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 QUARTERLY PERIOD ENDED ~~SEPTEMBER~~June 30, ~~2017~~2016

[ ] 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: 333-206157

QMC Systems, Inc.

(Exact name of registrant as specified in its charter)

	Wyoming	46-3021464
	(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
	3995 Hagers Grove Road Salem, OR	97317 (Zip Code)
	2195 Hyacinth Street, Suite 108b, Salem, OR	97305 (Zip Code)
	(Address of Principal Executive Offices)

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

Indicate by check mark whether the registrant has submitted electronically 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 (Section 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, or a non-accelerated filer or a small reporting company. See definition of large accelerated filer, accelerated filer and small reporting company in Rule 12b-2 of the Securities Exchange Act of 1934.

Large accelerated filer ☐		Accelerated filer ☐		Non-accelerated filer ☐ (Do not check if a smaller reporting company)
Smaller reporting company ☒		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).

[X] Yes [ ] No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of ~~March~~June 2229, 2018 the issuer had 507,450,000 shares of its common stock issued and outstanding. As of ~~March~~June 2229, 2018 there were no shares of preferred stock issued and outstanding.

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Table of Contents

INDEX

		Page
PART I - FINANCIAL INFORMATION

ITEM 1	FINANCIAL STATEMENTS - UNAUDITED	F1
	BALANCE SHEETS - UNAUDITED	F1
	STATEMENTS OF OPERATIONS - UNAUDITED	F2
	STATEMENTS OF CASH FLOWS - UNAUDITED	F3
	NOTES TO THE UNAUDITED FINANCIAL STATEMENTS	F4
ITEM 2	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS	3
ITEM 3	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	3
ITEM 4	CONTROLS AND PROCEDURES	4

PART II-OTHER INFORMATION

ITEM 1	LEGAL PROCEEDINGS	5
ITEM 1A	RISK FACTORS
ITEM 2	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	5
ITEM 3	DEFAULTS UPON SENIOR SECURITIES	5
ITEM 4	MINE SAFETY DISCLOSURES	5
ITEM 5	OTHER INFORMATION	5
ITEM 6	EXHIBITS	5

SIGNATURES		6

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Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1

FINANCIAL STATEMENTS

QMC SYSYEMS, INC.

BALANCE SHEETS

(UNAUDITED)

	As of September 30, 2017	As of December 31, 2016
	As of June 30, 2016	As of December 31, 2015
ASSETS
	$	$
Current assets
Cash and cash equivalents	174,~~679~~891	~~493~~405
Other current assets	80,661	75,631
Total current assets	74,891	405
Total current assets	82,340	76,124
Total assets	74,891	405
Total assets	82,340	76,124
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accrued expenses	27,~~673~~267	32,~~100~~500
Due to related party	~~105~~28,~~995~~586	754,~~245~~500
Total current liabilities	~~108~~35,~~668~~853	787,~~345~~000
Total liabilities	~~108~~35,~~668~~853	787,~~345~~000
Stockholders’ equity
Common stock, par value $0.0001, 50,000,000 shares authorized as of December 31, 2016 and 5,000,000,000 shares authorized as of September 30, 2017; 507,450,000 shares issued & outstanding as of September 30, 2017 and 5,074,500 shares issued & outstanding as of December 31, 2016 (*)	50,745	507
Common stock, par value $0.0001, 50,000,000 shares authorized as of June 30, 2016 and December 31, 2015; 5,074,500 shares issued & outstanding as of June 30, 2016 and 5,000,000 shares issued and outstanding as on December 31, 2015	507	500
Additional paid in capital	2474,~~255~~493	~~74,493~~-
Retained earnings / (deficit)	(~~101~~35,~~328~~962)	(777,~~221~~095)
Total stockholders’ equity	(26,328)	(2,221)
Total Stockholders’ equity	39,038	(6,595)
Total liabilities and stockholders’ equity	8274,~~340~~891	~~76,124~~405

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

(*) On August 31, 2017, the Company performed the forward stock split, whereby every one (1) share of the common stock was automatically reclassified and changed into hundred (100) shares (the “100-for-1 Forward Stock Split”). The par value per share was not be affected by the 100-for-1 Forward Stock Split. The Company’s capital accounts have been retroactively restated to reflect the 100-for-1 Forward Stock Split.

