EVERYTHING BLOCKCHAIN, INC. Certain statements in this section contain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. All
statements contained in this report and not clearly historical in nature are
forward-looking, and the words "may," "will," "should," "could," "would,"
"expects," "plans," "anticipates," "believes," "estimates," "projects,"
"predicts," "intends," "potential," and similar expressions (as well as other
words or expressions referencing future events, conditions or circumstances)
generally are intended to identify forward-looking statements. Any statements in
this report that are not historical facts are forward-looking statements. Actual
results may differ materially from those discussed from time to time in the
Company's
HISTORY AND BACKGROUND
We were incorporated in the
The Company's original business was to provide computer related services. The
Company's developed and acquired Internet publishing and broadcasting and web
search portals. We published and generate textual, audio, and/or video content
on the Internet, and operate websites that use a search engine to generate and
maintain extensive databases of internet addresses and content. The Company
discontinued this line of operations on
The Company is engaged in the business of digital cryptocurrency and blockchain development and consulting.
The Company has incurred significant losses since inception and as of
GENERAL OVERVIEW
Our current website can be found at www.obitx.com, which is not incorporated as part of this Form 10Q. In addition, we have acquired the domain www.everythingblockchain.io which is not incorporated as part of this Form 10Q, nor currently operational.
Corporate Information
Our principal executive office is located at
INDUSTRY OVERVIEW
A Blockchain is a decentralized and distributed digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the collusion of the network. The blockchain system has been designed to use nodes agreement to order transactions and prevent fraud so that records cannot be altered retroactively. The network orders transaction by putting them together into groups called blocks, each block contains a definite amount of transactions and a link to the previous block. Bitcoin, which is the name of the best-known cryptocurrency, is the one for which blockchain technology was invented. Blockchain is, quite simply, a digital, decentralized ledger that keeps a record of all transactions that take place across a peer-to-peer network.
Bitcoins are not the only type of Digital Assets founded on math-based algorithms and cryptographic security, although it is considered the most prominent as of the date of the filing of this Registration Statement. Over 2,000 other Digital Assets, (commonly referred to as "altcoins", "tokens", "protocol tokens", or "digital assets"), have been developed since the Bitcoin Network's inception, including Ethereum, Ripple, Litecoin, Dash, and HEX.
16
Table of Contents
Blockchain Technologies
Cryptocurrencies
Cryptocurrency is an encrypted decentralized digital currency transferred
between peers and confirmed in a public ledger via a process known as mining. As
of
Blockchain Value
Cryptocurrencies are Digital Asset that is not a fiat currency (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization) and is not backed by hard assets or other credit. As a result, the value of cryptocurrencies is determined by the value that various market participants place on them through their transactions.
Exchange Valuation
Due to the peer-to-peer framework of cryptocurrencies, transferors and recipients of cryptocurrencies are able to determine the value of the cryptocurrency transferred by mutual agreement or barter with respect to their transactions. As a result, the most common means of determining the value of a cryptocurrency is by surveying one or more Exchanges where the cryptocurrency is publicly bought, sold and traded.
Uses of Cryptocurrencies Global Cryptocurrency Market
Global trade in cryptocurrencies consists of individual end-user-to-end-user transactions, together with facilitated exchange-based trading. There is currently no reliable data on the total number or demographic composition of users on the global exchanges.
Goods and Services
Cryptocurrencies can be used to purchase goods and services, either online or at physical locations, although reliable data is not readily available about the retail and commercial market penetration of the various cryptocurrencies. To date, the rate of consumer adoption and use of cryptocurrencies for paying merchants has trailed the broad expansion of retail and commercial acceptance of cryptocurrency. Other markets, such as credit card companies and certain financial institutions are not accepting such digital assets. It is likely that there will be a strong correlation between the continued expansion of the Cryptocurrency Network and its retail and commercial market penetration.
Anonymity and Illicit Use
The Blockchain Network was not designed to ensure the anonymity of users, despite a common misperception to the contrary. All transactions are logged on the Blockchain and any individual or government can trace the flow of cryptocurrencies from one address to another. Off-Blockchain transactions occurring off the Network are not recorded and do not represent actual transactions or the transfer of cryptocurrencies from one digital wallet address to another, though information regarding participants in an Off-Blockchain transaction may be recorded by the parties facilitating such Off-Blockchain transactions. Digital wallet addresses are randomized sequences of 27-34 alphanumeric characters that, standing alone, do not provide sufficient information to identify users; however, various methods may be used to connect an address to a particular user's identity, including, among other things, simple Internet searching, electronic surveillance and statistical network analysis and data mining. Anonymity is also reduced to the extent that certain Exchanges and other service providers collect users' personal information, because such Exchanges and service providers may be required to produce users' information in order to comply with legal requirements. In many cases, a user's own activity on the Blockchain Network or on Internet forums may reveal information about the user's identity.
