0001684508 --08-31 false 2019 Q3 0001684508 2018-09-01 2019-05-31 0001684508 2019-05-31 0001684508 2019-07-10 0001684508 2019-05-31 2019-05-31 0001684508 2018-08-31 2018-08-31 0001684508 2018-08-31 0001684508 2019-03-01 2019-05-31 0001684508 2018-03-01 2018-05-31 0001684508 2017-09-01 2018-05-31 0001684508 us-gaap:PreferredStockMember 2018-09-01 2019-05-31 0001684508 us-gaap:CommonStockMember 2018-09-01 2019-05-31 0001684508 us-gaap:AdditionalPaidInCapitalMember 2018-09-01 2019-05-31 0001684508 us-gaap:RetainedEarningsMember 2018-09-01 2019-05-31 0001684508 2017-08-31 0001684508 us-gaap:PreferredStockMember 2017-08-31 0001684508 us-gaap:CommonStockMember 2017-08-31 0001684508 us-gaap:AdditionalPaidInCapitalMember 2017-08-31 0001684508 us-gaap:RetainedEarningsMember 2017-08-31 0001684508 2017-09-01 2018-08-31 0001684508 us-gaap:PreferredStockMember 2017-09-01 2018-08-31 0001684508 us-gaap:CommonStockMember 2017-09-01 2018-08-31 0001684508 us-gaap:AdditionalPaidInCapitalMember 2017-09-01 2018-08-31 0001684508 us-gaap:RetainedEarningsMember 2017-09-01 2018-08-31 0001684508 us-gaap:PreferredStockMember 2018-08-31 0001684508 us-gaap:CommonStockMember 2018-08-31 0001684508 us-gaap:AdditionalPaidInCapitalMember 2018-08-31 0001684508 us-gaap:RetainedEarningsMember 2018-08-31 0001684508 us-gaap:PreferredStockMember 2019-05-31 0001684508 us-gaap:CommonStockMember 2019-05-31 0001684508 us-gaap:AdditionalPaidInCapitalMember 2019-05-31 0001684508 us-gaap:RetainedEarningsMember 2019-05-31 0001684508 2018-05-31 0001684508 fil:ZartexIncMember 2018-09-01 2019-05-31 0001684508 fil:ComputerAndEquipmentMember 2019-05-31 0001684508 fil:ComputerAndEquipmentMember 2018-08-31 0001684508 fil:ComputerSoftwareMember 2019-05-31 0001684508 fil:ComputerSoftwareMember 2018-08-31 0001684508 fil:ComputerSoftwareMember 2018-09-01 2019-05-31 0001684508 fil:ComputerSoftwareMember 2017-09-01 2018-05-31 0001684508 us-gaap:PreferredClassAMember 2019-05-31 0001684508 2016-09-12 2016-09-12 0001684508 2016-09-12 0001684508 2017-08-31 2017-08-31 0001684508 2019-04-24 0001684508 us-gaap:PreferredClassAMember 2019-04-24 0001684508 us-gaap:PreferredClassAMember 2018-09-01 2019-05-31 0001684508 fil:MrEuBoonChingMember 2018-11-14 0001684508 fil:MrEuBoonChingMember 2019-02-28 0001684508 fil:MrEuBoonChingMember 2019-05-31 0001684508 fil:MrZausaevMember 2018-09-01 2019-05-31 0001684508 fil:CannisappSdnBhdMember 2018-09-01 2019-05-31 0001684508 fil:CannisappSdnBhdMember 2019-05-31 0001684508 fil:FormerMember 2018-01-01 2018-01-01 0001684508 fil:RevisedMember 2018-01-01 2018-01-01 xbrli:pure iso4217:USD xbrli:shares iso4217:USD xbrli:shares

UNITED STATES

SECURITIES AND EXCHANGE ~~COMMISSIONWashington, D.C. 20549~~COMMISSION

~~Form~~Washington, ~~10-Q~~D.C. 20549

~~☒ Quarterly~~FORM ~~Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934~~10-Q

~~For~~x ~~the~~Quarterly ~~quarterly~~Report ~~period~~pursuant ~~ended~~to ~~May~~Section ~~31,~~13 ~~2019~~or 15(d) of the Securities Exchange Act of 1934

~~☐ Transition~~For ~~Report~~the ~~pursuant~~quarterly toperiod ~~Section~~ended 13November or30, ~~15(d)~~2019 ~~of the Securities Exchange Act of 1934~~

¨ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from __________ to __________

Commission file number: 333-214122

CANNIS, INC.

(Exact name of small business issuer as specified in its charter)

Nevada

2750

(State or other jurisdiction of

incorporation or organization)

(Primary Standard Industrial

Classification Number)

Level 11-2, Tower 4, Puchong Financial

Corporate Centre (PFCC), Jalan Puteri 1/2, Bandar Puteri

47100 Purchhong, Selangor, Malaysia

(Address of principal executive offices)

+603 8600 0313

(Issuer’s telephone number)

Securities registered pursuant to Section 12(b) of the Act: None

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 ¨

Indicate by check mark whether the registrant is a large accelerated filer, an 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	x	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 x No ¨

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 1,488,932,800 shares of common stock, $0.0001 par value, issued and outstanding as of February 3, 2020.

CANNIS, INC.

(Exact name of small business issuer as specified in its charter)

Nevada (NV)		98-1322537
(State or other jurisdiction of incorporation or organization)		(I.R.S. EmployerIdentification Number)

20, Jalan 51A/225A, Section 51A Zone Perindustrian PTJC, 46100 Petaling Jaya, Selangor, Malaysia (Address of principal executive offices) Level 9, Melilea Tower, No. 6, Avenue 3 The Horizon, Bangsar South, No. 8, Jalan Kerinchi 59200, Kuala Lumpur, Malaysia (Former Address if changed from last report)

+603 2242 0484 (Issuer's telephone number)

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

Large accelerated filer ☐ Accelerated filer ☐

Non-accelerated Filer ☐ Smaller reporting company ☒

Emerging growth company ☒

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 [ ]

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 [ ]

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

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 6,340,000 common shares issued and outstanding as of July 10, 2019.

CANNIS, INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

		~~Page~~	Page
PART I	FINANCIAL INFORMATION:
Item 1.	Financial Statements (Unaudited)	3	3
	Condensed Balance Sheets as of May 31, 2019 (unaudited) and August 31, 2018	4
	Condensed Balance Sheets as of November 30, 2019 (unaudited) and August 31, 2019		3
	Condensed Statements of Operations for the three and nine months period ended May 31, 2019 and 2018 (unaudited)	5
	Condensed Statements of Operations for the three months period ended November 30, 2019 and 2018 (unaudited)		4
	Condensed Statements of Changes in Stockholders’ Equity as of May 31, 2019 (unaudited) and August 31, 2018	6
	Condensed Statements of Cash Flows for the three months period ended November 30, 2018 and 2018 (unaudited)		6
	Condensed Statements of Cash Flows for the nine months period ended May 31, 2019 and 2018 (unaudited)	7
	Notes to the Condensed Unaudited Financial Statements		7
	Notes to the Condensed Unaudited Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		18
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	17
Item 4.	Controls and Procedures		23
Item 4.	Controls and Procedures	17
PART II	OTHER INFORMATION:
PART II	OTHER INFORMATION:
Item 1.	Legal Proceedings		24
Item 1.	Legal Proceedings	18
Item 1A	Risk Factors		24
Item 1A	Risk Factors	18
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3.	Defaults Upon Senior Securities		24
Item 3.	Defaults Upon Senior Securities	18
Item 4.	Mining Safety Disclosures		24
Item 4.	Mining Safety Disclosures	18
Item 5.	Other Information		24
Item 5.	Other Information	18
Item 6.	Exhibits		25
Item 6.	Exhibits	18
	Signatures		26
	Signatures

~~PART~~2 1.Table ~~FINANCIAL~~of ~~INFORMATION Cannis, Inc.~~Contents

~~(F/K/A:~~ITEM ~~Zartex, Inc~~1.) FINANCIAL STATEMENTS

Balance Sheets

Cannis, Inc. and Subsidiaries
Consolidated Balance Sheets
Unaudited

	November 30,			August 31,
	2019			2019

ASSETS
Current assets
Cash and cash equivalents	$	106,013		$	118,128
Inventories		24,322			18,476
Due from related parties		29,153			24,530
Prepayment and other current assets, net		72,776			97,044
Total current assets		232,264			258,178

Non-current assets
Property, plant and equipment, net		193,095			731,539
Operating lease right of use asset, net		41,638			283,084
Deposits		10,830			42,261
Total non-current assets		245,563			1,056,884
Total Assets	$	477,827		$	1,315,062

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Operating lease liabilities - current		10,873			10,671
Accounts payable and accrued liabilities	$	1,998,484		$	1,983,745
Customer deposit		674			165,749
Due to related parties		3,774,148			3,388,039
Other payables		54,407			64,916
Total current liabilities		5,838,586			5,613,120
Non-current liabilities
Operating lease liabilities - noncurrent		30,765			272,413
Total liabilities		5,869,351			5,885,533

Shareholders’ equity
Class A Preferred Stock ($0.001 par value, 10,000,000 shares authorized, 8,500,000 shares issued and outstanding as of November 30, 2019 and August 31, 2019)		8,500			8,500
Common Stock ($0.001 par value, 1,500,000,000 shares authorized; 1.488,832,800 shares issued and outstanding as of November 30, 2019 and August 31, 2019)		1,488,833			1,488,833
Additional paid-in capital		(1,289,533	)	(1,289,533		)
Accumulated deficit		(5,716,280	)	(4,954,178		)
Accumulated other comprehensive income		116,956			175,907
Total shareholders’ equity		(5,391,524	)	(4,570,471		)
Total Liabilities and Shareholders’ Equity	$	477,827		$	1,315,062
		-			-

AsThe ofaccompanying ~~May~~notes ~~31,~~are ~~2019~~an ~~and~~integral ~~August~~part ~~31,~~of ~~2018~~these financial statements.

