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NAMI Corp. SEC Filing Form 10-Q Quartely report 2/2017, submited: 2017-06-16

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Form 10-Q

The SEC form 10-Q is a comprehensive report of a company's performance that must be submitted quarterly by all public companies to the Securities and Exchange Commission. In the 10-Q, firms are required to disclose relevant information regarding their financial position. The form must be submitted on time, and the information should be available to all interested parties.

The 10-Q is due 35 days (it used to be 45 days) after each of the first three fiscal quarters. There is no filing after the fourth quarter because that is when the 10-K is filed.

10-Q 1 nami_10q.htm FORM 10-Q nami_10q.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended May 31, 2017

 

o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT

 

For the transition period from ____________ to ______________

 

Commission file number: 333-187007

 

NAMI CORP.

(Exact name of registrant as specified in its charter)

 

Nevada

 

61-1693116

(State or other jurisdiction of incorporation or organization)

 

(IRS Employer Identification No.)

 

3773 Howard Hughes Parkway, Suite 500S

Las Vegas, Nevada 89169

(Address of principal executive offices)

 

(702) 331-8633

(Registrant's telephone number)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

 

Indicate by check mark whether the registrant is a large accelerated filer, and accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

¨

Smaller reporting company

x

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes x No o

 

The number of shares outstanding of the Registrant’s Common Stock as of May 31, 2017 was 706,125,000 shares, $0.001 par value.

 

 
 
 
 

NAMI Corp.

(FKA Pack Fuerte, Inc.)

FORM 10-Q

 

Quarterly Period Ended May 31, 2017

 

INDEX

 

 

 

Page

 

 

 

PART I. FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

Item 1. Financial Statements

 

 

3

Balance Sheets as of May 31, 2017 and November 30, 2016

 

 

3

 

Statements of Operations for the Six Months ended May 31, 2017 and 2016

 

 

4

 

Statements of Cash Flows for the Six Months ended May 31, 2017 and 2016

 

 

5

 

Notes to Unaudited Financial Statements

 

 

6

 

Item 2.

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

 

 

8

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

 

9

 

Item 4.

Controls and Procedures

 

 

10

 

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

 

12

 

Item 1A.

Risk Factors

 

 

12

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

 

12

 

Item 3.

Defaults Upon Senior Securities

 

 

12

 

Item 4.

Mine Safety Disclosures

 

 

12

 

Item 5.

Other Information

 

 

12

 

Item 6.

Exhibits

 

 

13

 

 

 

 

SIGNATURES

 

 

14

 

 
2
 
Table of Contents

 

PART I. FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

NAMI Corp. (FKA Pack Fuerte Inc.)

BALANCE SHEETS

(unaudited)

 

 

 

May 31,

2017

 

 

November 30,

2016

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$ -

 

 

$ -

 

Cash held in trust

 

 

1,750

 

 

 

-

 

Prepaid expenses and deposits

 

 

1,000

 

 

 

-

 

Total Current Assets

 

 

2,750

 

 

 

-

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$ 2,750

 

 

$ -

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

13,217

 

 

$ 13,129

 

Due to related parties

 

 

91,929

 

 

 

34,025

 

Total Current Liabilities

 

 

105,146

 

 

 

47,154

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

Capital stock - Authorized 5,000,000,000 shares of common stock, $0.001 par value,

 

 

-

 

 

 

-

 

Issued and outstanding 706,125,000 shares at May 31, 2017 and at November 30, 2016

 

 

706,125

 

 

 

706,125

 

Additional paid-in capital

 

 

(689,285 )

 

 

(689,285 )

Accumulated deficit

 

 

(119,236

)

 

 

(63,994 )

Total stockholders' (deficit) equity

 

 

(102,396

)

 

 

(47,154 )

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

 

$ 2,750

 

 

$ -

 

 

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

 

 
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NAMI Corp. (FKA Pack Fuerte Inc.)