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Table of Contents

QMC SYSTEMS, INC.

STATEMENT OF OPERATIONS

(UNAUDITED)

	Three months ended September 30, 2017	Three months ended September 30, 2016	Nine months ended September 30, 2017	Nine months ended September 30, 2016
	Three months ended June 30, 2016	Three months ended June 30, 2015	Six months ended June 30, 2016	Six months ended June 30, 2015
	$	$	$	$
Revenue	-	-	-	-
Operating expenses:	562	34,450	29,137	63,317
Operating expenses	14,441	2,525	28,867	2,525
Total operating expenses	~~562~~14,441	342,~~450~~525	2928,~~137~~867	632,~~317~~525
Other income:
Net profit/ (loss) before tax	(14,441)	(2,525)	(28,867)	(2,525)
Accrued interest on loan	1,677	-	5,030	-
Total other income	1,677	-	5,030	-
Net profit/ (loss) before tax	1,115	(34,450)	(24,107)	(63,317)
Tax expense	-	-	-	-
Net profit/ (loss) after tax	1(14,~~115~~441)	(342,~~450~~525)	(2428,~~107~~867)	(632,~~317~~525)
Net income/ (loss) per common share - basic and diluted	(0.~~000002~~0029)	(0.~~006789~~0005)	(0.~~000048~~0057)	(0.~~012561~~0005)
Net income/ (loss) per share attributable to common stockholders	0.000002	(0.006789)	(0.000048)	(0.012561)
Weighted-average of common shares outstanding	5,047,132	5,000,000	5,023,566	5,000,000
Weighted-average number of common shares outstanding(*)	507,450,000	5,074,500	507,450,000	5,040,668

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

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QMC SYSTEMS, INC.

STATEMENT OF CASH FLOWS

(UNAUDITED)

	Nine months ended September 30, 2017	Nine months ended September 30, 2016
	Six months ended June 30, 2016	Six months ended June 30, 2015
	$	$
Cash flows from operating activities
Net income	(2428,~~107~~867)	(632,~~317~~525)
Changes in:
Other current assets	~~(5,030)~~-	-
Accrued expenses	~~(427)~~4,767	62,~~550~~500
Due to related party	3024,~~750~~086	~~56,711~~-
Net cash provided/ (used) in operating activities	~~1,186~~(14)	(5625)
Cash flow from investing activities	-	-
Cash flows from financing activities	-	-
Change in additional paid in capital	~~(50~~74,~~238)~~493	~~74,493~~-
Change in stakeholder's equity	~~50,238~~7	7500
Net cash provided/ (used) in financing activities	-74,500	~~74,~~500
Net change in cash and cash equivalents	174,~~186~~486	~~74,444~~475
Cash and cash equivalents at the beginning of the period	~~493~~405	~~405~~-
Cash and cash equivalents at the end of the period	174,~~679~~891	~~74,849~~475

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

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Table of Contents

QMC SYSTEMS, INC.

NOTES TO THE FINANCIAL STATEMENTS

AS OF ~~September~~JUNE 30, ~~2017~~2016

(UNAUDITED)

Note 1. Organization, History and Business

QMC Systems, Inc. (the “Company”) is a Wyoming corporation, incorporated under the laws of the State of Wyoming on April 17, 2015. The business plan of the Company is to offer a comprehensive network of educational and informational resources as well as vetted service providers for foreign investors interested in direct investments in U.S. companies or in the U.S. real estate market.

The accompanying unaudited financial statements of QMC Systems, Inc. have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or the SEC, including the instructions to Form 10-Q and Regulation S-X. In the opinion of the management of the Company, all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the three month period, have been made. Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year. When used in these notes, the terms “Company”, “we”, “us” or “our” mean the Company.

