UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

[X]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended ~~July~~January 31, ~~2020~~2021

[ ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 000-53051

Advanced BioMedical Technologies, Inc.

(Exact name of registrant as specified in its charter)

Nevada

(State or other jurisdiction of incorporation or organization)

200 Park Avenue, Suite 1700

New York City, NY 10166

(Address of principal executive offices, including zip code.)

(718) 766-7898

(Registrant’s telephone number, including area code)

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

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A Common Stock		ABMT		OTCQB

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 large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “small reporting company” in Rule 12b-2 of the Exchange Act.

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

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

As of ~~September~~March 2122, ~~2020~~2021, there are 6970,~~974~~224,850 shares of common stock outstanding.

All references in this Report on Form 10-Q to the terms “we”, “our”, “us”, the “Company”, “ABMT” and the “Registrant” refer to Advanced BioMedical Technologies, Inc. unless the context indicates another meaning.

TABLE OF CONTENTS

		Page

PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	13
Item 4.	Controls and Procedures	13

PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	14
Item 1A.	Risk Factors	14
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	14
Item 3.	Defaults upon Senior Securities	14
Item 4.	Mine Safety Disclosure	14
Item 5.	Other Information	14
Item 6.	Exhibits	15

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The accompanying condensed consolidated unaudited financial statements of Advanced BioMedical Technologies, Inc., a Nevada corporation are condensed and, therefore, do not include all disclosures normally required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the Company’s most recent annual financial statements for the year ended October 31, ~~2019~~2020 included in our Annual Report on Form 10-K/A filed with the U.S. Securities and ~~Exchange~~ Exchange Commission (“SEC”) on ~~March~~January 2029, ~~2020~~2021. In the opinion of management, all adjustments necessary for a fair ~~presentation~~ presentation have been included in the accompanying condensed consolidated financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying condensed consolidated financial statements for the period ended ~~July~~ January 31, ~~2020~~2021 are not necessarily indicative of the operating results that may be expected for the full year ending October 31, ~~2020~~2021.

ADVANCED BIOMEDICAL TECHNOLOGIES, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF ~~JULY~~JANUARY 31, ~~2020~~2021

(UNAUDITED)

ADVANCED BIOMEDICAL TECHNOLOGIES, INC.

AND SUBSIDIARIES

CONTENTS

	Pages
Condensed Consolidated Balance Sheets as of July 31, 2020 (unaudited) and October 31, 2019	F - 2
Condensed Consolidated Balance Sheets as of January 31, 2021 (unaudited) and October 31, 2020	F - 2
Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months and the nine months ended July 31, 2020 and 2019 (unaudited)	F - 3
Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended January 31, 2021 and 2020 (unaudited)	F - 3
Condensed Consolidated Statements of Stockholders’ Deficit for the period from October 31, 2019 through July 31, 2020 (unaudited)	F - 4
Condensed Consolidated Statements of Stockholders’ Deficit for the period from October 31, 2020 through January 31, 2021 (unaudited)	F - 4
Condensed Consolidated Statements of Cash Flows for the nine months ended July 31, 2020 and 2019 (unaudited)	F - 5
Condensed Consolidated Statements of Cash Flows for the three months ended January 31, 2021 and 2020 (unaudited)	F - 5
Notes to Condensed Consolidated Financial Statements (unaudited)	F - 6 – F - 8

F-1

ADVANCED BIOMEDICAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	July 31,			October 31,
	January 31,			October 31,
	2020			2019
	2021			2020
	(unaudited)
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	148,~~474~~491		$	5201,~~592~~664
Other receivables and prepaid expenses		3456,~~717~~398			4929,~~767~~260
Inventory		80122,~~362~~221			64100,~~107~~026
Total Current Assets		129,553			119,466
Total current assets		187,110			330,950
Property and equipment, cost		569,322			534,666
NON-CURRENT ASSETS
Less: Accumulated depreciation		(459,544	)		(435,632	)
Property and equipment, cost		593,036			552,423
PROPERTY AND EQUIPMENT, NET		109,778			99,034
Less: Accumulated depreciation		(470,746	)		(446,949	)
RIGHT-OF-USE ASSETS		42,308			-
Property and equipment, net		122,290			105,474
TOTAL ASSETS	$	281,639		$	218,500
Operating lease right-of-use assets		22,392			32,802
Total non-current assets		144,682			138,276
TOTAL ASSETS	$	331,792		$	469,226
LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES
Other payables and accrued expenses	$	~~979~~1,~~532~~687,519		$	~~674~~1,~~882~~942,316
Lease liabilities, current portion		34,931			-
Operating lease liabilities, current portion		20,303			28,028
Due to directors		~~299~~311,~~195~~127			~~280~~308,~~514~~031
Due to a stockholder		~~867~~892,~~645~~664			~~824~~880,~~705~~108
Due to related parties		5,083,314			4,916,638
Advances from related parties		5,249,202			4,705,512
Total Current Liabilities		7,264,617			6,696,739
Total current liabilities		8,160,815			7,863,995
NON-CURRENT LIABILITIES
Lease liabilities, less current portion	$	10,029		$	-
Operating lease liabilities, less current portion		3,690			7,029
STOCKHOLDERS’ DEFICIT
Common stock, $0.00001 par value, 100,000,000 shares authorized, 69,974,850 and 69,874,850 issued and outstanding as of July 31, 2020 and October 31, 2019		700			698
Common stock, $0.00001 par value, 100,000,000 shares authorized, 70,224,850 issued and outstanding as of January 31, 2021 and October 31, 2020		702			702
Additional paid-in capital		2,~~782~~827,~~541~~832			2,~~768~~824,~~138~~279
Stock-based compensation reserves		612,~~667~~702			-8,160
Accumulated deficit		(10,~~063~~428,~~030~~408	)		(910,~~581~~256,~~438~~364	)
Accumulated other comprehensive income		280,115			334,363
Accumulated other comprehensive income/(loss)		(245,541	)		21,425
Total Deficit		(6,993,007	)		(6,478,239	)
Total stockholders’ deficit		(7,832,713	)		(7,401,798	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	~~281~~331,~~639~~792		$	~~218~~469,~~500~~226

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

F-2

ADVANCED BIOMEDICAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

	3 months ended						~~9 months ended~~
	July 31,			July 31,			July 31,			July 31,
	January 31,			January 31,
	2020			2019			2020			2019
	2021			2020
Net sales	$	961		$	-		$	61,251		$	-
SALES	$	47,233		$	60,501
Cost of sales		(~~820~~10,147	)		-(33,127	)		~~(33,831~~	)		-
Gross margin		~~141~~37,086			-27,374			~~27,420~~			-
OPERATING EXPENSES
General and administrative expenses		5438,~~772~~645			7154,~~127~~285			~~166,833~~			~~346,529~~
Research and development		4266,~~773~~806			4856,~~081~~780			~~140,858~~			~~81,103~~
Depreciation on property and equipment		34,~~938~~174			65,~~221~~132			~~13,014~~			~~16,234~~
Depreciation on right-of-use assets		10,699			-			32,268			-
Depreciation on operating lease right-of-use assets		11,561			10,822
Stock-based compensation expenses		4,~~400~~542			-			~~10,867~~			-
Total Operating Expenses		~~116~~125,~~582~~728			~~125~~127,~~429~~019			~~363,840~~			~~443,866~~
LOSS FROM OPERATIONS		(~~116~~88,~~441~~642	)		(~~125~~99,~~429~~645	)		~~(336,420~~	)		~~(443,866~~	)
OTHER (EXPENSES) INCOME
Government grants		~~(329~~-	)		-125,652			~~125,237~~			-
Interest income		874			45			18			21
Interest paid to a stockholder and related parties		(7973,~~615~~018	)		(7980,~~846~~254	)		~~(239,946~~	)		~~(234,816~~	)
Interest on lease liabilities		(903	)		-			(3,300	)		-
Interest on operating lease liabilities		(557	)		(1,297	)
Imputed interest		(3,~~409~~553	)		(3,~~189~~389	)		~~(10,205~~	)		~~(9,544~~	)
Other, net		(46,~~536~~348	)		(4,~~416~~861	)		~~(14,050~~	)		~~(12,873~~	)
Total Other (Expenses) Income, net		(8883,~~784~~402	)		~~(87~~35,~~447~~856	)		~~(142,246~~	)		~~(257,212~~	)
LOSS BEFORE TAXES		(~~205~~172,~~225~~044	)		(~~212~~63,~~876~~789	)		~~(478,666~~	)		~~(701,078~~	)
Income tax expense		-			-			-			-
NET LOSS		(~~205~~172,~~225~~044	)		(~~212~~63,~~876~~789	)		~~(478,666~~	)		~~(701,078~~	)
Net loss attributable to non-controlling interests		-			-			-			-
NET LOSS ATTRIBUTABLE TO ABMT COMMON STOCKHOLDERS		(~~205~~172,~~225~~044	)		(~~212~~63,~~876~~789	)		~~(478,666~~	)		~~(701,078~~	)
OTHER COMPREHENSIVE INCOME/(LOSS)
OTHER COMPREHENSIVE LOSS
Foreign currency translation gain/(loss)		(75,542	)		120,031			(54,248	)		(59,628	)
Foreign currency translation loss		(266,966	)		(100,290	)
Total other comprehensive income/(loss)		(75,542	)		120,031			(54,248	)		(59,628	)
Total other comprehensive loss		(266,966	)		(100,290	)
COMPREHENSIVE LOSS ATTRIBUTABLE TO ABMT COMMON STOCKHOLDERS	$	(~~280~~439,~~767~~010	)	$	(92164,~~845~~079	)	$	~~(532,914~~	)	$	~~(760,706~~	)
Net loss per share-basic and diluted - basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)
Net loss per share-basic and diluted
Weighted average number of shares outstanding during the period
- basic and diluted	$	(0.00	)	$	(0.00	)
- basic		69,974,850			69,624,850			69,929,959			69,624,850
Weighted average number of shares outstanding during the period
- diluted		70,214,850			69,624,850			70,062,222			69,624,850
- basic		70,224,850			69,874,850
- diluted		70,298,275			69,874,850