STATEMENTS OF OPERATIONS

(unaudited)

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

May31,

 

 

May 31,

 

 

May31,

 

 

May 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$ 1,516

 

 

$ 300

 

 

$ 3,037

 

 

$ 1,433

 

Professional fees

 

 

24,167

 

 

 

2,200

 

 

 

58,084

 

 

 

4,400

 

OPERATING LOSS

 

 

(25,683 )

 

 

(2,500 )

 

 

(61,121 )

 

 

(5,833 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on forgiveness of payables

 

 

5,879

 

 

 

-

 

 

 

5,879

 

 

 

-

 

Total Other income

 

 

5,879

 

 

 

-

 

 

 

5,879

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

 

$

(19,804

)

 

$ (2,500 )

 

$ (55,242 )

 

$ (5,833 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Loss per Common Share

 

$ (0.00 )

 

$ (0.00 )

 

$ (0.00 )

 

$ (0.00 )

Basic and Diluted Weighted Average Common Shares Outstanding

 

 

706,125,000

 

 

 

706,125,000

 

 

 

706,125,000

 

 

 

706,125,000

 

  

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

  

 
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NAMI Corp. (FKA Pack Fuerte Inc.)

STATEMENTS OF CASH FLOWS

(unaudited)

 

 

 

For the Six Months Ended

 

 

 

May 31,

 

 

May 31,

 

 

 

2017

 

 

2016

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss

 

$

(55,242

)

 

$ (5,833 )

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Expenses paid on company's behalf by related party

 

 

-

 

 

 

13,003

 

Increase (decrease) in accrued expenses

 

 

-

 

 

 

(7,170 )

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses and deposits

 

 

(1,000 )

 

 

 

 

Accounts payable and accrued liabilities

 

 

88

 

 

 

-

 

Net cash used in operating activities

 

 

(56,154 )

 

 

-

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from related party advances

 

 

57,904

 

 

 

-

 

Net cash provided by financing activities

 

 

57,904

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

1,750

 

 

 

-

 

Cash and cash equivalents - beginning of period

 

 

-

 

 

 

516

 

Cash and cash equivalents - end of period

 

$ 1,750

 

 

$ 516

 

 

 

 

 

 

 

 

 

 

Supplemental Cash Flow Disclosures

 

 

 

 

 

 

 

 

Cash paid for interest

 

$ -

 

 

$ -

 

Cash paid for income taxes

 

$ -

 

 

$ -

 

  

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

 

 
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NAMI Corp. (FKA Pack Fuerte Inc.)

 

NOTES TO THE FINANCIAL STATEMENTS

 

May 31, 2017

(unaudited)

 

NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION

 

The Company was incorporated in the State of Nevada as a for-profit Company on September 5, 2012 and established a fiscal year end of November 30. The Company intends to develop a built in safe with a combination lock that can store personal and or valuable items, inside of backpacks, carry-on luggage and suitcases.

 

The Company presently has no products. All activities of the Company relate to its organization, initial funding and share issuances.

 

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s November 30, 2016 audited financial statements. The results of operations for the periods ended May 31, 2017 and the same period last year are not necessarily indicative of the operating results for the full years.

 

Basis of presentation

In the opinion of management, the accompanying balance sheets and related interim statements of income, cash flows, and stockholders' equity include all adjustments, consisting only of normal recurring items, necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Preparing financial statements requires management to make estimates and assumptions the affect the reported amounts of assets, liabilities, revenue and expenses. Actual results and outcomes may differ from management's estimates and assumptions.

 

Recent accounting pronouncements

The company has evaluated all the recent accounting pronouncements and believes that none of them will have a material effect on the company’s financial statement.

 

NOTE 2 – GOING CONCERN

 

The Company’s financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Currently, the Company has a working capital deficit of $102,396, an accumulated deficit of $119,236 and net loss from operations since inception of $119,236. The Company does not have a source of revenue sufficient to cover its operation costs giving substantial doubt for it to continue as a going concern. The Company will be dependent upon the raising of additional capital through placement of our common stock in order to implement its business plan, or merge with an operating company. There can be no assurance that the Company will be successful in either situation in order to continue as a going concern. The Company funded its initial operations by way of issuing Founder’s shares.

