CARRIAGE HOUSE EVENT CENTER, INC. Our Management's Discussion and Analysis should be read in conjunction with our unaudited condensed consolidated financial statements and related notes thereto included elsewhere in this quarterly report.
Forward-Looking Statements
This quarterly report on Form 10-Q contains "forward-looking statements" that include information relating to future events, future financial performance, strategies, expectations, competitive environment, regulation and availability of resources. These forward-looking statements include, without limitation, statements regarding: proposed new products or services; our statements concerning litigation or other matters; statements concerning projections, predictions, expectations, estimates or forecasts for our business, financial and operating results and future economic performance; statements of management's goals and objectives; trends affecting our financial condition, results of operations or future prospects; our financing plans or growth strategies; and other similar expressions concerning matters that are not historical facts. Words such as "may," "will," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes" and "estimates," and similar expressions, as well as statements in future tense, identify forward-looking statements.
Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
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Business Overview
The Company was formed for the purpose of researching and developing a concept of an Event Center with many additional associated businesses on the grounds of the Event Center.
We have not generated revenue to date. Our operations since 2010 to date has consisted of extensive research of our concept and filing an S-1 registration statement.
Our independent accountants have expressed a "going concern" opinion.
In 2020, the Company filed an S-1 Registration Statement to register 1,000,000
shares of the Company's common stock to be sold to the public at the price of
The Company sold 300,000 shares of common stock at
Even if all of the shares offered on the S-1 Registration Statement had been
sold, our management would continue to own over a majority of the outstanding
shares of the Company. As of
As a result, they have the ability to determine the outcome on all matters requiring approval of our shareholders, including the election of directors and approval of significant corporate transactions.
Covid-19 Pandemic
In
In 2021 and into 2022, the Covid-19 Pandemic has had a dramatic effect on the progress of the Company, especially in raising the funds needed for advancing our business plan. Most cities and states have had strong restrictions on gatherings during the pandemic. Many wedding, corporate and other meetings have been cancelled or postponed for the time being, thus having a dramatic effect on the Event Center business. If unable to overcome these setbacks, we may need to change the direction of the Company.
The wedding event business is the major part of our business plan for an event center.
According to "The Wedding Report," of
• 41.5% are or have moved to 2021;
• 7.0% are or have cancelled altogether (some likely married but cancelled
the full event);
• 30.5% are trying to hold their current 2020 wedding date;
• 46% of couples are cutting their budget by an average of 31%;
• 58% of couples are cutting their guest count by an average of 41%;
• Even more alarming, 58% of wedding vendors surveyed (6/2020) said they
are expecting to lose more 2020 weddings.
While the report was for the year 2020, the COVID-19 pandemic did not diminish in 2021, making the event center business extremely difficult to operate profitably.
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Many of those that have had their reservations at an event center, sometimes a year in advance, have had to postpone or cancel, usually because of the requirement to limited numbers of people at gatherings imposed by mayors and governors. The event center business has suffered with these cancellations. So many of the weddings that are going ahead, are doing so in a situation involving far less guests, and held in such places as a back yard. While weddings are a major part of the business of an event center, other meetings such as corporate functions have almost all been cancelled or postponed.
In a survey done in
• 20% of 2021 weddings rescheduled out to 2022
• Businesses are about 10% less booked than 2018/2019, it is a mixed bag
o 28% of businesses are more than 25% less booked
o 17% of businesses are more than 25% more booked
• Many businesses are reporting that the second half of the year is the
busiest for them
• Some are seeing surges already while others are not, depending on where
you are in the country and the type of business you are in.
• Many are reporting that this year is not profit or new events, but
reschedules, so that is impacting overall profit for the year.
• Some are reporting that couples are still a bit nervous
• Good staffing is hard to find
• Many still reporting smaller weddings
• 87% of couples say they are not having any issues finding what they need
or want
• 10% of couples reporting higher prices prior to pandemic
• 5% of couples reporting hard to find a venue for their date
• 15% of couples say they are still cutting budgets by as much as 28%
• 15% of couples say they are still cutting guest counts by as much as 27%
• Both budget cuts and guest count reduction are consistent with what
businesses are reporting.
Since our Company is based heavily on an event center, and thus on meetings of 50 to 1,000 people, the progress of the Company has been dramatically curtailed in a number of ways. First, in the raising of capital through investors in our public offering and in additional private capital. Second in advancing our business plan in a number of areas, including getting the interest of companies that might be interested in participating in our overall concept.
These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Critical Accounting Policies, Judgments and Estimates
Our discussion and analysis of our financial condition and results of operations
is based upon our consolidated financial statements, which have been prepared in
accordance with
An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimate that are reasonably likely to occur, could materially impact the consolidated financial statements. Refer to Note 2 for a summary of our significant accounting policies.
Results of Operations for the Three months Ended
For the three months ended
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Operating Expenses
For the three months ended
Net Loss
For the three months ended
Liquidity and Capital Resources
Our cash balance at
Operating Activities
Net cash used in operating activities was
Investing Activities
We neither generated nor used cash in investing activities during the three
months ended
Financing Activities
During the three months ended
Going Concern
The accompanying unaudited financial statements have been prepared assuming that
the Company will continue as a going concern, which contemplates the realization
of assets and the liquidation of liabilities in the normal course of business.
The Company currently has limited operations and has a stockholders' deficit of
These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Off Balance Sheet Arrangements
We have not entered into any off-balance sheet arrangements.
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