FORWARD-LOOKING STATEMENTS
This quarterly report contains forward-looking statements. These statements
relate to future events or our future financial performance. In some cases, you
can identify forward-looking statements by terminology such as "may", "should",
"expects", "plans", "anticipates", "believes", "estimates", "predicts",
"potential" or "continue" or the negative of these terms or other comparable
terminology. These statements are only predictions and involve known and unknown
risks, uncertainties and other factors that may cause our or our industry's
actual results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements. Although
we believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance
or achievements. Except as required by applicable law, including the securities
laws of the United States, we do not intend to update any of the forward-looking
statements to conform these statements to actual results.
Our unaudited financial statements are stated in United States Dollars (US$) and
are prepared in accordance with United States Generally Accepted Accounting
Principles. The following discussion should be read in conjunction with our
financial statements and the related notes that appear elsewhere in this
quarterly report. The following discussion contains forward-looking statements
that reflect our plans, estimates and beliefs. Our actual results could differ
materially from those discussed in the forward-looking statements. Factors that
could cause or contribute to such differences include, but are not limited to,
those discussed below and elsewhere in this quarterly report.
Unless otherwise specified in this quarterly report, all dollar amounts are
expressed in United States dollars and all references to "common stock" refer to
shares of our common stock.
As used in this quarterly report, the terms "we", "us", "our company", mean
Startech Labs, Inc., a Nevada corporation, unless otherwise indicated.
Overview
We were incorporated in the State of Nevada on April 20, 2013 under the name
UpperSolution.com with the principal business objective of creating an
independent and unbiased mobile app that enables consumers to find the best
cellular rate plan for their need and getting real-time notifications when a new
cellular plan is available.
On January 10, 2018, our company, Analog Nest Technologies, Inc. ("Analog Nest")
and the shareholders of Analog (the "Analog Nest Shareholders") closed a
transaction pursuant a share exchange agreement dated January 10, 2018, whereby
our company acquired 100% of the outstanding shares of common stock of Analog
Nest (the "Analog Nest Stock") from the Analog Nest Shareholders. In exchange
for the Analog Nest Stock our company issued 100,000 shares of our common stock
to the Analog Nest Shareholders.
Analog Nest was incorporated in the State of Nevada on September 8, 2017 as a
mobile application ("app") company focused on utility/entertainment apps for
Google's Android and Apple's iOS platforms. In December 2017, Analog Nest
acquired the following apps: Old Fart Booth, Old Fart Booth Pro, Ugly Face
Booth, Ugly Santa Booth, Baldy - Bald Photo Booth, Fatty - Make Funny Fat Faces,
Slender Man Scary Prank, Anime Booth, Anime Booth Free, Minecart Mayhem, Pimp My
Pet, Pimp My Dog, Cavity Detector - Scary Prank, Mustacher, Alex From Target, A
Farm Animal Salon, Mustacher Pro, Pimp My Cat, and Animal Dress Up Salon.
On June 26, 2019, a majority of our stockholders and our board of directors
approved a change of name of our company to "Startech Labs, Inc." and a reverse
stock split of our issued and outstanding shares of common stock on a
ninety-five (95) old for one (1) new basis. The name change and reverse stock
split became effective on July 17, 2019.
We have not declared bankruptcy, been involved in receivership or any similar
proceeding.
Our office is located at 244 Madison Avenue, New York, NY 10016-2817 and our
telephone number is (802) 255-4212. We do not own any property and we do not
have a corporate website.
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Our Current Business
We are in the business of the creation and development of utility/entertainment
apps for Google's Android and Apple's iOS platforms, through our wholly owned
subsidiary, Analog Nest.
Product Lines
Analog Nest operates primarily in the computer/software applications industry
and specifically in the development of Android and iOS apps for mobile devices.
In the past five years the number of total apps on the Google Play Store has
increased from around 200,000 in 2011 to around 1.6 million in 2015 and
currently about 2 million apps in the Apple's App store as well. The Google Play
Store and Apple's App Store are generally referred to herein as an "App Store".
Analog Nest generates revenue from selling certain apps in the App Stores and
from displaying advertisements in certain applications. Approximately eighty
percent (80%) of Analog Nest revenue is generated from the sales of Apps and the
remaining revenue comes for advertising.