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

F-3

ADVANCED BIOMEDICAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT (UNAUDITED)

												Accumulated
	Common stock				Additional		Stock-based					other
	Number				paid-in		compensation		Accumulated			comprehensive
	of shares		Amount		capital		~~reserves~~reserve		deficit			~~income/(~~loss)			Total
Balance at October 31, 2018		69,624,850	$	696	$	2,740,183	$	-	$	(8,632,618	)	$	272,727		$	(5,619,012	)
Balance at October 31, 2019		69,874,850	$	698	$	2,768,138	$	-	$	(9,581,438	)	$	334,363		$	(6,478,239	)
Imputed interest on advances from directors		-		-		3,148		-		-			-			3,148
Effect of adoption of ASU 2016-02		-		-		-		-		(2,926	)		-			(2,926	)
Net loss for the period		-		-		-		-		(252,523	)		-			(252,523	)
Imputed interest on advances from directors		-		-		3,389		-		-			-			3,389
Foreign currency translation loss		-		-		-		-		-			(211,644	)		(211,644	)
Net loss for the period		-		-		-		-		(63,789	)		-			(63,789	)
Balance at January 31, 2019		69,624,850	$	696	$	2,743,331	$	-	$	(8,885,141	)	$	61,083		$	(6,080,031	)
Foreign currency translation loss		-		-		-		-		-			(100,290	)		(100,290	)
Imputed interest on advances from directors		-		-		3,207		-		-			-			3,148
Balance at January 31, 2020		69,874,850	$	698	$	2,771,527	$	-	$	(9,648,153	)	$	234,073		$	(6,641,855	)
Net loss for the period		-		-		-		-		(235,679	)		-			(252,523	)
Balance at October 31, 2020		70,224,850		702		2,824,279		8,160		(10,256,364	)		21,425			(7,401,798	)
Foreign currency translation gain		-		-		-		-		-			31,985			(211,644	)
Imputed interest on advances from directors		-		-		3,553		-		-			-			3,553
Balance at April 30, 2019		69,624,850	$	696	$	2,746,538	$	-	$	(9,120,820	)	$	93,068		$	(6,280,518	)
Stock-based compensation expenses		-		-		-		4,542		-			-			4,542
Imputed interest on advances from directors		-		-		3,189		-		-			-			3,189
Net loss for the period		-		-		-		-		(172,044	)		-			(172,044	)
Net loss for the period		-		-		-		-		(212,876	)		-			(212,876	)
Foreign currency translation loss		-		-		-		-		-			(266,966	)		(266,966	)
Foreign currency translation gain		-		-		-		-		-			120,031			120,031
Balance at January 31, 2021		70,224,850	$	702	$	2,827,832	$	12,702	$	(10,428,408	)	$	(245,541	)	$	(7,832,713	)
Balance at Jul 31, 2019		69,624,850	$	696	$	2,749,727	$	-	$	(9,333,696	)	$	213,099		$	(6,370,174	)

												Accumulated
	Common stock				Additional		Stock-based					other
	Number				paid-in		compensation		Accumulated			comprehensive
	of shares		Amount		capital		reserves		deficit			income/(loss)			Total
Balance at October 31, 2019		69,874,850	$	698	$	2,768,138	$	-	$	(9,581,438	)	$	334,363		$	(6,478,239	)
Effect of adoption of ASU 2016-02		-		-		-		-		(2,926	)		-			(2,926	)
Balance at November 1, 2019 (restated)		69,874,850		698		2,768,138		-		(9,584,364	)		334,363			(6,481,165	)
Imputed interest on advances from directors		-		-		3,389		-		-			-			3,389
Net loss for the period		-		-		-		-		(63,789	)		-			(63,789	)
Foreign currency translation loss		-		-		-		-		-			(100,290	)		(100,290	)
Balance at January 31, 2020		69,874,850	$	698	$	2,771,527	$	-	$	(9,648,153	)	$	234,073		$	(6,641,855	)
Shares issued for services		100,000		2		4,198		-		-			-			4,200
Imputed interest on advances from directors		-		-		3,407		-		-			-			3,407
Stock-based compensation expenses		-		-		-		2,267		-			-			2,267
Net loss for the period		-		-		-		-		(209,652	)		-			(209,652	)
Foreign currency translation gain		-		-		-		-		-			121,584			121,584
Balance at April 30, 2020		69,974,850	$	700	$	2,779,132	$	2,267	$	(9,857,805	)	$	355,657		$	(6,720,049	)
Imputed interest on advances from directors						3,409										3,409
Stock-based compensation expenses								4,400		-			-			4,400
Net loss for the period										(205,225	)					(205,225	)
Foreign currency translation loss													(75,542	)		(75,542	)
Balance at July 31, 2020		69,974,850	$	700	$	2,782,541	$	6,667	$	(10,063,030	)	$	280,115		$	(6,993,007	)

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

F-4

ADVANCED BIOMEDICAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	9 months ended
	3 months ended
	July 31,
	January 31,
	2020			2019
	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss attributable to ABMT common stockholders	$	(~~478~~172,~~666~~044	)	$	(~~701~~63,~~078~~789	)
Adjustments to reconcile net loss to cash used in
Adjustments to reconcile net loss to cash used in operating activities
operating activities:
Depreciation on property & equipment		4,174			5,132
Depreciation on owned property & equipment		13,014			16,234
Depreciation on operating lease right-of-use assets		11,561			10,822
Depreciation on right-of-use assets		32,268			-
Imputed interest		3,553			1,297
Imputed interest		10,205			9,544
Interest on operating lease liabilities		557			3,389
Interest on lease liabilities		3,300			-
Stock-based compensation expenses		4,542			-
Shares issued for services		10,867			-
Net exchange difference		(3	)		-
Changes in operating assets and liabilities
Decrease (increase) in:
Decrease (Increase) in:
Inventory		(1517,~~557~~791	)		~~(36~~15,~~058~~685	)
Other receivables and prepaid expenses		15(27,~~329~~684	)		(179,~~295~~351	)
Depreciation allocated to inventory		61,~~901~~715			~~231~~153
Increase in:
Other payables and accrued expenses		~~296~~(323,~~830~~400	)		~~178~~(15,~~383~~198	)
Net cash used in operating activities		(~~105~~514,~~512~~817	)		(~~550~~51,~~039~~860	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(2918,~~692~~192	)		(~~12,437~~525	)
Deposit for purchase of plant and equipment		-			(21,590	)
Net cash used in investing activities		(18,192	)		(525	)
Net cash used in investing activities		(29,692	)		(34,027	)
CASH FLOWS FROM FINANCING ACTIVITIES
Due to a stockholder		4112,~~753~~532			8912,~~781~~448
Due to directors		16(8,~~226~~398	)		413,~~838~~748
Due to related parties		~~121~~343,~~864~~852			~~493~~40,~~501~~640
Principal element of lease rental paid		(32,568	)		-
Principal element of operating lease payments		(12,294	)		(10,734	)
Interest element of lease rental paid		(3,300	)		-
Interest element of operating lease payments		(557	)		(1,297	)
Net cash provided by financing activities		~~143~~335,~~975~~135			~~588~~54,~~120~~805
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		~~111~~4,701			~~(37~~74	)
INCREASE IN CASH AND CASH EQUIVALENTS		8,882			4,017
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(193,173	)		2,494
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD		5201,~~592~~664			65,~~860~~592
CASH AND CASH EQUIVALENTS AT THE END OF PERIOD	$	148,~~474~~491		$	108,~~877~~086
Supplemental of cash flow information
Interest income	$	1874		$	215
Other non cash items
Interest expenses	$	~~243~~73,~~246~~575		$	~~234~~81,~~816~~551