Users may take certain precautions to enhance the likelihood that they and their transactions will remain anonymous. For instance, a user may send its cryptocurrencies to different addresses multiple times to make tracking the cryptocurrencies through the Blockchain more difficult or, more simply, engage a so-called "mixing" or "tumbling" service to switch its cryptocurrencies with those of other users. However, these precautions do not guarantee anonymity and are illegal to the extent that they constitute money laundering or otherwise violate the law.
As with any other asset or medium of exchange, cryptocurrencies can be used to purchase illegal goods or fund illicit activities. The use of cryptocurrencies for illicit purposes, however, is not promoted by the Blockchain Network or the user community as a whole. Furthermore, we do not believe our advertising, marketing, and consulting services has exposure to such uses because the services we provide are curated by our management and team.
17
Table of Contents
DESCRIPTION OF SUBSIDIARIES
There were three subsidiaries that were incorporated into the financials of
Available Information
All reports of the Company filed with the
Critical Accounting Policies and Estimates
Our 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
We base our estimates on historical performance and on various other assumptions that we believe to be reasonable under the circumstances. These estimates allow us to make judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.
We believe the following accounting policies are our critical accounting policies because they are important to the portrayal of our financial condition and results of operations and they require critical management judgments and estimates about matters that may be uncertain. If actual results or events differ materially from those contemplated by us in making these estimates, our reported financial condition and results of operations for future periods could be materially affected.
Results of Operations
Results of Operations for the three months ended
Our operating results for the three months endedOctober 31, 2020 and 2019 is summarized as follows: For the three months ended October 31, 2020 2019 Sales$ 61,918 $ - Total Cost of Sales - - Gross (loss)$ 61,918 - Total operating expenses 674,170 45,467 Net (loss) from operations$ (612,252 ) $ (45,467 ) 18 Table of Contents Revenue
The company recognized
Cost of Goods Sold
The company recognized no cost for services provided for the three months ending
Gross Profit/Loss
The company recognized
Operating Expenses
Our operating expenses increased by
In the three months ended
Our general and administrative expenses consist of bank charges, telephone expenses, meals and entertainments, computer and internet expenses, postage and delivery, office supplies, stock issuance as compensation, and other expenses. Our professional fees include legal, accounting, and reporting fees.
Net Income/Loss
Our net loss of
Results of Operations for the nine months ended
Our operating results for the nine months endedOctober 31, 2020 and 2019 is summarized as follows: For the nine months ended October 31, 2020 2019 Sales$ 61,918 $ - Total Cost of Sales - - Gross (loss) 61,918 - Total operating expenses 49,949,240 157,627 Net (loss) from operations$ (49,887,322 ) $ (157,627 ) Revenue
The company recognized
Cost of Goods Sold
The company recognized no cost for services provided for the nine months ending
19
Table of Contents
Gross Profit/Loss
The company recognized
Operating Expenses
Our operating expenses increased by
In the nine months ended
Our general and administrative expenses consist of bank charges, telephone expenses, meals and entertainments, computer and internet expenses, postage and delivery, stock issuances as compensation, office supplies and other expenses. Our professional fees include legal, accounting, and reporting fees.
Net Income/Loss
Our net loss of
Discontinued Operations
We recorded a loss of
Liquidity and Capital Resources
Introduction
During the nine months ended
Cash Requirements
We had cash available of
Sources and Uses of Cash Operations
We generated
Net cash used by operations consisted primarily of the net loss of
Financing
We had net cash used in financing activities of
20
Table of Contents
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 we consider material.
Going Concern
Our financial statements are prepared using generally accepted accounting
principles, which contemplate the realization of assets and liquidation of
liabilities in the normal course of business. Because the business is relatively
new and has a short history and relatively few sales, no certainty of
continuation can be stated. The accompanying financial statements for the three
and nine months ended
Currently the company has a negative working capital as there have been a significant loss. The large accumulated deficit raises substantial doubt about its ability to continue as a going concern.
© Edgar Online, source
