 per share. As of September 30, 2020, Mr. Hsu converted $12,600 of director fees into 252,000 shares of our Common Stock and $30,100 of officer fees into 602,000 shares of our Common Stock, in addition to the amount shown above for Mr. Hsu.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The following table sets forth, as of January 11, 2021, the number of shares of our Common Stock owned of record and beneficially by all directors, executive officers and persons who beneficially own more than 5% of the outstanding shares of Common Stock of the Company. We have determined beneficial ownership in accordance with the rules of the SEC. Except as indicated by the footnotes below, we believe, based on the information furnished to us, that the persons and entities named in the table below have sole voting and investment power with respect to all shares of Common Stock that they beneficially own.
Name and Address Amount and Nature of Beneficial Ownership Percentage
of Class(1)
5% Stockholders
Yi Lung (Oliver) Lin
No. 175-1, 4th Floor-1, Nanher Rd.
South Dist.,Taichung City
Taiwan 402 (R.O.C) 20,752,542 (2) 9.8 %
Huei Ling Wang
No. 175-1, 4th Floor-1, Nanher Rd.
South Dist.,Taichung City
Taiwan 402 (R.O.C) 20,752,542 (2) 9.8 %
Directors and Executive Officers:
Jui Pin (John) Lin
1108 S. Baldwin Avenue, Suite 107
Arcadia, California 91007 61,134,115 (3) 28.9 %
Shao-Cheng (Will) Wang
1108 S. Baldwin Avenue, Suite 107
Arcadia, California 91007
6,240,180 (4) 3.0 %
Kuang Ming (James) Tsai
1108 S. Baldwin Avenue, Suite 107
Arcadia, California 91007 1,580,000 *
Ching Ming (James) Hsu
1108 S. Baldwin Avenue, Suite 107
Arcadia, California 91007 1,949,700 *
All Directors and Executive Officers
as a group (4 persons) 70,903,995 33.4 %
* less than 1.0%
(1) Percentages are calculated on the basis of 211,083,120 shares of Common Stock outstanding as of January 11, 2021.
(2) Consists of (i) 8,714,688 shares held by Access Finance and Securities (NZ) Limited, which we believe is controlled by Oliver Lin; (ii) 1,729,765 shares held by Access Management and Consulting, which we believe is controlled by Oliver Lin; (iii) 21,528 shares held by Lin Yi Lung Foundation Charitable Trust, which we believe may be controlled by Oliver Lin; (iv) 9,386,531 shares held by Huei Ling Wang, the wife of Oliver Lin; (v) 900,000 shares held by Beckenburg Boon Kee Lim, a son of Oliver Lin, whom we believe may reside with his parents or act in concert with respect to the ownership of his shares; and (vi) 30 shares held by Benedict Lim Boon Cheong, a son of Oliver Lin, whom we believe may reside with his parents or act in concert with respect to the ownership of his shares.
(3) Consists of (i) 60,000,000 held by Mr. Lin; (ii) 420,000 shares issuable in the event of the conversion of accrued and unpaid compensation through September 30, 2020; and (iii) 714,115 shares issuable in the event of conversion of the aggregate principal amount and estimated accrued interest on certain loans made by Mr. Lin to the Company that mature within the next 60 days.
(4) Consists of (i) 6,000,000 shares held by Mr. Wang; and (ii) 227,571 shares issuable in the event of the conversion of accrued and unpaid compensation through September 30, 2020.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
Transactions with John Lin
The Company, John Lin and certain other parties, including Oliver Lin, entered into an agreement dated April 18, 2017 (the “April 2017 Agreement”), which provided, among other things, for (i) the resignation of the then-incumbent directors and officers of the Company, including Oliver Lin as the Company’s President, Chief Financial Officer, Principal Accounting Officer, Secretary, Treasurer and a director. and Boon Kee (Beckenburg) Lim, the son of Oliver Lin, as the Company’s Chief Executive Officer; (ii) the investment by John Lin of $300,000 in the form of the purchase of 3,000,000 shares (all share amounts in this section are adjusted to give effect to the Reverse Stock Split) of the Company’s Common Stock (the “Lin Shares”) at a price per share of $0.10; and (iii) the appointment of John Lin to serve as a director of the Company and the Company’s President, Chief Executive Officer, Principal Executive Officer, Chief Financial Officer, Principal Accounting Officer, Secretary and Treasurer.