 

The officers and directors have committed to advancing certain operating costs of the Company, including Legal, Audit, Transfer Agency and Edgarizing costs.

 

 
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NOTE 3 – CAPITAL STOCK

 

The Company’s capitalization is 5,000,000,000 common shares with a par value of $0.001 per share. No preferred shares have been authorized or issued.

 

As of November 30, 2016, the Company has not granted any stock options and has not recorded any stock-based compensation.

 

On September 24, 2012 the Company issued 12,075,000,000 common shares for cash at $0.000002 per share.

 

On August 18, 2014 the Company approved a 150:1 forward split of the common stock and on October 26, 2016 the Company approved a 7:1 forward split of the common stock. All shares have been retrospectively restated.

 

On May 31, 2017, and November 30, 2016, the Company had 706,125,000 common shares issued and outstanding.

 

NOTE 4 – RELATED PARTY TRANSACTIONS

 

As of May 31, 2017, and November 30, 2016, the Company has received $91,929 and $34,025, respectively, in loans and payment of expenses from a related party. The loans are payable on demand and without interest.

  

NOTE 5 - SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and has determined that there are no events to disclose.

 

 
7
 
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS AND RESULTS OF OPERATIONS

 

FORWARD-LOOKING STATEMENTS

 

This quarterly report contains forward-looking statements relating to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "intends", "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 which may cause our or our industry's actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance 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 or performance. You should not place undue reliance on these statements, which speak only as of the date that they were made. These cautionary statements should be considered with any written or oral forward-looking statements that we may issue in the future. 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, later events or circumstances or to reflect the occurrence of unanticipated events.

 

In this report unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares of our capital stock.

 

The management’s discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").

 

As used in this quarterly report, the terms "we", "us", "our", and "our company" means NAMI Corp., unless otherwise indicated.

 

Company History

 

NAMI Corp. (formerly known as Pack Fuerte, Inc.) (the “Company”) was incorporated in the State of Nevada on September 5, 2012. November 30th has been established as the Company’s fiscal year end.

 

On October 31, 2016, a change in control of the Company occurred by virtue of the Company's largest shareholder, Bunloet Sriphanorm, selling 60,750,000 shares of the Company’s common stock to Ong Tee Keat, an individual residing in Malaysia, which represented 60.22% of the Company’s total issued and outstanding shares of common stock at that time. Such 60,750,000 shares sold represented all of the shares of the Company’s common stock owned by Mr. Sriphanorm.

 

On October 31, 2016, the Company filed a Certificate of Amendment with the Nevada Secretary of State (the “Nevada SOS”) whereby it amended its Articles of Incorporation by (a) increasing the Company’s authorized number of shares of common stock from 200 million to 5 billion; and (b) increasing all of its issued and outstanding shares of common stock at a ratio of seven (7) shares for every one (1) share held. The Company’s Board of Directors approved this amendment on October 26, 2016.

 

On November 3, 2016, the Company filed Articles of Merger with the Nevada SOS whereby it entered into a statutory merger with its wholly-owned subsidiary, NAMI Corp. pursuant to Nevada Revised Statutes 92A.200 et. seq. The effect of such merger is that the Company was the surviving entity and changed its name to “NAMI Corp.”

 

Effective December 13, 2016, the Board of Directors (the “Board”) of the Company appointed Mr. Ong Tee Keat as Chairman of the Board of Directors, CEO, Secretary, and Treasurer, and Binloet Sriphanorm resigned from his positions as an officer and director of the Company.

