Amended Quarterly Report (10-q/a)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

Form 10-Q/A

Amendment No. 1

 

(Mark one)

[X] Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the quarterly period September 30, 2019

 

[  ] Transition Report under Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the transition period from ______________ to _____________

 

Commission file number 333-127389

 

PLYZER TECHNOLOGIES INC.

(Exact name of registrant as specified in its charter)

 

Nevada		99-0381956
(State or other jurisdiction of incorporation)		(IRS Employer Identification No.)

 

47 Avenue Road, Suite 200

Toronto, ON Canada M5R 2G3

(Address of principal executive offices)(Zip Code)

 

Registrant's telephone number, including area code: [phone]

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	None	None

 

Indicate by check mark whether the issuer (1) has filed all reports  required to be filed by Section 13 or 15(d) of the Securities Exchange Act 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 [  ]

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation ST during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X]  No [  ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company (as defined in Rule 12b-2 of the Exchange Act).

 

Large accelerated filer  [  ]	Accelerated filer  [  ]
Non-accelerated filer  [  ]	Smaller reporting company  [X]
Emerging growth company  [  ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

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

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APPLICABLE ONLY TO CORPORATE ISSUERS

 

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:

 

As of November 12, 2019, there were 92,997,865 shares of the Issuer's common stock, par value $0.001 per share outstanding.

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

Certain statements in this quarterly report on Form 10-Q contain or may contain forward-looking  statements that are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements were based on various factors and were derived utilizing numerous assumptions and other factors that could cause our actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors. Most of these factors are difficult to predict accurately and are generally beyond our control. You should consider the areas of risk described in connection with any forward-looking statements that may be made herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Readers should carefully review this quarterly report in its entirety, including but not limited to our financial statements and the notes thereto. Except for our ongoing obligations to disclose material information under the Federal securities laws, we undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events. For any forward-looking statements contained in any document, we claim the protection of the safe harbour for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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EXPLANATORY NOTE

 

Plyzer Technologies Inc. (the “Company”) is filing this Amendment No. 1 on Form 10-Q/A (this “Amendment”) to amend our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019, which was originally filed with the Securities and Exchange Commission on November 18, 2019 (the “Original Filing”). This Amendment is being filed for the purpose of correcting a certain error in the Condensed Consolidated Statements of Operations and Comprehensive Loss, on page F-2. Line item “Warrant modification expense” was inadvertently omitted from the Condensed Consolidated Statements of Operations and Comprehensive Loss in the Original Filing.

 

This Amendment speaks as of the filing date of the Original Filing and does not reflect any subsequent information or events. Except as noted above, no information included in the Original Filing has been modified or updated in any way.

 

In connection with the filing of this Amendment, we are including as exhibits currently dated certifications of our principal executive officer and principal financial officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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INDEX
PART I	FINANCIAL INFORMATION	5
Item 1	Condensed Consolidated Financial Statements	5
Item 2	Management’s Discussion and Analysis or Plan of Operations	6
Item 3	Quantitative and Qualitative Disclosures about Market Risk	11
Item 4	Controls and Procedures	11
PART II	OTHER INFORMATION	13
Item 1	Legal Proceedings	13
Item 1A	Risk Factors	13
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	13
Item 3	Defaults upon Senior Securities	13
Item 4	Mine Safety Disclosures	13
Item 5	Other Information	13
Item 6	Exhibits	13
Signature		14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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4

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PART I. FINANCIAL INFORMATION

 

Item 1 - Financial Statements

 

 

INDEX TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

 

Condensed Consolidated Balance Sheets (unaudited)	F-1
Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited)	F-2
Condensed Consolidated Statement of Stockholders’ Equity(Deficit) (unaudited)	F-3
Condensed Consolidated Statements of Cash Flows (unaudited)	F-5
Notes to Condensed Consolidated Financial Statements (unaudited)	F-6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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5

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Plyzer Technologies Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

 

 

	September 30, 2019			March 31, 2019
ASSETS
CURRENT ASSETS
Cash	$	188,600		$	183,439
Accounts receivable		6,991			-
Other receivable and prepaid expenses		252,283			20,887
Total current assets		447,874			204,326
Furniture and equipment, net		74,778			2,615
Investments		83,454			-
Total Assets	$	606,106		$	206,941
LIABILITIES AND STOCKHOLDERS’ EQUITY(DEFICIT)
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	268,796		$	47,989
Payable to a related party		178,933			-
Advances from director and shareholder		341,873			264,733
Convertible debt		651,514			306,648
Derivative liabilities		2,263,169			2,110,425
Total Current Liabilities	$	3,704,285		$	2,729,795
Total Liabilities	$	3,704,285		$	2,729,795
STOCKHOLDERS’ EQUITY(DEFICIT)
Common stock, $0.001 par value, authorized 300,000,000  shares authorized; 92,625,158 shares issued    and outstanding at September 30, 2019 and 84,330,955    at March 31, 2019		92,625			84,330
Common stock subscribed		550			300
Additional paid-in capital		32,741,733			28,015,297
Accumulated other comprehensive income		64,644			67,653
Accumulated deficit	$	(35,997,731)		$	(30,690,434)
Total Stockholders’ Equity(Deficit)		(3,098,179)			(2,522,854)
Total Liabilities and Stockholders’ Equity (Deficit)	$	606,106		$	206,941

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

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F-1

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Plyzer Technologies Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

 

 