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

F-5

ADVANCED BIOMEDICAL TECHNOLOGIES, INC. AND SUBSIDIARIES

AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1 BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

In the opinion of ~~the~~ management, the unaudited condensed consolidated financial statements contain adjustments considered necessary to present fairly the Company’s financial position as of ~~July~~January 31, ~~2020~~2021, the consolidated results of operations for the ~~three~~ ~~and~~three ~~nine~~ months ended ~~July~~January 31, ~~2020~~2021 and ~~2019~~2020 and consolidated statements of cash flows for the ~~nine~~three months ended ~~July~~January 31, ~~2020~~ 2021 and ~~2019~~2020 on an accrual basis and in accordance with accounting principles generally accepted in the United States of America ~~for~~ for interim financial information and rules and regulations of the SEC. The consolidated results for the three ~~and nine~~ months ended ~~July~~ January 31, ~~2020~~2021 are not necessarily indicative of the results to be expected for the entire fiscal year ending October 31, ~~2020~~2021. ~~These~~ These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes for the year ended October 31, ~~2019~~2020 appearing in the Company’s annual report on Form 10-K/A as filed with the Securities and Exchange Commission on ~~March~~January 2029, ~~2020~~2021.

The reporting currency of the Company is US dollar.

NOTE 2 ORGANIZATION

Advanced BioMedical Technologies, Inc. (fka “Geostar Mineral Corporation” or “Geostar”) (“ABMT”) was incorporated in Nevada on September 12, 2006.

Shenzhen Changhua ~~Biomedical~~has ~~Engineering~~been ~~Company~~involved ~~Limited (“Shenzhen Changhua”) was incorporated~~ in the ~~People’s~~development ~~Republic~~ of ~~China~~polymer (“PRC”) on September 25, 2002 as a limited liability company with a registered capital of $724,017. Shenzhen Changhua is owned by two stockholders in the proportion of 70% and 30% respectively. Shenzhen Changhua plans to develop, manufacture and market self-reinforced, re-absorbable degradable PA screws, ~~robs~~rods and binding ~~ties~~wires for fixation on human fractured bones. ~~The~~ The Company is currently involved in researching, manufacturing and conducting clinical trials on its products and intends to raise additional capital to produce and market its products commercially. ~~pending~~The ~~the~~Company ~~approval~~holds ~~from~~one ~~the~~Class ~~China~~III ~~Food and Drug Administration (“CFDA”~~permit, ~~fka~~one ~~“SFDA”)~~Class II ofpermit ~~the~~and ~~PRC~~one onClass ~~its~~I ~~products.~~permit ~~The~~from ~~Company~~the ~~has~~National noMedical ~~revenue~~Products ~~since~~Administration ~~its~~of ~~inception~~the ~~and~~PRC (“NMPA”), informally ~~accordance~~the China ~~with~~Food ~~Accounting~~and ~~Standards~~Drug ~~Codification~~ Administration (“~~ASC~~CFDA”) ~~Topic~~and ~~915,~~the ~~“Development~~State ~~Stage~~Food ~~Entities”~~and ~~(formerly~~Drug ~~Statement~~Administration ~~of Financial Accounting Standard~~ (“~~SFAS~~SFDA”) of the NoPRC. 7,The ~~“Accounting~~Company ~~and~~holds ~~Reporting~~four patents issued by ~~Development~~the ~~Stage~~State ~~Enterprise”),~~Intellectual isProperty ~~considered~~Office aof ~~Development~~the ~~Stage~~P.R.C. ~~Company~~(“SIPO”).

Masterise Holdings Limited (“Masterise”) was incorporated in the British Virgin Islands on May 31, 2007 as an investment holding company and was then owned as to 63% by the spouse of Shenzhen Changhua’s 70% majority stockholder at the time and 37% by a third party corporation.

On January 29, 2008, Masterise entered into a Share Purchase Agreement (“the Agreement”) with a stockholder of Shenzhen Changhua whereupon Masterise acquired 70% of Shenzhen Changhua for US$64,100 in cash. The acquisition was completed on February 25, 2008. As both Masterise and Shenzhen Changhua were under common control and management, the acquisition was accounted for as a reorganization of entities under common control. Accordingly, the operations of Shenzhen Changhua were included in the consolidated financial statements as if the transactions had occurred retroactively.

On December 31, 2008, ABMT consummated a Share Exchange Agreement (“the Exchange Agreement”) with the stockholders of Masterise pursuant to which ABMT issued 50,000 shares of Common Stock to the stockholders of Masterise for 100% equity interest in Masterise.

Concurrently, on December 31, 2008, a major stockholder of ABMT also consummated an Affiliate Stock Purchase Agreement (the “Affiliate Agreement”) with thirteen individuals including all the stockholders of Masterise, pursuant to which the major stockholder sold a total of 5,001,000 shares of ABMT’s common stock for a total aggregate consideration of $5,000, including 4,438,250 shares to the stockholders of Masterise.

F-6

On consummation of the Exchange Agreement and the Affiliate Agreement, the 70% majority stockholder of Masterise became an 80.7% stockholder of ABMT.

On March 13, 2009, the name of the Company was changed from Geostar Mineral Corporation to Advanced Biomedical Technologies, Inc.

The merger of ABMT and Masterise was treated for accounting purposes as a capital transaction and recapitalization by Masterise (“the accounting acquirer”) and a re-organization by ABMT (“the accounting acquiree”). The financial statements have been prepared as if the re-organization had occurred retroactively.

Accordingly, these financial statements include the following:

(1)

The balance sheet consisting of the net assets of the acquirer at historical cost and the net assets of the acquiree at historical cost.

(2)

The statement of operations including the operations of the acquirer for the periods presented and the operations of the acquiree from the date of the transaction.

ABMT, Masterise and Shenzhen Changhua are hereinafter referred to as (“the Company”).

NOTE 3 PRINCIPLES OF CONSOLIDATION

The accompanying condensed consolidated financial statements include the financial statements of ABMT and its wholly owned subsidiaries, Masterise and its 70% owned subsidiary, Shenzhen Changhua. The non-controlling interests in periods prior to 2012 represent the non-controlling stockholders’ 30% proportionate share of the results of Shenzhen Changhua.

All significant inter-company balances and transactions have been eliminated in consolidation.

NOTE 4 USE OF ESTIMATES

The preparation of the 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 amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

NOTE 5 RELATED PARTY TRANSACTIONS

As of ~~July~~January 31, ~~2020~~2021 and October 31, ~~2019~~2020, the Company owed a stockholder $~~867~~892,~~645~~664 and $~~824~~880,~~705~~108 respectively which are unsecured ~~and~~ and repayable on demand. Interests are charged at 7% per annum on the amount owed.

As of ~~July~~January 31, ~~2020~~2021 and October 31, ~~2019~~2020, the Company owed four related parties a total of $5,~~083~~249,~~314~~202 and $4,~~916~~705,~~638~~512 respectively which are unsecured and repayable on demand. Interests are charged at 7% per annum on the amounts owed.

Total interest expenses on advances from a stockholder and the related parties accrued for the three ~~and nine~~ months ended ~~July~~January 31, 2021 and 2020 ~~and 2019~~ were $7973,~~615,~~018 ~~$79,846, $239,946,~~ and $~~234~~80,~~816~~254 respectively.

As of ~~July~~January 31, ~~2020~~2021 and October 31, ~~2019~~2020, the Company owed $~~299~~311,~~195~~127 and $~~280~~308,~~514~~031 respectively, to ~~two~~three directors for advances ~~made~~ made on an unsecured basis, repayable on demand and interest free. Imputed interest charged at 5% per annum on the amounts owed to the directors is $3,553 and $3,389 for the three months ended January 31, 2021 and 2020 respectively.

Imputed interest charged at 5% per annum on the amounts owed to two directors is $3,409, $3,189, $10,205 and $9,544 for the three and nine months ended July 31, 2020 and 2019 respectively.