3 Table of Contents

	As of May 31, 2019		As of August 31, 2018
Cannis, Inc. and Subsidiaries
	(Unaudited)		(Audited)
Consolidated Statements of Operations and Comprehensive Income
Assets
Unaudited
Current assets
	For the Three Months EndedNovember 30,
Cash and cash equivalents	$ -		$ 17,439
	2019			2018
Total current assets	-		17,439
Net revenues	$	370,567		$	310,081
Non-current assets
Cost of revenues		263,968			259,871
Property and equipment, net	-		8,204
Gross margin		106,599			50,210
Intangible assets, net	-		3,468
Operating expenses:
Total non-current assets	-		11,672
Selling, General and administrative		868,713			480,188
Total Assets	$ -		$ 29,111
Total operating expenses		868,713			480,188
Liabilities and Shareholders’ Equity
Loss from operations		(762,114	)		(429,978	)
Liabilities
Other income/(loss)
Current liabilities
Gain from extinguishment of related party debt		-			35,236
Accounts payable	$ -		$ 14,610
Other income		12			465
Loan from related parties	22,550		32,379
Total other income(loss)		12			35,701
Total current liabilities	22,550		46,989
Operating loss before income taxes		(762,102	)		(394,277	)
Total Liabilities	$ 22,550		$ 46,989
Provision for income taxes		-			-
Shareholders' Equity
Net loss		(762,102	)		(394,277	)
Class A Preferred Stock ($0.001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding)	-		-
Other comprehensive income (loss)
Common stock ($0.001 par value, 1,500,000,000shares authorized; 6,340,000 shares issued and outstanding)	$ 6,340		$ 6,340
Net loss		(762,102	)		(394,277	)
Additional paid-in-capital	25,460		25,460
Foreign currency translation adjustment		(58,951	)		24,073
Deficit accumulated	(54,350)		(49,678)
Total comprehensive income	$	(821,053	)	$	(370,204	)
Total shareholders' equity	(22,550)		(17,878)
Loss per share
Total Liabilities and Shareholders' Equity	$ -		$ 29,111
Basic and Diluted	$	0.00		$	0.00
Weighted average shares outstanding
Basic and Diluted		1,488,832,800			1,488,832,800

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

4 Table of Contents

Cannis, Inc. and Subsidiaries

~~(F/K/A:~~Statements ~~Zartex,~~of ~~Inc.)~~Changes in Stockholders’ Equity

~~Statements of Operations and Comprehensive Income~~Unaudited

For the three and nine months ended May 31, 2019 and 2018

	No. of Class A Preferred Stock		Class A Preferred Stock		No. of Common Shares		Ordinary Shares			Additional Paid In Capital			Accumulated Deficit			Accumulated other Comprehensive Income			Total

Balance at August 31, 2018		8,500,000	$	8,500		1,488,832,800	$	1,488,833		$	(1,465,533	)	$	(1,341,636	)	$	21,876		$	(1,287,960	)
Conversion of related party debt into ordinary shares								179,169												179,169
Issue of Common Shares to new shareholders								(179,169	)		176,000									(3,169	)
Net Loss														(3,612,542	)					(3,612,542	)
Foreign Currency Translation Adjustment																	154,031			154,031
Balance at August 31, 2019		8,500,000		8,500		1,488,832,800		1,488,833			(1,289,533	)		(4,954,178	)		175,907			(4,570,471	)
Net Loss														(762,102	)					(762,102	)
Foreign Currency Translation Adjustment																	(58,951	)		(58,951	)
Balance at November 30, 2019		8,500,000	$	8,500		1,488,832,800	$	1,488,833		$	(1,289,533	)	$	(5,716,280	)	$	116,956		$	(5,391,524	)

~~(Unaudited)~~The accompanying notes are an integral part of these financial statements.

	Three Months Ended May 31, 2019	Three Months Ended May 31, 2018	Nine Months Ended May 31, 2019	Nine Months Ended May 31, 2018
Revenue
Revenue	$ -	$ -	$ -	$ -
Cost of revenue	-	-	-	-
Gross margin	-	-	-	-
Operating expenses
General and administrative expense	8,850	13,311	39,908	24,073
Total operating expenses	8,850	13,311	39,908	24,073
Loss from operations	(8,850)	(13,311)	(39,908)	(24,073)
Other income
Forgiveness of debt	-	-	35,236	-
Total other income	-	-	35,236	-
Operating loss before income taxes	(8,850)	(13,311)	(4,672)	(24,073)
Provision for income taxes	-	-	-	-
Net loss	$ (8,850)	$ (13,311)	$ (4,672)	$ (24,073)
Loss Per Share:
Basic and Diluted	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
Weighted Average Shares Outstanding:Basic and Diluted	6,340,000	6,340,000	6,340,000	6,340,000

Table of Contents

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

Cannis, Inc. and Subsidiaries
Consolidated statements of cashflows
Unaudited

	For the Three Months Ended November 30,
	2019			2018
Cash flows from operating activities
Net Loss	$	(762,102	)	$	(394,277	)
Adjustments to reconcile net loss to net cash from operations:
Depreciation		10,724			6,391
Extinguishment of related party debt		-			(35,236	)
Fixed asset written-off		537,484			11,672
Changes in assets and liabilities:
Accounts receivable		-			(2,019	)
Inventories		(5,606	)		(12,220	)
Prepaid expenses		23,832			(32,188	)
Deposit		31,995			(6,731	)
Other receivables		1,275			-
Other receivables - related party		(3,867	)		8,325
Accounts payable		(10,540	)		(162,723	)
Customer deposits		(167,304	)		-
Accrued Liabilities					21,454
Other payables		(11,360	)
Net cash used in operating activities	$	(355,469	)	$	(597,552	)

Cash flows from investing activities
Disposal (Acquisition) of fixed assets		-			(26,946	)
Acquisition of intangible assets		-			(88,222	)
Net cash used in investing activities	$	-		$	(115,168	)

Cash flows from financing activities
Proceeds from related parties		342,050			1,235,045
Net cash provided by financing activities	$	342,050		$	1,235,045

Net increase in cash, and cash equivalents		(13,419	)		522,325

Effect on changes in foreign exchange rate		1,304			(2,641	)
Cash, and cash equivalents, beginning of period		118,128			17,439

Cash, and cash equivalents, end of period	$	106,013		$	537,123
		-			-
Supplementary non-cash investing and financing activities:
Recognized ROU assets through lease liabilities	$	-		$	292,728

Supplemental cash flow information
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-

5The accompanying footnotes are an integral part of these consolidated financial statements

~~Cannis,~~6 ~~Inc.~~Table of Contents

~~(F/K/A:~~NOTE ~~Zartex,~~1 ~~Inc.)~~– ORGANIZATION AND BASIS OF PRESENTATION

~~Statements~~Cannis, Inc. (“Cannis”), formerly Zartex, Inc. was incorporated under the laws of ~~Changes~~the inState ~~Stockholders’~~of ~~Equity~~Nevada on August 17, 2016.

~~For~~Effective ~~the~~November ~~year~~14, ~~ended~~2018, ~~May~~a 31change of control occurred with respect to Cannis, ~~2019~~Inc. where Mr. Eu Boon Ching acquired 99.9% of Cannis’s issued and ~~nine~~outstanding ~~months~~common ~~ended~~stock ~~August~~from 31former shareholders of Cannis. Simultaneously, ~~2018~~Cannis ceased its operations, transferred its assets and became a “shell company.” Mr. Ching also became sole officer and director of Cannis following the change of control.

On December 6, 2018, the Company amended its Articles of Incorporation with the Nevada Secretary of State to effect the name change of the Company to Cannis, Inc. (~~Unaudited~~“Corporate Action”). On November 29, 2018, our majority stockholder, holding 99% of our outstanding voting securities approved the Corporate Action.

	Number of	Class A	Common	Additional Paid	Retained
	Shares	Preferred Stock	Stock	In Capital	Earnings	Total
Balance at September 1, 2017	6,340,000	$ -	$ 6,340	$ 25,460	$ (18,696)	$ 13,104
Net loss	-	-	-	-	(30,982)	(30,982)
Balance at August 31, 2018	6,340,000	$ -	$ 6,340	$ 25,460	$ (49,678)	$ (17,878)
Net loss	-	-	-	-	(4,672)	(4,672)
Balance at May 31, 2019	6,340,000	$ -	$ 6,340	$ 25,460	$ (54,350)	$ (22,550)

On August 5, 2019, Cannis, Inc., Cannisapp Sdn Bhd (“Cannisapp”), and Mr. Ching entered into a Stock Exchange Agreement. Pursuant to the terms of the Stock Exchange Agreement, Cannis, Inc. issued an aggregate of 1,482,492,800 shares of common stock and 8,500,000 shares of Class A Preferred Stock for all of the outstanding capital stock of Cannisapp. As a result, Cannisapp became a wholly owned subsidiary of Cannis, Inc. Immediately following the Share Exchange, the business of Cannisapp became the business of Cannis, Inc. and the executive officers of Cannisapp became executive officers of the Company.

~~The~~Cannisapp ~~accompanying~~Sdn ~~notes~~Bhd, ~~are~~formerly anknown ~~integral~~as ~~part~~Antara Rimbun Sdn Bhd, was incorporated in Malaysia on April 2, 2018 and Mr. Ching owned 100% of ~~these~~the ~~financial~~issued ~~statements~~and outstanding stock of Cannisapp. Cannis entered into a share exchange agreement with Cannisapp whereas the acquisition was accounted under US GAAP as a business combination under common control with Cannis being the acquirer and Cannisapp being the acquiree as both entities were owned by the same controlling shareholder prior to the business combination. Accordingly, historical cost is the basis for transfer of assets and liabilities in the business combination in accordance with ASC 805-50-30-5. Cannis, Inc. and its consolidated subsidiary is collectively referred to herein as the “Company”, “we” and “us”, unless specific reference is made to an entity.

6On April 24, 2019, the Company (i) increased the authorized shares of its common stock, $0.001 par value, from 75,000,000 to 1,500,000,000 shares, and (ii) created a class of preferred stock, $0.001 par value, called the Class A Preferred Stock in the amount of 10,000,000 authorized shares, with each share of Class A Preferred Stock having 100 votes to be cast with respect to any and all matters presented to shareholders for a vote whether at a meeting of shareholders or by written consent. Apart from the voting rights stated in the preceding sentence, the Class A Preferred Stock shall have no other rights, privileges or preferences.

~~Cannis,~~NOTE ~~Inc.~~2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

~~(F/K/A:~~Basis ~~Zartex,~~of ~~Inc.)~~presentation

~~Statements~~The financial statements of ~~Cash~~the ~~Flows~~Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). The accompanying consolidated financial statements include the accounts of the Company and its subsidiary. Significant inter-company transactions have been eliminated in consolidation. In accordance with ASC 805-50-45-5, for transactions between entities under common control, financial statements and financial information presented for prior periods have been be retroactively adjusted to furnish comparative information. The accompanying consolidated financial statements are presented retrospectively as though the share exchange agreement between the Cannis, Inc. and Cannisapp Sdn Bhd occurred at the beginning of the first period presented. Cannisapp Sdn Bhd did not have any activities for the period from April 2, 2018 (Inception) and May 31, 2018, therefore it was not presented in the financial statements.

~~For~~Interim ~~the~~Financial ~~nine~~Information ~~months ended May 31, 2019 and 2018~~

The unaudited financial statements have been prepared in accordance with generally accepted accounting principles (~~Unaudited~~GAAP) applicable to interim financial information and the requirements of Form 10-Q and Rule 8-03 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosure required by accounting principles generally accepted in the United States of America for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. These financial statements should be read in conjunction with the audited financial statements as of and for the year ended August 31, 2019, as not all disclosures required by generally accepted accounting principles for annual financial statements are presented. The interim financial statements follow the same accounting policies and methods of computations as the audited financial statements as of and for the year ended August 31, 2019.

	Nine Months Ended May 31, 2019	Nine Months Ended May 31, 2018
Cash flows from operating activities
Net Loss	$ (4,672)	$ (24,073)
Adjustments to reconcile net loss to net cash from operations:
Depreciation and amortization	-	2,928
Write-off of fixed assets	11,672	-
Forgiveness of debt	(35,236)	-
Changes in operating assets and liabilities:
Accounts payable	(4,853)	1,997
Net cash used in operating activities	(33,089)	(19,148)
Cash flows from financing activities
Proceeds of related party loans	22,550	12,038
Repayment of related party loans	(6,900)	-
Net cash provided by financing activities	15,650	12,038
Net change in cash and cash equivalents	(17,439)	(7,110)
Cash and cash equivalents, beginning	17,439	24,549
Cash and cash equivalents, end	$ -	$ 17,439
Supplementary cash flows information:
Tax paid	$ -	$ -
Interest paid	$ -	$ -

Use of estimates

The ~~accompanying~~preparation ~~notes~~of ~~are~~financial anstatements ~~integral~~in ~~part~~conformity with accounting principles generally accepted in the United States of ~~these~~America ~~financial~~requires ~~statements~~management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions.

