Jv Group Inc (OTC:ASZP)

SECTION 1.  REGISTRANT'S BUSINESS AND OPERATIONS
Item 1.01  Entry Into A Material Definitive Agreement

 
On December 11, 2015, JV Group, Inc. (the "Company") and Yeung Cheuk Hung, Top Growth Holdings Group, Inc. and Po Shu Michael Choy ("Stockholders") entered into a Share Purchase Agreement with Arcus Mining Holdings Limited, a Seychelles International Business Company ("Arcus") in which they agreed to sell 95,000,000 shares of restricted common stock to Arcus for $340,000 in cash, subject to the satisfaction of certain conditions. Closing is anticipated to be in late January 2016. Concurrently with the Closing, Yuen Ling Look, CEO and CFO and a director, along with two other directors will resign, subject to Notice to Shareholders under Section 14f of the Securities Exchange Act of 1934, andnew directors will been appointed at the request of Arcus. Following Closing Arcus will be the majority shareholder of the Company, owning approximately 96% of the Company's issued and outstanding common stock.

Management Discussion and Analysis

For the Year Ended June 30, 2015 Compared to the Year Ended June 30, 2014

During the year ended June 30, 2015 and 2014, we recognized revenues of $0 and $0 respectively from operations. Revenues from discontinued operations amounted to $78,713 and $612,441 for the years ended June 30, 2015 and 2014 with corresponding cost of revenues of $47,908 and $82,618 respectively.

During the year ended June 30, 2015 we incurred operational expenses of $84,148. During the year ended June 30, 2014 we incurred operational expenses of $61,735. The increase of $22,413 is composed of an increase of $18,306 in accounting and legal costs. During the years ended June 30, 2015 and 2014, we incurred operational expenses of $475,072 and $816,413 respectively in relation to the discontinued operations.

Losses attributable to continuing operations were $84,148 for the year ended June 30, 2015 and $61,735 for the year ended June 30, 2014. Losses attributable to the discontinued operations were $444,267 for the year ended June 30 2015 and $284,885 for the year ended June 30, 2014.

Item 4.01  Changes in Registrant's Certifying Accountant.

On or about July 23, 2015, JV Group, Inc., a Delaware corporation (the "Company") engaged RBSM, LLC ("New Accountant") to audit and review the Company's financial statements for the fiscal years ending June 30, 2013, June 30, 2014 and June 30, 2015. The New Accountant has been engaged for general audit and review services and not because of any particular transaction or accounting principle, or because of any disagreement with the Company's former accountant, De Joya Griffith & Company, LLC (the "Former Accountant").

On September 18, 2015, the Securities and Exchange Commission ("SEC") suspended De Joya Griffith & Company, LLC, Arthur De Joya, CPA, Jason Griffith, CPA and Philip Zhang, CPA from practicing as accountants on behalf of any publicly traded company or other entity regulated by the SEC. The Former Accountant was dismissed effective July 28, 2015. The Former Accountant's reports on the Company's financial statements during its past two fiscal years did not contain an adverse opinion or disclaimer of opinion, nor was it modified as to uncertainty, audit scope or accounting principles, except for a going concern qualification contained in its audit report for the fiscal years ending June 30, 2014 and 2013. The decision to change accountants was recommended and approved by the Company's Board of Directors. During the fiscal years ended June 30, 2015, June 30, 2014 and June 30, 2013 through the date hereof, the Company did not have any disagreements with the Former Accountant on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements if not resolved to the satisfaction of the former accountant would have caused them to make reference in connection with their report to the subject of the disagreement(s).

The New Accountant was engaged effective July 28, 2015. The New Accountant was engaged for general audit and review services and not because of any particular transaction or accounting principle, or because of any disagreement with the Former Accountant. The Company has furnished De Joya Griffith & Company, LLC with a copy of the disclosures under this Item 4.01 and has requested that the Former Accountant provide a letter addressed to the SEC stating whether or not they agree with the statements made herein or stating the reasons in which they do not agree. The letter from the Former Accountant addressed to the Securities and Exchange Commission is filed herewith as Exhibit 16.1.