Note 2. Summary of Significant Accounting Policies

Revenue Recognition

The Company will recognize revenue in accordance with Accounting Standards Codification No. 605, “Revenue Recognition” ("ASC-605"), ASC-605 requires that four basic criteria must be met before revenue can be recognized: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred; (iii) the selling price is fixed and determinable; and (iv) collectability is reasonably assured. Determination of criteria (iii) and (iv) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required.

Accounts Receivable

Accounts receivable is reported at the customers’ outstanding balances, less any allowance for doubtful accounts. Interest is not accrued on overdue accounts receivable.

Allowance for Doubtful Accounts

An allowance for doubtful accounts on accounts receivable is charged to operations in amounts sufficient to maintain the allowance for uncollectible accounts at a level management believes is adequate to cover any probable losses. Management determines the adequacy of the allowance based on historical write-off percentages and information collected from individual customers. Accounts receivable are charged off against the allowance when collectability is determined to be permanently impaired.

Stock Based Compensation

When applicable, the Company will account for stock-based payments to employees in accordance with ASC 718, “Stock Compensation” (“ASC 718”). Stock-based payments to employees include grants of stock, grants of stock options and issuance of warrants that are recognized in the statement of operations based on their fair values at the date of grant.

The Company accounts for stock-based payments to non-employees in accordance with ASC 505-50, “Equity-Based Payments to Non-Employees.” Stock-based payments to non-employees include grants of stock, grants of stock options and issuances of warrants that are recognized in the statement of operations based on the value of the vested portion of the award over the requisite service period as measured at its then-current fair value as of each financial reporting date.

The Company calculates the fair value of option grants and warrant issuances utilizing the Binomial pricing model. The amount of stock-based compensation recognized during a period is based on the value of the portion of the awards that are ultimately expected to vest. ASC 718 requires forfeitures to be estimated at the time stock options are granted and warrants are issued to employees and non-employees, and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The term “forfeitures” is distinct from “cancellations” or “expirations” and represents only the unvested portion of the surrendered stock option or warrant. The Company estimates forfeiture rates for all unvested awards when calculating the expense for the period. In estimating the forfeiture rate, the Company monitors both stock options and warrants.

Warrant exercises as well as employee termination patterns. The resulting stock-based compensation expense for both employee and non-employee awards is generally recognized on a straight-line basis over the period in which the Company expects to receive the benefit, which is generally the vesting period.

During the period April 17, 2015 (inception) through ~~September~~June 30, ~~2017~~2016, the Company did not recognize any stock-based compensation. No options have been granted to date.

Income / (Loss) per Share

The Company reports earnings / (loss) per share in accordance with ASC Topic 260-10, "Earnings per Share”. Basic earnings / (loss) per share are computed by dividing income / (loss) available to common shareholders by the weighted average number of common shares available. Diluted earnings / (loss) per share is computed similar to basic earnings / (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted earnings / (loss) per share have not been presented since there are no dilutive securities.

Cash and Cash Equivalents

For purpose of the statements of cash flows, the Company considers cash and cash equivalents to include all stable, highly liquid investments with maturities of three months or less.

Concentration of Credit Risk

The Company primarily transacts its business with one financial institution. The amount on deposit in that one institution may from time to time exceed the federally-insured limit.

Use of Estimates

The preparation of 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 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.

Business Segments

ASC 280, “Segment Reporting” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. The Company determined it has one operating segment as of ~~September~~June 30, ~~2017~~2016.

Income Taxes

Recent Accounting Pronouncements

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable.

Note 3. Income Taxes

Deferred income tax assets and liabilities are computed annually for differences between financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities.