7 Table of Contents

~~Cannis,~~Functional ~~Inc.~~and presentation currency

~~(F/K/A~~The ~~Zartex,~~accompanying ~~Inc~~consolidated financial statements are presented in United States dollar (“$”), which is the reporting currency of the Company.

~~Notes~~The tofunctional ~~Financial~~currency ~~Statements~~of Cannis Inc. is United States dollar.

The functional currency of Cannisapp is the currency of the primary economic environment in which Cannisapp operates which is Malaysia Ringgit (~~Unaudited~~“MYR”).

~~NOTE~~Transactions ~~1 –~~in ~~ORGANIZATION~~currencies ~~AND~~other ~~BASIS~~than OFthe ~~PRESENTATION~~entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the reporting periods. Exchange differences arising on the settlement of monetary items and on translation of monetary items at period-end are included in income statement of the period.

~~Cannis,~~For ~~Inc.~~the ~~formerly~~purpose ~~Zartex,~~of ~~Inc.~~presenting (“these financial statements, the Company”)’s ~~was~~assets ~~incorporated~~and ~~under~~liabilities ~~the~~are ~~corporation~~expressed ~~laws~~ in ~~the~~US$ ~~State~~at ofthe ~~Nevada~~exchange rate on ~~August~~the 17balance sheet date, ~~2016.~~stockholder’s ~~The~~equity ~~Company~~accounts ~~changed~~are ~~its~~translated ~~name~~at ~~from~~historical ~~Zartex~~rates, ~~Inc.~~and toincome ~~Cannis,~~and ~~Inc.~~expense onitems ~~December~~are 6,translated ~~2018.~~at ~~The~~the ~~Company~~weighted ~~was~~average inexchange rate during the ~~business~~period. ofThe ~~software~~resulting ~~development~~translation ~~which~~adjustments ~~sought~~are toreported ~~deliver~~under ~~services~~accumulated ~~for~~other comprehensive income in the ~~garment~~stockholder’s ~~distribution~~equity ~~industry.~~section of the balance sheets.

~~Effective~~Exchange ~~November~~rate ~~14,~~used ~~2018,~~for ~~a change of control occurred with respect to~~ the ~~Company.~~translation Inas ~~connection with the change of control transaction, the Company has ceased its operations, transferred its assets and became a “shell company”.~~ follows:

~~The~~US$ ~~Company’s activities are subject~~ to ~~significant risks and uncertainties including failure to secure additional funding to properly execute its business plan.~~MYR

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

	Period End		Average
August 31, 2019		4.2318		4.0891
November 30, 2019		4.1773		4.1756

~~Basis~~Fair values of ~~Presentation~~financial instruments

The ~~financial~~Company ~~statements~~adopted ASC 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of ~~the~~fair ~~Company~~value ~~have~~measurement ~~been~~and ~~prepared~~enhances indisclosures ~~accordance~~requirements ~~with~~for ~~generally~~fair ~~accepted~~value ~~accounting~~measures. ~~principles~~Current inassets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the ~~United~~short ~~States~~period of ~~America.~~time Asbetween the ~~Company~~origination ~~has~~of nosuch ~~other~~instruments ~~comprehensive~~and ~~income~~their expected realization and if applicable, ~~the~~their ~~income~~current interest rate is ~~equal~~equivalent to ~~the~~interest ~~Company’s~~rates ~~total~~currently ~~comprehensive income~~available. The three levels are defined as follow:

~~Interim~~· ~~Financial~~Level ~~Information~~1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

~~The~~· ~~unaudited~~Level ~~financial~~2 ~~statements~~— ~~have~~inputs ~~been prepared in accordance with generally accepted accounting principles (GAAP) applicable~~ to ~~interim financial information and~~ the ~~requirements~~valuation ofmethodology ~~Form~~include ~~10-Q~~quoted ~~and~~prices ~~Rule~~for ~~8-03~~similar ofassets ~~Regulation S-X of the Securities~~ and ~~Exchange~~liabilities ~~Commission.~~in ~~Accordingly~~active markets, ~~they do not include all of the information~~ and ~~disclosure~~inputs ~~required~~that ~~by accounting principles generally accepted in the United States of America for complete financial statements. Interim results~~ are ~~not~~observable ~~necessarily indicative of results~~ for ~~a full year. In~~ the ~~opinion~~assets ofor ~~management~~liability, ~~all~~either ~~adjustments~~directly ~~considered~~or ~~necessary~~indirectly, for asubstantially ~~fair presentation of~~ the ~~financial~~full ~~position~~term ~~and the results~~ of ~~operations and cash flows for~~ the ~~interim~~financial ~~periods have been included~~instruments.

~~These~~· ~~financial~~Level ~~statements~~3 ~~should~~— beinputs ~~read~~to ~~in conjunction with~~ the ~~audited~~valuation ~~financial~~methodology ~~statements as of and for the year ended August 31, 2018, as not all disclosures required by generally accepted accounting principles for annual financial statements~~ are ~~presented.~~unobservable ~~The interim financial statements follow the same accounting policies~~ and ~~methods~~significant ofto ~~computations as~~ the ~~audited~~fair ~~financial statements as of and for the year ended August 31, 2018~~value.

~~Use~~As of ~~Estimates~~the balance sheet date, the estimated fair values of the financial instruments approximated their fair values due to the short-term nature of these instruments. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates the hierarchy disclosures each year.

~~Preparing~~Related financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions.parties

8The Company adopted ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.

~~Fair~~8 ~~Values~~Table of ~~Financial Instruments~~Contents

~~The~~Cash ~~Company adopted ASC 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement~~ and ~~enhances~~cash disclosures requirements for fair value measures. Current assets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their current interest rate is equivalent to interest rates currently available. The three levels are defined as follow:equivalents

·The ~~Level~~Company 1considers —all ~~inputs~~highly toliquid ~~the~~investments ~~valuation~~purchased ~~methodology~~with ~~are~~an ~~quoted~~original ~~prices~~maturity ~~(unadjusted)~~of ~~for~~three ~~identical~~months ~~assets~~ or ~~liabilities~~less into ~~active~~be ~~markets~~cash equivalents.

·Accounts ~~Level~~Receivable 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

·Accounts ~~Level~~receivable 3is —recorded ~~inputs~~at to the ~~valuation~~net ~~methodology~~value ~~are~~of ~~unobservable~~less estimates for doubtful accounts. Management regularly reviews outstanding accounts and ~~significant~~provides toan allowance for doubtful accounts. When collection of the ~~fair~~original ~~value~~invoice amounts is no longer probable, the Company will either partially or fully write-off the balance against the allowance for doubtful accounts.

AsBad ofdebt ~~the~~expenses ~~balance sheet date, the estimated fair values of the financial instruments~~ were ~~not~~$nil ~~materially different from their carrying values as presented due to the short maturities of these instruments~~ and ~~that~~$nil ~~the~~for ~~interest rates on~~ the ~~borrowings~~three ~~approximate~~months ~~those~~ended ~~that~~November ~~would~~30, ~~have~~2019 ~~been available for loans of similar remaining maturity~~ and ~~risk~~2018, ~~profile at respective period-ends~~respectively. ~~Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates the hierarchy disclosures each quarter.~~

~~Cash~~Revenue ~~and Equivalents~~Recognition

The Company ~~considers~~adopted ~~all~~ASC ~~highly~~606 ~~liquid~~requires ~~investments~~the ~~purchased~~use ~~with~~of ana ~~original~~new ~~maturity~~five-step model to recognize revenue from customer contracts. The five-step model requires entities to exercise judgment when considering the terms of ~~three~~contracts, ~~months~~which includes (1) identifying the contracts or ~~less~~agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to bethe ~~cash~~separate ~~equivalents~~performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients. The Company has concluded that the new guidance did not require any significant change to its revenue recognition processes.

~~Basic~~The Company’s revenues mainly consist of offline products sales. The Company generally recognizes product sales revenue when the performance obligation have been satisfied pursuant to Malaysia law, including such factors as contract existed with the customer, delivery and ~~Diluted~~acceptance ~~Earnings~~of ~~(Loss)~~products ~~Per~~by ~~Share~~customer has occurred, the sales price is fixed or determinable and allocated to the products sold, sales and value-added tax laws have been complied with, and collectability is reasonably assured.

~~Basic~~The ~~earnings~~Company orestimates ~~loss~~potential ~~per~~returns ~~share~~and isrecords ~~computed~~such byestimates ~~dividing~~against ~~net~~its ~~income~~gross orrevenue ~~loss available~~ to ~~common~~arrive ~~shareholders~~at byits ~~the~~reported ~~weighted~~net ~~average~~sales ~~number of outstanding common shares during the period~~revenue. ~~Diluted~~The ~~earnings~~Company orhas ~~loss~~not ~~per~~experienced ~~share~~any ~~gives~~sales ~~effect to all dilutive potential common shares outstanding during the period~~returns. ~~Dilutive earnings or loss per share excludes all potential common shares if their effect is anti-dilutive.~~

~~Revenue Recognition~~Inventory

~~On January 1~~Inventories, ~~2018,~~which ~~the~~are ~~Company~~primarily ~~adopted~~comprised ~~Accounting~~of ~~Standards~~finished ~~Update~~goods ~~(“ASU”)~~for ~~No. 2014-09~~sale, ~~Revenue~~are ~~from~~stated ~~Contracts~~at ~~with~~the ~~Customers,~~lower ~~which~~of ~~outlines~~cost aor ~~single~~net ~~comprehensive~~realizable ~~model~~value, ~~for~~using ~~entities~~the ~~to use~~ first-in ~~accounting~~first-out ~~for~~(FIFO) ~~revenue arising from contracts with customers that supersedes most current revenue recognition guidance~~method. The ~~updated~~Company ~~guidance,~~evaluates ~~and~~the ~~subsequent~~need ~~clarifications,~~for ~~collectively~~reserves ~~referred~~associated towith ~~as ASC 606~~obsolete, ~~require~~slow-moving anand ~~entity~~non-salable toinventory ~~recognize~~by ~~revenue~~reviewing ~~when~~net itrealizable ~~transfers~~values ~~control~~on ofa ~~promised~~periodic ~~goods~~basis. orOnly ~~services~~defects toproducts ~~customers~~can inbe anreturn ~~amount that reflects the consideration~~ to ~~which~~our ~~the entity expects to be entitled in exchange for those goods or services~~suppliers.

~~There~~Customer ~~was no significant impact to the statement of operations and comprehensive income (loss) as the Company’s existing revenue policies are in line with ASC 606.~~Deposits

9The Company charges deposits when customers rent the power bank. The deposits will be fully refunded after the power bank is returned.

