The following information should be read in conjunction with (i) the financial statements of Artisan Consumer Goods, Inc., a Nevada corporation (the "Company"), and the notes thereto appearing elsewhere in this Form 10-Q together with (ii) the more detailed business information and the June 30, 2021 audited financial statements and related notes included in the Company's Form 10-K (File No. 000-54838; the "Form 10-K"), as filed with the Securities and Exchange Commission on September 29, 2021. Statements in this section and elsewhere in this Form 10-Q that are not statements of historical or current fact constitute "forward-looking" statements





OVERVIEW

The Company was incorporated in the State of Nevada on September 14, 2009 and has established a fiscal year end of June 30.





Going Concern

To date the Company has little operations or revenues and consequently has incurred recurring losses from operations. No revenues are anticipated until we complete the financing we endeavor to obtain, as described in the Form 10-K, and implement our initial business plan. The ability of the Company to continue as a going concern is dependent on raising capital to fund our business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company's ability to continue as a going concern.

The Company plans to raise additional funds through debt or equity offerings. There is no guarantee that the Company will be able to raise any capital through this or any other offerings.





CRITICAL ACCOUNTING POLICIES

Please refer to Note 2 - Summary of Significant Accounting Policies in the accompanying Notes to the Financial Notes.





PLAN OF OPERATION

Our plan of operation for the following twelve months is as follows:

On July 15, 2021, we acquired the assets of Paleo Scavenger, LLC for $10,000. Paleo owns the Within / Without Granola ("WWG") brand. The purchase price includes the WWG trademarks, brands, books, records, intellectual property, commercial sales channel, customer lists and manufacturing rights. Early in 2021, WWG ceased operations and we intend to restart the manufacturing process in the near future.

We must raise at least $87,300 to commence our plan of operation, described above, and fund our ongoing operational expenses. We have no assurance that future financing will materialize. If that financing is not available, we may be unable to continue our operations. Management believes that if we are successful in raising $87,300, we will be able to generate sales revenue within the following twelve months thereof. However, if such financing is not available, we could fail to satisfy our future cash requirements. We have no assurance that future financing will materialize. Management believes that if subsequent private placements are successful, we will be able to generate sales revenue within the following twelve months thereof. However, additional equity financing may not be available to us on acceptable terms or at all, and thus we could fail to satisfy our future cash requirements.

If we are unsuccessful in raising at least $87,300 through a private placement, we will then have to seek additional funds through debt financing, which would be highly difficult for a new, development stage business to obtain. Therefore, the Company is highly dependent upon the success of an anticipated private placement offering and failure thereof would result in the Company having to seek capital from other sources such as debt financing, which may not even be available to the Company. However, if such financing were available, because we are a development stage company with little in the way of operations to date, we would likely have to pay additional costs associated with high-risk loans and be subject to an above market interest rate. If and when these funds are obtained, management would evaluate the terms of such debt financing and determine whether the business could sustain operations and growth and manage the debt load. If we cannot raise additional proceeds via a private placement of our common stock or secure debt financing, we would be required to cease business operations and as a result, investors in our common stock would lose all of their investment.

Results of Operations for the Three months Ended December 31, 2021 and 2020

The Company had no revenues for the three months ended December 31, 2021 and 2020.

For the three-month period ended December 31, 2021, we incurred total operating expenses of $6,342, consisting of stock-based compensation of $560, professional fees of $3,643 and general and administrative expenses of $1,389. For the three-month period ended December 31, 2020, we incurred total operating expenses of $6,015, consisting of stock-based compensation of $210, professional fees of $5,655 and general and administrative expenses of $150.

We reported a net loss of $9,028 and $20,301 for the three months ended December 31, 2021 and 2020, respectively. The $11,273 decrease in net loss was primarily a result of an increase in other income of $11,600 from the marking of the shares issued buy not sold by Mr. Drury, the Company's former CEO, to fair value subsequent to issuance. Please refer to Note 3 - Related Party Transactions in the accompanying Notes to the Financial Notes during the three months ended December 31, 2020.

Results of Operations for the Six months Ended December 31, 2021 and 2020

The Company had no revenues for the six months ended December 31, 2021 and 2020.

For the six-month period ended December 31, 2021, we incurred total operating expenses of $22,089, consisting of stock-based compensation of $980, professional fees of $18,178 and general and administrative expenses of $1,556. For the six-month period ended December 31, 2020, we incurred total operating expenses of ($12,991), consisting of stock-based compensation of ($25,080) from a consultant which released the Company from issuing 50,000 shares of the Company's unregistered common stock earned under a January 15, 2019 agreement for $25,500, offset by general and administrative expenses of $45 and professional fees of $12,044.






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We reported a net loss of $22,218 for the six months ended December 31, 2021, compared to net income of $25,134 for the six months ended December 31, 2020. The $47,352 increase in net loss was primarily a result of a decrease in other income of $12,272 from the marking of the shares issued but not sold by Mr. Drury, the Company's former CEO, to fair value subsequent to issuance. Please refer to Note 3 - Related Party Transactions in the accompanying Notes to the Financial Notes during the six months ended December 31, 2020. In addition, on August 16, 2020, a consultant released the Company from issuing 50,000 shares of the Company's unregistered common stock earned under a January 15, 2019 agreement for $25,500.

Liquidity and Capital Resources

At December 31, 2021, we had a cash balance of $20,046 and total current liabilities of $232,135. Our working capital balance at December 31, 2021, was $(212,079). We do not have sufficient cash on hand to fund our ongoing operational expenses at all. We will need to raise at least $87,300 to commence our plan of operation and fund our ongoing operational expenses. Additional funding will likely come from equity financing from the sale of our common stock or a debt financing. If we are successful in completing an equity financing, existing shareholders will experience dilution of their interest in our Company. We do not have any financing arranged and we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock to fund our ongoing operational expenses. In the absence of such financing, our business will likely fail. There are no assurances that we will be able to achieve further sales of our common stock or any other form of additional financing. If we are unable to achieve the financing necessary to continue our plan of operations, then we will not be able to continue our operations and our business will fail.

As at December 31, 2021, our total assets were $28,671, consisting of $20,046 of cash, intellectual property (net of accumulated amortization) for $7,625 and trademarks of 1,000.

As at December 31, 2021, our current liabilities were $232,125 and stockholders' deficiency was $(203,454).

Cash Flows from Operating Activities

We have not generated positive cash flows from operating activities. Net cash used in operations was $22,574 and $8,731 for the six months ended December 31, 2021 and 2020, respectively.

Cash Flows from Investing Activities

For the six months ended December 31, 2021 and 2020, net cash flows used by investing activities was $10,000 and $-0-, respectively, from our asset purchase of Within / Without Granola.

Cash Flows from Financing Activities

For the six months ended December 31, 2021 and 2020, net cash flows provided by financing activities was $51,719 and $-0-, respectively, from advances from our CEO.

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