The effective tax rate on the net loss before income taxes ~~differs~~in ~~from~~ the U.S. statutory rate as follows:

			September 30, 2017
	June 30, 2016
U.S statutory rate	34	%		34	%
Less valuation allowance	(34)	%		~~(34)~~	%
Effective tax rate	-			0	%

The significant components of deferred tax assets and liabilities are as follows:

	Three months ended September 30, 2017	Three months ended September 30, 2016	Nine months ended September 30, 2017	Nine months ended September 30, 2016
	Three months ended June 30, 2016	Three months ended June 30, 2015	Six months ended June 30, 2016	Six months ended June 30, 2015
Deferred tax assets
Net operating profit / (loss)	(14,441)	(2,525)	(28,867)	(2,525)
Net operating losses	1,115	(34,450)	(24,107)	(63,317)
Deferred tax asset	4,910	859	9,815	859
Deferred tax liability	~~379~~-	-	-	-
Net deferred tax assets	~~(379)~~4,910	~~11,713~~859	89,~~196~~815	~~21,528~~859
Less valuation allowance	-	(11,713)	(8,196)	(21,528)
Less: valuation allowance	(4,910)	(859)	(9,815)	(859)
Deferred tax asset - net valuation allowance	-	-	-	-
Deferred tax asset	-	-	-	-

On an interim basis, the Company has a net operating loss carryover of approximately ($~~101~~35,~~328)~~962 available to offset future income for income tax reporting purposes, which will expire in various years through 2032, if not previously utilized. However, the Company’s ability to use the carryover net operating loss may be substantially limited or eliminated pursuant to Internal Revenue Code Section 382.

The Company adopted the provisions of ASC 740-10-50, formerly FIN 48, and “Accounting for Uncertainty in Income Taxes”. The Company had no material unrecognized income tax assets or liabilities as of ~~September~~June 30, ~~2017~~2016.

The Company’s policy regarding income tax interest and penalties is to expense those items as general and administrative expense but to identify them for tax purposes. During the period January 1, ~~2017~~2016 to ~~September~~June 30, ~~2017~~2016, there was no income tax, or related interest and penalty items in the income statement, or liabilities on the balance sheet. The Company files income tax returns in the U.S. federal jurisdiction and Nevada state jurisdiction. We are not currently involved in any income tax examinations.

Note 4. Related Party Transactions

Our Chief Executive Officer has extended a loan of $~~105~~28,~~995~~586 to the Company. The loan has no term and is payable upon demand. The loan bears no interest.

On May 29, 2015, the Company issued 5,000,000 of its authorized common stock to Renae Bell for $500.00. ~~However, as on September 30, 2017, these shares are increased to 500,000,000 due to forward stock split effected on August 31, 2017.~~

Note 5. Stockholders’ Equity

Common Stock

The holders of the Company's common stock are entitled to one vote per share of common stock held.

~~On August~~As 31of June 30, ~~2017~~2016, the Company ~~filed~~had ~~a Certificate of Amendment with the Wyoming Secretary of State to amend article number~~ 5 ~~thereby increasing company’s authorized common stock from 50~~,~~000~~074,~~000~~500 shares toissued ~~5,000,000,000.~~and ~~This amendment was adopted on August 31, 2017~~outstanding.

Further, the Company held a Board of Directors meeting on August 31, 2017, where it was unanimously approved that the Company will conduct a forward stock split wherein every one share of issued and outstanding common stock will become one hundred shares of common stock. The forward stock split became effective on August 31, 2017.

As of September 30, 2017, the Company had 507,450,000 shares issued and outstanding.

Note 6. Commitments and Contingencies

Commitments:

The Company currently has no long term commitments as of our balance sheet date.

Contingencies:

None as of our balance sheet date.