		Three months ended September 30,					Six months ended September 30,
		2019			2018		2019			2018
REVENUES	$	2,610		$	-		$	36,512		$	-
OPERATING EXPENSES:
Development costs		26,764			1,077,290			213,356			1,360,748
General and administrative expenses		61,858			21,105			117,066			32,659
Salaries and benefits		301,530			-			477,347			-
Selling and marketing		88,908			-			281,916			-
Professional fees		118,900			59,100			214,585			88,400
Consulting fees		38,739			18,630			124,264			42,356
Stock compensation		189,475			19,136,270			376,525			19,136,270
Travel. Meals and promotions		49,679			21,474			49,679			21,474
Total expenses	$	875,853		$	20,333,869		$	1,854,738		$	20,681,907
Loss from operations		(873,243)			(20,333,869)			(1,818,226)			(20,681,907)
Other income (expense)
Premium on early settlement of convertible loans		(270,470)			(9,900)			(430,015)			(31,875)
Derivative (loss) gain		1,414,776			(226,319)			68,812			(172,823)
Warrant modification expense		(1,580,000)			-			(1,580,000)			-
Interest and amortization expense		(882,128)			(422,013)			(1,547,868)			(631,172)
Total other income (expense)		(1,317,822)			(612,232)			(3,489,071)			(789,870)
Net loss		(2,191,065)			(20,946,101)			(5,307,297)			(21,471,777)
Other comprehensive gain(loss)		(3,527)			196			(3,009)			1,778
Comprehensive (loss)	$	(2,194,592)		$	(20,945,905)		$	(5,310,306)		$	(21,469,999)
Net loss per share, basic and diluted	$	(0.02)		$	(0.35)		$	(0.06)		$	(0.41)
Number of weighted average common shares outstanding, basic and diluted		91,006,051			60,695,899			89,109,541			52,030,991

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

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F-2

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Plyzer Technologies Inc.

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)

Three and Six Months Ended September 30, 2018

(Unaudited)

 

	Number of shares	Common stock		Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive income		Total stockholders' equity(deficit)
BEGINNING BALANCE, April 1, 2018	43,183,271	$	43,183	$	3,901,238	$	(5,125,413)	$	65,353	$	(1,115,639)
Other comprehensive gain	-		-		-		-		1,582		1,582
Derivative liabilities reclassified as additional paid in capital due to conversion of notes	-		-		65,914		-		-		65,914
Net loss	-		-		-		(525,676)		-		(525,676)
ENDING BALANCE, June 30, 2018	43,183,271	$	43,183	$	3,967,152	$	(5,651,089)	$	66,935	$	(1,573,819)
Warrants exercised	30,000,000		30,000		45,000		-		-		75,000
Warrants issued for services	-		-		19,136,270		-		-		19,136,270
Shares issued for services provided	1,843,334		1,843		827,658		-		-		829,501
Shares issued on conversion of loans and accrued interest	1,707,499		1,708		413,950		-		-		415,658
Derivative liabilities reclassified as additional paid in capital due to conversion of notes	-		-		455,925		-		-		455,925
Translation differences	-		-		-		-		196		196
Net loss	-		-		-		(20,946,101)		-		(20,946,101)
ENDING BALANCE, September 30, 2018	76,734,104	$	76,734	$	24,845,955	$	(26,597,190)	$	67,131	$	(1,607,370)

 

 

 

 

 

 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

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F-3

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Plyzer Technologies Inc.

Condensed Consolidated Statements of Shareholders’ Equity (Deficit)

Three and Six Months Ended September 30, 2019

(Unaudited)

 

 

	Number of shares	Common stock		Common stock subscribed		Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive income		Total stockholders' equity(deficit)
BEGINNING BALANCE, April 1, 2019	84,330,955	$	84,330	$	300	$	28,015,297	$	(30,690,434)	$	67,653	$	(2,522,854)
Shares issued for services provided	1,240,000		1,240		-		258,560		-		-		259,800
Shares issued under private placement	1,550,000		1,550		(300)		248,750		-		-		250,000
Shares issued on conversion of loans and accrued interest	1,095,897		1,096		-		94,333		-		-		95,429
Derivative liabilities reclassified as additional paid in capital due to conversion of notes	-		-		-		522,815		-		-		522,815
Translation differences	-		-		-		-		-		(518)		(518)
Net loss	-		-		-		-		(3,116,232)		-		(3,116,232)
ENDING BALANCE, June 30, 2019	88,216,852	$	88,216	$	-	$	29,139,755	$	(33,806,666)	$	67,135	$	(4,511,560)
Shares issued for services provided	374,275		374		-		170,913		-		-		171,287
Shares issued under private placement	3,354,000		3,355		-		667,445		-		-		670,800
Subscriptions for unissued shares	-		-		550		10,450		-		-		11,000
Warrants exercised	250,000		250				49,750		-		-		50,000
Warrants modification expenses							1,580,000		-		-		1,580,000
Shares issued on conversion of loans and accrued interest	430,031		430				70,722		-		-		71,152
Derivative liabilities reclassified as additional paid in capital due to conversion of notes	-		-		-		1,052,698		-		-		1,052,698
Translation differences	-		-		-		-		-		(2,491)		(2,491)
Net loss	-		-		-		-		(2,191,065)		-		(2,191,065)
ENDING BALANCE, September 30, 2019	92,625,158	$	92,625	$	550	$	32,741,733	$	(35,997,731)	$	64,644	$	(3,098,179)

 

 

 

 

 

 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

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F-4

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Plyzer Technologies Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