Sales for the three and nine months ended 31 July 2020 and 2019 of US$961, nil, US$48,491 and nil respectively were made to a company in which Mr. Chen Tie Jun has a significant equity interest.

F-7

As of January 31, 2021 and October 31, 2020, the Company has contract liabilities of US$1,032,373 and US$1,343,281 with a company in which Mr. Chen Tie Jun has a significant equity interest. Sales for the quarter ended 31 January 2021 and 31 January 2020 to the related company amounted to US$47,233 and US$60,501 respectively.

Sales for the three months ended January 31, 2021 and 2020 of US$47,233 and $60,501 respectively were made to a company in which Mr. Chen Tie Jun has a significant equity interest.

NOTE 6 COMMITMENTS AND CONTINGENCIES

Leases

~~The~~Pursuant to ASC 842, the Company ~~adopted~~recognizes ~~ASU~~operating ~~2016~~leases as right-02of-use onassets ~~November~~and 1,lease ~~2019~~liabilities ~~using~~as ~~the~~shown ~~modified~~in ~~retrospective~~the ~~adoption~~consolidated balance ~~method~~sheet. The ~~reported~~Company ~~results~~has two operating leases with unrelated parties for factory space and director’s quarter in the ~~nine~~P.R.C., ~~months~~which ~~ended~~are ~~July~~non-cancelable ~~31,~~and ~~2020~~expiring ~~reflect~~on ~~the~~dates ~~adoption~~between of28 ~~ASC~~March ~~842~~2021 ~~guidance~~and ~~while~~30 ~~the~~April ~~reported~~2022, ~~results~~and ~~for~~do ~~the~~not ~~nine~~include ~~months~~options ~~ended~~to ~~July~~renew. ~~31,~~The ~~2019~~depreciable ~~were~~life ~~prepared~~of ~~and~~right-of ~~continue~~use toassets beare ~~reported~~limited ~~under~~by the ~~guidance~~term of ~~ASC 840, Leases~~leases.

~~Pursuant~~As toof ~~ASC~~January ~~842~~31, ~~the Company measures right-of-use assets and recognizes lease liabilities for all leases~~2021, ~~with~~the ~~exemptions for low-value assets and short-term leases of 12 months or less. The~~ Company ~~recognises~~has lease ~~liabilities~~commitments ~~and~~as the underlying right-of-use assets in respect of two operating leases with unrelated parties for factory space and director’s quarter in the P.R.C., which are non-cancelable and expiring on dates between 28 March 2021 and 30 April 2022, and do not include options to renew. The depreciable life of right-of use assets are limited by the term of leases.follows:

As of July 31, 2020, the Company has future lease payments as follows:

For the year ending October 31,
2021	$	17,423
2022		7,467
Total lease payment payables		24,890
Less: Interest element		(897	)
Total lease liabilities		23,993
Lease liabilities current portion		(20,303	)
Lease liabilities less current portion	$	3,690

For the year ending October 31,
2020	$	12,367
2021		28,318
2022		6,882
Total lease payment payables		47,567
Short-term lease not recognized as a liability		(538	)
Less: Interest element		(2,069	)
Total lease liabilities		44,960
Lease liabilities, current portion		(34,931	)
Lease liabilities, non-current portion	$	10,029

In determining the lease liability and corresponding right-of-use asset for each lease, the Company calculated the present value of future lease payments using the Company’s incremental borrowing rate. The incremental borrowing rate was determined with reference to the interest rate applicable to borrowings from related parties disclosed in Note 4, Related Parties Transactions.

Capital commitments

As of July 31, 2020, the Company has no outstanding capital commitments.

NOTE 7 FAIR VALUE OF FINANCIAL INSTRUMENTS

The Financial Accounting Standards Board (FASB) Codification Topic 825 (ASC Topic 825), “Disclosure About Fair Value of Financial Instruments,” requires certain disclosures regarding the fair value of financial instruments. The carrying amounts of other receivables and prepaid expenses, other payables and accrued liabilities and due to a stockholder, directors and related parties approximate their fair values because of the short-term nature of the instruments. The management of the Company is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial statements.

NOTE 8 ~~RECENT~~GOING ~~ACCOUNTING PRONOUNCEMENTS~~CONCERN

~~There~~As reflected in the accompanying unaudited condensed consolidated financial statements, the Company has ~~been~~an noaccumulated ~~newly~~deficit ~~effective~~of $10,428,408 ~~accounting~~as ~~pronouncement~~of January 31, 2021 that ~~has~~includes ~~significance~~a net loss of $172,044 orfor ~~potential~~the ~~significance~~three months ended January 31, 2021. As of January 31, 2021, the Company’s total current liabilities exceeded its total current assets by $7,973,705 and the Company used cash in operations of $514,817 for the three months ended on that date. These factors raise substantial doubt about its ability to continue ~~our~~as a going concern. In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying condensed consolidated ~~financial~~balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to raise additional capital, obtain financing and succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoptions of any such pronouncements may be expected to cause a material impact on the financial condition or the results of operations. The Company will carefully analyze these recently accounting pronouncements and take action to adopt them as required.

NOTE 9 GOING CONCERN

As reflected in the accompanying unaudited condensed consolidated financial statements, the Company has an accumulated deficit of $10,063,030 as of July 31, 2020 and which includes a net loss of $478,666 for the nine months ended July 31, 2020. As of July 31, 2020, the Company’s total current liabilities exceeded its total current assets by $7,135,064 and the Company used cash in operations of $105,512 for the nine months ended on that date. These factors raise substantial doubt about its ability to continue as a going concern. In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying condensed consolidated balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to raise additional capital, obtain financing and succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Management has taken the following steps to revise its operating and financial requirements, which it believes are sufficient to provide the Company with the ability to continue as a going concern. The Company is actively pursuing additional funding and strategic partners, which will enable the Company to implement its business plan. Management believes that these actions as successful will allow the Company to continue its operations through the next fiscal year.

F-8

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statements

This section of the report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. Actual results could differ materially from those anticipated in these forward looking statements as a result of any number of factors, including those set forth in this Quarterly Report, and in the Company’s most recent Annual Report on Form 10-K/A filed on ~~March~~January 2029, ~~2020~~2021.

All written and oral forward-looking statements made in connection with this Quarterly Report on Form 10-Q that are attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Given the uncertainties that surround such statements, you are cautioned not to place undue reliance on such forward-looking statements, which apply only as of the date of this quarterly report. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.

Overview

The following discussion is an overview of the important factors that management focuses on in evaluating our businesses, financial condition and operating performance and should be read in conjunction with the financial statements included in this Quarterly Report on Form 10-Q.

The Company is subject to a number of risks similar to other companies in the medical device industry. These risks include but are not limited to rapid technological change, uncertainty of market acceptance of our products, uncertainty of regulatory approval, competition from substitute products and larger companies, the need to obtain additional financing, compliance with government regulation, protection of proprietary technology, product liability, and the dependence on key individuals.

Our Business

We are engaged in the business of designing, developing, manufacturing and marketing of biomaterial internal fixation devices. We hold one Class III medical device permit from the National Medical Products Administration of the PRC (“NMPA”) for our product - polymer orthopaedic internal fixation screws, one Class II permit and ~~three~~one Class I permit. We hold four patents issued by the State Intellectual Property Office of the P.R.C. (“SIPO”). Our polyamide materials, their uses and manufacturing processes are protected by Patent No. ZL201511006236.7 and ZL971190739. Patent No. ZL201410647464.1 titled “Bone Fracture Plate Made of High Polymer Materials” and patent No. ZL201511005531.0 titled “Composite fiber, manufacturing method and orthopaedic binding wire” were granted to us in 2018 and 2020 respectively. Our polyamide materials are used in producing screws, binding wires, rods and related products. These products are used in a variety of applications including orthopaedic trauma, sports related medical treatment, or cartilage injuries, and reconstructive dental procedures. At this time, our company is the sole patent holder and market permit holder of PA technologies in China, as well as the only company currently engaged in clinical trials, manufacturing and marketing for PA orthopaedic internal fixation devices in the PRC. Our products are made of a very unique material called PA6-P(MMA-CO-NVP)-HA (“PA”). Our PA products, such as screws, binding wires, rods, suture anchors and rib-pins consist of enhanced fibers and high molecular polymers which are designed to facilitate quick healing of complex fractures in many areas of the human skeletal system.