 

We are a development-stage Company that had plans to develop a built in safe with a combination lock that can store personal and or valuable items, inside of backpacks, carry-on luggage and suitcases. Our business plan was to generate revenues by licensing our intellectual property for the Company’s products for luggage manufacturing companies, in the event we are able to successfully develop our prototype(s). Due to the aforementioned change of control we are seeking business and acquisition opportunities in Asia utilizing the contacts and knowledge of our sole officer and director, Mr. Ong.

 

 
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Results of Operations

 

Six-month period ended May 31, 2017 compared to the six-month period ended May 31, 2016

  

We had no revenue during the six (6) month period ended May 31, 2017 and May 31, 2016.

 

We incurred operating expenses in the amount of $61,121 in the six-month period ended May 31, 2017 as compared to $5,833 in the six-month period ended May 30, 2016. The increase was primarily due to legal costs incurred in reorganizing the ownership of the Company.

 

During the six-month period ended May 31, 2017, the Company had a gain on forgiveness of payables of $5,879.

 

Three-month period ended May 31, 2017 compared to the three-month period ended May 31, 2016

 

We had no revenue during the three (3) month period ended May 31, 2017 and May 30, 2016.

 

During the three-month period ended May 31, 2017, we incurred operating expenses in the amount of $25,683 compared to $2,500 during the three-month period ended May 31, 2016. The increase was primarily due to legal costs incurred in reorganizing the ownership of the Company.

 

During the three-month period ended May 31, 2017, the Company had a gain on forgiveness of payables of $5,879.

 

Liquidity and Capital Resources

 

As of May 31, 2017, we had $1,750 in cash and cash held in trust, with liabilities of $105,146, as compared to November 30, 2016, where we had $0 in cash, with liabilities of $47,154.

 

The Company’s current primary source of capital is borrowings from related parties. The Company is currently exploring debt and equity funding opportunities in order to fund future operating plans.

 

Plan of Operations

 

This report contains forward looking statements relating to our Company's future economic performance, plans and objectives of management for future operations, projections of revenue mix and other financial items that are based on the beliefs of, as well as assumptions made by and information currently known to, our management. The words "expects”, “intends”, “believes”, “anticipates”, “may”, “could”, “should" and similar expressions and variations thereof are intended to identify forward-looking statements. The cautionary statements set forth in this section are intended to emphasize that actual results may differ materially from those contained in any forward looking statement.

 

The Company will have to raise approximately $125,000 to meet its operating needs for the next twelve (12) months. It intends to raise funds from private placement of its securities. If the Company is unsuccessful in raising the additional proceeds through a private placement offering it will then have to seek additional funds through debt financing, which would be highly difficult for a development stage company to secure. Therefore, the Company is highly dependent upon the success of the anticipated private placement offering and failure thereof would result in the Company having to seek capital from other sources such as debt financing, which may not even be available to the Company. However, if such financing were available, because we are a development stage company with no operations to date, we would likely have to pay additional costs associated with high risk loans and be subject to an above market interest rate. At such time these funds are required, management would evaluate the terms of such debt financing and determine whether the business could sustain operations and growth and manage the debt load. If the Company cannot raise additional proceeds via a private placement of our common stock or secure debt financing we would be required to cease business operations. As a result, investors in the Company’s common stock would lose all of their investment.

 

The Company intends to become a holding company with the objective of systematically acquiring assets in the form of profitable companies to be acquired throughout the Asian region, providing consistent attractive returns to its investments.

 

However, the Company has no current plans, preliminary or otherwise, to merge with any other entity.

 

Off Balance Sheet Arrangement

 

The Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect or change on the Company’s financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. The term “off-balance sheet arrangement” generally means any transaction, agreement or other contractual arrangement to which an entity unconsolidated with the Company is a party, under which the Company has (i) any obligation arising under a guarantee contract, derivative instrument or variable interest; or (ii) a retained or contingent interest in assets transferred to such entity or similar arrangement that serves as credit, liquidity or market risk support for such assets.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable.

