FORWARD-LOOKING STATEMENTS
This Report on Form 10-Q contains forward-looking statements within the meaning
of the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995. Reference is made in particular to the description of our plans and
objectives for future operations, assumptions underlying such plans and
objectives, and other forward-looking statements included in this report. Such
statements may be identified by the use of forward-looking terminology such as
"may," "will," "expect," "believe," "estimate," "anticipate," "intend,"
"continue," or similar terms, variations of such terms or the negative of such
terms. Such statements are based on management's current expectations and are
subject to a number of factors and uncertainties, which could cause actual
results to differ materially from those described in the forward-looking
statements. Such statements address future events and conditions concerning,
among others, capital expenditures, earnings, litigation, regulatory matters,
liquidity and capital resources, and accounting matters. Actual results in each
case could differ materially from those anticipated in such statements by reason
of factors such as future economic conditions, changes in consumer demand,
legislative, regulatory and competitive developments in markets in which we
operate, results of litigation, and other circumstances affecting anticipated
revenues and costs, and the risk factors set forth in the financial statements
and related notes included on the Company's Annual Report on Form 10-K filed on
April 15, 2020.
As used in this Form 10-Q, "we," "us," and "our" refer to Team 360 Sports Inc.,
which is also sometimes referred to as the "Company."
General Overview
We were incorporated in Nevada on February 26, 2013, and on April 4, 2016,
amended the Articles of Incorporation to change the name of the company to Team
360 Sports Inc. The Company provides amateur sports clubs, leagues and teams
with easy to use robust digital administration management systems.
The Company has had minimal revenues as the Company has been developing its
technology and platform. The trend in the marketplace is to provide services to
teams versus large organizations such as leagues and clubs. The Company is
planning to move into that marketplace, however there can be no assurances that
it will succeed.
The Company's fiscal year end is December 31.
COVID-19
A novel strain of coronavirus (COVID-19) was first identified in December 2019,
and subsequently declared a global pandemic by the World Health Organization on
March 11, 2020. As a result of the outbreak, many companies have experienced
disruptions in their operations and in markets served. The Company has
instituted some and may take additional temporary precautionary measures
intended to help ensure the well-being of its managers and minimize business
disruption. The Company considered the impact of COVID-19 on the assumptions and
estimates used and determined that there were no material adverse impacts on the
Company's results of operations and financial position at June 30, 2020. The
full extent of the future impacts of COVID-19 on the Company's operations is
uncertain. A prolonged outbreak could have a material adverse impact on
financial results and business operations of the Company, including the timing
and ability of the Company to obtain financing to fund the operation and to
develop its business plan.
Results of Operations
The following discussion and analysis should be read in conjunction with our
company's unaudited financial statements for the six months ended June 30, 2020
and 2019 and accompanying notes appended thereto that are included in this
quarterly report.
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For the Three Months Ended June 30, 2020 and 2019
Our operating results for the three months ended June 30, 2020 and 2019, are as
follows:
Three Months Ended
June 30,
2020 2019 Changes ($)
Revenues $ 640 $ 640 $ -
Operating expenses 130,879 121,115 9,764
Interest recovery (expense) 3,317 (1,388 ) 4,705
Net loss $ 126,922 $ 121,863 $ 5,059
Revenues is related to Licensing Agreement dated November 1, 2016. The onetime
nonrefundable fee and the set up and training fees are being recognized over the
life of agreement, which terminates on December 1, 2021.
Operating Expenses
For the three months ended June 30, 2020, operating expenses were $125,000 for
related party compensation expenses, $4,230 for professional fees, and $1,649
for office expenses.
For the three months ended June 30, 2019, operating expenses were $112,500 for
related party compensation expenses, $7,460 for professional fees, and $1,155
for office expenses.
Other Revenue (Expenses)
For the three months ended June 30, 2020 and 2019, other income (expense) was
$3,317 and ($1,388), for interest on loans, respectively. During the three month
period ended June 30, 2020, the Company recognized a recovery on interest
expense, to reconcile accrued interest to actual at June 30, 2020.