Six months ended September 30,	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(5,307,297)		$	(21,471,777)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation		9,852			1,307
Gain on write off of accounts payable		-			(46,000)
Interest and fees settled in shares		20,881			-
Stock compensation		376,525			20,040,771
Warrant modification expense		1,580,000			-
Amortization of debt discount on convertible notes		1,424,186			602,968
Derivative (gain)loss		(68,812)			172,823
Changes in operating assets and liabilities
(Increase) decrease in trade receivable		(6,991)			-
(Increase) decrease in receivable and prepayment		(176,834)			(34,245)
Increase in payable to a related party		178,933			-
Increase in accounts payable and accrued liabilities		220,806			(39,017)
Net cash used by operating activities	$	(1,748,751)		$	(773,170)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of furniture and equipment		(82,015)			-
Investment		(83,454)			-
Net cash (used in) investing activities	$	(165,469)		$	-
CASH FLOWS FROM FINANCING ACTIVITIES:
Advances from director and stockholder		443,461			117,818
Payments on director and stockholder advances		(366,321)			(49,707)
Proceeds from common shares issued		981,800			-
Payments on convertible loans		(1,006,250)			(104,000)
Proceeds from convertible loan		1,869,700			752,550
Net cash provided by financing activities	$	1,922,390		$	716,661
Effects of exchange rates on cash	$	(3,009)		$	1,778
Net increase (decrease) in cash		5,161			(54,731)
Cash, beginning of period		183,439			261,575
Cash, end of period	$	188,600		$	206,844
SUPPLEMENTAL DISCLOSURES
Cash paid during the period
Income taxes	$	-		$	-
Interest paid	$	50,386		$	9,024
Non-Cash Investing and Financing Activities
Convertible notes and accrued interest converted into common stock	$	166,581		$	415,658
Derivative liability reclassified as additional paid in capital	$	1,575,513		$	521,839
Common stock issued for prepaid expenses	$	54,562		$	-

 

 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

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F-5

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Plyzer Technologies Inc.

Six months ended September 30, 2019

Notes to Unaudited Condensed Financial Statements

 

NOTE 1 - BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

(A)Business Description 

 

Plyzer Technologies Inc. (the “Company”), incorporated on February 23, 2005 under the laws of the state of Nevada, and through its subsidiaries, is a provider of custom, real-time, cloud-based business intelligence solutions for brands to analyze critical online price and market data.

 

Plyzer Spain, a wholly owned subsidiary, commenced its operations in April 2019 and signed its first customer on June 20, 2019.

 

(B)Basis of Presentation 

 

The unaudited interim financial statements as of September 30, 2019 and for the three and six months ended September 30, 2019 and 2018 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to present fairly the balance sheet, operating results and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America. Operating results for the three and six  months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2020. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted in accordance with the SEC’s rules and regulations for interim reporting.

 

(C)Consolidation 

 

The unaudited consolidated interim financial statements include the accounts of the Company and,

 

a.)Plyzer Corporation, a wholly owned subsidiary incorporated in the State of Delaware on December 9, 2016. 

 

b.)Plyzer Technologies (Canada) Inc., a wholly owned subsidiary incorporated in Ontario, Canada on April 11, 2017. 

 

c.)Plyzer Technologies Spain s.l., a wholly owned subsidiary incorporated in Spain in April 2019 

 

d.)PlyzerCan Intelligence Ltd., a wholly owned subsidiary incorporated in Ontario, Canada in June 2019. The subsidiary has not yet commenced any operations. 

 

e.)Plyzer Blockchain Technologies Inc., a wholly owned subsidiary incorporated in Ontario, Canada on November 3, 2017. The subsidiary has not yet commenced any operations. 

 

The unaudited interim financial statements should be read in conjunction with the Company’s Annual Report filed on Form 10-K for the year ended March 31, 2019. The significant accounting policies followed are the same as those detailed in the said Annual Report except for the following new policies which were effective April 1, 2019:

 

Revenue Recognition

 

We adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”).

 

We recognize revenues when we satisfy a performance obligation by transferring a promised good or service (that is, an asset) to a customer. An asset is transferred when the customer obtains control of that asset.

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F-6

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Plyzer Technologies Inc.

Six months ended September 30, 2019

Notes to Unaudited Condensed Financial Statements

 

To achieve that core principle, we apply the five steps defined under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We assess our revenue arrangements against specific criteria in order to determine if we are acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. We allocate the transaction price to each performance obligation based on the relative standalone selling price of the goods or services provided. Revenue is recognized upon the transfer of control of promised goods or services to a customer.

 

Revenue is recorded net of value-added tax.

 

Accounts Receivable and Allowances

 

Accounts receivable are recognized and carried at the original invoice amounts less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable credit losses in our existing accounts receivable. We extend credit to our customers based on an evaluation of their financial condition and other factors. We generally do not require collateral or other security to support accounts receivable. We perform ongoing credit evaluations of our customers and maintain an allowance for potential bad debts if required.

 

We determine whether an allowance for doubtful accounts is required by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations. In these cases, we use assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. We may also record a general allowance as necessary.

 

Direct write-offs are taken in the period when we have exhausted our efforts to collect overdue and unpaid receivable or otherwise evaluate other circumstances that indicate that we should abandon such efforts.

 

Leases

 

The Company adopted the new lease accounting standard ASC 842 effective April 1, 2019. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The Company does not currently have any leases over twelve months.

 

Use of Estimates

 

The financial statements have been prepared in conformity with generally accepted accounting principles (GAAP). In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statement of financial position and revenues and expenses for the year then ended. Actual results may differ significantly from those estimates.

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F-7

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Plyzer Technologies Inc.

Six months ended September 30, 2019

Notes to Unaudited Condensed Financial Statements

 

Basic and Diluted Loss Per Share

 

In accordance with ASC Topic 280 - "Earnings Per Share," the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common stock outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if the potential common stock had been issued and if the additional shares of common stock were dilutive.

 

Potential common stock consists of the incremental common stock issuable upon the exercise of common stock warrants (using the if-converted method). The computation of basic loss per share for the period ended September 30, 2019 excludes potentially dilutive securities of 22,579,351 shares underlying share purchase warrants and convertible notes, because their inclusion would be antidilutive. As a result, the computations of net loss per share for each period presented is the same for both basic and fully diluted.

 

Potentially dilutive securities outlined in the table below have been excluded from the computation of diluted net loss per share because the effect of their inclusion would have been anti-dilutive.