Prior to the change of control that occurred on November 14, 2018, the Company’s revenue consisted of service revenue from “Match Me” software programming code with customization service. The Company recognized revenue when performance obligations identified under the terms of the contracts with its customers were satisfied, which generally occurs when the programming code of the software and the customization services were delivered to the customer when completed in accordance with the contractual terms and conditions of the sale.Advertising

~~Software~~The ~~Development~~Company ~~Costs~~expenses advertising costs as incurred and includes it in selling expenses. The Company recorded $0 and $208,868 for advertising and promotions expenses for the three months ended November 30, 2019 and 2018, respectively.

~~Prior~~9 toTable ~~the change~~ of control that occurred on November 14, 2018, the Company’s cost of revenue consisted of costs incurred in researching and developing a computer software product. Such costs were charged to expense until technological feasibility had been established for the product. Judgment was required in determining when technological feasibility of a product was established and the Company had determined that technological feasibility for its software products was reached after all high-risk development issues had been resolved through coding and testing. Generally, that occurred shortly before the products were available to the public for sale.Contents

~~The~~Income “Match Me” software programming code was developed by the Company’s former sole officer and director, Aleksandr Zausaev. Software development and customization expenses included Mr. Zausaev’s labor cost.Taxes

~~Cost~~Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the year of ~~Revenue~~deferred tax assets and liabilities.

~~Cost~~Deferred tax assets are reduced by a valuation allowance when, in the opinion of ~~revenue~~management, ~~included:~~it ~~software~~is ~~development~~more ~~costs~~likely ~~and~~than ~~software~~not ~~customization~~that ~~costs~~some portion of all of the deferred tax assets will be realized. ~~Capitalized~~Deferred ~~software~~tax ~~development~~assets ~~costs~~and ~~were~~liabilities ~~amortized~~are ~~over~~adjusted for the ~~estimated~~effects ~~lives~~ of changes in tax laws and rates on the ~~software~~date of enactment.

~~Income~~A ~~Taxes~~tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that the relevant taxing authority that has full knowledge of all relevant information will examine each uncertain tax position. Although the Company believes the estimates are reasonable, no assurance can be given that the final outcome of these matters will not be different than what is reflected in the historical income tax provisions and accruals.

~~Income~~Property ~~taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial~~ and ~~tax~~Equipment ~~reporting~~& ~~and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.~~Depreciation

~~Deferred~~Property ~~tax~~and ~~assets~~equipment ~~are~~consist ~~reduced~~of bycomputer, aoffice ~~valuation~~furniture ~~allowance~~and ~~when~~equipment, inand ~~the~~leasehold ~~opinion~~improvement. ofAll ~~management,~~property itand isequipment ~~more~~are ~~likely~~stated ~~than~~at ~~not~~historical ~~that~~cost ~~some~~net ~~portion~~ of ~~all~~accumulated ofdepreciation. ~~the~~Repairs ~~deferred~~and ~~tax~~maintenance ~~assets~~are ~~will~~expensed beas ~~realized~~incurred. ~~Deferred~~ ~~tax~~Property ~~assets~~ and ~~liabilities~~equipment are ~~adjusted~~depreciated ~~for~~on ~~the~~a ~~effects~~straight-line ofbasis ~~changes~~over ~~in tax laws and rates on~~ the ~~date~~following ~~of enactment.~~periods:

New Accounting Pronouncements

Computer and Electronics	5 years
Furniture and Fixture	10 years
Equipment	10 years
Leasehold Improvement	10 years

There were various accounting standards and interpretations issued recently, none of which are expected to a have a material impact on the Company’s results of operations, financial position or cash flows.Leases

~~Property~~We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities - current, and ~~Equipment~~operating &lease ~~Depreciation~~liabilities - noncurrent on the balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our balance sheets.

~~Property~~ROU assets represent our right to use an underlying asset for the lease term and ~~equipment~~lease ~~are~~liabilities ~~stated~~represent atour ~~cost~~obligation ~~less~~to ~~accumulated~~make ~~depreciation~~lease ~~comprised~~payments ofarising ~~computer~~from ~~equipment~~the lease. Operating lease ROU assets and liabilities are ~~depreciated~~recognized at commencement date based on the ~~straight-line~~present ~~method~~value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated ~~life~~rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset, ~~which~~also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is 5reasonably ~~years~~certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

~~Intangible~~10 ~~Assets~~Table &of ~~Amortization~~Contents

~~The~~Impairment ~~Company’s intangible assets are stated at cost less accumulated amortization comprised~~ of ~~computer software and are amortized on the straight~~Long-~~line~~lived ~~method over the estimated life of the asset which is 3 years.~~assets

The Company accounts for impairment of property and equipment and amortizable intangible assets in accordance with ASC 360, “Accounting for Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of”, which requires the Company to evaluate a long-lived asset for recoverability when there is event or circumstance that indicate the carrying value of the asset may not be recoverable. An impairment loss is recognized when the carrying amount of a long-lived asset or asset group is not recoverable (when carrying amount exceeds the gross, undiscounted cash flows from use and disposition) and is measured as the excess of the carrying amount over the asset’s (or asset group’s) fair value.

10Research & development expenses

~~The~~Product ~~Company~~development ~~accounts~~expenses ~~for~~consist ~~impairment~~primarily of ~~plant~~third-party ~~and~~development ~~equipment~~ and ~~amortizable~~programming ~~intangible~~costs ~~assets in accordance with ASC 360, “Accounting for Impairment of Long-Lived Assets~~ and ~~Long-Lived~~other ~~Assets~~expenses tothat beare ~~Disposed~~directly ~~Of”,~~attributable ~~which requires the Company~~ to ~~evaluate a long-lived asset for recoverability when there is event or circumstance that indicate~~ the ~~carrying~~development ~~value~~ of ~~the~~mobile ~~asset~~applications, ~~may not be recoverable. An impairment loss is recognized when the carrying amount of a long-lived asset or asset group is not recoverable (when carrying amount exceeds the gross~~databases, ~~undiscounted~~software ~~cash~~for ~~flows from use and disposition) and is measured as~~ the ~~excess~~businesses of the ~~carrying amount over the asset’s (or asset group’s) fair value~~Company.

~~NOTE~~The 3Company ~~– GOING~~expenses ~~CONCERN~~all costs that are incurred in connection with the planning and implementation phases of development and costs that are associated with repair or maintenance of the existing mobile applications or the development of software and content.

~~The~~Costs ~~Company’s~~incurred ~~financial~~in ~~statements~~the asdevelopment ofphase ~~May~~can ~~31,~~be ~~2019,~~capitalized ~~been~~and ~~prepared~~amortized ~~using~~over ~~generally~~the ~~accepted~~estimated ~~accounting~~product ~~principles~~life inwhen ~~the~~technological ~~United~~feasibility ~~States~~is ofreached. ~~America~~However, ~~applicable~~since tothe ainception ~~going~~of ~~concern~~the Company, ~~which contemplates~~ the ~~realization~~amount of ~~assets~~costs ~~and~~qualifying ~~liquidation~~for ofcapitalization ~~liabilities~~has inbeen ~~the~~insignificant. ~~normal~~As ~~course~~a ofresult, ~~business~~all development costs have been expensed as incurred.

The Company ~~has~~did not ~~yet~~record ~~established~~any anresearch ~~ongoing source of revenues~~ and ~~cash~~development ~~flows~~expenses ~~sufficient~~for tothe ~~cover~~three ~~its~~months ~~operating~~ended ~~costs~~November ~~and allow it to continue as a going concern. The Company has accumulated net loss of $54~~30,~~350~~ ~~since~~2019 ~~inception.~~and ~~These factors among others raise substantial doubt about the ability of the company to continue as a going concern for a reasonable period of time~~2018.

InNew ~~order~~Accounting 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 obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.Pronouncements

~~NOTE~~In 4February ~~– PROPERTY~~2016, &the ~~EQUIPMENT~~FASB issued Accounting Standards Update No. 2016-02 (ASU 2016-02) “Leases (Topic 842)”. ASU 2016-02 requires a lessee to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted.

~~Property~~For ~~and~~finance ~~equipment~~leases, ~~net,~~a lessee is ~~comprised~~required ofto do the following:

	May 31, 2019	August 31, 2018
Computer and Equipment	$ -	$ 10,850
Total	-	10,850
Accumulated Depreciation	-	(2,646)
Net	$ -	$ 8,204

	·	Recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position
	·	Recognize interest on the lease liability separately from amortization of the right-of-use asset in the statement of comprehensive income
	·	Classify repayments of the principal portion of the lease liability within financing activities and payments of interest on the lease liability and variable lease payments within operating activities in the statement of cash flows.

~~Depreciation~~For ~~expenses~~operating ~~were $0 and $2~~leases,~~103~~ ~~for~~a ~~the~~lessee ~~nine~~is ~~months~~required ~~ended~~to ~~May~~do ~~31,~~the ~~2019 and 2018.~~ following:

On· ~~November~~Recognize ~~14,~~a ~~2018~~right-of-use asset and a lease liability, ~~the~~initially ~~Company~~measured ~~had~~at athe ~~change~~present value of ~~control.~~the ~~Property~~lease ~~and~~payments, ~~equipment~~ in the ~~amounts~~statement of ~~$8,204~~financial ~~were~~position ~~transferred~~· toRecognize ~~the~~a ~~former~~single ~~sole~~lease ~~officer~~cost, ofcalculated so that the ~~Company~~cost ~~for~~of the ~~nine~~lease ~~months~~is ~~ended~~allocated ~~May~~over ~~31,~~the ~~2019.~~lease ~~Refer~~term toon ~~Note~~a 7generally straight-line ~~Change~~basis · Classify all cash payments within operating activities in the statement of ~~Control~~cash flows.

In July 2018, the FASB issued Accounting Standards Update No. 2018-11 (ASU 2018-11), which amends ASC 842 so that entities may elect not to recast their comparative periods in transition (the “Comparatives Under 840 Option”). ASU 2018-11 allows entities to change their date of initial application to the beginning of the period of adoption. In doing so, entities would:

~~NOTE~~· 5Apply ~~– INTANGIBLE~~ASC ~~ASSETS~~840 in the comparative periods. · Provide the disclosures required by ASC 840 for all periods that continue to be presented in accordance with ASC 840. · Recognize the effects of applying ASC 842 as a cumulative-effect adjustment to retained earnings for the period of adoption.

~~Intangible~~11 ~~assets~~Table ~~consisted~~ of ~~the following:~~Contents

	May 31, 2019	August 31, 2018
Computer Software	$ -	$ 5,200
Total	-	5,200
Accumulated Amortization	-	(1,732)
Net	$ -	$ 3,468

In addition, the FASB also issued a series of amendments to ASU 2016-02 that address the transition methods available and clarify the guidance for lessor costs and other aspects of the new lease standard.

~~Amortization~~The ~~expenses~~management ~~were~~has $0reviewed the accounting pronouncements and $adopted the new standard on January 1,~~299~~ ~~for~~2019 using the ~~nine~~modified ~~months~~retrospective ~~ended~~method ~~May~~of 31adoption. The transition method expedient which allows entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing this transition method, ~~2019~~prior periods have not been restated. The adoption of this ASU resulted in the recording of additional lease assets and ~~2018~~liabilities $41,638 and $41,638 with no effect to opening balance of retained earnings as the Company did not have any leases prior to the adoption of this ASU.

