Overview

Service Team Inc. (the "Company") was incorporated pursuant to the laws of the State of Nevada on June 6, 2011. On August 22, 2017, the Company changed its state of domicile to Wyoming. The Company was organized to comply with the warranty obligations of electronic devices manufactured by companies outside of the United States. The business proved to be unprofitable and the Company discontinued its warranty and repair operations. On June 5, 2013, Service Team Inc. acquired 100 percent of the outstanding stock of Trade Leasing, Inc. for 4,000,000 shares of its common stock.

Trade Leasing, Inc., a California corporation, was incorporated on November 1, 2011, and commenced business January 1, 2013. Trade Leasing, Inc. is principally involved in the manufacturing, maintenance and repair of truck bodies. Service Team Inc. and Trade Leasing Inc. have not been involved in a bankruptcy, receivership or any similar proceeding. The acquisition of Trade Leasing Inc. is a major change in the operations of Service Team Inc.





Results of Operations

The Company had sales of $3,913,174 for the fiscal year ended August 31, 2019, compared to $3,329,876 during the fiscal year ended August 31, 2018, an increase of $583,298. This represents an increase of 17.5 percent. All of the sales are generated by Trade Leasing, Inc. The Service Products Division had no sales.

Cost of sales increased by $424,736 from $2,723,653 to $3,148,389 which was due to increased volume during the 2019 fiscal year.

Gross margins increased by $158,562 from $606,223 in 2018 to $764,785 in 2019, primarily due to the increase in revenues and cost of sales during 2019.

Operating and other expenses increased by $14,607 from $643,675 to $625,938 from 2018 to 2019 primarily due to an increase in work force.

Interest expense decreased by $211,688 from $331,922 to $120,234 from 2018 to 2019 primarily due to no longer financing with convertible note.

The above changes resulted in net profit of $876 during the 2019 fiscal year compared to a net loss of $354,767 during the 2018 fiscal year. The improved performance was primarily due to the increase in sales volume and the discontinuance of financing with Convertible Notes.







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Liquidity and Capital Resources

As of August 31, 2019, we had total assets of $568,638 including current assets of $396,902. We also have current liabilities of $382,603 which consist of convertible notes of $140,232, accrued interest of $84,866, other accrued expenses of $63,521 and accounts payable of $82,564. We believe our ability to achieve commercial success and continued growth will be dependent upon our continued access to capital either through additional sale of our equity or cash generated from operations. We will attempt to obtain additional capital through bank lines of credit; however, we have no agreements or understandings with third parties at this time.

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