During the period February to November 2017, which period includes the period during which the April 2017 Agreement was negotiated, drafted, executed and delivered, the Company, under Oliver Lin’s management, conducted an offering in 2017 (the “2017 Offering”), consisting of units of the Company’s Common Stock and attached stock purchase warrants, at a price per unit of $0.01, or one-tenth the price per share paid by John Lin for the Lin Shares pursuant to the April 2017 Agreement. In the 2017 Offering, the Company sold an aggregate 10,635,700 shares of its Common Stock to seven persons, with gross proceeds in the amount of $106,357. Item 5, “Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities - Recent Sales of Unregistered Securities”.
John Lin alleged that he was not informed by previous management, at the time of negotiating, drafting and entering into the April 2017 Agreement, of the difference between the price per share of the Company’s units being sold in the 2017 Offering and the price per share of the Company’s Common Stock sold to him pursuant to the April 2017 Agreement. The April 2017 Agreement did not disclose the existence or terms of the 2017 Offering. It was John Lin’s position that he should have been offered to purchase the Lin Shares pursuant to the April 2017 Agreement at the same price per share as in the 2017 Offering, which would have equaled 30,000,000 shares for his $300,000 investment.
John Lin brought this dispute to the attention of the Company’s newly-elected directors during the spring and summer of 2017. However, because of the then-recent turnover of the Company’s management and its Board of Directors, certain misinformation provided to the newly-elected directors by previous management and Oliver Lin’s failure to turn over the complete corporate records to the newly-elected directors, the newly-elected directors were uncertain as to the basis for, and validity of, John Lin’s claim during the spring and summer of 2017.
With the passage of time, upon careful review of such of the corporate records that now exist in the hands of our current directors and officers, further due diligence, and in consultation with our professional advisors, we came to understand the basis for John Lin’s claim.
Pursuant to the Lin Settlement Agreement, we agreed to issue to John Lin the additional 27,000,000 shares of Common Stock that he would have been issued at $0.01 per share, or the same price paid by the purchasers in the 2017 Offering. Of this amount, we issued 18,000,000 shares of Common Stock in October 2019 and issued the remaining 9,000,000 shares in September 2020. As part of the Lin Settlement Agreement, John Lin and we mutually released each other from all claims arising out of this matter.
On April 24, 2020, Mr. Lin loaned us the principal amount of $25,000. The April 2020 Loan bears simple interest at a rate of 1% per annum and is payable as to both principal and interest on October 24, 2020. On December 28, 2020, we repaid the principal and accrued interest on the April 2020 Loan, in the aggregate amount of $25,170.
On May 18, 2020, Mr. Lin loaned us the additional principal amount of $40,410. The May 2020 Loan bears simple interest at a rate of 4% per annum and is payable as to both principal and interest on November 18, 2020. On December 28, 2020, we repaid the principal and accrued interest on the May 2020 Loan, in the aggregate amount of $41,402.
On July 3, 2020, Mr. Lin loaned us the additional principal amount of $20,000. The July 2020 Loan bears simple interest at a rate of 4% per annum and is payable as to both principal and interest on January 3, 2021. On January 5, 2021, we repaid the $20,000 principal amount of the July 2020 Loan, plus accrued interest in the amount of $403, for a total of $20,403.
On August 26, 2020, Mr. Lin loaned us the principal amount of $35,000. The August 2020 Loan bears simple interest at a rate of 4% per annum and is payable as to both principal and interest on February 26, 2021.
At the option of Mr. Lin, the outstanding principal and accrued and unpaid interested on the Lin Notes may be converted into shares of our Common Stock at a rate of $0.05 per share.
Conversion of Amounts Owed to Directors and Officers
Our Board of Directors has authorized that all accrued and unpaid amounts of compensation, as of March 31, 2019, and thereafter, may be converted, at the option of our directors, and present and certain former executive officers, into shares of our Common Stock, at a rate of $0.05 per share. Certain of our present and former directors and officers elected to convert all of such accrued compensation through September 30, 2020 into shares of our Common Stock. As a result of these conversions, we issued an aggregate 3,834,000 shares of our Common Stock, as follows:
Name Accrued Compensation Conversion Rate Shares Issued
Kuang Ming (James) Tsai(a) $ 79,000 $ 0.05 1,580,000
Ching Ming (James) Hsu $ 42,700 $ 0.05 854,000
Yi Ling (Betty) Chen(b) $ 70,000 $ 0.05 1,400,000
Total $ 191,700
3,834,000
(a) Consists of (i) $16,000 of compensation prior to fiscal year 2019 and (ii) $63,000 of compensation for fiscal years 2019 and 2020.