OnNOTE ~~November 14, 2018, the Company had a change of control. Intangible assets in the balance of $~~3~~,468~~ ~~have~~– ~~been~~GOING ~~written off and recorded for the nine months ended May 31, 2019. Refer to Note 7 - Change of Control.~~CONCERN

~~NOTE~~The 6Company’s –financial statements as of November 30, 2019, been 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 not yet established an ongoing source of ~~CAPITAL~~cash ~~STOCK~~flows sufficient to cover its operating costs and allow it to continue as a going concern. The Company has accumulated net loss of $5,716,280 as of November 30, 2019. These factors among others raise substantial doubt about the ability of the company to continue as a going concern for a reasonable period of time.

~~The~~In order to continue as a going concern, the Company ~~has~~will 1need,~~500~~ among other things,~~000~~ additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However,~~000~~ ~~shares~~management ofcannot ~~common~~provide ~~stock~~any ~~authorized~~assurances ~~with~~that athe ~~par~~Company ~~value~~will be successful in accomplishing any of $0its plans.~~001~~ ~~per~~These ~~share,~~financial statements do not include any adjustments related to the recoverability and ~~10,000,000~~classification ~~shares~~of assets or the amounts and classification of ~~Class~~liabilities Athat ~~preferred~~might ~~stock~~be ~~authorized~~necessary ~~with~~should athe ~~par~~Company ~~value~~be ofunable ~~$0.001~~to ~~per~~continue ~~share~~as a going concern.

OnNOTE ~~September~~4 ~~12,~~– ~~2016,~~PROPERTY ~~the~~& ~~Company issued 5,000,000 shares of common stock at $0.001 per share for a proceed of $5,000.~~EQUIPMENT

~~For~~Property ~~the~~and ~~year period ended August 31~~equipment, ~~2017~~net, ~~the~~is ~~Company~~comprised ~~issued 1,340,000 shares~~ of ~~common~~the ~~stock at $0.02 per share for a proceed of $26,800.~~following:

On April 24, 2019, the Company amended its Articles of Incorporation by filing a Certificate of Amendment with the Nevada Secretary of State which increased the authorized shares of its common stock, $0.001 par value, from 75,000,000 to 1,500,000,000 shares, and created a class of preferred stock, $0.001 par value, called the Class A Preferred Stock in the amount of 10,000,000 authorized shares, with each share of Class A Preferred Stock having 100 votes to be cast with respect to any and all matters presented to shareholders for a vote whether at a meeting of shareholders or by written consent.

As of November 30, 2019
			Accumulated
Category	Cost		Depreciation		Net
Computer & Electronics	$	31,037	$	5,121	$	25,916
Furniture & Fixture		177,974		17,845		160,129
Office Equipment		6,397		621		5,776
Leasehold Improvement		1,294		20		1,274
	$	216,702	$	23,607	$	193,095

As of May 31, 2019, the Company had 6,340,000 shares of common stock issued and outstanding.

As of August 31, 2019
			Accumulated
Category	Cost		Depreciation		Net
Computer & Electronics	$	30,637	$	3,802	$	26,835
Furniture & Fixture		268,587		21,444		247,143
Equipment		111,995		1,785		110,210
Leasehold Improvement		353,341		5,990		347,351
	$	764,560	$	33,021	$	731,539

~~NOTE~~Depreciation 7expense ~~– CHANGE~~was OF$10,724 ~~CONTROL~~and $6,391 for the three months ended November 30, 2019 and 2018, respectively.

~~Effective~~Fixed ~~November~~asset ~~14,~~written-off ~~2018,~~was ~~the Company~~$537,484 ~~Mr. Aleksandr Zausaev (“Seller”)~~ and ~~Mr.~~$11,672 Eufor ~~Boon~~the ~~Ching~~three ~~(“Buyer”)~~months ~~entered~~ended ~~into~~November ~~a Security Purchase Agreement (“SPA”). Pursuant to the SPA~~30, ~~Buyer~~2019 ~~acquired~~and ~~from Seller 5~~2018,~~000,000~~ ~~shares of common stock of the Company~~respectively.

In12 ~~addition,~~Table ~~Mr. Ching acquired an additional 1,335,000 shares~~ of common stock of the Company from certain other shareholders of the Company pursuant to a separate stock purchase agreement. The total number of shares of common stock acquired by Mr. Ching is 6,335,000, and all such shares now held by Mr. Ching are “restricted” and/or “control” securities.Contents

~~Simultaneously,~~NOTE ~~Mr.~~5 ~~Zausaev~~– ~~forgave~~RELATED ~~$35,236~~PARTY of related party debt. The Company relinquished all its assets to settle all its liabilities during the change of control transaction. In connection with these transactions, the Company has ceased its prior operations and is now a “shell company.”TRANSACTIONS

~~NOTE~~The 8related ~~– RELATED~~parties ~~PARTY~~consisted ~~LOANS~~of the following:

12Name of related party Nature of relationship Mr. Ching Eu Boon Majority shareholder, Chief Executive Officer and Director (Chairman) of the Company Ms. Lim Mei Fong Spouse of Mr. Ching Eu Boon Mr. Aleksandr Zausaev Former sole officer and director of the Company Mr. Mohd Mustaqim bin Abdullah Chief Operations Officer Ms. XiaoJia Huang Chief Financial Officer Mr. Cheng-Yi Chou Chief Marketing Officer Cannis Group Indonesia a company with common director World Speed Notion Sdn Bhd a company with common director

~~With~~Related ~~respect~~Party to the change of control, Mr. Zausaev, resigned in all officer and director capacities from the Company and Mr. Ching was appointed the sole officer and sole director of the Company. Mr. Zausaev forgave $35,236 of related party debt owed to him.Receivable

InAs ~~support~~ of ~~the~~November ~~Company’s cash requirements~~30, ~~CannisApp Sdn Bhd~~2019, antotal ~~entity~~balance ~~which~~due ~~Mr.~~from ~~Ching,~~related ~~the~~party ~~Company’s~~was ~~officer and director~~$29, ~~is a majority owner~~153, ~~advanced~~and ~~$22,550 to support~~ the ~~Company’s~~balances ~~operations.~~due ~~There~~from ~~was~~Cannis noGroup ~~formal~~Indonesia ~~written~~and ~~commitment for continued support by~~ Mr. ~~Ching.~~Mohd ~~The~~Mustaqim ~~advances~~bin Abdullah were ~~considered temporary in nature and have not been formalized by a promissory note. The outstanding payable owed to CannisApp Sdn Bhd was~~ $2228,~~550~~716 ~~as of May 31, 2019. The amount is non-interest bearing~~ and ~~due~~$437 ~~on demand without maturity date~~respectively.

~~NOTE~~During 9the ~~– INCOME~~three ~~TAX~~months ended November 30, 2019, Cannis Group Indonesia borrowed $4,305 from the Company and repaid $0.

OnAs ~~December 22, 2017, the President~~ of ~~the~~August ~~United States signed into law the Tax Cuts and Jobs Act (“Tax Reform Act”). The legislation significantly changes U.S. tax law by~~31, ~~among other things~~2019, ~~lowering~~total ~~corporate~~balance ~~income~~due tax rates, implementing a territorial tax system and imposing a transition tax on deemed repatriated earnings of foreign subsidiaries. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from arelated ~~maximum~~party ofwas ~~35% to a flat 21% rate~~$24, ~~effective January 1~~530, ~~2018.~~and ~~As a result of~~ the ~~reduction~~balances indue ~~the U.S. corporate income tax rate~~ from ~~35%~~Cannis toGroup ~~21%~~Indonesia ~~under~~and ~~the Tax Reform Act, the Company revalued its ending net deferred tax assets~~Mr. InMohd ~~addition,~~Mustaqim ~~net~~bin ~~operating~~Abdullah ~~losses~~were ~~(NOL) arising after December 31~~$24,098 ~~2017~~and ~~can~~$432 ~~be carryforward indefinitely while limiting the NOL deduction for a given year to 80% of taxable income~~respectively.

As13 ofTable ~~May 31, 2019, the Company had net operating loss carry forwards~~ of $54,350 that may be available to reduce future years’ taxable income. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a full valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.Contents

~~NOTE~~Related 10Party ~~- SUBSEQUENT EVENT~~Payable

~~The~~For ~~Company evaluates subsequent events that have occurred after~~ the ~~balance~~three ~~sheet~~months ~~date~~ended ~~but~~November ~~before~~30, ~~the~~2019, ~~financial statements are issued~~Mr.Ching ~~Based~~Eu onBoon ~~this~~advanced ~~evaluation~~$383,287 to the Company ~~concluded~~as ~~that~~working ~~subsequent~~capital tofor ~~May~~its ~~31,~~operation ~~2019~~and ~~but~~received ~~prior to July 10~~$34,220 ~~2019,~~from the ~~date the financial statements were available to be issued, there was no subsequent event that would require disclosure to or adjustment in the financial statements~~Company.

13As of November 30, 2019, the balance due to Mr.Ching Eu Boon was $3,774,148.

~~ITEM~~As 2of August 31, 2019, the outstanding balance due to Mr. ~~MANAGEMENT’S~~Ching ~~DISCUSSION~~was ~~AND~~$3,381,115, ~~ANALYSIS~~and OFthe ~~FINANCIAL~~outstanding ~~CONDITION~~balance ~~AND~~due ~~RESULTS~~to OFWorld ~~OPERATIONS~~Speed Notion Sdn Bhd was $6,924.

~~FORWARD~~Ms ~~LOOKING~~Lim ~~STATEMENT~~Mei ~~NOTICE~~Fong leased the employee accommodation to the Company from April 25,2019 to April 24, 2021, with monthly rent of $770. The total rent expense for the three months ended November 30, 2019 was $2,310 and the rent deposit was $nil as of November 30, 2019.

~~Statements~~NOTE ~~made~~6 in– this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.LEASES

~~Financial~~The ~~information~~Company ~~contained~~has inoperating ~~this~~leases ~~quarterly~~for ~~report~~corporate offices and inemployees’ ~~our~~accommodation. ~~unaudited~~These ~~interim~~leases ~~financial~~have ~~statements~~remaining islease ~~stated~~terms inof ~~United~~1 ~~States~~year ~~dollars~~to ~~and~~3 ~~are~~years. ~~prepared~~The inCompany ~~accordance~~has elected to not recognize lease assets and liabilities for leases with ~~United~~a ~~States~~term ~~generally~~less ~~accepted~~than ~~accounting~~twelve ~~principles~~months.

~~GENERAL~~Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is incremental borrowing rate or, if available, the rate implicit in the lease. The Company determines the incremental borrowing rate for each lease based primarily on its lease term in Malaysia which is approximately 5%.

WeOperating ~~were~~lease ~~incorporated~~expenses inwere ~~the~~$27,507 ~~State~~and ~~of Nevada on August~~ $17,294 ~~2016~~for ~~under~~ the ~~name~~three ~~Zartex,~~months ~~Inc.~~ended ~~On December 6, 2018, we changed our name to Cannis, Inc. From inception until~~ November 1430, ~~2018,~~2019 ~~the~~and ~~Company’s principal business consisted of software development~~2018.