 

	September 30, 2019	March 31, 2019
Stock purchase warrants	11,454,000	6,800,000
Convertible loans	11,125,351	12,962,867
	22,579,351	19,762,867

 

NOTE 2 - GOING CONCERN

 

The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has recently begun commercializing its products but has not yet established an ongoing source of revenues sufficient to cover its operating costs.  The ability of the Company to continue as a going concern is dependent on the Company’s success in securing more revenue and obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital or sale its services, it could be forced to cease operations, which raises doubt about the Company’s ability to continue as a going concern.

 

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by seeking equity and/or debt financing. While the Company has so far been successful in raising the required capital through debt and equity financing, management cannot provide any assurances that the Company will continue to be able to raise the funding required to complete its development work and commercial launch of the portal successfully in future.

 

NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS

 

In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, and ASU No. 2017-04, Intangibles- Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. ASU No. 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. ASU No. 2017-04 eliminates Step 2 of the goodwill impairment test and requires a goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. The ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019.

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F-8

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Plyzer Technologies Inc.

Six months ended September 30, 2019

Notes to Unaudited Condensed Financial Statements

 

In August 2018, the FASB issued authoritative guidance regarding Fair Value Measurement: Disclosure Framework, which eliminates, adds and modifies certain disclosure requirements for fair value measurements. The standard is effective for the Company for its fiscal year beginning April 1, 2020, including interim periods within that fiscal year, with early adoption permitted.

 

In August 2018, the FASB issued authoritative guidance regarding Intangibles - Goodwill and Other - Internal-Use Software, which aligns the requirements for a customer to capitalize implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for the Company for its fiscal year beginning April 1, 2020, including interim periods within that fiscal year, with early adoption permitted.

 

The Company evaluates new pronouncements as issued and evaluates the effect of adoption on the Company at the time. The Company has determined that the adoption of the above recently adopted accounting pronouncements will not have an impact on the financial statements.

 

NOTE 4 - OTHER RECEIVABLE AND PREPAID EXPENSES

 

	September 30, 2019			March 31, 2019
Rent deposit	$	2,987		$	2,960
Taxes receivable (i)		95,975			7,903
Advances to suppliers		13,103			-
Subscriptions received		23,000			-
Advances to Plyzer Spain		-			3,421
Prepaid cost (ii)		117,218			6,603
Balance, at end of period	$	252,283		$	20,887

 

(i)includes $85,024 relating to tax, subsidy and other government benefits receivable by Plyzer Spain 

(ii)includes fee of $54,563 paid in advance to a consultant 

 

NOTE 5 - INVESTMENT

 

On April 10, 2019, the Company invested $86,443 (€ 76,641) in a private company in Spain, Auxistencia SL. The Company’s investment is less than 10% of the equity of Auxistencia SL and is accounted for at fair market, which is considered equivalent to its cost. The investment was translated to US dollar at $83,454 at September 30, 2019 based on the exchange rate of  €1 = $1.0889 and the difference of $2,989 was transferred to other comprehensive income.

 

As at September 30, 2019, the management evaluated the investment for any impairment and concluded that there was none.

 

NOTE 6 - CONVERTIBLE DEBTS

 

		September 30, 2019			March 31, 2019
Principal balance, at beginning of period		$	1,295,455		$	542,614
Accrued interest and fees			100,253			52,864
Converted to additional paid in capital			(165,055)			(834,293)
Converted to common stock			(1,526)			(4,404)
Convertible notes settled in cash	i		(1,006,250)			(519,436)
Convertible notes issued	ii		1,869,700			2,040,600
Unamortized debt discount			(1,441,063)			(971,297)
Balance, at end of period		$	651,514		$	306,648

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F-9

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Plyzer Technologies Inc.

Six months ended September 30, 2019

Notes to Unaudited Condensed Financial Statements

 

During the six months ended September 30, 2019, the Company paid off fifteen (Three during the six months to September 30, 2018) loans in cash for a total amount of $1,486,651 ($144,899 for the six months to September 30, 2018) as follows:

 

For the six months ended September 30,	2019			2018
Principal amount of loan	$	1,006,250		$	104,000
Premium on early settlement		430,015			31,875
Accrued interest		50,386			9,024
	$	1,486,651		$	144,899

 

During the six months ended September 30, 2019, the Company entered into convertible note agreements with independent lenders totaling to $1,869,700. The following is a summary of the main terms of these agreements:

 

Six months ended September 30,	2019	2018
Number of new loan notes issued	25	14
Total amount of the loans	$                            1,869,700	$                                    752,550
Interest rates	from 8% to 12%	from 8% to 12%
Period of loans	nine months to one year	nine months to one year
Conversion terms	The conversion price is a variable conversion price which varies from 60 % the market price. Market price is either the average of the lowest two trading prices or the lowest price during 10 to 20 trading days prior to the conversion date.	The conversion price is a variable conversion price which varies from 58% to 61% of the market price. Market price is either the average of the lowest two trading prices or the lowest price during 10 to 20 trading days prior to the conversion date.
Prepayment terms	Prepayment at premium ranging from 110% to 150% of the loan note if prepaid within 60 days and after 120 days but before 180 days respectively. Prepayments are usually not allowed after 180 days	Prepayment at premium ranging from 110% to 135% of the loan note if prepaid within 60 days and after 120 days but before 180 days respectively. Prepayments are usually not allowed after 180 days

 

One loan with a balance of $29,800 was due on June 6, 2019 but remained unpaid to date. The lender has confirmed that there would not be any penalty for non-payment.