 

 
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ITEM 4. CONTROLS AND PROCEDURES

 

In accordance with Rule 13a-15(b) of the Securities Exchange Act of 1934 as amended (the “Exchange Act”), as of the end of the period covered by this Quarterly Report on Form 10-Q, the Company’s management evaluated, with the participation of the Company’s principal executive and financial officer, the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act). Disclosure controls and procedures are defined as those controls and other procedures of an issuer that are designed to ensure that the information required to be disclosed by the issuer in the reports it files or submits under the Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based on that Evaluation he concluded that the Company’s disclosure controls and procedures are ineffective in gathering, analyzing and disclosing information needed to satisfy the registrant’s disclosure obligations under the Exchange Act. Based upon an evaluation of the effectiveness of disclosure controls and procedures, our Company’s principal executive and principal financial officer has concluded that as of the end of the period covered by this Quarterly Report on Form 10-Q our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act) are not effective because of the material weaknesses in our disclosure controls and procedures. which is identified below. It should be noted that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

 

The material weaknesses in our disclosure control procedures are as follows:

 

1. Lack of formal policies and procedures necessary to adequately review significant accounting transactions. The Company utilizes a third party independent contractor for the preparation of its financial statements. Although the financial statements and footnotes are reviewed by our management, we do not have a formal policy to review significant accounting transactions and the accounting treatment of such transactions. The third party independent contractor is not involved in the day to day operations of the Company and may not be provided information from management on a timely basis to allow for adequate reporting/consideration of certain transactions.

 

2. Audit Committee and Financial Expert. The Company does not have a formal audit committee with a financial expert, and thus the Company lacks the board oversight role within the financial reporting process.

 

We intend to initiate measures to remediate the identified material weaknesses including, but not necessarily limited to, the following:

 

 

· Establishing a formal review process of significant accounting transactions that includes participation of the Chief Executive Officer, the Chief Financial Officer and the Company’s corporate legal counsel.

 

· Form an Audit Committee that will establish policies and procedures that will provide the Board of Directors a formal review process that will among other things, assure that management controls and procedures are in place and being maintained consistently.

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Internal control over financial reporting is to provide reasonable assurance regarding the reliability of our financial reporting for external purposes in accordance with accounting principles generally accepted in the United States of America. Internal control over financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect our transactions; providing reasonable assurance that transactions are recorded as necessary for preparation of our financial statements; providing reasonable assurance that receipts and expenditures of company assets are made in accordance with management authorization; and providing reasonable assurance that unauthorized acquisition, use or disposition of company assets that could have a material effect on our financial statements would be prevented or detected.

 

As of May 31, 2017, management assessed the effectiveness of the Company’s internal control over financial reporting based on the criteria for effective internal control over financial reporting established in SEC guidance on conducting such assessments. Based on this evaluation under the COSO Framework, our management concluded that our internal control over financial reporting are not effective as of May 31, 2017. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control-Integrated Framework. Based on that evaluation, they concluded that, as of May 31, 2017, such internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules as more fully described below. This was due to deficiencies that existed in the design or operation of our internal control over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.

 

 
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The matters involving internal controls and procedures that the Company’s management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) lack of a functioning audit committee and lack of a majority of outside directors on the Company's board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (2) inadequate segregation of duties consistent with control objectives; (3) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements; and (4) ineffective controls over period end financial disclosure and reporting processes. The aforementioned material weaknesses were identified by the Company's Chief Financial Officer in connection with the review of our financial statements as of May 31, 2017 and communicated to our management.

 

Management believes that the material weaknesses set forth in items (2), (3) and (4) above did not have an affect on the Company's financial results. However, management believes that the lack of a functioning audit committee and lack of a majority of outside directors on the Company's board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures can result in the Company's determination to its financial statements for the future years.

 

We are committed to improving our financial organization. As part of this commitment, we will create a position to segregate duties consistent with control objectives and will increase our personnel resources and technical accounting expertise within the accounting function when funds are available to the Company: i) Appointing one or more outside directors to our board of directors who shall be appointed to the audit committee of the Company resulting in a fully functioning audit committee who will undertake the oversight in the establishment and monitoring of required internal controls and procedures; and ii) preparing and implementing sufficient written policies and checklists which will set forth procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements.