Note 7. Net Income / (Loss) Per Share

The following table sets forth the information used to compute basic and diluted net income per share attributable to QMC Systems, Inc. for the period January 1, ~~2017~~2016 through June ~~September~~ 30, ~~2017~~2016:

	Three months ended September 30, 2017	Three months ended September 30, 2016	Nine months ended September 30, 2017	Nine months ended September 30, 2016
	Three months ended June 30, 2016	Three months ended June 30, 2015	Six months ended June 30, 2016	Six months ended June 30, 2015
	$	$	$	$
Net income / (loss)	1(14,~~115~~441)	(342,~~450~~525)	(2428,~~107~~867)	(632,~~317~~525)
Weighted-average common shares outstanding basic:	~~507~~5,~~450~~047,~~000~~132	5,~~074~~000,~~500~~000	~~507~~5,~~450~~023,~~000~~566	5,~~040~~000,~~668~~000
Weighted-average common stock
Equivalents	~~507~~5,~~450~~047,~~000~~132	5,~~074~~000,~~500~~000	~~507~~5,~~450~~023,~~000~~566	5,~~040~~000,~~668~~000
Stock options			-	-
Warrants			-	-
Convertible Notes			-	-
Weighted-average common shares Outstanding Diluted			-	-
Basic and Diluted Income / (Loss) Per Share	(0.~~000002~~0029)	(0.~~006789~~0005)	(0.~~000048~~0057)	(0.~~012561~~0005)

Note 8. ~~Other~~ ~~Current~~Going ~~Assets~~Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. Currently, the Company has no operating history and as of June 30, 2016 has incurred an operating loss of $28,867, working capital loss of $39,038 and the Company had an accumulated deficit of $35,962. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management believes that the Company’s capital requirements will depend on many factors including the success of the Company’s development efforts and its efforts to raise capital. Management also believes the Company needs to raise additional capital for working capital purposes. There is no assurance that such financing will be available in the future. The conditions described above raise substantial doubt about our ability to continue as a going concern. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

Note 9. Subsequent Events

On November 1, 2016, the Company advanced a loan of $74,513 to Red Wolf Management for a term not exceeding 2 years at an interest rate of 9% annually. The loan is fully repayable by December 31, 2018 and is personally guaranteed by Timothy Remple, CEO of Red Wolf Management.

~~Thus~~Further, the Company held a Board of Directors asmeeting on ~~September~~August 3031, 2017, anwhere ~~interest~~it onwas ~~loan~~unanimously ~~has~~approved ~~been~~that ~~accrued~~the ~~amounting~~Company towill ~~$6,148~~conduct ona ~~the~~forward ~~above~~stock ~~mentioned~~split ~~loan~~wherein every one share of issued and outstanding common stock will become one hundred shares of common stock. The forward stock split became effective on August 31, 2017.

~~Note~~On August 31, 2017, the Company filed a Certificate 9of Amendment with the Wyoming Secretary of State to amend article number 5 thereby increasing company’s authorized common stock from 50,000,000 to 5,000,000,000. ~~Going~~ ~~Concern~~This amendment was adopted on August 31, 2017.

~~The accompanying~~In ~~financial~~December ~~statements have been prepared assuming that the Company will continue as a going concern. Currently~~2017, the ~~Company~~company ~~has~~conducted noa ~~operating~~free ~~history~~trial ~~and~~month asto ofshowcase ~~September~~the ~~30,~~services. ~~2017~~A ~~has~~promotional ~~incurred~~offer through an ~~operating~~email ~~profit~~was /sent ~~(loss)~~to ~~of $1~~2,~~115,~~000 ~~working~~users ~~capital~~in ~~(loss)~~China ofsince ~~($26,328)~~at ~~and~~ the ~~Company~~moment ~~had~~it anis ~~accumulated~~the ~~deficit~~only ofuser ~~($101,328).~~interface ~~These~~language ~~factors raise substantial doubt about the Company’s ability~~ to ~~continue~~sign asup aour ~~going~~mobile ~~concern~~application. ~~Management~~Of ~~believes~~those ~~that~~users, ~~the Company’s capital requirements~~approximately ~~will~~half ~~depend~~signed onup, ~~many~~used ~~factors including~~ the ~~success~~app ofto ~~the~~contact ~~Company’s~~vendors, ~~development~~and ~~efforts~~provided ~~and~~feedback ~~its~~on ~~efforts~~performance, tostructure, ~~raise~~and ~~capital~~usability. ~~Management~~ ~~also~~This ~~believes~~free ~~the~~trial was ~~Company~~conducted ~~needs~~solely ~~to raise additional capital~~ for ~~working~~feedback, ~~capital~~and ~~purposes. There is~~ no ~~assurance~~cost ~~that such~~was ~~financing~~incurred ~~will~~by ~~be available in~~ the ~~future~~Company. The ~~conditions~~free ~~described~~trial ~~above~~lasted ~~raise~~approximately ~~substantial~~two ~~doubt~~weeks, ~~about our ability to continue as a going concern. The financial statements of the Company do not include any adjustments relating to the recoverability~~ and ~~classification~~users ofwere ~~recorded~~gathered ~~assets,~~through or the ~~amounts~~business ~~and~~connections ~~classifications~~ of ~~liabilities~~our ~~that~~Chief ~~might~~Executive ~~be necessary should the Company be unable to continue as a going concern~~Officer.