 

NOTE 7 - DERIVATIVE LIABILITIES

 

	September 30, 2019			March 31, 2019
Balance, at beginning of period	$	2,110,425		$	933,198
Derivative additions associated with convertible notes on issuance	$	1,797,069			2,040,191
Day one loss on derivatives		1,158,338			539,087
Change in fair value as at period end		(1,227,150)			169,818
Value transferred to paid in capital on conversion of convertible notes		(1,575,513)			(1,571,869)
Balance, at end of period	$	2,263,169		$	2,110,425

 

Since the convertible loan notes issued during the period have a beneficial conversion feature which is contingent upon future market prices, they did not meet the conditions necessary for equity classification and as a result, the embedded conversion feature is considered a derivative liability.

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F-10

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Plyzer Technologies Inc.

Six months ended September 30, 2019

Notes to Unaudited Condensed Financial Statements

 

The fair value of the derivative was estimated on the issue date and subsequently re-measured on September 30, 2019 using the Black-Scholes valuation technique, using the following assumptions:

 

	Issue date	September 30, 2019	Issue date	March 31, 2019
Expected dividend	nil	nil	nil	nil
Risk free interest rate	3%	3%	2.96%	2.96%
Expected volatility	110% -152%	151%	102% -167%	120%
Expected term	219 days -365 days	15 days - 358 days	91 days -365 days	66 days - 361 days

 

NOTE 8 - COMMON STOCK

 

Six months ended September 30, 2019:

 

(a)Nine convertible notes plus accrued interest were converted into 1,525,928 shares for a total value of $166,581. 

 

(b)The Company raised $931,800 under a private placement, of which $920,800 subscribed by twenty four subscribers who were issued 4,904,000 shares at an average price of $0.20 per share and equal number of warrants convertible into equal number of shares at an exercise price of $0.50 per share within two years of their issuance and one subscriber subscribed $11,000 for which 55,000 shares were not issued as at September 30, 2019. $550 was included under common stock subscribed and the balance $10,450 was included under additional paid in capital. 

 

(c)1,614,275 shares were issued to fourteen consultants valued at $431,087. 

 

(d)250,000 shares were issued to a warrant holder who exercised his warrants for $50,000. 

 

Common stock activities during the six months ended September 30, 2018 were as follows:

 

(a)On August 10, 2018, Lupama exercised 29,843,335 warrants to convert into equal number of shares at an exercise price of $.0025 for a total of $74,608 and On September 6, 2018, exercised the remaining 156,665 warrants to convert into equal number of shares at an exercise price of $.0025 for a total of $392.Excercise price was off set against amounts payable to Lupama. 

 

(b)On September 6, 2018, Lupama was issued 843,335 shares and on September 27, issued further 999,999 shares. These shares were valued at $0.45 per share, being the market price prevailing on the dates of heir issues for a total of $829,501, which was off set against amount payable to Lupama. 

 

(c)During the six months ended September 30, 2018, twelve convertible notes plus accrued interest were converted into 1,707,499 shares for a total value of $415,658. 

 

At September 30, 2019 and March 31, 2019, the Company had 300,000,000 common shares of par value $0.001 common stock authorized.

 

NOTE 9 - WARRANTS

 

During six months ended September 30, 2019, the Company issued 4,904,000 warrants in connection with the private placement. The relative fair value of these warrants issued was estimated at $1,661,038 using the Black-Scholes valuation technique. The warrants are convertible into equal number of shares at an exercise price of $0.50 per share within two years of their issuance.

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F-11

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Plyzer Technologies Inc.

Six months ended September 30, 2019

Notes to Unaudited Condensed Financial Statements

 

The expiry date of 5,650,000 warrants issued in prior year expiring between July 2019 and September 2019 was extended to March 31, 2020. These warrants were revalued at $1,580,000 using the Black-Scholes valuation technique due to the extended expiry date. The additional cost was expensed. These warrants are convertible into equal number of shares at an exercise price of $0.24 per share.

 

The following assumptions were used in the valuation of these warrants:

 

Expected dividend	nil
Risk free interest rate	3%
Expected volatility	105%
Expected term	2 years

 

The value of warrants has been included in paid in capital.

 

The following are the movements in warrants during the six months ended September 30, 2019:

 

	September 30, 2019		March 31, 2019
	No. of Warrants	Weighted average exercise price	No. of Warrants	Weighted average exercise price
Outstanding - beginning of year	6,800,000	$ 0.24	5,900,000	$ 0.20
Issued	4,904,000	$ 0.50	34,900,000	$ 0.02
Exercised	(250,000)	$       -	(34,000,000)	$ 0.0025
Outstanding - end of year	11,454,000	$ 0.35	6,800,000	$ 0.24

 

The aforementioned warrants have an average remaining life of approximately 1.12 year as at September 30, 2019 (0.57 year as at March 31, 2019).

 

NOTE 10 - RELATED PARTY TRANSACTIONS

 

ADVANCES FROM DIRECTOR AND STOCKHOLDER

 

	September 30, 2019			March 31, 2019
Balance, beginning of year	$	264,733		$	195,009
funds received		443,461			136,213
funds paid		(366,321)			(66,489)
Balance, end of year	$	341,873		$	264,733

 

Funds were advanced from time to time by Mr. Terence Robinson, the CEO and the sole director and by Current Capital Corp., a company owned by a brother of the CEO and a shareholder.

 

CONSULTING FEES

 

Consulting fees include fees charged by the CEO of $9,000 and $18,000 respectively for the three and six months ended September 30, 2019 and September 30, 2018.

 

DEVELOPMENT COSTS.

 

Development costs include fee of $ nil and $123,308 respectively  for three and six months ended September 30, 2019 ($9,000 and $18,000 respectively for the three and six months ended September 30, 2018.) charged by Lupama, a company controlled by the CEO of the Company’s subsidiary.

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F-12

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Plyzer Technologies Inc.

Three months ended September 30, 2019

Notes to Unaudited Condensed Financial Statements

 

SELLING AND MARKETING

 

Includes expenses of $5,694 and $165,875 respectively for the three months and six months ended September 30,2 019 charged by Lupama. (Three and six months ended September 30, 2018: $ nil).