~~Effective~~The ~~November~~undiscounted ~~14,~~future ~~2018,~~minimum alease ~~change~~payment ofschedule control occurred with respect to Zartex, Inc. (“Company”). Pursuant to a Securities Purchase Agreement entered into by and among the Company, Mr. Aleksandr Zausaev (“Seller”) and Mr. Eu Boon Ching (“Buyer”), Buyer acquired from Seller 5,000,000 shares of common stock of Company. In addition, pursuant to a separate Stock Purchase Agreement by and among Mr. Ching, as buyer, and certain other shareholders of the Company, Mr. Ching acquired an additional 1,335,000 shares of common stock of the Company. The total number of shares of common stock acquired by Mr. Ching is 6,335,000, and all such shares now held by Mr. Ching are “restricted” and/or “control” securities.follows:

On the closing of the above transaction, Mr. Zausaev, the then sole officer and director of the Company, resigned in all officer and director capacities from the Company and Mr. Ching was appointed the sole officer of the Company (Chief Executive Officer, Chief Financial Officer, Secretary and Treasurer) and a sole Director of the Company. At closing, the Company assigned all of its assets to Mr. Zausaev in exchange for certain considerations including his cancellation and waiver of all outstanding liabilities of the Company in favor of the former sole officer and director.

For the three months ended November 30, 2019,
2020		80,729
2021		11,627
2022		-
Thereafter		-
Total	$	92,236

~~Effective~~NOTE ~~immediately~~7 at– ~~closing,~~STOCKHOLDERS’ the Company permanently ceased its previous operating activities of software development. Consequently, the Company is now a shell company seeking to merge with another entity with experienced management and opportunities for growth in return for shares of our common stock to create value for our shareholders.EQUITY

AsThe ~~mentioned~~Company ~~above,~~is onauthorized ~~December~~to 6,issue ~~2018~~10,000,000 ~~the~~numbers ~~Company amended its Articles~~ of ~~Incorporation~~Class ~~with~~A ~~the~~Preferred ~~Nevada~~Stock ~~Secretary~~at ofpar ~~State~~value ~~to affect the name change~~ of ~~the Company to Cannis, Inc~~$0.001 ~~(“Corporate~~per ~~Action”).~~share Onand ~~November 29~~1, ~~2018~~500, ~~our majority stockholder~~000,000 ~~holding~~shares ~~99%~~ of ~~our~~common ~~outstanding voting securities approved the Corporate Action~~stock.

14In December 2018, Mr. Ching converted $177,164 (MYR 732,640) of the outstanding amount into 732,640 shares of ordinary shares of the Company.

On ~~April~~August 245, 2019, the Company, ~~amended~~Cannisapp, ~~its~~and ~~Articles~~Mr. ofChing ~~Incorporation~~entered byinto ~~filing~~the aStock ~~Certificate~~Exchange ofAgreement, ~~Amendment~~where ~~with~~ the ~~Nevada~~Company ~~Secretary~~issued ofan ~~State~~aggregate ~~which increased the authorized shares~~ of ~~its common stock, $0.001 par value, from 75,000,000 to~~ 1,~~500~~482,~~000~~492,~~000~~800 shares, ~~and created a class~~ of ~~preferred~~common stock, ~~$0.001~~and ~~par value~~8, ~~called the Class A Preferred Stock in the amount of 10~~500,000~~,000~~ ~~authorized~~ shares, ~~with each share~~ of Class A Preferred Stock ~~having~~in ~~100~~exchange ~~votes~~for ~~to be cast with respect to any and~~ all ~~matters~~of ~~presented~~the tooutstanding ~~shareholders~~capital ~~for~~stock ~~a vote whether at a meeting~~ of ~~shareholders or by written consent~~Cannisapp.

~~RESULTS~~As OFof ~~OPERATIONS~~November 30, 2019, the Company has 1,488,832,800 shares of common shares issued and outstanding, and 8,500,000 shares of Class A Preferred Stock issued and outstanding.

~~THREE~~14 ~~MONTHS~~Table ~~PERIOD~~of ~~ENDED MAY 31, 2019 COMPARED TO THREE MONTHS PERIOD ENDED MAY 31, 2018~~Contents

~~Revenues~~NOTE 8 – INCOME TAX

~~During~~United ~~the~~States ~~three~~of ~~months ended May 31, 2019 and 2018, respectively, we did not have any revenue from operations.~~ America

~~Operating~~Cannis, ~~Expenses~~Inc. is incoporated in the State of Nevada and is subject to Nevada state and US Federal tax laws. Cannis Inc. has not recognized an income tax benefit for its operating losses based on uncertainties concerning its ability to generate taxable in future period.

~~During~~The ~~the~~components ~~three~~of ~~months~~deferred ~~ended~~tax ~~May~~assets ~~31, 2019, we incurred general~~ and ~~administrative~~liabilities ~~expenses of $8,850~~ as ~~compared to $13,311 for the three months ended May 31, 2018.~~ follows:

Our loss from operations for the three months ended May 31, 2019 and 2018 were $8,850 and $13,311, respectively.

	November 30, 2019			August 31, 2019
Deferred tax asset	$			$
Net operating losses carry forwards		29,549			27,545
Valuation allowance		(29,549	)		(27,545	)
Deferred tax asset, net	$	-		$	-

~~Net Loss~~Malaysia

~~For~~Cannisapp ~~the~~Sdn ~~three~~Bhd ~~months~~is ~~ended~~subject ~~May~~to ~~31,~~Malaysia ~~2019~~income tax laws. The standard corporate tax rate is 24%, wewhile ~~had~~the arate ~~net~~for ~~loss~~resident small and medium-sized companies (i.e. companies incorporated in Malaysia with paid-up capital of $8MYR 2.5 million or less and that are not part of a group containing a companying exceeding this capitalization threshold) is 17% (reduced from 18%,~~850~~ aseffective ~~compared~~2019) toon the first MYR 500,000 (approximately $13120,~~311~~907), ~~for~~with the ~~same~~balance ~~respective~~being ~~period~~tax ~~last~~at ~~year~~the 24% rate.

~~NINE~~For ~~MONTHS~~the ~~PERIOD~~three ~~ENDED~~months ~~MAY~~ended 31November 30, 2019 ~~COMPARED~~and TO2018, ~~NINE~~Cannisapp ~~MONTHS~~Sdn ~~PERIOD~~Bhd ~~ENDED~~did ~~MAY~~not ~~31,~~record ~~2018~~income tax expenses because it reported operating losses.

~~Revenues~~The components of deferred tax assets and liabilities as follows:

During the nine months ended May 31, 2019 and 2018, respectively, we did not have any revenue from operations.

	November 30,			August 31,
	2019			2019
Deferred tax asset
Capital allowance		19,991			15,971
Net operating loss carryover		240,037			191,427
Valuation allowance		(260,028	)		(207,398	)
Deferred tax assets, net	$	-		$	-

~~Operating~~15 ~~Expenses~~Table of Contents

~~During~~NOTE ~~the~~9 ~~nine~~– ~~months~~SEGMENT ~~ended May 31, 2019, we incurred general and administrative expenses of $39,908 compared to $24,073 for the nine months ended May 31, 2018.~~ INFORMATION

The ~~increase~~Company inbelieves ~~general~~that ~~and~~it ~~administrative~~operates ~~expenses~~in ~~were~~two ~~due~~business tosegments ~~increase~~offline insales ~~professional~~distribution ~~fees~~ and ~~$11,672~~online incommerce ~~property~~ and ~~equipment~~services; ~~write-off for the control change during the nine months ended May 31, 2019. General~~ and ~~administrative~~operates ~~expenses~~in ~~mainly~~one ~~consist~~geographical ~~legal,~~segment ~~accounting and other professional fees~~Malaysia.

~~Our~~The ~~loss~~Company’s ~~from~~operating ~~operations~~segments ~~for~~are ~~the~~as ~~nine~~follows: ~~months ended May 31, 2019 and 2018 were $39,908 and $24,073, respectively.~~

~~Other~~Online ~~Income~~commerce and services which is comprised of platforms operating in retail and wholesale commerce, retail and wholesale commerce — cross-border and global, local consumer services and others.

15Offline sales distribution which is comprised of sales and distributions of nutritional supplements which will be integrated with the Company’s mobile application platform.

During the nine months ended May 31, 2019, we had a forgiveness of debt by the Company’s former sole officer and director and controlling shareholder in the amount of $35,236 in connection with the change of control, which occurred on November 14, 2018. We did not have a similar forgiveness of related party debt for any other period.

	Three Months Ended November 30,			Three Months Ended November 30,
	2019			2018
Sales Revenues
Online commerce and services	$	-		$	-
Offline sales distribution		370,567			310,081
Total sales revenues	$	370,567		$	310,081

Income (loss) from operations
Online commerce and services	$			$
Offline sales distribution		(762,114	)		(429,978	)
Total income (loss) from operations	$	(762,114	)	$	(429,978	)

~~Net~~NOTE ~~Loss~~10 – CONCENTRATIONS, RISKS AND UNCERTAINTIES

~~For~~Credit ~~the nine months ended May 31, 2019, we had a net loss of $4,672 as compared to a net loss of $24,073 for the same respective period last year.~~ risk

~~LIQUIDITY~~Cash ~~AND~~deposits ~~CAPITAL~~with ~~RESOURCES~~banks are held in financial institutions in Malaysia, which are federally insured with deposit protection up to MYR250,000 (approximately $59,899). Accordingly, the Company has a concentration of credit risk related to the uninsured part of bank deposits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk.

We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.Concentration

~~Existing~~The ~~working~~Company ~~capital,~~offer ~~further~~limited ~~advances~~varieties byof ~~related~~products ~~party~~for ~~and~~sale ~~debt~~while ~~instruments,~~depends ~~and~~on ~~anticipated~~few ~~cash~~suppliers ~~flow~~for ~~are~~these ~~expected to be adequate to fund our operations over the next twelve months~~products. WeAccordingly, ~~have~~The noCompany ~~lines~~has ofa ~~credit~~concentration orrisk ~~other~~related ~~bank financing arrangements. Generally, we have financed operations~~ to ~~date~~these ~~through~~products ~~the proceeds of the private placement of equity~~ and ~~debt instruments~~suppliers. InFailure ~~connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating~~ to: ~~(i)~~maintain ~~developmental~~existing ~~expenses~~relationships ~~associated~~ with athe ~~start-up~~suppliers ~~business~~or ~~and (ii) marketing expenses. We intend~~ to ~~finance~~establish ~~these~~new ~~expenses~~relationships ~~with~~in ~~further~~the ~~issuances~~future ofcould ~~securities,~~negatively ~~and~~affect ~~debt~~the ~~issuances.~~Company’s ~~Thereafter,~~ability ~~we expect we will need~~ to ~~raise~~obtain ~~additional~~products ~~capital~~sold ~~and generate revenues~~ to ~~meet~~customers ~~long-term operating requirements. Additional issuances of equity or convertible debt securities will result~~ in ~~dilution~~a totimely ~~our current shareholders~~manner. ~~Further,~~If ~~such~~the ~~securities~~Company ~~might~~is ~~have~~unable ~~rights, preferences or privileges senior~~ to ~~our~~obtain ~~common~~ample ~~stock.~~supply ~~Additional~~of ~~financing~~products ~~may~~from ~~not~~existing besuppliers ~~available upon acceptable terms,~~ or atalternative ~~all.~~sources Ifof ~~adequate funds are not available or are not available on acceptable terms~~supply, wethe Company may ~~not~~ be ~~able~~unable to ~~take~~satisfy ~~advantage~~the oforders ~~prospective~~from ~~new~~its ~~business endeavors or opportunities~~customers, which could ~~significantly~~materially and ~~materially~~adversely ~~restrict~~affect ~~our business operations~~revenues.

