Xiao AI Technology Limited

What they do

Sipp International Industries, Inc. (f/k/a Industrial International, Inc.) is a Nevada corporation incorporated in 1991 that currently has no operations from a continuing business other than expenditures related to running the Company. Historically it was engaged through affiliates in the development, production and distribution in China of corded and cordless telephones under the Wondial(TM) trademark through a 69.5296%-owned affiliate, Shenzhen Wonderland Communication Science & Technology Company Limited, and battery testing equipment and battery products through a 72.84%-owned affiliate, Wuhan Lixing Power Sources Company Limited. The company stopped reporting after its March 31, 2004 Form 10-Q and filed a Form 15-12G on July 18, 2011, with all assets considered disposed of as of December 31, 2004.

Revenue drivers

• Wondial communications terminals (historical) — Development, production and distribution throughout China of corded and cordless telephones sold under the Wondial(TM) trademark through 69.5296%-owned Shenzhen Wonderland Communication Science & Technology Company Limited; reported as a historical segment, not current revenue.
• Wuhan Lixing Power Sources (historical) — Battery testing equipment and battery products through 72.84%-owned Wuhan Lixing Power Sources Company Limited; historical segment only, with no current revenue reported.
• Continuing operations — The Company reported no revenue from continuing operations as of the June 2021 10-Q and $-0- in revenues for both fiscal 2010 and 2009.

Recent performance

For the year ended December 31, 2010, the Company generated $-0- in revenues, incurred $-0- in operating expenses, and recorded a net operating loss of $-0-, compared with a net income of $-0- for 2009. As of December 31, 2010, the Company had $0 in cash, had written off all assets, and reported a working capital and stockholders' deficit of $51,344. As of December 31, 2009, the Company had $60,010 in current assets, $38,047 in current liabilities, and $-0- in cash and cash equivalents. The last reported sales price of the common stock on OTC Markets on July 17, 2020, was $0.013.

Strategy

Management states it intends to explore and identify business opportunities within the U.S., including a potential acquisition of an operating entity through a reverse merger, asset purchase or similar transaction. As of the June 2021 10-Q, management had not had any discussions with any representative of any other entity regarding a potential business combination. Management anticipates it will likely only be able to effect one business combination due to limited capital, and may target an entity that has recently commenced operations, is a developing company, needs additional funds, or is an established business in financial or operating difficulty. The Company expects to incur costs over the next 12-month period for investigating, evaluating and negotiating potential business combinations, filing SEC reports, and consummating an acquisition.

Risks

• Going concern — The Company reported a working capital and stockholders' deficit of $51,344 as of December 31, 2010, raising substantial doubt about its ability to continue as a going concern without additional capital contributions.
• No revenue or operations — The Company has no operations from a continuing business and no revenue, relying on interim funding from Management or an affiliated party to pay professional fees and expenses.
• Dilution and financing risk — Management states that issuing additional equity securities could result in significant dilution to current stockholders, and commercial loans, if available, would increase liabilities and future cash commitments.
• Single business combination — Management anticipates it will likely only be able to effect one business combination due to limited capital, which would not permit offsetting losses from one venture against gains from another.

Outlook

Management intends to explore and identify business opportunities within the U.S., including a potential reverse merger, asset purchase or similar transaction, and expects to incur costs in connection with investigating, evaluating and negotiating potential business combinations over the next 12-month period. As of the June 2021 10-Q, no discussions with any representative of any other entity regarding a potential business combination had occurred. The Company states it would be unable to continue as a going concern without interim financing provided by Management.