                                                    JV GROUP, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                     FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
                                                           (Amounts in US Dollars)
                                                                   (Unaudited)

                                                       Three Months Ended          Six Months Ended
                                                       December 31, 2014          December 31, 2014
                                                      2014             2013              2014          2013

                                                 -------------------------------        ----------------------------
<S>                                              <C>              <C>                 <C>          <C>

Revenue                                                  -          158,679    $    78,713 $      309,883

Cost of revenue                                9,522           20,059          29,004         40,096
                                                 --------------     --------------      ----------------------------

Gross profit                                     (9,522)          138,620          49,709        269,787

Operating expenses

      General and administrative        42,927          113,777          156,466       203,498
      Rent and rates                           43,371           87,164           94,069         199,953
      Amortization                                        -            8,558            8,551            17,102
      Loss on disposal of furniture       4,128                -               111,628             -
      Depreciation                              13,182           34,512           43,499        68,900
                                                    --------------   --------------          ----------------------------
      Total operating expenses       103,608          244,011          414,213       489,453

                                                    --------------   --------------          ----------------------------

Loss from operations                    (113,130)        (105,391)        (364,504)     (219,666)

Other income
      Interest and other income                                                                          1,935
      Other expense                                      -                   -                    -            (871)
                                                     --------------   --------------   --------------       ------------
      Total other income                                 -                   -                   -            1,064

                                                     ---------------------------------       ----------------------------
Net loss                                $      (113,130) $      (105,391)   $    (364,504) $   (218,602)
                                                    ========================================              

Other comprehensive income

 Foreign currency translation adjustment  (96)              58                (156)         (924)

                                               ---------------------------------   ----------------------------
Total comprehensive loss         $      (113,226) $      (105,333)   $  (364,660) $   (219,526)
                                               ===========================================   

Loss per common share- basic: $        ($0.00) $         (0.00)   $       (0.00)        (0.00)
                                               =========================================== 

Weighted average common shares outstanding:

      Basic                                         98,879,655       98,879,655       98,879,655    98,879,655
                                               ============================================  

Management Discussion and Analysis

During the three months ended December 31, 2014 and 2013, we recognized revenues of $0 and $158,269 from our service office operations.  The decrease of $158,269 is a result of the  cessation  of  operations.  During  the three  months  ended December 31, 2014 and 2013,  we incurred cost of revenues of $9,522 and $20,059, respectively.  During the three  months  ended  December  31, 2014 and 2013,  we recognized gross profits of $(9,522) and $138,620,  respectively.  The resulting decrease in gross profits is a result of the decrease in revenues.

During the three  months  ended  December  31,  2014,  we incurred a net loss of $113,130.  During the three  months ended  December 31, 2013,  we incurred a net loss of  $105,391.  The  increase  of  $7,739  was a result of the  decrease of $158,679 in revenues combined with a $140,403  decrease in operational  expenses and a decrease in cost of revenue of $10,537, as discussed above.

JV GROUP, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                     FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
                     (Amounts in US Dollars)
                     (Unaudited)


                                                                                           September 30,
                                                                                        2014          2013

                                                                                   ----------------------------
<S>                                                                                <C>            <C>

Revenue                                                                $      78,713  $    151,204

Cost of revenue                                                             19,482        20,037
                                                                                   ----------------------------

Gross profit                                                                     59,231       131,167

Operating expenses

      General and administrative                                       110,899        89,721
      Rent and rates                                                           53,338       112,789
      Amortization                                                               8,551         8,544
      Loss on disposal of furniture                                      107,500             -
      Depreciation                                                                30,317        34,388
                                                                                   ----------------------------
      Total operating expenses                                           310,605       245,442

                                                                                   ----------------------------

Loss from operations                                                        (251,374)     (114,275)

Other income

      Interest and other income                                                 -         1,934
                                                                                     ------------  ------------
      Total other income                                                             -         1,934

                                                                                   ----------------------------
Net loss                                                                         $    (251,374) $   (112,341)
                                                                                   ============================

Other comprehensive income

      Foreign currency translation adjustment                        (60)         (982)

                                                                                   ----------------------------
Total comprehensive loss                                               $    (251,434) $   (113,323)
                                                                                   ============================


      Loss per common share- basic:                             $       (0.00) $      (0.00)
                                                                                   ============================

Weighted average common shares outstanding:

      Basic                                                                            98,879,655    98,879,655
                                                                                   ============================

Management Discussion and Analysis

For the Three Months Ended September 30, 2014 Compared to the Three Months Ended September 30, 2013

During  the three  months  ended  September  30,  2014 and 2013, we  recognized revenues of $78,713 and $151,204 from our  service office operations. The decrease of $72,491 is a result of the fluctuation in clients. During the three months  ended September 30, 2014 and 2013, we incurred cost of revenues of $19,482 and $20,037, respectively. During the three months ended September 30, 2014 and 2013, we recognized resulting gross profits of $59,231 and $131,167, respectively. The  resulting decrease in gross profits is a result ofthe decrease in revenues.