~~As at May 31, 2019, our working capital deficit was $22,550 as compared with a working capital deficit of $29,550 as at August 31, 2018.~~ The ~~decrease~~concentration ~~for~~on ~~the~~products ~~current~~sales ~~period~~revenues is ~~due~~as tofollows: ~~the forgiveness of related party debt by the Company’s former sole officer, director and controlling shareholder.~~

As at May 31, 2019, we had related party loans of $22,550, as compared with $32,379 as at August 31, 2018.

	Three months ended November 30, 2019					Three months ended November 30, 2018
	Amount		%			Amount		%
Product A	$	131,932		36	%	$	290,873		94	%
Product B		55,648		15	%		13,508		4	%
Total	$	187,580		51	%	$	304,381		98	%

~~Cash~~16 ~~and~~Table ~~cash~~of ~~equivalents at May 31, 2019 was $0 compared with $17,439 at August 31, 2018.~~Contents

~~There~~The ~~were~~concentration ~~6,340,000~~on ~~shares~~suppliers’ ofpurchases ~~common~~is ~~stock issued and outstanding~~ as ~~of May 31, 2019 and August 31, 2018, respectively.~~follows:

The Company has net cash used in operating activities of $33,089 for the nine months ended May 31, 2019 which resulted from related party debt forgiven of $35,236 due to change of control.

	Three months ended November 30, 2019					Three months ended November 30, 2018
	Amount		%			Amount		%
Supplier A	$	191,128		55	%	$	-
Supplier B		76,621		22	%		57,148		12	%
Supplier C				N/A
Supplier D	$	-		N/A		$	66,893		14	%
Supplier E				N/A			140,394		29	%

Total	$	267,749		77	%	$	264,435		55	%

The ~~Company~~concentration ~~has~~on ~~generated~~customers’ ~~net~~sales ~~cash~~revenues ~~provided~~is ~~by financing activities of $15,650 for the nine months ended May 31, 2019~~ as ~~the Company received net proceeds from related party advances.~~follows:

GOING CONCERN

	Three months ended November 30, 2019					Three months ended November 30, 2018
	Amount		%			Amount		%
Customer A	$	35,958		10	%	$	-		N/A
Customer B		52,251		14	%				N/A
Customer C							288,481		93	%
	$	88,208		24	%	$	288,481		93	%

~~The~~NOTE ~~accompanying~~11 ~~financial~~- ~~statements~~SUBSEQUENT have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the EVENTS

16The Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. Based on this evaluation, the Company concluded that subsequent to November 30, 2019 but prior to January 21, 2020, the date the financial statements were available to be issued, there was no subsequent event that would require disclosure to or adjustment to the financial statements other than the ones disclosed above.

~~foreseeable~~17 ~~future.~~Table ~~The~~of ~~Company currently has no assets, no business or recurring income which raises substantial doubt about its ability to continue as a going concern.~~Contents

~~The~~ITEM ~~ability~~2. ~~to continue as a going concern is dependent upon the Company~~MANAGEMENT’s ~~ability~~DISCUSSION toAND ~~merger~~ANALYSIS ~~with~~OF orFINANCIAL ~~acquire~~CONDITION ~~profitable~~AND ~~operations~~RESULTS inOF the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. There is no assurance that this series of events will be satisfactorily completed.OPERATIONS

~~OFF-BALANCE~~FORWARD ~~SHEET~~LOOKING ~~ARANGEMENTS~~STATEMENT NOTICE

AsStatements made in this Form 10-Q that are not historical or current facts are “forward-looking statements” made pursuant to the safe harbor provisions of Section 27A of the ~~date~~Securities Act of ~~this~~1933 ~~Quarterly~~(the ~~Report~~“Act”) and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as “may,” we“will,” do“expect,” ~~not~~“believe,” ~~have~~“anticipate,” ~~any~~“estimate,” ~~off-balance~~“approximate” ~~sheet~~or ~~arrangements~~“continue,” or the negative thereof. We intend that ~~have~~such orforward-looking ~~are~~statements ~~reasonably~~be ~~likely~~subject to ~~have~~the asafe ~~current~~harbors orfor ~~future~~such ~~effect~~statements. We wish to caution readers not to place undue reliance on ~~our~~any ~~financial~~such ~~condition~~forward-looking statements, ~~changes~~which speak only as of the date made. Any forward-looking statements represent management’s best judgment as to what may occur in ~~financial~~the ~~condition~~future. However, ~~revenues~~forward-looking orstatements ~~expenses~~are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations, ~~liquidity,~~and ~~capital~~events ~~expenditures~~and those presently anticipated or ~~capital~~projected. ~~resources~~We ~~that~~disclaim ~~are~~any ~~material~~obligation subsequently to ~~investors~~revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

~~ITEM~~Financial 3.information ~~QUANTITATIVE~~contained ~~AND~~in ~~QUALITATIVE~~this ~~DISCLOSURES~~quarterly ~~ABOUT~~report ~~MARKET~~and ~~RISK~~in our unaudited interim financial statements is stated in United States dollars and are prepared in accordance with United States generally accepted accounting principles.

~~As a "smaller reporting company" as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.~~GENERAL

~~ITEM~~We 4were incorporated in the State of Nevada on August 17, 2016 under the name Zartex, Inc. ~~CONTROLS~~On ~~AND~~December ~~PROCEDURES~~6, 2018, we changed our name to Cannis, Inc. From inception until November 14, 2018, the Company’s principal business consisted of software development.

~~Our~~Effective ~~management~~November is14, ~~responsible~~2018, ~~for establishing and maintaining~~ a ~~system~~change of ~~disclosure~~control ~~controls~~occurred ~~and~~with ~~procedures~~respect ~~(as~~to ~~defined~~Zartex, inInc. ~~Rule 13a-15~~(e“Company”). ~~and~~Pursuant ~~15d-15(e)~~to ~~under~~a ~~the~~Securities ~~Exchange~~Purchase ~~Act)~~Agreement ~~that~~entered isinto ~~designed~~by toand ~~ensure~~among ~~that~~the ~~information~~Company, ~~required~~Mr. toAleksandr beZausaev ~~disclosed~~(“Seller”) byand usMr. inEu ~~the~~Boon ~~reports~~Ching ~~that~~(“Buyer”), weBuyer ~~file~~acquired orfrom ~~submit~~Seller ~~under the Exchange Act is recorded~~5, ~~processed~~000,000 ~~summarized~~shares ~~and~~of ~~reported,~~common ~~within~~stock ~~the~~of ~~time~~Company. ~~periods~~In ~~specified~~addition, inpursuant ~~the~~to ~~Commission’s~~a ~~rules~~separate ~~and~~Stock ~~forms.~~Purchase ~~Disclosure~~Agreement ~~controls~~by and ~~procedures~~among ~~include~~Mr. Ching, ~~without~~as ~~limitation~~buyer, ~~controls~~ and ~~procedures~~certain ~~designed~~other toshareholders ~~ensure~~of ~~that~~the ~~information~~Company, ~~required~~Mr. toChing beacquired ~~disclosed by~~ an ~~issuer~~additional in1,335,000 ~~the~~shares ~~reports~~of ~~that~~common itstock ~~files~~of ~~or submits under~~ the ~~Exchange~~Company. ~~Act~~The istotal ~~accumulated~~number ~~and~~of ~~communicated~~shares toof ~~the~~common ~~issuer’s~~stock ~~management,~~acquired ~~including~~by ~~its~~Mr. ~~principal~~Ching ~~executive~~is ~~officer~~6,335,000, ~~or officers~~ and ~~principal~~all ~~financial~~such ~~officer~~shares ornow ~~officers,~~held orby ~~persons~~Mr. ~~performing~~Ching ~~similar~~are ~~functions,~~“restricted” asand/or ~~appropriate~~“control” ~~to allow timely decisions regarding required disclosure~~securities.

AnOn ~~evaluation was conducted under~~ the ~~supervision~~closing ~~and~~of ~~with~~ the ~~participation~~above oftransaction, ~~our~~Mr. ~~management~~Zausaev, of the ~~effectiveness~~then ofsole ~~the~~officer ~~design~~ and ~~operation~~director of ~~our~~the ~~disclosure controls and procedures as of May 31~~Company, ~~2019.~~resigned ~~Based~~in onall ~~that~~officer ~~evaluation,~~and ~~our~~director ~~management~~capacities ~~concluded~~from ~~that~~the ~~our~~Company ~~disclosure~~and ~~controls~~Mr. ~~and~~Ching ~~procedures~~was ~~were~~appointed ~~not~~the ~~effective~~sole asofficer of ~~such~~the ~~date~~Company to(Chief ~~ensure~~Executive ~~that~~Officer, ~~information~~Chief ~~required~~Financial toOfficer, beSecretary ~~disclosed~~and inTreasurer) ~~the~~and ~~reports~~a ~~that~~sole weDirector ~~file~~of ~~or submit under~~ the ~~Exchange~~Company. ~~Act,~~At ~~is recorded~~closing, ~~processed, summarized and reported within~~ the ~~time~~Company ~~periods~~assigned ~~specified~~all inof ~~SEC~~its ~~rules~~assets ~~and~~to ~~forms~~Mr. ~~Management~~Zausaev ~~also~~in ~~confirmed~~exchange ~~that~~for ~~there~~certain ~~was~~considerations noincluding ~~change~~his incancellation ~~our~~and ~~internal~~waiver ~~control~~of ~~over~~all ~~financial~~outstanding ~~reporting~~liabilities ~~during~~of the ~~nine~~Company ~~months~~in ~~period~~favor ~~ended~~of ~~May~~the ~~31,~~former ~~2019~~sole ~~that~~officer ~~has~~and ~~materially affected, or is reasonably likely to materially affect, our internal control over financial reporting~~director.

17Effective immediately at closing, the Company permanently ceased its previous operating activities of software development. Consequently, the Company is now a shell company seeking to merge with another entity with experienced management and opportunities for growth in return for shares of our common stock to create value for our shareholders.

~~PART~~On ~~II.~~December ~~OTHER~~6, ~~INFORMATION~~2018, the Company amended its Articles of Incorporation with the Nevada Secretary of State to effect the name change of the Company to Cannis, Inc.

~~ITEM~~18 1.Table ~~LEGAL~~of ~~PROCEEDINGS~~Contents

WeAcquisition ~~know~~ of no material, existing or pending legal proceedings against our Company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.Cannisapp

~~ITEM~~On 1AAugust 5, 2019 (the “Closing Date”), we closed a share exchange under a Share Exchange Agreement (the “Stock Exchange Agreement”), with Cannisapp. ~~RISK~~Sdn. ~~FACTORS~~Bhd, a Malaysian company (“Cannisapp”) and Mr. Ching, its sole stockholder, who is our majority shareholder and officer and director. Mr. Ching held 100% of the issued and outstanding stock of Cannisapp. Pursuant to the Stock Exchange Agreement and upon the closing of the Share Exchange, in exchange for all of the issued and outstanding capital stock of Cannisapp, we issued to Mr. Ching an aggregate amount of 1,482,492,800 shares of our common stock and 8,500,000 shares of Class A Preferred Stock, $0.001 par value, which has 100 for 1 voting rights per share. As a result of the Share Exchange, Mr. Ching remains the controlling shareholder of the Company, owning a total of 99.99% of our outstanding common stock and 100% of our outstanding Class A Preferred Stock. The Share Exchange was accounted for under the business combination under common control of accounting. As a result of the Share Exchange, we ceased to be a “shell company.”

