AUSCRETE CORPORATION Forward-Looking Statements
All statements other than statements of historical fact included in
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" are forward-looking statements. Forward-looking statements involve
various important assumptions, risks, uncertainties and other factors which
could cause our actual results to differ materially from those expressed in such
forward-looking statements. Forward-looking statements in this discussion can be
identified by words such as "anticipate," "believe," "could," "estimate,"
"expect," "plan," "intend," "may," "should" or the negative of these terms or
similar expressions. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
performance or achievement. Actual results could differ materially from those
contemplated by the forward-looking statements as a result of certain factors
including but not limited to, competitive factors and pricing pressures, changes
in legal and regulatory requirements, cancellation or deferral of customer
orders, technological change or difficulties, difficulties in the timely
development of new products, difficulties in manufacturing, commercialization
and trade difficulties and general economic conditions as well as the factors
set forth in our public filings with the
You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this Annual Report or the date of any document incorporated by reference, in this Annual Report. We are under no obligation, and expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.
For these statements, we claim the protection of the safe harbor for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934.
The Company's financial statements have been presented on the basis that it will
continue as a going concern. The Company has not generated revenues from
construction related operations to date. The Company has an Accumulated deficit
of
To the extent that the Company's capital resources are not adequate to meet current and planned operating requirements, the Company will use additional funds through equity and debt financing, collaborative or other arrangements with corporate partners, licensees or others, and from other sources, which may have the effect of diluting the holdings of existing shareholders. The Company has subsequent current arrangements with respect to, or sources of, such additional financing and the Company does not anticipate that existing shareholders will be required to provide any portion of the Company's future financing requirements.
No assurance can be given that additional financing will be available when needed or that such financing will be available on terms Acceptable to the Company. If adequate funds are not available, the Company may be required to delay or terminate expenditures for certain of its programs that it would otherwise seek to develop and commercialize. This would have a material adverse effect on the Company and raise doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that may result from the outcome of this uncertainty.
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The summary of significant accounting policies of
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The financial statements and related notes have been prepared in accordance with
accounting principles generally accepted in
Please see the notes to the financial statements for further discussion on Significant accounting policies.
GOING CONCERN AND PLAN OF OPERATION
The Company's financial statements have been presented on the basis that it will
continue as a going concern. The Company did not generate revenues from
construction related operations during the period ending
The Company will use additional funds through equity and debt financing, collaborative or other arrangements with corporate partners, licensees or others, and from other sources, which may have the effect of diluting the holdings of existing shareholders. The Company has subsequent current arrangements with respect to, or sources of, such additional financing and the Company does not anticipate that existing shareholders will be required to provide any portion of the Company's future financing requirements.
No assurance can be given that additional financing will be available when needed or that such financing will be available on terms acceptable to the Company. If adequate funds are not available, the Company may be required to delay or terminate expenditures for certain of its programs that it would otherwise seek to develop and commercialize. This would have a material adverse effect on the Company and raise doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that may result from the outcome of this uncertainty.
RELATED PARTY TRANSACTIONS
As of
Results of Operations
Results of Operations comparison of the fiscal year ended
During the twelve-month period ended
The company had a net loss of
The company's operational expenses during 2021 were involved in fund-raising, day to day operations, payroll, facility lease, utilities, compliance fees, equipment and materials purchases.
The company acquired access to investment funds which were to produce results in limited cash acquisitions throughout 2021.
The intended set up of facilities and subsequent operations of the company, being the manufacture of construction products for commercial and residential structures, had begun during 4th quarter of 2021 with the first contracted home beginning construction.
For the twelve months ended
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For the twelve months ended
For the twelve months ended
For the twelve months ended
For the twelve months ended
For the twelve months ended
For the twelve months ended
For the twelve months ended
For the twelve months ended
For the Twelve months ended
At the time of filing the Company has fully implemented its planned start-up strategy which has now positioned itself in an operational state of production.
The Company's specialized systems and major new equipment procurements have been integrated and installed into a fully operational batch plant and product manufacturing has commenced.
The Company has completed a Small Home of 400 sq ft located on its Manufacturing Plant property. This model show home will be used as a marketing tool.
The Company is at the stage of delivering full house sets as its next tactical step in securing self-sustaining revenue capital.
Liquidity and Capital Resources
We have had minimal operating activity since inception of the company in 2010.
Our 2021 short-term obligations were covered by funding received from
convertible notes with a total value of
Net cash used in operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
As of
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Financing
OTCPink. The company engaged the services of a registered broker-dealer and
market maker,
Use of Funds Raised Through Financing
Initial Stage One targeted funding was
In 2019 a change in Company strategy brought Management to make the decision to
sell back its land investment and utilize the funds to establish an operational
plant within a newly leased facility also in the
During the fiscal year both land sale funds and additional capital raised were used for major production equipment purchases and to fabricate startup provisions within a newly plant facility.
This Corporate profit orientated decision has provided greater advantageous results in assuring faster revenue generation.
The balance was used for working capital and expenses including wages, marketing and other working capital and reserves.
Marketing
Principal marketing efforts are initially aimed at leveraging specific contacts and relationships that have developed over the last 12 years since the inception of the founders' pilot plant.
The company has interviewed and chosen an experienced real estate marketing agent who will bring with him a multitude of contacts and interested customer inquiries.
The Company is actively placing itself in the position to be a major supplier in the smaller home market. The structures will be on average 100 to 600 square feet, and consist of a number of floor plans and varying interior options. These much-desired structures would support urban community transitioning efforts for houseless populations and builders seeking to construct these smaller homes on their properties.
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Financial Projections
The typical midsized affordable home market consists of structures in the range
of 1,100 - 3,000 sq. ft. These will sell to the contractor or developer for
around
The Company plans on marketing its small 300 to 800 sq ft homes in the
neighborhood of
Obviously, the company will look to increase output to meet future demands and expects to do this through internal financing.
Off-balance Sheet Arrangement
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.
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