Results of Operations

For the years ended December 31, 2019 and 2018





Revenue

The Company had no operations and no revenue for the years ended December 31, 2019 and 2018 and its only income was from interest income on its short-term investments which are classified as cash and cash equivalents.





Operating Expenses



The following table presents our total operating expenses for the years ended
December 31, 2019 and 2018.



                                                 Year Ended
                                                December 31,
                                             2019          2018
Audit and professional fees                   50,814       21,679
Payroll                                       18,867       20,361

Other general and administrative expense 114,474 11,827

$ 184,155     $ 53,867

Operating expenses consist of i) audit, accounting and legal fees, ii) payroll, and iii) other general and administrative expenses, including directors' compensation of $92,100 paid in stock, transfer agent and EDGAR filer services and other service expenses directly related to the maintenance of the corporate entity and the preparation and filing of reports with the Securities and Exchange Commission. The increase in audit and professional fees in 2019 was mainly due to the increase in legal, audit, and accounting fees, and other general and administrative expenses including investment banking fees.





Loss from Operation

The Company incurred loss from operation of $184,155 and $53,867 for the years ended December 31, 2019 and 2018, respectively. ($92,100 in 2019 was payable in stock, a non-cash payment)






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Other Income (Expense)

The following table presents our total Other Income (Expense) for the years ended December 31, 2019 and 2018.





                                     Year Ended
                                    December 31,
                                  2019          2018
Warrant modification expense     (567,194 )          -
Interest and other income           8,681       10,276

Other income (expense) decreased by $568,789 for the year ended December 31, 2019 as compared to the year ended December 31, 2018. The decrease was caused by less interest income due to fewer investable funds and lower interest rates along with a one-time warrant modification expense of $567,194.





Net Loss

The Company had a net loss of $742,668 for the year ended December 31, 2019, compared with a net loss of $43,591 for the year ended December 31, 2018

Losses per share for the years ended December 31, 2019 and 2018 were $(0.01) and $(0.02) per share, respectively, based on the weighted-average shares issued and outstanding.

It is anticipated that future operating expenses will increase as the Company complies with its periodic reporting requirements and effects a business combination, although there can be no assurance that the Company will be successful in effecting a business combination.

Two major items classified as expenses had a significant impact on reported loss; both expenses were non-cash and had no effect on the Company's cash position. Directors and the CFO received compensation paid in stock ($92,100); this and the warrant modification expense ($567,194) were treated as expenses with a corresponding increase in additional paid-in capital. See Note 7 in the footnotes to the accompanying financial statements.

Liquidity and Capital Resources

At December 31, 2019 the Company had cash and cash equivalents of approximately $679,147 consisting mostly of money market funds and U.S. Treasury and government securities maturing in 3 months or less. Management believes that its cash and cash equivalents are sufficient for its business activities for at least the next twelve months and for the costs of seeking an acquisition of an operating business.

The following table provides detailed information about our net cash flow for all financial statements years presented in this Report.






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Cash Flow



                                                  Year Ended
                                                 December 31,
                                              2019          2018

Net cash used in operating activities $ (76,724 ) $ (49,872 ) Net cash provided by investing activities

           -             -
Net cash provided by financing activities           -             -
Net cash outflow                            $ (76,724 )   $ (49,872 )

Net cash of $(76,724) and $(49,872) were used in operations during the year ended December 31, 2019 and 2018, respectively.

The use of cash of $(76,724) used in operating activities for the year ended December 31, 2019, principally resulted from our net loss of $(742,668), as adjusted for non-cash charges for warrants modification expense of $567,194, stock based compensation of $92,100, and changes in accounts payable and accrued expenses of $6,650.

The use of cash of $(49,872) used in operating activities for the year ended December 31, 2018, principally resulted from our net loss of $(43,591), and changes in accounts payable and accrued expenses of $(6,281).

No cash flows were used in or provided by investing activities during the year ended December 31, 2019 and 2018.

No cash proceeds were used in or provided by financing activities during the year ended December 31, 2019 and 2018.





New Accounting Pronouncements

Refer to the discussion of recently adopted/issued accounting pronouncements under Part II, Item 8, Notes to Financial Statements, Note 3: Significant Accounting Policies.

Factors Which May Affect Future Results

Future earnings of the Company are dependent on interest rates earned on the Company's invested balances and expenses incurred. The Company expects to incur significant expenses in connection with its objective of identifying a merger partner or acquiring an operating business.

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