JV GROUP, INC. AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                   FOR THE YEARS ENDED JUNE 30, 2014 AND 2013
  (Amounts in US Dollars)
   (Audited)


                                                                                              June 30,
                                                                                        2014          2013

                                                                                   ----------------------------
<S>                                                                                <C>             <C>

Revenue                                                                $     612,441  $    669,742

Cost of revenue                                                              82,618        80,587
                                                                                   ----------------------------

Gross profit                                                                    529,823       589,155

Operating expenses

      General and administrative                                      356,005       378,731
      Rent and rates                                                         348,899       449,066
      Amortization                                                             34,203         88,596
      Depreciation                                                             138,170       152,097
                                                                                   ----------------------------
      Total operating expenses                                        877,277     1,068,490

                                                                                   ----------------------------

Loss from operations                                                     (347,454)     (479,335)

Other income (expense)

      Interest and other income                                        1,705             -
      Loss on disposal of furniture                                     (871)             -
                                                                                   ----------------------------
      Total other income (expense)                                     834              -

                                                                                   ----------------------------
Net loss                                                                     $    (346,620) $   (479,335)
                                                                             ============================

Other comprehensive income

      Foreign currency translation adjustment                    112                779

                                                                                   ----------------------------
Total comprehensive loss                                         $    (346,508) $   (478,556)
                                                                                   ============================


      Loss per common share- basic:                           $    (0.$0)            (0.00)
                                                                                   ============================

Weighted average common shares outstanding:

      Basic                                                                       98,879,655     98,879,655
                                                                                   ============================

                        JV GROUP, INC. AND SUBSIDIARIES
                              CONSOLIDATED STATEMENTS OF OPERATIONS
                   FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2014 AND 2013
                                     (Amounts in US Dollars)
                                           (Unaudited)

                                                       Three Months Ended                Nine Months Ended
                                                           March 31,                          March 31,
                                                     2014             2013              2014          2013

                                               ---------------------------------   ----------------------------
<S>                                            <C>               <C>               <C>             <C>

Revenue                                        $       137,208   $      164,077    $     447,091   $   515,740

Cost of revenue                                         21,888           20,596           61,984        60,829
                                               ---------------------------------   ----------------------------

Gross profit                                           115,320          143,481          385,107       454,911

Operating expenses

      General and administrative                        73,518           78,157          277,016       293,448
      Rent and rates                                    74,305          112,283          274,258       336,539
      Amortization                                       8,551            8,551           25,652        80,114
      Depreciation                                      34,653           34,310          103,553       117,906
                                               ---------------------------------   ----------------------------
      Total operating expenses                         191,027          233,301          680,479       828,007

                                               ---------------------------------   ----------------------------

Loss from operations                                   (75,707)         (89,820)        (295,372)     (373,096)

Other income (expense)

      Interest and other income                              -                -            1,935             -
      Other expense                                       (137)               -           (1,008)            -
                                               ---------------------------------   ----------------------------
      Total other income (expense)                        (137)               -              927             -

                                               ---------------------------------   ----------------------------
Net loss                                       $       (75,844)  $      (89,820)   $    (294,445)  $  (373,096)
                                               =================================   ============================

Other comprehensive income

      Foreign currency translation adjustment               36            2,410              960         1,734

                                               ---------------------------------   ----------------------------
Total comprehensive loss                       $       (75,808)  $      (87,410)   $    (293,485)  $  (371,362)
                                               =================================   ============================


      Loss per common share- basic:            $         (0.00)           (0.00)   $       (0.00)        (0.00)
                                               =================================   ============================

Weighted average common shares outstanding:

      Basic                                         98,879,655       98,879,655      98,879,655     98,879,655
                                               =================================   ============================

Larry O'Donnell, CPA, PC formerly the independent registered public accountant for Atomic Paintball, Inc. ("the Company") resigned as the Company's independent registered public accountant on October 26, 2010, due to his resigning from public audit work.

The Independent Auditor Report by Larry O'Donnell, CPA, PC for the fiscal years ended December 31, 2009 and 2008, contained an opinion which included a paragraph discussing uncertainties related to continuation of the Company as a going concern.

Effective June 30, 2010, ASPI, Inc. entered into an Acquisition Agreement with Prestige Prime Office, Ltd.

Company Snapshot:

Office operator in the Far East.

Post Merger Share Calculation:

• 13,879,655: Pre reverse merger outstanding shares
• 60,000,000: Shares issued as part of the Share Exchange

GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions:  73,879,655

Financials: Not meaningful