AsWe aconduct ~~"smaller~~our ~~reporting~~operations ~~company"~~through asour ~~defined~~consolidated bysubsidiary, ~~Item~~Cannisapp. 10The ofsubsidiary ~~Regulation~~was ~~S-K~~incorporated under the corporation laws in Malaysia on April 2, we2018 ~~are~~under ~~not~~the ~~required~~name Antara Rimbun Sdn Bhd. It affected a name changed to ~~provide~~Nimpmos ~~information~~Sdn ~~required~~Bhd byon ~~this~~July ~~Item~~5, 2018, and then to Cannisapp Sdn. Bhd. on September 12, 2018.

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None ITEM 3.	DEFAULTS UPON SENIOR SECURITIES

Cannisapp has two distinct, business segments. One is developing proprietary mobile applications and the other is acting as an offline sales distributor for nutritional supplements manufactured by third parties. We began selling nutritional supplements in September 2018. We commenced the development of our mobile applications operating on Android and iOS operating systems in June 2018.

~~None~~Our offices are located at Level 11-2, Tower 4, Puchong Financial Corporate Centre (PFCC), Jalan Puteri 1/2, Bandar Puteri,47100 Purchhong, Selangor, Malaysia and our website is www.cannis.app.

~~ITEM~~On 4April 24, 2019, the Company amended its Articles of Incorporation by filing a Certificate of Amendment with the Nevada Secretary of State which (i) increased the authorized shares of its common stock, $0.001 ~~MINE~~par ~~SAFETY~~value, ~~DISCLOSURES~~from 75,000,000 to 1,500,000,000 shares, and (ii) created a class of preferred stock, $0.001 par value, called the Class A Preferred Stock in the amount of 10,000,000 authorized shares, with each share of Class A Preferred Stock having 100 votes to be cast with respect to any and all matters presented to shareholders for a vote whether at a meeting of shareholders or by written consent. Apart from the voting rights stated in the preceding sentence, the Class A Preferred Stock shall have no other rights, privileges or preferences.

~~Not~~Translation ~~applicable~~of toamounts ~~our~~from ~~Company.~~the local currency of Cannisapp (Malaysian Ringett “MYR”) into US$1 has been made at the following exchange rates for the respective years:

ITEM 5. OTHER INFORMATION

	As of and for quarter ended November 30,		As of and for quarter ended November 30,
	2019		2018
Period-end MYR: US$1 exchange rate		4.1773		4.1802
Period average MYR: US$1 exchange rate		4.1756		4.1597

~~None~~19 Table of Contents

~~ITEM~~RESULTS 6.OF ~~EXHIBITS~~OPERATIONS

~~The~~THREE ~~following~~MONTHS ~~exhibits~~PERIOD ~~are~~ENDED ~~included~~NOVEMBER as30, ~~part~~2019 ofCOMPARED ~~this~~TO ~~report~~THE byTHREE ~~reference:~~MONTHS PERIOD ENDED NOVEMBER 30, 2018

31.1		Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
31.2		Certification of Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
32.1		Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
32.2		Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.

The following table sets forth key components of the Company’s results of operations for the three months ended November 30, 2019 compared to the three months ended November 30, 2018. The discussion following the table addresses these results.

	For the Three Months Ended November 30,
	2019			2018

Net revenues	$	370,567		$	310,081
Cost of revenues		263,968			259,871
Gross margin		106,599			50,210
Operating expenses:
Selling expenses		191			208,868
General and administrative		868,522			271,320
Total operating expenses		868,713			480,188

Loss from operations		(762,114	)		(429,978	)

Other income/(loss)
Other income		12			35,701
Total other income(loss)		12			35,701

Operating loss before income taxes		(762,102	)		(394,277	)

Provision for income taxes		-			-

Net loss		(762,102	)		(394,277	)

Other comprehensive income (loss)
Net loss		(762,102	)		(394,277	)
Foreign currency translation adjustment		(58,951	)		24,073
Total comprehensive income	$	(821,053	)	$	(370,204	)

~~SIGNATURES~~20 Table of Contents

18Revenues. During the three months ended November 30, 2019, we had revenue of $370,567, which were derived entirely from offline sales of nutritional supplements. For the same period last year, we had revenues of $310,081 also from sales of nutritional supplements. We act as a distributor for two different manufacturers and we began selling these supplements in September 2018. The increase in revenues for the current quarterly period is due to product expansion into new markets coupled with the impact of the Christmas season.

~~Pursuant~~We tobegan ~~the~~developing ~~requirements~~our ofproprietary ~~the~~mobile ~~Securities~~applications ~~Exchange~~in ~~Act~~June of2018. ~~1934,~~We have not generated revenues from these applications for the ~~registrant~~quarters ~~has~~ended ~~duly~~November ~~caused~~30, ~~this~~2019 ~~report~~and 2018. We intend to beintegrate ~~signed~~our onoffline ~~its~~sales ~~behalf~~with byour ~~the~~mobile ~~undersigned~~applications ~~thereunto~~platform ~~duly~~as ~~authorized~~part of our marketing strategy. We expect to generate sale of our mobile applications beginning in November 2020.

~~Date:~~Cost ~~July~~of 10Revenue. For the three months ended November 30, 2019, we had cost of revenue of $263,968 compared with $259,871 in cost of revenue for the same period last year. The slight increase for the current period correlates to the increase in sales for the same period. Cost of revenue represents our costs for the nutritional supplements sold.

~~Cannis~~Operating ~~Inc~~expenses. Operating expenses consist of selling, general and administrative expenses, and research and development expense.

~~/s/~~For Euthe ~~Boon~~quarter ~~Ching~~ended November 30, 2019, we had selling, general and administrative expenses of $868,713 compared with selling, general and administrative expenses of $480,188 for the quarter ended November 30, 2018, representing an 81% increase from the prior period.

EuSelling ~~Boon~~expenses ~~Ching~~include marketing and advertising costs related to the operations and development of Cannisapp. These expenses were $191 and $208,868 for the quarters ended November 30, 2019 and 2018, respectively. The significant decrease for the current period was due to a reduction of our the advertising expenditures for the current period. During the current quarter, we ceased our advertising for all of the business.

~~Chief~~General ~~Executive~~and ~~Officer~~administrative expenses mainly consist of salaries and related employee benefits, office expenses, professional service fees, depreciation expenses, rent, and related costs. These expenses were $868,522 and $271,320 for the quarter ended November 30, 2019 and 2018, respectively, representing an increase of $597,202. The significant increase for the current period was due to the fixed assets written-off of $537,484 for the three months ended November 30, 2019.

~~Chief~~We ~~Financial~~did ~~officer~~not incur any research and development expenses for three months ended November 30, 2019 and 2018.

~~(Principal~~Loss ~~Executive~~from Operations. For the quarter ended November 30, ~~Financial~~2019, we had loss from operations of $762,114 compared with loss from operations of $429,978 for the quarter ended November 30, 2018 for the reasons discussed above.

~~and~~21 ~~Accounting~~Table ~~Officer)~~of Contents

Total Comprehensive Loss. For the quarter ended November 30, 2019, we had loss from foreign currency translation adjustment in the amount of $58,952 which resulted in a comprehensive loss of $821,053 for the 2019 quarterly period. For the quarter ended November 30, 2018, we had gain from foreign currency translation adjustment in the amount of $24,073 which resulted in a comprehensive loss of $370,204 for the 2018 quarterly period. Foreign currency translation adjustments reflects the fluctuations in the two currencies (USD and MYR).

LIQUIDITY AND CAPITAL RESOURCES

Working Capital Deficit. As of November 30, 2019, the Company had working capital deficit of $5,606,322, compared to a working capital deficit of $5,354,942 as of August 31, 2019. The increase in working capital deficit is a result of a slight increase in accounts payable and a slight increase in related party payables as of November 30, 2019.

Cash Flows.

The following is a summary of the Company’s cash flows from operating, investing and financing activities for the quarter ended November 30, 2019 and 2018, respectively:

	Quarter ended November 30, 2019			Quarter ended November 30, 2018
Net cash used in operating activities	$	(355,470	)	$	(597,552	)
Net cash used in investing activities		-			(115,168	)
Net cash provided by financing activities		342,050			1,235,045
Net change in cash and cash equivalents	$	(13,420	)	$	522,325

Operating Activities. Net cash used in operating activities was $355,470 for the quarter ended November 30, 2019 consisting mainly of a net loss of $762,102 fixed asset written-off of $537,484, and customer deposits of $167,304. This compares with net cash used in operating activities of $597,552 for the quarter ended November 30, 2018 consisting mainly of a net loss of $394,277 and accounts payable of $162,723. The increase was primarily the result of the significant increase in operating expenses of Cannisapp, partly offset by the increase in account payable.

Investing Activities. Net cash used in investing activities was $nil for the quarter ended November 30, 2019, compared to net cash from investing activities of $115,168 for ended quarter ended November 30, 2018. Net cash used in investing activities solely reflect purchase or disposal of fixed assets and intangible assets, such as computer, office equipment and leasehold improvement.

Financing Activities. Net cash provided by financing activities was $342,050 for the quarter ended November 30, 2019 compared to $1,235,045 for the quarter ended November 30, 2018. All of the cash inflow was advances from our related party. We continue to rely on advances from our majority shareholder to fund our operations.

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Going Concern

The financial statements have been prepared “assuming that we will continue as a going concern,” which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

Our monthly expenses are estimated to be $95,500 per month. The estimated monthly allocations are as follows:

-	office rental at $8,000
-	employee accommodations at $2,500
-	salaries at $40,000
-	other overheads, including legal and professional fees, travel expenses, maintenance and marketing cost at $45,000

The Company has not yet established an ongoing source of revenues and cash flows sufficient to cover the operating costs and allow it to continue as a going concern. The Company has an accumulated deficit of $5,716,280 as of November 30, 2019. These factors among others raise substantial doubt about the ability to continue as a going concern for a reasonable period of time.

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 by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.

OFF-BALANCE SHEET ARANGEMENTS

As of the date of this Quarterly Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in 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 by Item 10 of Regulation S-K, we are not required to provide information required by this Item.

ITEM 4. CONTROLS AND PROCEDURES

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange 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 Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of November 30, 2018 Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in

SEC rules and forms. Management also confirmed that there was no change in our internal control over financial reporting during the three-month period ended November 30, 2018 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We know of no material, existing or pending legal proceedings against our Company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

ITEM 1A. RISK FACTORS

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.

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

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable to our Company.

ITEM 5. OTHER INFORMATION

None

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ITEM 6. EXHIBITS

The following exhibits are included as part of this report by reference:

31.1		Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).

31.2		Certification of Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).

32.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.

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SIGNATURES

Pursuant to the requirements 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.

	CANNIS, INC.

Date: February 3, 2020	By:	/s/ Eu Boon Ching
	Name:	Eu Boon Ching
	Title:	Chief Executive Officer
		(Principal Executive Officer)

Date: February 3, 2020	By:	/s/ XiaoJia Huang
	Name:	XiaoJia Huang
	Title:	Chief Financial Officer
		(Principal Financial and Accounting Officer)

Filing Compare · Cannis, Inc.