FORWARD-LOOKING STATEMENTS
This quarterly report contains forward-looking statements relating to future
events or our future financial performance. In some cases, you can identify
forward-looking statements by terminology such as "may", "should", "intends",
"expects", "plans", "anticipates", "believes", "estimates", "predicts",
"potential", or "continue" or the negative of these terms or other comparable
terminology. These statements are only predictions and involve known and unknown
risks, uncertainties and other factors which may cause our or our industry's
actual results, levels of activity or performance to be materially different
from any future results, levels of activity or performance expressed or implied
by these forward-looking statements.
Although we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results, levels of
activity or performance. You should not place undue reliance on these
statements, which speak only as of the date that they were made. These
cautionary statements should be considered with any written or oral
forward-looking statements that we may issue in the future. Except as required
by applicable law, including the securities laws of the United States, we do not
intend to update any of the forward-looking statements to conform these
statements to actual results, later events or circumstances or to reflect the
occurrence of unanticipated events.
In this report unless otherwise specified, all dollar amounts are expressed in
United States dollars and all references to "common shares" refer to the common
shares of our capital stock.
The management's discussion and analysis of our financial condition and results
of operations are based upon our financial statements, which have been prepared
in accordance with accounting principles generally accepted in the United States
of America ("GAAP").
As used in this quarterly report, the terms "we", "us", "our", and "our company"
means Cloudweb, Inc., unless otherwise indicated.
General Overview
Our Company
Cloudweb, Inc. is a Florida corporation incorporated on May 25, 2014 as
Formigli, Inc. In December 2015, the Company changed its name to Data Backup,
Inc., and on November 4, 2016, the Company changed its name to Data Backup
Solutions Inc. On October 1, 2017, the Company changed its name to Cloudweb,
Inc.
Our headquarters are located at 800 W El Camino Real Suite 180 Mountain View,
Florida, CA 94040.
We are currently exploring different options of further developing and marketing
our web hosting and data storage services Hostwizer.com, W8hosting.com, and
JeyCloud.com. This includes plans to make hosting available for free while being
supported by advertiser content. The Company will also look into white labeling
its services to allow other brands to use our platforms for their own needs.
We do not have any subsidiaries.
We have never declared bankruptcy, been in receivership, or involved in any kind
of legal proceeding.
Results of Operations
The following summary of our operations should be read in conjunction with our
unaudited condensed financial statements for the nine months ended September 30,
2021 and 2020.
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Three months ended September 30, 2021 compared to three months ended September
30, 2020
Three Months Ended
September 30,
2021 2020 Changes %
Operating Expenses
Professional fees $ 7,560 5,550 $ 2,010 36 %
Salaries and wages - related party - 11,625,000 (11,625,000 ) -
Web development cost - 10,030 (10,030 ) -
Total operating expenses 7,560 11,640,580 (11,633,020 ) (100 )%
Other expenses 9,933 16,368 (6,435 ) (39 )%
Net Loss $ 17,493 $ 11,656,948 $ (11,639,455 ) (100 )%
We had no revenue for the three months ended September 30, 2021 and 2020.
Our net loss for the three months ended September 30, 2021 was $17,493 compared
with net loss of $11,656,948 for the three months ended September 30, 2020 due
to the decrease in stock based compensation expenses. During the three months
ended September 30, 2020, we incurred stock based compensation of $11,625,000
attributed to shares issued for Chief Executive Officer's third quarter portion
of the year 2020 salary.
Nine months ended September 30, 2021 compared to nine months ended September 30,
2020
Nine months ended
September 30,
2021 2020 Changes %
Operating expenses
Professional fees $ 29,910 $ 18,957 $ 10,953 58 %
Salaries and wages - related party - 34,875,000 (34,875,000 ) -
Total operating expenses 29,910 34,903,987 (34,874,077 ) (100 )%
Other expenses 29,495 67,568 (38,073 ) (56 )%
Net Loss $ 59,405 $ 34,971,555 $ (34,912,150 ) (100 )%
We had no revenue for the nine months ended September 30, 2021 and 2020.
Our net loss for the nine months ended September 30, 2021 was $59,405 compared
with net loss of $34,971,555 for the nine months ended September 30, 2020 due to
the decrease in stock based compensation expenses. During the nine months ended
September 30, 2020, we incurred stock based compensation of $34,875,000
attributed to shares issued for Chief Executive Officer's first three quarters
of the year 2020 salary.
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Liquidity and Capital
Working Capital
As of As of
September 30, December 31,
2021 2020 Changes %
Current Assets $ - $ - $ -
Current Liabilities $ 376,937 $ 205,116 $ 171,821 84 %
Working Capital Deficiency $ (376,937 ) $ (205,116 ) $ (171,821 ) 84 %
As at September 30, 2021 and December 31, 2020, our company had no cash and
assets.
As at September 30, 2021, our company had total liabilities of $444,263, of
which included convertible notes payable of $154,198, accrued interest of
$135,260, promissory notes payable of $67,326 and accounts payable and accrued
liabilities of $56,839. As at December 31, 2020, our company had total
liabilities of $384,858, of which included convertible notes payable of
$152,398, accrued interest of $107,565, promissory note payable of $2,160 and
accounts payable and accrued liabilities of $55,409.
As at September 30, 2021, our company had a working capital deficiency of
$376,937 compared with a working capital deficiency of $205,116 as at December
31, 2020. The increase in working capital deficit was primarily due to an
increase in convertible notes, due to related party and accrued interest.
Cash Flows
Nine months ended
September 30,
2021 2020 Changes %
Cash flows used in operating activities $ (28,480 ) $ (25,875 ) $ (2,605 ) 10 %
Cash flows provided by financing activities 28,480 25,875 2,605 10 %
Net changes in cash
$ - $ - $ - -
Cash Flow from Operating Activities
We have not generated positive cash flow from operating activities. During the
nine months ended September 30, 2021, net cash used in operating activities was
$28,480 compared to $25,875 used during the nine months ended September 30,
2020. Cash flows used in operating activities during the nine months ended
September 30, 2021, comprised of a net loss of $59,405, which was reduced by
non-cash expenses of $1,800 for amortization of debt discount and a net change
in working capital of $29,125. Cash flows used in operating activities during
the nine months ended September 30, 2020, comprised of a net loss from of
$34,971,555, which was reduced by non-cash expenses of $44,707 for amortization
of debt discount, $34,875,000 for stock based compensation, web development cost
of $10,030 and a net change in working capital of $15,943.
Cash Flow from Investing Activities
During the nine months ended September 30, 2021 and 2020, our company did not
have any investing activities.
Cash Flow from Financing Activities
During the nine months ended September 30, 2021, net cash provided by financing
activities was $24,480 compared to $25,875 during the nine months ended
September 30, 2020. During the nine months ended September 30, 2021, the Company
received $28,480 for advancement from the Company's Director for paying
operating expenses. During the nine months ended September 30, 2020, the Company
received $25,875 for proceeds from issuance of convertible notes.
Going Concern
As of September 30, 2021, we had an accumulated deficit of $128,785,868. We
believe that its existing capital resources may not be adequate to enable it to
execute its business plan. These conditions raise substantial doubt as to our
Company's ability to continue as a going concern. Our Company is currently
exploring different options of further developing and marketing our web hosting
and data storage services. The accompanying condensed financial statements do
not include any adjustments that might be necessary should we be unable to
continue as a going concern. If we fail to generate positive cash flow or obtain
additional financing, when required, we may have to modify, delay, or abandon
some or all of our business plans.
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Off-Balance Sheet Arrangements
We have no 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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