Our products offer a number of significant advantages over existing metal implants and the first generation of degradable implants (i.e. PLLA) for patients, surgeons and other customers including:

	1.	A notably reduced need for a secondary surgery to remove implant due to post-operative complications, therefore avoiding unnecessary risk and expense on all patient care;
	2.	Enhancing the performance of the materials by manufacturing them to be easily fitted to each patient, forming an exact fit;
	3.	Improving the biological activity of materials. Clinical trial results have shown that PA implants promote a progressive shift of load to the new bone creating micro-motion and thereby avoiding bone atrophy due to ‘stress shielding’;
	4.	Reducing the chance of post-operative infection;
	5.	Stimulate bone tissues to facilitate effective biological integration, benefitting the regeneration of bone;
	6.	Ease of post-operative care i.e. no distortion during x-ray imaging;
	7.	Simple and cost-effective to manufacture.

Our products are designed to replace the traditional internal fixation device made of stainless steel and titanium and overcome the limitations of previous generations of products such as PLA and PLLA. Our laboratory statistics show that our PA products have a higher mechanical strength, last longer in degradation ratio and are more evenly absorbed form outer layer inwards as compared with similar materials such as PLA and PLLA. Thus PA allows increased restoration time for bone healing and re-growth. The Company’s polymer orthopaedic internal fixation screws received approval from the National Medical Products Administration of the PRC (“NMPA”) in April 2018. We launched our sales campaign at the end of our fiscal year ended October 31, 2019 and achieved a milestone in the Company’s history by generating revenue through the sales of our PA Screws.

NMPA Application Process and Approval for Polymer Screws

The Company first submitted its application for PA Screws to the NMPA (formerly the SFDA/CFDA) in 2008. The application has been withheld by the NMPA pending additional clinical trial cases. This is due to the amended NMPA regulations, which unlike previous regulations require the applicant to specify the position on the body where the clinical trial is carried out. Our amended NMPA application has specified the ankle fracture as the body part of our clinical trial. This is because bones around this part carry most of the body weight.

Due to the uniqueness of our material, there were no established NMPA Product Standards that we could follow during our application process for our PA Screws. To establish our own Product Standards, the Company had been carrying out extra tests. The Company submitted its Product Standards and supplementary reports to the NMPA in 2014. In December 2016, the Company received a notice from the NMPA requesting supplementary report as part of the review process. The Company completed the supplementary report and submitted it to the NMPA in June 2017.

In April 2018, the Company’s application for its PA Screws was approved by the NMPA in China (Medical Device Certification Number: 20183460133).

Process of Human Trials

As of ~~July~~January 31, ~~2020~~2021, for medical study and comparison purpose, the Company has completed a total of 83 successful clinical human trial cases, including 71 cases on ankle fractures and 57 successful PA Binding Wire trial cases. We have been conducting human trials at the 6 state level hospitals recognized by NMPA for clinical trials in different cities throughout China; including Nanchang, Changsha, Luoyang, Nanning and Tianjin. The cities and provinces where our clinical trial hospitals are based will be the initial target regions on our marketing plan. These regions are both densely populated and have experienced high or above medium economic growth. The clinical trials for the Company’s PA Screws have been completed with 100 percent success rate. Having gained NMPA approval for PA Screws, the Company is planning to start clinical trials on series of orthopaedic products the Company has developed using the same unique biomaterial.

Government Regulation

Medical implant devices/products manufactured or marketed by the Company in China are subject to extensive regulations by the NMPA. Pursuant to the related laws and acts, as amended, and the regulations promulgated there under (the “NMPA Regulations”), the NMPA regulates the clinical testing, manufacture, labeling, distribution and promotion of medical devices. The NMPA also has the authority to request repair, replacement, or refund of the cost of any device manufactured or distributed by the Company.

Under the NMPA Regulations, medical devices are classified into three classes (class I, II or III), the basis of the controls deemed necessary by the NMPA to reasonably assure their safety and efficacy. Under the NMPA’s regulations, class I devices are subject to general controls (for example, labeling and adherence to Good Manufacturing Practices (“GMP”) requirements) and class II devices are subject to general and special controls. Generally, class III devices are those which must receive premarket approval by the NMPA to ensure their safety and efficacy (for example, life-sustaining, life-supporting and certain implantable devices, or new devices which have not been found substantially equivalent to legally marketed class I or class II devices). The Company is classified as a manufacturer of class III medical devices. Current NMPA enforcement policy prohibits the marketing of approved medical devices for unapproved uses.

Before a new device can be introduced into the market in China, the manufacturer generally must obtain NMPA marketing clearance through clinical trials. Since the Company is classified as a manufacturer of Class III medical devices, the Company must carry out all clinical trials in pre-selected NMPA approved hospitals.

Manufacturers of medical devices for marketing in China are required to adhere to GMP requirements. Enforcement of GMP requirements has increased significantly in the last several years and the NMPA has publicly stated that compliance will be more strictly scrutinized. From time to time the NMPA has made changes to the GMP and other requirements that increase the cost of compliance. Changes in existing laws or requirements or adoption of new laws or requirements could have a material adverse effect on the Company’s business, financial condition and results of operations. There can be no assurance that the Company will not incur significant costs to comply with applicable laws and requirements in the future or that applicable laws and requirements will not have a material adverse effect upon the Company’s business, financial condition and results of operations.

Regulations regarding the development, manufacturing and sale of the Company’s products are subject to change. The Company cannot predict the impact, if any, that such changes might have on its business, financial condition and results of operations.

Results of Operations

The “Results of Operations” discussed in this section merely reflect the information and results of the Company for the period from September 25, 2002 (Shenzhen Changhua’s date of inception) to ~~July~~January 31, ~~2020~~2021 and ~~2019~~2020.

Revenues

Our revenue for the three ~~and nine~~ months ended ~~July~~January 31, ~~2020~~2021 and ~~2019~~2020 were $~~961~~47,233 and $~~Nil;~~60,501 ~~and~~respectively. ~~$61,251~~The ~~and~~Company ~~$Nil~~achieved ~~respectively~~a milestone in its history at the end of the fiscal year ended October 31, ~~including~~2019, by completing sales of U$4811,~~491~~657 to its distributor, a company in which Mr. ~~Chen~~ Tie Jun Chen, a key management personnel of Shenzhen Changhua, has a significant equity interest. ~~We started to generate revenue at the end of our last fiscal year before our sales campaign was disrupted by the COVID-19 pandemic.~~

The Company achieved a milestone in its history by generating sales revenue at the end of the fiscal year ended October 31, 2019. Due to the COVID-19 pandemic, non-essential operations have been cancelled in hospitals nationwide in China. We have not achieved any sales of our PA Screws in the third quarter but we expect the sales to gradually recover as the COVID-19 cases ease off in China.

Our management team is continuously looking for fundraising possibilities for sales and marketing expansion, product improvement, machinery upgrades, facility expansions and continuous research and development.

Our facility is located in Shenzhen, China, which is built to meet the GMP standards. Our facility covers about 865 square meters, which includes the combined facilities of offices, laboratories, and workshops. There is one production line for the PA Screw and another production line for the PA Binding Wire. The annual production capabilities of each production line are 100,000 pieces for PA Screw, and 240,000 packs for the PA Binding Wires. Both production lines, at their maximum production capacities are capable of generating approximately $30,000,000 in annual revenue.

Estimate current production lines in full capacity

	Output Quantity (Max.)			Price at ex-factory ($)			Total Turnover ($)
PA Screw		100,000	(piece)		180		18,000,000
PA Binding Wire		240,000	(pack)		50		12,000,000
						Total:	30,000,000

China’s Marketing Analysis:

We have established long term relationships with many hospitals and national distributors in China. Ms. Hui Wang, the Company’s CEO, has over 25 years’ sales experience in medical distribution. Professor Shangli Liu, our chief medical advisor, is one of the highest ranked orthopedic doctors in China as well as being highly renowned in the rest of the world. He will assist the Company in nationwide product promotion and joint projects with associated academic institutions and medical schools. During product development and clinical trial stages, we developed close relationships with many major national hospitals. We expect these relationships to boost our revenue generation.

China’s market for PA devices depends on 3 major conditions:

- Patients

- Advanced technology level

- Performance and price of the materials

China has gradually entered the Old Age Society. It is expected that there will be 245 million people over 60 years of age by 2020, and, according to the survey of 50 years old, the incidence of osteoporosis is as high as 60%, accompanied by osteoporosis, fracture, bone necrosis, disability and other diseases, resulting in continued high demand of orthopaedic implant medical devices. (Source: The UN; Shenwan Hongyuan Securities research report).

The Company has advantages and more opportunities over others competitors due to:

- No other similar patent registrations in China.