 

TRAVEL, MEALS AND PROMOTION

 

Comprises expenses of $ 22,738 charged by the CEO for the three and six months ended September 30, 2019. (($21,474 for the three and six months ended September 30, 2018)

 

FURNITURE AND EQUIPMENT ACQUIRED

 

Furniture and equipment includes equipment valued at $54,434 acquired from Lupama

 

NOTE 11 - SUBSEQUENT EVENTS

 

The Company has reviewed events subsequent to September 30, 2019 through the date these financial statements were issued and determined that there are no events requiring disclosure, other than as disclosed below:

 

1.The Company issued 317,707 shares in settlement of a convertible loan and issued 55,000 shares against the private placement subscription received prior to September 30, 2019. 

 

2.The Company raised $200,000 through two convertible notes and paid in cash one convertible note of $50,000. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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F-13

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Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations

 

The following discussion and analysis should be read in conjunction with our Financial Statements and Notes thereto appearing elsewhere in this Report on Form 10-Q as well as our other SEC filings.

 

Overview

 

The Company was incorporated on February 23, 2005 under the laws of the state of Nevada. Effective July 15, 2015, Mr. Terence Robinson was appointed as the Chairman of the Board of directors and is also the Chief Executive Officer and Chief Financial officer of the Company.

 

Our administrative office is located at 47 Avenue Road, Suite 200, Toronto, Ontario, Canada M5R 2G3. Our telephone number is [phone]. Our fiscal year end is March 31. Rent for this office is paid on a month to month basis with no formal lease agreement. Our Canadian subsidiaries signed a one-year lease on January 1, 2019 for premises at 67 Portland St., Toronto, Ontario M5V 2M9, Canada which will expire on December 31, 2019.

 

Plyzer Technologies Inc. is a provider of custom, real-time, cloud-based business intelligence solutions for brands to analyze critical online price and market data. Plyzer’s highly customizable dashboard enables country, regional and local sales, production and logistics operations to adapt to prevailing market conditions quickly. The Company’s technology is also being used to provide real-time price comparison reporting to the consumer market. These solutions are both driven by Plyzer’s proprietary artificial intelligence and machine learning technologies.

 

The following discussion and analysis should be read in conjunction with the financial statements and accompanying notes of the Company for the three and six months ended September 30, 2019 and the audited financial statements and notes for the year ended March 31, 20199.

 

Business Plan and Strategy

 

The Company’s business plan focuses on three main projects:

 

Plyzer.com

 

A comparison engine for prices of over the counter medical products currently available in Spain and Canada. Users can search for the stores selling the products of their choosing focusing on the lowest prices but also by proximity. The prices of the products vary and are compared across more than 400 stores.

 

Plyzer Intelligence

 

A tool built on artificial intelligence through internally developed algorithms, machine learning, geo-localization and product matching. It allows companies to apply business intelligence to their decisions through the simplification of big data. Brands and retailers can learn more about how their products, as well as their competitors’ products, are performing online.

 

CA.NNABIS

 

Cannabis products can vary in prices across the internet at sometimes reaching over 70% in price difference. The goal of Ca.nnabis is to help end users achieve maximum savings with every purchase by showing the end user all the different websites that sell a specific product or group of products, discovering stores by proximity is also possible.

 

 

 

 

 

 

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6

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Key development during the period ended September 30, 2019:

 

In April 2019, Plyzer Spain, the Company’s wholly owned subsidiary, became fully operational. It currently rents, on a month to month basis office space from Lupama, and hired the following teams:

 

Core product improvements

 

Ongoing improvements in the three IP platforms including:

 

·"Automate" Price Updates 

·Connecting to scrapinghub 

·Added remember me 

·import io live update 

·[LiveUpdate] Status Report Screen enhanced and improved 

·Screenshots added to core 

·Several Tech Debts resolved 

·Simplify user experience in B2C to improve B2B 

·Has Isop and RecSys added 

·New endpoint to get image predictions from the product matching 

·ProductMatching (*Released version 2.0.*): 

 

IT staff re-allocation to achieve better productivity:

·One crawler (IT Staff) dedicated exclusively to migration of all web sites tracked from import to extraction platform, quality control on the extracted data and review of the prices of the contracted products 

·Two crawlers dedicated to Client projects 

·One crawler dedicated to the web site 

 

Sales and Marketing

 

Press and communication

·Meet and networking events with Barcelona City Tech 

·Update the communication plan and offline and online media strategy 

·Connect to Catalan  startups  network:ACCI 

·Create of communication supports and brochures for Plyzer Intelligence 

·Create of sales supports and brochures for Plyzer Intelligence 

·Create of Sun Creams study 

·Begin Plyzer’s Intelligence blog with relevant content about pricing, marketing online, business  intelligence and AI 

·Begin an internal communications plan 

 

Sales

·Plyzer is developing a system-based commercial model 

·The Plyzer team regularly attends key events to generate qualified leads 

·Additional leads are generated and converted in in-house events organized at Plyzer 

·Monthly events organized at Plyzer 

·10-20 qualified leads invited 

·Working with 4000 leads from different sources with more than €15-30 M/year revenue 

-Consumer Health 

-Food & Beverage 

-Cosmetics 

-Retailers 

·Working with new international opportunities to open new markets in other countries (UK,  Italy, France, Portugal or Morocco) 

·Alliances with technology partners to distribute Plyzer as an integrated product in their  products or as an external solution. 

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7

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Results of operations

 

For the three and six months ended September 30, 2019, the Company had a net loss of approximately $2.2 million and $5.3 million respectively, while its operating loss was approximately $0.9 million and $1.8 million respectively compared to the operating loss of $20.3 million and $20.7 million respectively  for the three and six months ended September 30, 2018.

