QDM INTERNATIONAL INC. The following discussion and analysis is based on, and should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this Report. Management's Discussion and Analysis of Financial Condition and Results of Operations contains statements that are forward-looking. These statements are based on current expectations and assumptions that are subject to risk, uncertainties and other factors. These statements are often identified by the use of words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate," or "continue," and similar expressions or variations. Actual results could differ materially because of the factors discussed in "Risk Factors" elsewhere in this Report, and other factors that we may not know.
Overview
From 2016 to 2020, we were a telemedicine company that provides Connect-a-Doc telemedicine kits to schools. Our services aimed to provide alternatives to schools that desire to provide a higher level of healthcare to their students but are unable to keep a full-time school nurse available. In 2020 this business was discontinued and we became a non-operating "shell" company.
Following the change in control in
On
As a result of the consummation of the Share Exchange, we acquired QDM BVI and
its indirect subsidiary, YeeTah, an insurance brokerage company primarily
engaged in the sales and distribution of insurance products in
Impact of COVID-19 and Protests
Impact of COVID-19
An outbreak of a novel strain of the coronavirus, COVID-19, was identified in
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With social distancing measures having been implemented to curtail the spread of
COVID-19, insurance brokers in
Customers from mainland
Impact of Protests in
Since early 2019, a number of political protests and conflicts have occurred in
Under the Basic Law of the
Our revenue is susceptible to
It is unclear whether there will be other political or social unrest in the near
future or that there will not be other events that could lead to the disruption
of the economic, political and social conditions in
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Results of Operations
Years Ended
The following table presents an overview of our results of operations for the
years ended
For The Year For The Year
Ended Ended
March 31, March 31,
2022 2021
Revenue $ 68,969 $ 123,438
Cost of sales 68,836 123,046
Gross profit 133 392
Operating costs and expenses:
General and administrative expenses 376,968 333,284
Total operating costs and expenses 376,968 333,284
Loss from operations (376,835 ) (332,892 )
Total other income (1,330 ) 6,773
Net loss $ (378,165 ) $ (326,119 )
Revenue
Revenue decreased by approximately
Cost of sales
Cost of sales represented commissions paid to individuals or companies
Gross margin
Gross margin was 0.2% for the year ended
General and administrative expenses
General and administrative expenses consist primarily of stock-based payments,
employee salaries, office rents, insurance costs, general office operating
expenses (e.g., utilities, repairs and maintenance) and professional fees.
General and administrative expenses increased by approximately
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Net loss
As a result of the factors described above, net loss for the year ended
Foreign Currency Translation
The Company's reporting currency is
Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currency at the prevailing rates of exchange at the balance date. The resulting exchange differences are reported in the statements of operations and comprehensive income.
The exchanges rate used for translation from
The exchanges rates used for translation from Euro to US$ are as follows:
March 31, 2022 March 31, 2021
Year-end spot rate
Liquidity and Capital Resources
We have financed our operations primarily through cash generated by operating
activities, equity financings and advances from our principal stockholder. QDM
is a holding company and conducts substantially all of its operations through
YeeTah, which is its only entity that has cash inflows and outflows. Our
expenses are paid directly either by YeeTah or our principal stockholder. There
have been no cash and any asset transactions between us and our subsidiaries
since the Share Exchange. As of
March 31, March 31,
2022 2021
Net cash used in operating activities $ (398,610 ) $ (369,145 )
Net cash provided by (used in) investing activities (3,700 ) -
Net cash provided by financing activities 436,363 341,970
Net increase (decrease) in cash, cash equivalents 34,053 (27,175 ) Cash and cash equivalents at beginning of year
35,605 62,780
Cash and cash equivalents at end of year $ 69,658 $ 35,605 Our working capital requirements mainly comprise of commissions paid to
technical representatives and referral fees, operating lease payments and
employee salaries. Historically, our capital requirements were generally met by
cash generated from our operations, equity financings and funding from our
principal stockholder. In light of impact on our operations from the civilian
protests in
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Operating Activities:
Net cash used in operating activities was approximately
(1) Change in accounts receivable resulted in an approximately $200 cash
outflow for the year ended March 31, 2022 , while for the year ended
March 31, 2021 , change in accounts receivable was an approximately
$7,600 cash inflow, which led to an approximately $7,800 decrease in
net cash inflow from operating activities.
(2) Change in prepaid expenses resulted in an approximately $4,000 cash
outflow for the year ended March 31, 2022 , while for the year ended
March 31, 2021 , change in prepaid expenses resulted in a cash outflow
of approximately $29,000 , which led to an approximately $25,000
increase in net cash inflow from operating activities.
(3) Change in accounts payable and accrued liabilities resulted in an
approximately $10,000 cash inflow for the year ended March 31, 2022 ,
while for the year ended March 31, 2021 , change in accounts payable and
accrued liabilities generated a cash outflow of approximately $14,000 ,
which led to an approximately $24,000 increase in net cash inflow from
operating activities.
(4) Change in due to a related party resulted in an approximately $19,000
cash outflow for the year ended March 31, 2022 , while for the year
ended March 31, 2021 , change in due to a related party resulted in a
cash outflow of approximately $28,000 , which led to an approximately
$9,000 decrease in net cash outflow from operating activities.
(5) Change in non-cash operating items resulted in an approximately $2,000
cash outflow for 2022, while for 2021, change in non-cash operating
items resulted in a cash inflow of approximately $21,000 , which led to
an approximately $23,000 decrease in net cash inflow from operating
activities.
Financing Activities:
Net cash generated from financing activities was approximately
Net cash generated from financing activities was approximately
Material Commitments
We have no material commitments for the next twelve months. We will, however, require additional capital to meet our liquidity needs.
We had one office lease agreement and our lease commitments as of
Operating lease
The future aggregate minimum lease payments under the non-cancellable office operating lease are as follows:
2023$ 42,172 2024 42,172 2025 35,143 Total future minimum lease payments$ 119,486 Less: imputed interest (8,135 ) Total operating lease liability$ 111,351
Less: operating lease liability - current 37,551
Total operating lease liability - non current
Critical Accounting Estimates
There were no areas requiring significant management judgments and estimates for the periods covered by this Report.
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Off-balance Sheet Commitments and Arrangements
As of
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