~~Note~~During the period ended March 31, 2018, the Company entered into beta testing phase of its mobile application and expects the formal rollout of the app in September 2018. The Company has executed subscription agreements with 10 vendors offering an advertising space and "preferred" status to them for a period of one year at an agreed rate of $1,200 per subscription. ~~Subsequent~~ ~~Events~~The normal rate of such preferred status is $7,500 per year.

None.

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Table of Contents

ITEM 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor provisions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

Company Overview

Corporate History

The Company was incorporated on April 17, 2015 under the laws of the State of Wyoming.

On May 29, 2015 the Company issued 5,000,000 of its authorized common stock to Renae Bell, our Chief Executive Officer, in exchange for $500.00.

On April 5, 2016, our Registration Statement on Form S-1 was deemed effective by the Securities and Exchange Commission. During April and May of 2016 an aggregate of 74,500 shares of common stock were sold to 34 purchasers at a purchase price of $1.00 per share for aggregate gross proceeds of $74,500.

Business Information

QMC Systems, Inc. is an early stage company that plans to offer a comprehensive network of educational material and services targeted towards Asian investors with a median income who are looking to invest in the United States real estate market or in other U.S-based businesses, but may lack the knowledge and/or resources to do so themselves. The Company intends to provide future clients with financial planning education, training, and a vetted network of resources and service providers who can guide customers through the investment process. We plan to offer our clients a comprehensive array of services that will educate them about the current climate of potential non-traditional investments (e.g. small business; real estate) and put them in touch with trusted parties that can help them with those investments, such as accountants and real estate brokers. By providing this largely untapped section of the market with comprehensive training and services, we plan to generate new clients through referrals from previous satisfied clients. We have yet to acquire any clients as of ~~September~~ June 30, ~~2017~~2016. We believe our first clients will arise from personal and or business connections of our sole officer and director however, there is no guarantee this may occur.

We are currently in the developmental stages for the creation of a mobile application that will be designed to showcase our services. It is our intention to make a user friendly platform through which users can further educate themselves on potential investments in the United States. We are in the very early stages of development and will continue to explore the possibility of implementing additional features and uses for our pending application as development progresses.

Liquidity and Capital Resources

Our cash and cash equivalents balance is $174,~~679~~ 891 as of ~~September~~June 30, ~~2017~~2016. Our cash balance is not sufficient to fund our limited levels of operations for any period of time. Our accountants have issued, in their previous audit report, a going concern opinion reflecting a conclusion that our operations may not be able to continue because of a lack of financial resources.

Our Chief Executive Officer has extended the Company a loan in the amount of $~~105~~28,~~995~~586. The loan has no term and is payable upon demand. The loan bears no interest.

If we need additional cash and cannot raise it, we will either have to suspend operations until we do raise the cash we need, or cease operations entirely.

