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
On
Impact of COVID-19 and Protests
Impact of COVID-19
An outbreak of a novel strain of the coronavirus, COVID-19, was identified in
16
With social distancing measures having been implemented to curtail the spread of
COVID-19, insurance brokers in
Customers from mainland
17
Results of Operations
Three Months Ended
June 30, June 31,
2022 2021
Revenue $ 9,782 $ 11,610
Cost of sales 9,782 11,610
Gross profit - -
Operating costs and expenses:
General and administrative expenses 96,625 108,123
Total operating costs and expenses 96,625 108,123
Loss from operations (96,625 ) (108,123 )
Total other (income) expenses (469 ) 896
Net loss $ (96,156 ) $ (109,019 )
Revenue
Revenue decreased by approximately
Cost of sales
The amount decreased by approximately
General and administrative expenses
General and administrative (G&A) expenses consist primarily of employee
salaries, office rents, insurance costs, general office operating expenses
(e.g., utilities, repairs and maintenance) and professional fees. General and
administrative expenses decreased by approximately
Net loss
As a result of the factors described above, net loss for the three months ended
Foreign Currency Translation
The Company's reporting currency is
18
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 sheet 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:
June 30, 2022 June 30, 2021
Period-end spot rate EUR1 = US$1.0469 EUR1 = US$1.1848
Average rate EUR1 = US$1.0646 EUR1 = US$1.2050
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
June 30, June 30,
2022 2021
Net cash used in operating activities $ (88,040 ) $ (101,521 )
Net cash used in investing activities $ (14,628 ) $ -
Net cash provided by financing activities 59,804 96,305
Effect of foreign exchange on cash (20 ) -
Net increase (decrease) in cash, cash equivalents (42,884 ) (5,216 )
Cash and cash equivalents at beginning of period 69,658 35,605
Cash and cash equivalents at end of period
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 the COVID-19
epidemic in
19
Operating Activities:
Net cash used in operating activities was approximately
(1) Change in accounts receivable resulted in an approximately $1,500 cash
inflow for the three months ended June 30, 2022 compared to an
approximately $300 cash outflow for the same period of 2021, which led
to an approximately $2,000 increase in net cash inflow from operating
activities.
(2) Change in prepaid expenses resulted in an approximately $2,000 cash
inflow for the three months ended June 30, 2022 compared to an
approximately $31,000 cash inflow for the same period of 2021, which
led to an approximately $29,000 decrease in net cash inflow from
operating activities.
(3) Change in accounts payable and accrued liabilities resulted in an
approximately $4,000 cash inflow for the three months ended June 30,
2022 compared to an approximately $12,000 cash inflow for the same
period of 2021, which led to an approximately $8,000 decrease in net
cash inflow from operating activities.
(4) Change in due to a related party resulted in an approximately $1,000
cash outflow for the three months ended June 30, 2022 compared to an
approximately $36,000 cash outflow for the same period of 2021, which
led to an approximately $35,000 decrease in net cash outflow from
operating activities.
Investing Activities:
Net cash used in investing activities was approximately
Financing Activities:
Net cash generated from financing activities was approximately
Net cash generated from financing activities was approximately
Material Commitments
We have no material commitments for the next twelve months. We will, however, require additional capital to meet our liquidity needs.
We had one office lease agreement and our lease commitments as of
20
Operating lease
The future aggregate minimum lease payments under the non-cancellable office operating lease are as follows:
2023$ 31,629 2024 42,172 2025 35,143 Total future minimum lease payments$ 108,943 Less: imputed interest (6,809 ) Total operating lease liability$ 102,134
Less: operating lease liability - current 38,013
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.
Off-balance Sheet Commitments and Arrangements
As of
21
© Edgar Online, source