Results of Operations
The following discussion of our financial condition and results of operation for
the period ended November 30, 2019 and 2018 and the years ended May 31, 2019 and
2018 should be read in conjunction with the financial statements and the notes
to those statements that are included elsewhere in this report on Form 8-K.
Three months ending November 30, 2019 compared to three months ending November
30, 2018:
Three Months Ended
November 30,
2019 2018 Change
Revenue $ - $ - $ -
Operating Expenses
General and administrative expenses 1,450 450 1,000
Professional fees 5,529 13,772 (8,243 )
Other income (expense) (9,705 ) - (9,705 )
Loss from continued operations (16,684 ) (14,222 ) (2,462 )
Income from discontinued operations
- 221 (221 )
Net Loss $ (16,684 ) $ (14,001 ) $ (2,683 )
Revenue
We have not generated any revenues for the three months ended November 30, 2019
and November 30, 2018.
Operating expense
Operating expenses for three months ended November 30, 2019 included general and
administrative expenses of $1,450, and professional fees of $5,529,
respectively. Operating expenses for three months ended November 30, 2018
included general and administrative expenses of $450, and professional fees of
$13,772, respectively.
Other expense
Other expense for three months ended November 30, 2019 included amortization of
convertible note discount on beneficial conversion feature of $8,788 and
convertible note interest expense of $917.
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Loss from continued operations
For the three months ended November 30, 2019, our company incurred loss from
continued operations of $16,684, compared to $14,222 incurred during the three
months ended November 30, 2018. The increase in loss from continued operations
was mainly attributed to the increase in other expense incurred during the three
months ended November 30, 2019.
Income from discontinued operations
On December 1, 2018, our company disposed of its mobile application company
subsidiary, Analog Nest Technologies, Inc. During the three months ended
November 30, 2019 and 2018, our company recorded income from discontinued
operations of $NIL and $221, respectively.
Net loss
Net loss totaled $16,684 for the three months ended November 30, 2019, compared
to a net loss for the three months ended November 30, 2018 of $14,001.
Six months ending November 30, 2019 compared to three months ending November 30,
2018:
For the Six Months Ended
November 30,
2019 2018 Change
Revenue $ - $ - $ -
Operating Expenses
General and administrative expenses 1,900 900 1,000
Professional fees 19,222 22,571 (3,349 )
Other income (expense) (60,681 ) - (60,681 )
Loss from continued operations (81,803 ) (23,471 ) (58,332 )
Income from discontinued operations - 555 (555 )
Net Loss $ (81,803 ) $ (22,916 ) $ (58,887 )
Revenue
We have not generated any revenues for the six months ended November 30, 2019
and November 30, 2018.
Operating expense
Operating expenses for six months ended November 30, 2019 included general and
administrative expenses of $1,900, and professional fees of $19,222,
respectively. Operating expenses for six months ended November 30, 2018 included
general and administrative expenses of $900 and professional fees of $22,571,
respectively.
Other expense
Operating expense for six months ended November 30, 2019 included amortization
of convertible note discount on beneficial conversion feature of $54,534 and
convertible note interest expense of $6,147.
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Loss from continued operations
For the six months ended November 30, 2019, our company incurred loss from
continued operations of $81,803, compared to $23,471 incurred during the six
months ended November 30, 2018. The increase in loss from continued operations
was mainly attributed to the increase in other expense incurred during the six
months ended November 30, 2019.
Income from discontinued operations
On December 1, 2018, our company disposed of its mobile application company
subsidiary, Analog Nest Technologies, Inc. During the six months ended November
30, 2019 and 2018, our company recorded income from discontinued operations of
$NIL and $555, respectively.
Net loss
Net loss totaled $81,803 for the six months ended November 30, 2019, compared to
a net loss for the six months ended November 30, 2018 of $22,916.
Liquidity and Capital Resources
Working Capital
November 30, May 31,
2019 2019 Change
Current Assets $ - $ - -
Current Liabilities $ 112,875 $ 85,606 27,269
Working Capital Deficiency $ (112,875 ) $ (85,606 ) (27,269 )
The change in working capital deficiency during the six months ended November
30, 2019 was primarily a result of an increase of convertible notes and accrued
interest payable.
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STARTECH LABS, INC. 