- We are the only company to receive market approval and permission to perform PA clinical trials by the NMPA to the best of our knowledge.

- We have a timing advantage over other Chinese companies; other companies would need to successfully complete preclinical testing for the NMPA in order to obtain clinical trial permits.

- Under new regulations by the NMPA, it will take at least 5-10 years for clinical trials of new materials.

- Our patented material enables us to rapidly diversify our product line according to market trend and demand.

Number of Hospitals at the end of ~~June~~November 2020 Statistic and Census report by the National Health Commission of the People’s Republic of China.

Statistic and Census report by the National Health Commission of the People’s Republic of China

Statistic and Census report by the National Health Commission of the People’s Republic of China
(November 2020)

	November 2020		November 2019		Increase / (Decrease)
Total No. of Hospitals		35,112		33,972		1,140
Public Hospital		11,885		11,891		(6	)
Private Hospital		23,227		22,081		1,146
Hospital Rating
AAA		2,895		2,681		214
AA		10,121		9,478		643
A		11,826		11,014		812
Unrated		10,270		10,799		(529	)

(June 2020)

	June 2020		June 2019		Increase / (Decrease)
Total No. of Hospitals		34,658		33,290		1,368
Public Hospital		11,903		11,941		(38	)
Private Hospital		22,755		21,349		1,406
Hospital Rating
AAA		2,831		2,619		212
AA		9,901		9,256		645
A		11,400		10,946		454
Unrated		10,526		10,469		57

In general, technological advancements and the marketing potential within Asia are the biggest factors in driving significant growth within the global orthopedic devices market. Another major factor that positively influences this market is the growing number of aging baby boomers with active lifestyles. This sector represents a large portion of the total population.

Cost of Sales

Cost of sales for the three ~~and nine~~ months ended ~~July~~January 31, ~~2020~~2021 and ~~2019~~2020 were $~~820~~10,147 ~~$Nil,~~and $33,~~831~~127 ~~and $Nil~~ respectively, which accounted for 8521.3348% and ~~nil; and 55~~54.2375% ~~and~~ ~~nil~~ of the gross revenue. The main components of cost of sales are expenses for attending exhibitions/trade shows and staff costs.

Gross Profits

Gross profits for the three ~~and nine~~ months ended ~~July~~January 31, ~~2020~~2021 and ~~2019~~2020 ~~was~~were $~~141~~37,086 ~~$Nil,~~and $27,~~420~~374 ~~and $Nil~~ respectively, which accounted for 1478.6752% and ~~nil; and 44~~45.7725% ~~and nil~~ of the gross revenue. WeCompared ~~started~~ to ~~generate~~the ~~revenue~~three atmonths ended January 31, 2020, the ~~end~~gross ~~of our~~profits ~~fiscal~~percentage ~~year~~for the three months ended ~~October~~January 31, ~~2019~~2021 ~~before~~was ~~our~~increased ~~sales~~by ~~campaign~~33.27%. The main contributor to this increase was ~~disrupted~~that bywe had an established initial sales network in the ~~COVID-19~~three ~~pandemic~~months ended January 31, 2021.

Operating Expenses

Operating expenses for the three ~~and nine~~ months ended ~~July~~January 31, ~~2020~~2021 and ~~2019~~2020 were $~~116,582, $~~125,~~429,~~728 ~~$363,840~~ and $~~443~~127,~~866~~019 respectively~~, which accounted for 12131% and nil; and 594~~.01% and nil of the gross revenue. Compared to prior period, the other expenses for the three and nine months ended July 31, 2020 and 2019 were reduced by 7.05% and 18.03%. The major reasons for the reduction were due to $16,355 or 22.99% for three months ended July 31, 2020 and $179,696 or 51.81% for the nine months ended July 31, 2020 which was partly offset by $8,416 or 135.28% and $29,048 or 178.93% increment in depreciation expenses respectively.

Research and Development

Research and development costs related to both present and future products are expensed as incurred. Total expenditure on research and development charged to general and administrative expenses for the ~~three~~quarter ~~and nine months~~ ended ~~July~~January 31, ~~2020~~2021 and ~~2019~~2020 ~~were~~was $4266,~~773,~~806 ~~$48,081, $140,858~~ and $8156,~~103 respectively~~780. ~~Compared to prior period, the research and development expenses for the three and nine months ended July 31, 2020~~ ~~and 2019 were reduced by 11.04%, due to depreciation in Renminbi, and increased by 73.68%.~~ The main component of research and development costs is staff costs of the technical personnel on product improvements to enhance industrial design.

We expect research and development expenses to grow as we continue to invest in basic research, clinical trials, product development and in our intellectual property. The Company will be working closely with medical institutions and research universities to expedite future clinical trials of upcoming series of polymer fixation devices, including Intramedullary Nailing Fixation, Binding Wires, Micromodule Screws & Plates, Maxillofacial & Craniofacial Plates, and Rib Pins.

New Patent Granted

The Company was granted one patent in January 2021 by the State Intellectual Property Office of the P.R.China (“SIPO”), patent no. ZL201511006236.7. This patent protects the use and manufacturing process of an unique polymer material used by the Company.

Marketing Strategy

The Company has been conducting Pre-Market Research before its PA Screws application was approved by the NMPA in April 2018. The research is intended to estimate the potential market success of the company’s products that can be expected. The research also beyond the Company’s initial market - China, and covers international markets. Based on the results of our Pre-Market Research and the positive feedbacks we have received from trade shows and industrial conferences, it is the Company’s intention to apply for additional international regulatory approvals in due course.

The Company will market its products through a hybrid sales force comprised of a managed network of independent regional distributors/sales agents (80%) and direct sales representatives (20%) in China.

There are two ways the Company will generate revenue, 1) through our nationwide and regional distributors and 2) through our direct sales channels.

The Company is currently working to have its products registered on multiple provincial Group Purchasing Organization (GPO) platforms. A few distributors have made deposit payment. The Company is working with distributors to develop sales channels and have its products reaching hospitals.

Impact of COVID-19 Outbreak

The Company’s primary business is carried out through its subsidiary, Shenzhen Changhua Biomedical Engineering Co., Ltd. (“Shenzhen Changhua”), based in Shenzhen, China, where the COVID-19 pandemic started in January 2020.

The Company has identified the following areas that ~~have~~had been adversely affected by COVID-19 ~~pandemic~~:

1. Operation: Our facilities in China were not fully staffed due to COVID-19 lockdown, travel restrictions and quarantine requirements. This affected our accounting and marketing departments mostly because a ~~small~~large number of staff ~~couldn’t~~could not come back to office as they were not allowed to travel or have 14-day quarantine before they ~~come~~came back to work. AsOur ~~the~~operation ~~crisis~~gradually iscame back to normal with the easing ~~off~~of COVID-19 restrictions in China, weduring ~~expect~~the ~~our~~third ~~operation~~and tofourth ~~gradually~~quarter beof ~~back to normal~~2020. 2. Manufacturing: We ~~have~~had sufficient raw material stock for 2 months, ~~and~~however, our production ~~should~~was ~~not~~affected beby ~~affected.~~staff ~~However,~~shortage ifand ~~COVID-19~~facilities ~~pandemic~~closure ~~persists~~during ~~and~~lockdown. ~~new~~3. ~~breakout~~Marketing: ~~occurs,~~We launched our ~~supply~~sales ~~chain~~campaign ~~may~~in belate ~~affected,~~2019 and we ~~may~~generated berevenue ~~short~~the offirst ~~raw~~time ~~material~~in ~~supply.~~the 3.history ~~Marketing:~~of Wethe ~~launched~~Company ~~our~~at ~~sales~~the ~~campaign~~end inof ~~November~~ 2019 ~~but~~fiscal ~~our~~year. Our sales and marketing plans ~~have~~were ~~been~~ disrupted by COVID-19 pandemic because almost all the hospitals in China ~~have~~were ~~been~~ dealing with COVID-19 and non-essential operations ~~have~~were ~~been~~ postponed or cancelled.

The Company has been working with its business partners and workforce through crisis planning, effective communication and co-operation to minimize the negative impact of the COVID-19 pandemic.

