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, 2019 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 October 22, 2019. 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

The discussion and analysis of our financial condition and results of operations are based on our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States ("US GAAP"). The preparation of these condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We have identified the policies below as critical to our business operations and to the understanding of our financial results:





Basis of Accounting

The Company's financial statements are prepared using the accrual method of accounting and are presented in United States Dollars.

Basic Earnings (loss) per Share

The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share. ASC 260 specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock.

Basic net earnings (loss) per share amounts are computed by dividing the net earnings (loss) by the weighted average number of common shares outstanding. Diluted earnings (loss) per share are the same as basic earnings (loss) per share due to the lack of dilutive items in the Company.






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Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Use of Estimates and Assumptions

The preparation of financial statements in conformity with generally accepted accounting principles 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.

Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.





Income Taxes

Income taxes are provided in accordance with ASC 740, Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.





Foreign Currency Translation

The Company's functional and reporting currency is the United States dollar. Occasional transactions may occur in Canadian dollars. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of net income (loss).

Fair Value of Financial Instruments

The carrying amount of cash and current liabilities approximates fair value due to the short maturity of these instruments. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Unless otherwise noted, it is management's opinion the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.





Environmental Costs

Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations and which do not contribute to current or future revenue generation are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable and the cost can be reasonably estimated. Generally, the timing of these accruals coincides with the earlier of completion of a feasibility study of the Company's commitments to plan of action based on the then known facts.






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Stock Based Compensation

The Company records stock-based compensation using the fair value method of valuing stock options and other equity-based compensation issued. The Company has not granted any stock options since its inception. Accordingly, no stock-based compensation has been recorded.

Start-Up expenses

As a start-up company, the costs associated with start-up activities are expensed as incurred. Accordingly, start-up costs associated with the Company's formation have been included in the Company's general and administrative expenses.

Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.





PLAN OF OPERATION

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

Planned milestones for the first three months after filing of this Quarterly Report on Form 10-Q





  † Complete logo designs for our products;
  † Apply for trademark protection for brand names, logos, and product names;
  † Select food production facility;
  † Review schedule and modify scope as required; and
  † Identify and assess regulatory issues.

Planned milestones for between three and six months after filing of this Quarterly Report on Form 10-Q





  † Complete packaging designs for initial products;
  † Test and refine recipes for product formulations;
  † Complete margin analysis based on completed formulations;
  † Obtain product UPC codes;
  † Develop marketing content for online distribution;
  † Apply to be Amazon partner;
  † Evaluate additional online distribution partners;
  † Review schedule and modify scope as required; and
  † Identify and assess regulatory issues.





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Planned milestones for between six and nine months after filing of this Quarterly Report on Form 10-Q





  † Complete initial batches of market-ready products;
  † Start production manufacturing operations;
  † Test and document order and fulfillment processes;
  † Review schedule and modify scope as required; and
  † Identify and assess regulatory issues.

Planned milestones for between nine and twelve months after filing of this Quarterly Report on Form 10-Q





    †   Test geo-targeted online advertising in initial geographies;
    †   Test social media promotion within targeted geographies to support product
        sales;
    †   Review schedule and modify scope as required; and
    †   Identify and assess regulatory issues.

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 September 30, 2019 and 2018

The Company had no revenues for the three months ended September 30, 2019 and 2018.

For the three-month period ended September 30, 2019, we incurred total operating expenses of $8,756, consisting of stock-based compensation of $455, professional fees of $6,925, and general and administrative expenses of $1,376. For the three-month period ended September 30, 2018, we incurred total operating expenses of $5,676, consisting of stock-based compensation of $228, professional fees of $5,338, and general and administrative expenses of $110. The increase in expenses for the three-month period ended September 30, 2019, was primarily due an increase in general and administrative expenses.

Net income (loss) was a net loss of $8,756 for the three months ended September 30, 2019, compared to a net loss of $9,819 for the three months ended September 30, 2018.

Liquidity and Capital Resources

At September 30, 2019, we had a cash balance of $10,000 and total current liabilities of 170,895. Our working capital balance at September 30, 2019, was $(160,528). 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.






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As at September 30, 2019, our total assets were $10,367, consisting of $10,000 of cash and $367 of inventory, consisting of our food products.

As at September 30, 2019, our current liabilities were $170,895 and stockholders' deficiency was $(160,528).

Cash Flows from Operating Activities

We have not generated positive cash flows from operating activities. Net cash used in operations was $0 and $3,350 for the three months ended September 30, 2019 and 2018, respectively.

Cash Flows from Financing Activities

For the three months ended September 30, 2019 and 2018, net cash flows provided by financing activities was $10,000 and $0, respectively.





Subsequent Events

None through date of this filing.

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