10-K/A: Alixo-Yolloo Corporation Files Amendment No. 1 to Form 10-K, Reissuing Auditor's Report and Renaming Balance Sheet Items

Alixo-Yolloo Corporation files an amendment to its annual report to reissue the independent auditor's report for the year ended February 28, 2023, and to rename certain line items in the financial statements.

Summary

• Alixo-Yolloo Corporation filed Amendment No. 1 to its Annual Report on Form 10-K for the year ended February 29, 2024.
• The amendment reissues the Report of Independent Registered Public Accounting Firm for the year ended February 28, 2023.
• The amendment also renames 'Prepaid expenses' to 'Assets in progress' on the Balance Sheets and 'Decrease (increase) in prepaid expenses' to 'Decrease (increase) in assets in progress' on the Statements of Cash Flows.
• No other changes were made to the original Form 10-K filing.
• The company specializes in music-recognition services through its mobile application 'Alixo'.
• The Alixo app is available for download on Google Play.
• Alixo-Yolloo Corporation offers an API rental service through its website for music recognition and listening applications.
• The company was incorporated in Nevada on January 17, 2019.
• As of June 11, 2024, the company had 6,695,000 shares of common stock issued and outstanding.
• For the year ended February 29, 2024, the company generated revenue of $21,518 from API packages.
• The company recorded a net loss of $6,771 for the year ended February 29, 2024.
• As of February 29, 2024, the company had cash reserves of $9,073 and liabilities of $79,998.
• There is substantial doubt about the company's ability to continue as a going concern.
• The company lacks an adequate internal control structure and appropriate segregation of duties.
• The company does not have appropriate information technology controls.
• As of February 29, 2024, the company had net operating loss carryforwards of $10,842 for Federal income tax purposes.

Sentiment

Score: 3

Explanation: The document presents a concerning financial situation with increasing losses, doubts about going concern, and material weaknesses in internal controls. While there is some revenue generation, the overall outlook is negative.

Positives

• The company generated revenue of $21,518 from API packages for the year ended February 29, 2024, compared to no revenue in the previous year.
• Shareholders equity (deficit) has increased from $929 as of February 28, 2023 to $28,058 as of February 29, 2024.

Negatives

• The company recorded a net loss of $6,771 for the year ended February 29, 2024, compared to a net loss of $1,342 for the year ended February 28, 2023.
• The company has accumulated a deficit of $10,842 as of February 29, 2024.
• The available capital reserves of the company are not sufficient for the company to remain operational.
• The company identified material weaknesses in its internal control over financial reporting, including a lack of an adequate internal control structure, segregation of duties, and information technology controls.
• The company's auditor has raised substantial doubt about the company's ability to continue as a going concern.

Risks

• The company's limited operating history and need for additional capital pose a risk to its ability to continue operations.
• The company's reliance on advances from related parties to cover operating expenses presents a risk if such advances are not available in the future.
• The material weaknesses in internal control over financial reporting could lead to misstatements in the company's financial statements.
• The company's failure to obtain necessary financing could prevent it from developing or expanding its operations.
• The company's lack of intellectual property protection could expose it to competition from other companies.

Future Outlook

The company anticipates further losses in the development of its business and is dependent on generating profitable operations and/or obtaining necessary financing to meet its obligations.

Management Comments

• Management believes the existing shareholders or external fund providers will provide the additional cash to meet the Company's obligations as they become due.
• Management intends to finance operating costs over the next twelve months with existing cash on hand and loans from directors and/or private placement of common stock.

Industry Context

The company operates in the music recognition technology sector, competing with other mobile applications and API services that offer similar functionality. The integration of artificial intelligence for personalized track recommendations is a growing trend in the industry.

Comparison to Industry Standards

• It is difficult to compare Alixo-Yolloo directly to industry standards due to its early stage and limited financial data.
• Larger, established companies in the music recognition space, such as Shazam (owned by Apple) and SoundHound, have significantly greater resources and market presence.
• These companies also have more diversified revenue streams, including advertising, partnerships, and licensing agreements.
• Alixo-Yolloo's reliance on API rentals as its primary revenue source makes it vulnerable to competition and market fluctuations.
• Compared to industry benchmarks, Alixo-Yolloo's internal control weaknesses are a significant concern and require immediate attention.

Legal Proceedings

• The company is not currently a party to any legal proceedings, and it is not aware of any pending or potential legal actions.

Related Party Transactions

• As of February 29, 2024, the company's CEO and sole director had advanced the company $36,350 to cover the company's operating expenses.
• In July 2021, the company sold 5,000,000 shares of common stock at a price of $0.001 per share to its CEO and sole director.

Stakeholder Impact

• Shareholders face the risk of further dilution if the company raises additional equity financing.
• Employees (currently only directors) face uncertainty about the company's ability to continue operations.
• Customers may be affected if the company is unable to maintain or improve its products and services.
• Suppliers and creditors face the risk of non-payment if the company's financial situation does not improve.

Next Steps

• The company needs to improve its profitability and secure additional financing to continue as a going concern.
• The company must address the material weaknesses in its internal control over financial reporting.
• The company should explore new markets and business opportunities to expand its revenue streams.
• The company should consider obtaining intellectual property protection for its technology.

Key Dates

Keywords

Alixo-Yolloo Corporation, Form 10-K/A, music recognition, API rental, financial statements, internal control, going concern, mobile application, Alixo app