Other Income and Expenses

Total other (expenses,) ~~net of other~~ income, for the three ~~and nine~~ months ended ~~July~~January 31, ~~2020~~2021 and ~~2019~~2020 were ($8883,~~784,~~402) ~~$87,447, $142,246~~ and $~~257~~35,~~212~~856 respectively. ~~Compared~~There towas no ~~prior~~significant ~~period,~~changes ~~the~~in total other expenses for the three ~~and nine~~ months ended ~~July~~January 31, ~~2020 and 2019 were increased by 1~~2021.~~53%~~ ~~and~~The ~~reduced~~major bycontributor ~~44.69%.~~to ~~There~~the ~~was no significant changes in~~ total other ~~expenses~~income for the three ~~months~~ ~~ended July 31, 2020. For the nine~~ months ended ~~July~~January 31, 2020, ~~there~~ was ~~a reduction in other expenses compared to the same period last year. The major contributor to the reduction of total other expenses was~~ due to that the Company received a grant of $125,~~237~~652 from local government in Shenzhen in January 2020. The remaining other expenses comprised mainly interest expenses with no significant differences between the relevant periods of ~~2020~~2021 and ~~2019~~2020.

Finance Costs

As of ~~July~~January 31, ~~2020~~2021 and October 31, ~~2019~~2020, a stockholder and four related parties had loaned a total of $5,~~083~~249,~~314~~202 and $4,~~916~~705,~~638~~512 respectively to the Company as unsecured loans repayable on demand and interest is charged at 7% per annum on the amount due. Total interest expenses on advances from a stockholder and the related parties accrued for the three ~~and nine~~ months ended ~~July~~ January 31, 2021 ~~2020~~ and ~~2019~~2020 were $7973,~~615,~~018 ~~$79,846, $239,946~~ and $~~234~~80,~~816~~254 respectively.

As of ~~July~~January 31, ~~2020~~2021 and October 31, ~~2019~~2020, the Company owed $~~299~~311,~~195~~127 and $~~280~~308,~~514~~031 respectively to the directors for advances made on an unsecured basis, repayable on demand. Total imputed interest expenses on advances from ~~the~~ directors, calculated at 5% per annum, recorded as additional paid-in capital amounted to $3,~~409,~~553 ~~$3,189, $10,205~~ and $93,~~544~~389 for the three ~~and nine~~ months ended ~~July~~ January 31, ~~2020~~2021 and ~~2019~~2020 respectively.

Net Loss

The net loss attributable to common stockholders for the three ~~and nine~~ months ended ~~July~~January 31, ~~2020~~2021 and ~~2019~~2020 were $~~205~~172,~~225,~~044 ~~212,876, 478,666~~ and $~~701~~63,~~078~~789 respectively. ~~Compared~~ ~~to prior period, the net loss for the three and nine months ended July 31, 2020 and 2019 were reduced by 3.59% and 31.92%.~~ We started to generate revenue at the end of our fiscal year ~~ended~~from inception to October 31, 2019 before our sales campaign was ~~disrupted~~ disrupted by the COVID-19 pandemic, but we have to incur operating expenses for the upkeep of the Company and the clinical trials.

Liquidity and Capital Resources

We had a working capital deficit of $7,~~135~~973,~~064~~705 and $67,~~577~~533,~~273~~045 as of ~~July~~January 31, ~~2020~~2021 and October 31, ~~2019~~2020 respectively. Our working capital deficit isincreased ~~due~~as toa result of the fact that we ~~received~~only ~~the~~started ~~NMPA~~to ~~approval~~market ~~for~~of ~~one~~our ~~product~~NMPA approved PA Screw in ~~April~~China ~~2018~~at ~~and~~the end weof ~~are~~2019 infiscal year, and the ~~process~~ company has to ~~produce,~~put resources to market ~~and~~its ~~sell~~products, ~~our~~complete ~~product~~the inclinical ~~China~~trials of other products. Although Wewe ~~only~~began ~~started~~to generate revenues at the end of 2019 fiscal year, our ~~sales~~marketing campaign was disrupted by the COVID-19 pandemic and ~~our~~the ~~sales~~revenue ~~revenues~~income ~~were~~was not ~~able~~sufficient. toOur ~~cover our~~main ~~expenses~~source ~~and~~of wefinancing ~~relied~~during onthe ~~loans~~year came in the form of PA Screws sales and loan from our related parties and stockholders.

Cash Flows

Net Cash Used in Operating Activities

Net cash used in operating activities was $~~105~~514,~~512~~817 and $~~550~~51,~~039~~860 in the ~~nine~~three months ended ~~July~~January 31, ~~2020~~2021 and ~~2019~~2020 respectively. This amount was attributable primarily to the net loss after adjustment for non-cash items, such as depreciation, loss on disposal of property and equipment, imputed interest on advances from directors, and others like charges in other receivables and prepaid expenses and other payables and accrued expenses. Cash used in operating activities increased were a result of increased in operating loss, stock-based compensation expenses, other receivables and prepared expenses, and other payables and accrued expenses. Other items had no significant changes.

Net Cash Used in Investing Activities

We recorded net cash used of $2918,~~692~~192 and $~~34,027~~525 in investing activities in the ~~nine~~three months ended ~~July~~January 31, ~~2020~~2021 and ~~2019~~2020 respectively. This amount reflected purchases of property and equipment, primarily for research and development to our facilities.

Net Cash Provided by Financing Activities

Net cash provided by financing activities in the ~~nine~~three months ended ~~July~~January 31, ~~2020~~2021 and ~~2019~~2020 was $~~143~~335,~~975~~135 and ~~588~~$54,~~120~~805 respectively, ~~which~~ which represented advances from a stockholder, directors and related parties, loan repayment to directors and advances to a related company. The significant increase in the cash provided by financing activities were cash flow derived from due to related parties which was the current financing source of the Company.

Operating Capital and Capital Expenditure Requirements

Our ability to continue as a going concern and support the commercialization of current products is dependent upon our ability to market our product while obtaining additional financing in the near term. We anticipate that such funding will be in the form of marketing of our products and equity financing from sales of our common stock. However, there is no assurance that we will be able to raise sufficient funding from the sale of our products and common stock to fund our business plan should we decide to proceed. We anticipate our sales revenue will not meet our financial needs in 2020 and we need to rely on advances from our related parties and stockholders in order to continue to fund our business operations.

We believe that our existing cash, cash equivalents at ~~July~~January 31, ~~2020~~2021, will be insufficient to meet our cash needs. Our minimum ~~cash~~ cash requirement for the next 12 months is projected to be $700,000. This amount may increase if we decide to start clinical trials on new products. The management is actively pursuing additional funding and strategic partners, which will enable the Company to implement our business plan, business strategy, to continue research and development, clinical trials or further development that may arise.

We intend to spend more to support the commercialization of current products and on research and development activities, including new products development, regulatory and compliance, clinical studies, and the enhancement and protection of our intellectual property portfolio.

OFF-BALANCE SHEET ARRANGEMENTS

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 our investors.

CRITICAL ACCOUNTING POLICIES

The preparation of our financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including but not limited to those related to income taxes and impairment of long-lived assets. We base our estimates on historical experience and on various other assumptions and factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Based on our ongoing review, we plan to adjust to our judgments and estimates where facts and circumstances dictate. Actual results could differ from our estimates.

We believe the following critical accounting policies are important to the portrayal of our financial condition and results and require our management’s most difficult, subjective or complex judgments, often because of the need to make estimates about the effect of matters that are inherently uncertain.

1. Property and equipment Property and equipment are stated at cost, less accumulated depreciation. Expenditures for additions, major renewals and betterments are capitalized and expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is provided on a straight-line basis, less estimated residual value over the assets estimated useful lives. The estimated useful lives of the assets are 5 years. 2. Inventories Raw materials, work in progress and finished goods are stated at the lower of cost and net realisable value. Cost comprises direct materials, direct labour and an applicable proportion of production overheads. Production overheads are allocated to inventories on the basis of normal operating capacity. Costs are assigned to individual inventory items on weighted average costs basis. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated selling costs. 3. Long-lived assets In accordance with FASB Codification Topic 360 (ASC Topic 360), “Accounting for the impairment or disposal of Long-Lived Assets”, long-lived assets and certain identifiable intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, the recoverability test is performed using undiscounted net cash flows related to the long-lived assets. The Company reviews long-lived assets to determine that carrying values are not impaired. 4. Fair value of financial instruments FASB Codification Topic 825(ASC Topic 825), “Disclosure About Fair Value of Financial Instruments,” requires certain disclosures regarding the fair value of financial instruments. The carrying amounts of other receivables and prepaid expenses, other payables and accrued expenses, due to a stockholder, directors and related parties approximate their fair values because of the short-term nature of the instruments. The management of the Company is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial statements.

Property and equipment are stated at cost, less accumulated depreciation. Expenditures for additions, major renewals and betterments are capitalized and expenditures for maintenance and repairs are charged to expense as incurred.