 

Major cost during the three and six months ended September 30, 2018 related to the 30 million warrants issued to Lupama on August 1, 2018 and fully vested on that date. These warrants were valued at $19.1 million. The entire amount was expensed as stock compensation. Operating costs net of the value of warrants for the three months ended September 30, 2018 was $1.2 million, of which $1.1 million related to the development costs.

 

Increase in operating costs for the fiscal period 2019 compared to the fiscal period 2018,net of stock compensation, was mainly due to the costs of Spain office, which has been operational since April 2019 and warrant modification expenses of approximately $1.6million.

 

Revenues

 

The Company generated twelve sales contracts since the commencement of its operations in April 2019 to September 30, 2019 generating gross billing net of taxes of $63,968 (€57,227) of which $24,561 related to future services and was included in payable and accrued liabilities as unearned income and the balance $36,512 was considered revenue for the period.

 

There was no revenue for the three and six months ended September 30, 2018.

 

Professional Fees

 

Professional fees for the three and six months ended September 30, 2019 included review fee of $3,500 and 7,000 respectively charged by the auditors and legal fees of $91,655 and $183,840 comprising due diligence and processing fees charged in connection with the new convertible loan notes. Increase in legal costs was in line with the increase in the number and value of new loan notes from 14 during the six months to September 30, 2018 to 25 during the six months to September 30, 2019.

 

Professional fees for the three and six months ended September 30, 2018 were $59,100 and $88,400 respectively. Fees for the three and six months to September 30, 2018 included legal fees of $56,800 and $80,950 respectively and balance of the fees related to audit fees relating to reviews of the interim financials and 10-Q reports.

 

Consulting fees

 

Consulting fee for the three and six months ended September 30, 2019 included fee charged by the CEO of $9,000 and $18,000 respectively. Consultants who provided accounting, administrative, business strategy and financial services charged $50,739 and $106,264 respectively for the three and nine months ended September 30, 2019. Overall increase in fee from the prior period was due to consultants hired by offices in Canada and Spain which has been operational since April 2019.

 

Consulting fees for three and six months ended September 30, 2018 were $18,630 and $42,356 respectively. The fees for the three and six months ended September 30, 2018 included fees of $9,000 and $18,000 charged by the CEO respectively, and the balance of the fees were charged by third parties for accounting, administrative and financial services.

 

Stock compensation

 

Stock compensation cost was $189,475 and $376,525 respectively for the three and six months ended September 30, 2019 and included stock valued at $162,800 issued to Spanish office staff as a joining bonus and stock valued at $171,287 issued to a consultant at the Toronto office for services provided.

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Stock compensation cost was approximately $19.1 million for the three and six months ended September 30, 2018 and represented 30 million warrants, which vested immediately on issuance, valid for three years and convertible into equal number of common shares at an exercise price of $0.0025 per share issued to Lupama. The warrants were valued at $19.1 million using Black-Sholes valuation method. Since all warrants were vested upon issuance, the entire value was expensed immediatly.

 

Development costs

 

Development costs for the three and six months ended September 30, 2019 were $26,764 and $213,356 respectively. The development costs reduced significantly from the similar costs during the same period last year. Main reasons for the reduction were completion of most of the development work during the fiscal 2019 and discontinuation of outsourcing to Lupama and bringing all development work in -house in the Spanish subsidiary.

 

Much of the development work related to collection of data (crawling) from the web and making qualitative and quantitative improvements in the three platforms described elsewhere in this report.

 

Development costs includes fee charged by Lupama of $1,056,568 and 1,318,878 respectively for the three and six months ended September 30, 2018.

 

Salaries and benefits

 

Salaries and benefits for the three and six months ended September 30, 2019 were $301,530 and 477,347 respectively and consisted entirely of the payroll for the Spanish office staff.

 

Spanish subsidiary became fully operational in April 2019. It hired various staff as follows:

·Chief executive officer 

·Chief technology officer 

·Chief operating officer 

·1 Office Manager 

 

Crawling Team

·1 crawling manager 

·4 crawling experts 

·2 crawling developers 

 

Core Developers Team

·2 tech leaders developers 

·4 developers 

 

AI developers’ team

·2 tech leaders developers 

·4 developers 

 

Press and Communication + Marketing

·2 journalists 

·1 graphic designer 

·1 Trade Marketing 

 

Sales Team

·1 sales manager 

·5 salesmen 

 

There were no employees during the three and six months ended September 30, 2018.

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9

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Selling and marketing

 

Selling and marketing costs for the three and six months ended September 30, 2019 were $88,908 and $281,916 respectively and were related to marketing efforts at Spanish office and included approximately $160,000 charged by Lupama for various marketing campaigns carried out for Player Spain.

 

Key marketing efforts are detailed elsewhere in this report.

 

There were no such expenses for the three and six months ended September 30, 2018 as the Company was still in development stage.

 

Travel, meals and promotions

 

Travel meals and promotion costs for the three and six months ended September 30, 2019 were $49,679. These costs included costs charged by the CEO for travelling to Europe and North America to seek new financing and promotion and balance of costs were incurred by the Spanish office for business development including participation in seminars, trade shows and presentations to prospective clients.

 

General and administrative expenses

 

General and administrative costs for the three and six months ended September 30, 2019 were $61,858 and $117,066 respectively. Plyzer Spain subsidiary, which was incorporated in April 2019, incurred approximately $42,000 and $79,000 respectively for the three and six months ended September 30, 2019. Other costs which included rent for the Toronto office, transfer agent fees etc. remained more or less consistent.

 

Significant items included in the general and administrative costs for the three and six months ended September 30, 2018 were rent and utilities of respectively $8,085 and $16,518 for the Toronto office, filing fee for upgrades to the  OTCQB listing of $2,500 and transfer agent fees of respectively $5,150 and $6,510.