 

Management believes that the appointment of more outside directors, who shall be appointed to a fully functioning audit committee, will remedy the lack of a functioning audit committee and a lack of a majority of outside directors on the Company's Board. In addition, management believes that preparing and implementing sufficient written policies and checklists will remedy the following material weaknesses (i) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements; and (ii) ineffective controls over period end financial close and reporting processes. Further, management believes that the hiring of additional personnel who have the technical expertise and knowledge will result proper segregation of duties and provide more checks and balances within the department. Additional personnel will also provide the cross training needed to support the Company if personnel turn over issues within the department occur. This coupled with the appointment of additional outside directors will greatly decrease any control and procedure issues the Company may encounter in the future.

 

We will continue to monitor and evaluate the effectiveness of our internal controls and procedures and our internal controls over financial reporting on an ongoing basis and are committed to taking further action and implementing additional enhancements or improvements, as necessary and as funds allow.

 

There have been no changes in our internal controls over financial reporting that occurred during the quarter ended May 31, 2017 that have materially affected or are reasonably likely to materially affect, our internal controls over financial reporting.

 

This quarterly report does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s independent registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide management report in the Quarterly Report.

 

 
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PART II – OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

We are not currently a party to any legal proceedings.

 

ITEM 1A. RISK FACTORS

 

We are a smaller reporting company as defined in Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

The following sales of equity securities by the Company occurred during the six month period ended May 31, 2017:

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Mine safety disclosures are not applicable.

 

ITEM 5. OTHER INFORMATION

 

None.

 

 
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ITEM 6. EXHIBITS

 

 

Exhibit

 

Exhibit Description

3.1

 

Articles of Incorporation (incorporated by reference from our Registration Statement on Form S-1 filed on March 1, 2013)

3.2

 

Amendment of Articles of Incorporation (incorporated by reference from Exhibit 3.(I) of our Form 8-K filed on December 16, 2016)

3.3

 

Articles of Merger (incorporated by reference from Exhibit 3.(II) of our Form 8-K filed on December 16, 2016)

3.4

 

Bylaws (incorporated by reference from our Registration Statement on Form S-1 filed on March 1, 2013)

31.1

 

Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Executive Officer

31.2

 

Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Financial Officer *

32.1

 

Section 1350 Certification of Chief Executive Officer

32.2

 

Section 1350 Certification of Chief Financial Officer **

101.INS

 

XBRL Instance Document

101.SCH

 

XBRL Schema Document

101.CAL

 

XBRL Calculation Linkbase Document

101.DEF

 

XBRL Definition Linkbase Document

101.LAB

 

XBRL Labels Linkbase Document

101.PRE

 

XBRL Presentation Linkbase Document

________

* Included in Exhibit 31.1

** Included in Exhibit 32.1

 

 
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SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

NAMI CORP., a Nevada corporation

       

DATED: June 16, 2017

By:  /s/ Ong Tee Keat

 

 

Ong Tee Keat

 
   

President, Director, Principal Executive Officer,

Principal Financial Officer, Principal Accounting Officer

 

 

 

14

 

NAMI Corp. Latest filings

Filing dateCompanyFormQuarterYear
2017-06-16NAMI Corp.10-Q22017view
2017-05-23NAMI Corp.10-Q22017view
2017-05-03NAMI Corp.10-K22017view
2017-02-27NAMI Corp.NT 10-K12017view
2016-12-22NAMI Corp.8-K42016view
2016-12-16NAMI Corp.8-K42016view
2016-10-11NAMI Corp.10-Q42016view
2016-09-30NAMI Corp.8-K/A32016view
2016-09-28NAMI Corp.8-K32016view
2016-09-08NAMI Corp.10-Q/A32016view