Depreciation is provided on a straight-line basis, less estimated residual value over the assets estimated useful lives. The estimated useful lives of the assets are 5 years.

2. Long-lived assets

In accordance with FASB Codification Topic 360 (ASC Topic 360), “Accounting for the impairment or disposal of Long-Lived Assets”, long-lived assets and certain identifiable intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, the recoverability test is performed using undiscounted net cash flows related to the long-lived assets. The Company reviews long-lived assets to determine that carrying values are not impaired.

3. Inventory

Inventory is stated at the lower of cost (using weighted average basis) and net realizable value.

45. ~~Fair~~Government grant Government grants are recognized when there is reasonable assurance that the Company complies with any conditions attached to them and the grants will be received. 6. Revenue recognition Revenue from contract with customers is recognized when control of goods is transferred to a customer, at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. Control is considered to be transferred when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of that good, generally on delivery of the goods. Revenues are generated from manufacturing and supply of biomaterial internal fixation devices, which are sold through its network of distributors/agents and direct sales channels. Our performance obligations are satisfied at a point in time. Our contracts have an anticipated duration of less than a year. Actual returns and claims in any future period are inherently uncertain and thus may differ from our estimates. If actual or expected future returns and claims are significantly greater or lower than the reserves that we have established, we will record a reduction or increase to net revenue in the period in which we make such a determination. 7. Stock-based compensation The fair value of services received, as measured at the fair value of stock granted at the grant date, is expensed in the statements of operations and comprehensive loss with a corresponding increase in the common stock and additional paid-in capital where applicable. Where the shares are granted for services to be rendered over a period of time, the fair value of the stock granted is accounted for as a prepayment with a corresponding increase in the common stock and additional paid-in capital where applicable. This prepaid stock-based compensation is amortized as an expense on a straight-line basis over the period for which the services are rendered. Where, pursuant to an agreement, the stock of the Company is to be granted for services being rendered, the fair value of the stock-based compensation is credited to the stock-based compensation reserve which will be transferred to common stock and additional paid-in-capital upon the actual granting of the shares. The stock-based compensation would be amortized as an expense on a straight-line basis over the period for which the services are rendered. 8. Income taxes The Company accounts for income taxes under the FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial ~~instruments~~statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period included the enactment date. 9. Research and Development Research and development costs related to both present and future products are expensed as incurred. 10. Foreign currency translation The financial statements of the Company’s subsidiary denominated in currencies other than US $ are translated into US $ using the closing rate method. The balance sheet items are translated into US $ using the exchange rates at the respective balance sheet dates. The capital and various reserves are translated at historical exchange rates prevailing at the time of the transactions while income and expenses items are translated at the average exchange rate for the year. All exchange differences are recorded within equity.

FASB Codification Topic 825 (ASC Topic 825), “Disclosure About Fair Value of Financial Instruments,” requires certain disclosures regarding the fair value of financial instruments. The carrying amounts of other receivables and prepaid expenses, other payables and accrued liabilities and due to a stockholder, directors and related parties approximate their fair values because of the short-term nature of the instruments. The management of the Company is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial statements.

5. Income taxes

The Company accounts for income taxes under The Financial Accounting Standards Board (FASB) Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period included the enactment date.

6. Research and Development

Research and development costs related to both present and future products are expensed as incurred.

7. Foreign currency translation

The reporting currency of the company’s financial statements is the US dollar. The financial statements of the Company’s subsidiary denominated in currencies other than the US dollar are translated into US dollars using the closing rate method. The balance sheet items are translated into US dollars using the exchange rates at the respective balance sheet dates. The capital and various reserves are translated at historical exchange rates prevailing at the time of the transactions while income and expenses items are translated at the average exchange rate for the year. All exchange differences are recorded within equity.

ADOPTION OF NEW ACCOUNTING STANDARD

Leases

The Company has initially adopted ASU No. 2016-02, Leases (Topic 842) as of 1 November 2019 using the modified retrospective method.

The Company elected the short-term lease recognition exemption, which allows the Company not to recognize right-of-use assets and lease liabilities for leases with a term of 12 months or less and do not include a purchase option whose exercise is reasonably certain.

In addition, the Company elected the transition method permitted under the ASU 2018-11 issued in July 2018, which allowed the Company to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of accumulated deficits in the period of adoption.

The cumulative effect of the changes made to the consolidated balance sheet as of 1 November 2019 for the adoption of the new leases standard was as follows:

	Balances at		Adjustments			Balances at
	October 31,		on adoption of			November 1,
	2019		ASU 2016-02			2019
ASSETS
Right-of-use assets	$	-	$	74,139		$	74,139
CURRENT LIABILITIES
Lease liabilities, current portion		-		(43,732	)		(43,732	)
NON-CURRENT LIABILITIES
Lease liabilities, net of current portion		-		(33,333	)		(33,333	)
Cumulative-effect adjustment to opening balance of accumulated deficit	$	-	$	(2,926	)	$	(2,926	)

The reported results for the three and nine months ended July 31, 2020 reflect the adoption of ASC 842 guidance while the reported results for the three and nine months ended July 31, 2019 were prepared and continue to be reported under the guidance of ASC 840, Leases.

RECENT ACCOUNTING PRONOUNCEMENTS

There has been no newly effective accounting pronouncement that has significance, or potential significance, to our consolidated financial statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We have established disclosure controls and procedures, as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934. Our disclosure controls and procedures are designed to ensure that material information relating to us, including our consolidated subsidiaries, is made known to our principal executive officer and principal financial officer by others within our organization. Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures as of ~~July~~January 31, ~~2020~~2021 to ensure that the information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is accumulated and communicated to our management, including our principal executive officer and principal financial officer as appropriate, to allow timely decisions regarding required disclosure. Based on this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective as of ~~July~~January 31, ~~2020~~2021.

Under the supervision and with the participation of our then principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended, as of ~~July~~January 31, ~~2020~~2021. Based on this evaluation, the management concluded that the disclosure controls and procedures were ineffective at such time to ensure that information required to be disclosed by the company in the reports filed or submitted under the Exchange Act were recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Our principal executive officer and principal financial officer also concluded that our disclosure controls, which are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, were inappropriate to allow timely decisions regarding required disclosure.

Based on officers’ assessment, the Company determined that there were material weaknesses in its internal control over financial reporting as of ~~July~~January 31, ~~2020~~2021 based on the material weaknesses described below:

● Because the Company consists of one person who acts as the financial officer, operating officer, secretary and director of the Company, there are limited controls over information processing.

● There is an inadequate segregation of duties consistent with control objectives as financial reporting function is composed of only one person. In order to remedy this situation, we would need to hire additional staff to provide greater segregation of duties. Currently, it is not feasible to hire additional staff to obtain optimal segregation of duties. Management will reassess this matter after the Company have obtained additional financial resources to determine whether improvement in segregation of duty is feasible.

● The Company does not have a formal audit committee with a financial expert, and thus the Company lacks the Board oversight role within the financial reporting process.

● There is a lack of formal policies and procedures necessary to adequately review significant accounting transactions.

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

As a result of this material weakness, our management concluded that our internal control over financial reporting was not effective as of ~~July~~January 31, ~~2020~~2021. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness; yet important enough to merit attention by those responsible for oversight of the company’s financial reporting.

Changes in Internal Control

During the most recently completed fiscal quarter, there has been no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Currently we are not involved in any pending litigation or legal proceeding.

ITEM 1A. RISK FACTORS

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under 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.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

The following documents are filed as a part of this report or are incorporated by reference to previous filings, if so indicated:

Exhibit No.		Description

3.1		Articles of Incorporation (1)
3.2		Bylaws (1)
31.1		Section 302 Certification of Chief Executive Officer*
31.2		Section 302 Certification of Chief Financial Officer *
32.1		Section 906 Certification of Chief Executive Officer *
32.2		Section 906 Certification of Chief Financial Officer *

101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

*filed herewith

(1) Incorporated by reference to the Form SB-2 registration statement filed on January 16, 2007.

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.

Date: September 21, 2020	By:
Date: March 22, 2021	By:
	ADVANCED BIOMEDICAL TECHNOLOGIES, INC.
	By:	/s/ Chi Ming Yu
		Chi Ming Yu, President and Director
		(Principal Executive Officer)
	By:	/s/ Hui Wang
		Hui Wang, Director and Chief Executive Officer
		(Controller)
	By:	/s/ Kai Gui
		Kai Gui, Director, Secretary and Chief Financial Officer (Principal Financial Officer)

Filing Compare · Advanced Biomedical Technologies Inc.