(b) Ms. Chen is our former Treasurer and Secretary, and is a former director of the Company.
Our Board of Directors has also agreed that all accrued and unpaid amounts of director fees, as of March 31, 2019, and thereafter, may be converted upon the occurrence of certain events, at the option of the director, into shares of our Common Stock, at a rate of $0.05 per share. As of September 30, 2020, Mr. Hsu converted $12,600 of director fees into 252,000 shares of our Common Stock and $30,100 of officer compensation into 602,000 shares of our Common Stock, in addition to the amount shown for Mr. Hsu in the table above.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
The following table summarizes the fees charged by DYH & Company (“DYH”) for the services rendered to the company and its subsidiaries in fiscal 2019 and 2020:
Amount Billed and Paid
Type of Fee Fiscal Year
Fiscal Year
Audit (1) $ 37,750 $ 28,915
Audited Related (2) 3,125 3,519
Total $ 40,875 $ 32,434
(1) Represents aggregate fees charged by DYH for audits of consolidated financial statements for fiscal year ended September 30, 2017, 2018, and 2019 and quarterly reviews.
(2) Represents aggregate audits related direct out-of-pock expenses charged by DYH.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) Documents filed as part of this report:
1. Financial Statements
The consolidated financial statements contained herein are as listed on the “Index to Consolidated Financial Statements” on page of this report.
2. Financial Statement Schedule
The consolidated financial statement schedule contained herein is as listed on the “Index to Consolidated Financial Statements” on page of this report. All other schedules have been omitted because they are not applicable, not required, or the information is included in the consolidated financial statements or notes thereto.
3. Exhibits
See Exhibit Index.
(b) Exhibits:
The following exhibits are attached hereto and incorporated herein by reference.
Exhibit No.
Description
3.1(1)
Articles of Incorporation of Genufood Energy Enzymes Corp. dated June 21, 2010
3.2(1)
Certificate of Amendment dated December 10, 2010 to Articles of Incorporation of Genufood Energy Enzymes Corp.
3.3(1)
Certificate of Amendment dated August 1, 2014 to Articles of Incorporation of Genufood Energy Enzymes Corp.
3.4(1)
Certificate of Amendment dated February 24, 2015 to Articles of Incorporation of Genufood Energy Enzymes Corp.
3.5(2)
Certificate of Change Pursuant to Nevada Revised Statutes Section 78.209, as filed by Genufood Energy Enzymes Corp. with the Secretary of State of the State of Nevada on June 24, 2020.
3.5(1)
Bylaws of Genufood Energy Enzymes Corp.
10.1(1)
Amended and Restated Settlement Agreement and Mutual Release made and entered into as of September 30, 2019 by and between Genufood Energy Enzymes Corp. and Jui Pin Lin
10.2(3)
1% Convertible Promissory Note dated April 24, 2020
10.3(4)
4% Convertible Promissory Note dated May 18, 2020
10.4(5)
4% Convertible Promissory Note dated July 3, 2020.
10.5(6)
4% Convertible Promissory Note dated August 26, 2020.
10.6(7)
4% Convertible Promissory Note dated October 9, 2020
10.7(8)
Series C Preferred Shares Subscription Agreement dated September 23, 2020 by and between Hukui Biotechnology Corporation and Genufood Energy Enzymes Corp.
21*
List of subsidiaries
24.1*
Power of Attorney (included after signatures hereto)
31.1*
Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934
31.2*
Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934
32*
Certification of Periodic Financial Report by the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*
XBRL Instance Document
101.SCH*
XBRL Taxonomy Extension Schema Document
101.CAL*
XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB*
XBRL Taxonomy Extension Label Linkbase Document
* Filed herewith.
(1) Incorporated by reference from our registration statement on Form 10, filed with the Securities and Exchange Commission on October 25, 2019.
(2) Incorporated by reference from our Current Report on Form 8-K dated June 23, 2020.
(3) Incorporated by reference from our Current Report on Form 8-K dated April 24, 2020.
(4) Incorporated by reference from our Current Report on Form 8-K dated May 18, 2020.
(5) Incorporated by reference from our Current Report on Form 8-K dated July 3, 2020.
(6) Incorporated by reference from our Current Report on Form 8-K dated August 26, 2020.
(7) Incorporated by reference from our Current Report on Form 8-K dated October 9, 2020.
(8) Incorporated by reference from our Current Report on Form 8-K dated September 23, 2020.
(c) Financial Statement Schedules:
Not applicable.