 

Interest and amortization expense

 

Interest and amortization expense during the three and six months ended September 30, 2019 was approximately $0.9 million and $1.5 million respectively. Amortization cost was approximately $1.4 million and related to approximately 40 convertible unsecured loans, including 15 loans prepaid during the period and 25 new loan notes issued. Interest ranged from 8% to 12% per annum.

 

Interest expense during the three and six months ended September 30, 2018 was $422,013 and $631,172 respectively and related to approximately forty-one convertible unsecured loans including14 new loans 3 loans prepaid during the period. Interest ranged from 5% to 12% per annum.

 

Financial Condition, Liquidity and Capital Resources

 

For the six months ended September 30, 2019, the Company generated a negative cash flow from operations of approximately $1.7 million (six months to September 30, 2018: negative cash flow of approximately $0.8 million) , which was primarily met from existing cash, proceeds from the convertible loans and advances from the director and shareholder. As of September 30, 2019, the Company had cash of $188,600 (as at March 31, 2019:  $183,439).

 

The Company has started generating revenue from its three platforms; however, revenue currently is not sufficient to meet all its operating needs and thus the Company will continue to be dependent upon financing raised through equity and debts and advances from its director and shareholders.

 

Our present material commitments is to maintain offices of our subsidiaries and increasing our efforts in securing more customers and increase revenues and professional and administrative fees and expenses associated with the preparation of our filings and other regulatory requirements.

 

The Company is seeking to raise capital to implement the Company's business strategy. In the event additional capital is not raised or alternatively debt financing is not available from our shareholders, the Company may seek a merger or outright sale.

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Investing activities

 

For six months ended September 30, 2019, Plyzer Spain purchased furniture and equipment of approximately $82,000 and invested approximately $83,000 in a private company in Spain.

 

There was no new investment during the six months ended June 30, 2018.

 

Financing activities

 

During the six months ended September 30, 2019, the Company raised $931,800 through private placement and $50,000 on exercise of warrants (see Note 8 of the unaudited consolidated financials for the period), approximately $1.9 million through convertible notes and settled convertible notes of approximately $1 million in cash ( see Note 6 of the unaudited consolidated financials for the period) and borrowed net of $77,140 from the director and a shareholder ( see Note 10 of the unaudited consolidated financials for the period).

 

The Company raised net $716,661 through shareholder advances and debt financing during the six months ended September 30, 2018.

 

Going Concern

 

The accompanying financial statements have been prepared assuming that we will continue as a going concern. We have an accumulated deficit of approximately $ 36 million. The Company realized a net loss of approximately $5.3 million and $21.5 million, respectively, for the six months ended September 30, 2019 and 2018. These conditions raise substantial doubt about our ability to continue as a going concern. The Company’s subsidiary, Plyzer Spain has enrolled some customers and generated a small revenue for the six months ended September 30, 2019. It has also made extensive efforts in securing more customers and increasing its revenues. The Company continued to secure additional convertible loans and equity financing and has raised net of approximately $150,000 to date through debt financing and secured three new clients. However, there is no guarantee that efforts to raise further financing will success or result in the availability of the required funding. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

 

Off-balance sheet arrangements

 

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.

 

Item 3 - Quantitative and Qualitative Disclosures about Market Risk

 

As a smaller reporting company, as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information required by this item.

 

Item 4 - Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

Our management which currently basically comprises our Chief Executive and Financial officer, carried out an evaluation of the effectiveness of our “disclosure controls and procedures” (as defined in the Exchange Act Rules 13a-15(e) and 15-d-15(e)) as of the end of the period covered by this report (the “Evaluation Date”). Based upon that evaluation, the chief executive and  financial officer concluded that as of the Evaluation Date, our disclosure controls and procedures are not effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act (i) is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and (ii) is accumulated and communicated to our management, including our chief executive  and financial officer, as appropriate to allow timely decisions regarding required disclosure.

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Our management, including our chief executive and financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, management’s evaluation of controls and procedures can only provide reasonable assurance that all control issues and instances of fraud, if any, within Plyzer group companies have been detected.

 

Changes in Internal Control Over Financial Reporting

 

There were no changes in internal control over financial reporting during the three months ended September 30, 2019 except that Plyzer Spain which became operative during the period has its own accountant and control system which are not overseen by anyone at the corporate level.

 

Our CEO is the only executive acting as CEO, CFO and corporate secretary and is the sole director.  The Company does not consider hiring any other administrative staff at this stage cost effective.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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PART II. OTHER INFORMATION

 

Item 1- Legal Proceedings

 

None.

 

Item 1A - Risk Factors

 

As a “smaller reporting company” as defined by Rule 229.10(f)(1), we are not required to provide the information required by this Item 1A.

 

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds

 

None.

 

Item 3 - Defaults upon Senior Securities

 

None

 

Item 4 - Mine Safety Disclosures

 

None

 

Item 5 - Other Information

 

None

 

Item 6 - Exhibits

 

(a) The following sets forth those exhibits filed pursuant to Item 601 of Regulation S-K:

 

Exhibit Number	Descriptions
31	*Certification of the Chief Executive and Financial Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002
32	*Certification of the Chief Executive and Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002
101	*The following financial information from our Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 has been formatted in Extensible Business Reporting Language (XBRL): (i) Balance Sheet, (ii) Statement of Operations, (iii) Statement of Cash Flows, and (iv) Notes to Financial Statements

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*Filed herewith. 

 

(b) The following sets forth the Company's reports on Form 8-K that have been filed during the quarter for which this report is filed:

 

None

 

 

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SIGNATURE

 

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.

 

Plyzer Technologies Inc.

 

 

By: /s/ Terence Robinson

 

Terence Robinson

Chief Executive and Financial Officer,

President and Chairman of the Board*

 

Date:  March 17, 2020

 

 

*   Terence Robinson has signed both on behalf of the registrant as a duly authorized officer and as the Registrant's principal accounting officer.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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