For the Six Months Ended June 30, 2020 and 2019
Our operating results for the six months ended June 30, 2020 and 2019, are as
follows:
Six Months Ended
June 30,
2020 2019 Changes ($)
Revenues $ 1,279 $ 1,279 $ -
Operating expenses 267,753 240,440 27,313
Interest expense 3,067 2,562 505
Net loss $ 269,541 $ 241,723 $ 27,818
Revenues is related to Licensing Agreement dated November 01, 2016. The onetime
nonrefundable fee and the set up and training fees are being recognized over the
life of agreement, which terminates on December 1, 2021.
Operating Expenses
For the six months ended June 30, 2020, operating expenses were $250,000 for
related party compensation expenses, $15,230 for professional fees, and $2,523
for office expenses.
For the six months ended June 30, 2019, operating expenses were $225,000 for
related party compensation expenses, $12,879 for professional fees, and $2,561
for office expenses.
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Other Expenses
For the six months ended June 30, 2020 and 2019, other expenses were $3,067 and
$2,562 for interest on loans, respectively and $695 and $0 for amortization
discount on convertible note, respectively.
Liquidity and Capital Resources
The following table provides selected financial data about our company as of
June 30, 2020 and December 31, 2019, respectively:
Working Capital
June 30, December 31,
2020 2019
Cash $ 358 $ 214
Current Assets 358 214
Current Liabilities 520,004 837,819
Working Capital (Deficiency) $ (519,646 ) $ (837,605 )
Cash Flows
Six Months Ended
June 30,
2020 2019 Changes ($)
Cash Flows (used in) Operating Activities $ (20,746 ) $ (15,925 ) $ (4,821 )
Cash Flows provided by Financing Activities 20,890 15,925 4,965
Net Change in Cash During Period $ 144 $ - $ 144
As of June 30, 2020, and December 31, 2019, our current assets were $358 and
$214, respectively, solely from cash.
As of June 30, 2020, our current liabilities and working capital deficiency
decreased as compared to December 31, 2019, primarily from the forgiveness of
related party debt.
As of June 30, 2020, current liabilities consisted primarily from $350,000 to
liabilities to be settled in stock, $91,240 to convertible notes payable,
$61,966 to loan payable, $2,781 due to related party, $10,393 to accounts
payable and accrued liabilities and $3,624 to deferred revenue.
As of December 31, 2019, our current liabilities consisted primarily from
$350,000 to liabilities to be settled in stock, $337,500 to accrued related
party compensation, $90,545 to convertible notes, $38,757 to loan payable,
$2,781 due to related party, $13,334 to accounts payable and accrued liabilities
and $4,902 to deferred revenue.
Operating Activities
During the six months ended June 30, 2020, net cash used in operating activities
was $20,746, compared to $15,925 for the six months ended June 30, 2019.
The net cash used in operating activities for the six months ended June 30, 2020
was attributed to a net loss of $269,541, decreased by an accrued related party
compensation of $250,000, accrued interest of $2,372, amortization of discount
on convertible note of $695 and increased by a deferred revenue of $1,278 and
increased by a change in accounts payable and accrued liabilities of $2,994.
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The net cash used in operating activities for the six months ended June 30, 2019
was attributed to a net loss of $241,723, decreased by an accrued related party
compensation of $225,000, decreased by a change in accounts payable and accrued
liabilities of $2,077 and increased by a deferred revenue of $1,279.
Investing Activities
The Company did not use any funds for investing activities during the six months
ended June 30, 2020 and 2019.
Financing Activities
During the six months ended June 30, 2020, net cash provided by financing
activities was $20,890, compared to $15,925 for the six months ended June 30,
2019, from loans.
Off-Balance Sheet Arrangements
As of June 30, 2020, the Company had no material off-balance sheet arrangements.
Critical Accounting Policies and Estimates
The preparation of financial statements and related disclosures in conformity
with U.S. generally accepted accounting principles and the Company's discussion
and analysis of its financial condition and operating results require the
Company's management to make judgments, assumptions and estimates that affect
the amounts reported. Management bases its estimates on historical experience
and on various other assumptions it believes to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities. Actual results may differ from
these estimates, and such differences may be material.
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