Net Profit / (Loss)

We have recorded a net ~~profit / (~~loss) of $128,~~115~~867 ~~and ($34,450)~~ for the six ~~three~~ months ended ~~September~~June 30, ~~2017 and~~ 2016~~, respectively~~.

Going Concern

The Company’s financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company demonstrates adverse conditions that raise substantial doubt about the Company's ability to continue as a going concern for one year following the issuance of these financial statements. These adverse conditions are negative financial trends, specifically operating loss, working capital deficiency, and other adverse key financial ratios. The Company has not established any source of revenue to cover its operating costs. Management plans to fund operating expenses with related party contributions to capital. There is no assurance that management's plan will be successful. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue as a going concern.

ITEM 3

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

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ITEM 4

CONTROLS AND PROCEDURES

Management’s Report on Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, (our sole executive officer) to allow for timely decisions regarding required disclosure.

As of ~~September~~June 30, ~~2017~~2016, the end of the fiscal period covered by this report, we carried out an evaluation, under the supervision of our chief executive officer, with the participation of our chief financial officer, of the effectiveness of the design and the operation of our disclosure controls and procedures. The officers concluded that the disclosure controls and procedures were not effective as of the end of the period covered by this report due to material weaknesses identified below.

The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: domination of management by a limited individuals without adequate compensating controls, lack of a majority of outside directors on board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; inadequate segregation of duties consistent with control objectives, lack of well-established procedures to identify, approve and report related party transactions, and lack of an audit committee. These material weaknesses were identified by our Chief Executive Officer who also serves as our Chief Financial Officer in connection with the above annual evaluation.

Inherent limitations on effectiveness of controls

Internal control over financial reporting has inherent limitations which include but is not limited to the use of independent professionals for advice and guidance, interpretation of existing and/or changing rules and principles, segregation of management duties, scale of organization, and personnel factors. Internal control over financial reporting is a process which involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a timely basis, however these inherent limitations are known features of the financial reporting process and it is possible to design into the process safeguards to reduce, though not eliminate, this risk. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal controls over financial reporting that have occurred for the three months ending ~~September~~ June 30, ~~2017~~2016, that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

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PART II-OTHER INFORMATION

ITEM 1

LEGAL PROCEEDINGS

There are no legal proceedings against the Company and the Company is unaware of such proceedings contemplated against it.

ITEM 1A

RISK FACTORS

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide the 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.

ITEM 5

OTHER INFORMATION

None

ITEM 6

EXHIBITS

(a) Exhibits required by Item 601 of Regulation S-K.

Exhibit No.		Description
3.1		Certificate of Incorporation (1)
3.2		By-laws (1)
31		Certification of the Company’s Principal Executive and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s report on Form 10-Q for the period ended ~~September~~June 30, ~~2017~~2016 (2)
32		Certification of the Company’s Principal Executive and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (2)
101.INS		XBRL Instance Document (3)
101.SCH		XBRL Taxonomy Extension Schema (3)
101.CAL		XBRL Taxonomy Extension Calculation Linkbase (3)
101.DEF		XBRL Taxonomy Extension Definition Linkbase (3)
101.LAB		XBRL Taxonomy Extension Label Linkbase (3)
101.PRE		XBRL Taxonomy Extension Presentation Linkbase (3)

(1)	Filed as an exhibit to the Company's S-1/A Registration Statement, as filed with the SEC on August 6, 2015, and incorporated herein by this reference.
(2)	Filed herewith.
(3)	In accordance with Regulation S-T, the XBRL-formatted interactive data files that comprise Exhibit 101 in this Quarterly Report on Form 10-Q shall be deemed “furnished” and not “filed”.

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SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, there unto duly authorized.

QMC Systems, Inc.

(Registrant)

By: /s/ Renae Bell

Name: Renae Bell

Chief Executive Officer, Chief Financial Officer, Director

Dated: ~~March~~June 2229, 2018

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Filing Compare · QMC Systems, Inc.