GLOBAL BOATWORKS HOLDINGS, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
The following management's discussion and analysis ("MD&A") should be read in
conjunction with
www.r3score.com
The Company has developed a financial analysis tool that uses artificial intelligence, machine learning, and human empathy together to provide an accurate assessment of a person's credit worthiness and reputation without the bias that is inherent in traditional "scores" used by lenders and employers. The product produces a unique score ranging from 300 to 850, accompanied by a nuanced customer segmentation report that, together, provides actionable information to better align products and services to customers. The products offer more context than traditional criminal background screening tools and/or traditional credit scores. The Company's products provide decision-makers with more actionable data than what is available on the open market. The products proprietary risk models leverage machine learning and existing cross-sector research in a unique manner for a more robust, holistic view of prospective employees and/or consumers. Activity to date has been focused mostly on the development of the algorithms and unique risk models for the product. The Company is transitioning to marketing our report to corporations and individuals.
Safe Harbor for Forward-Looking Statements
Certain statements in this report, including the potential future impact of
COVID-19 on our results of operations or liquidity, the potential impact of
actions we have taken to mitigate the impact of COVID-19, the expected benefit
of the CARES Act on our liquidity and the period of time during which our cash
and short-term investment will fund our operations are forward-looking
statements as defined in the Private Securities Litigation Reform Act of 1995.
We use words such as "anticipate," "believe," "could," "should," "estimate,"
"expect," "intend," "may," "predict," "project," "target," and similar terms and
phrases, including references to assumptions, to identify forward-looking
statements. These forward-looking statements are based on information available
to us as of the date any such statements are made, and we assume no obligation
to update these forward-looking statements. These statements are subject to
risks and uncertainties that could cause actual results to differ materially
from those described in the statements. These risks and uncertainties include,
but are not limited to, the risk factors described in our annual report on
Form 10-K for the year ended
Three (3) Months Ended
We had revenues of
General and administrative expenses were
Our salaries expense was
Our professional fees were
Our interest expense was
Our change in fair value of derivative was
We recorded a net loss of (
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Nine (9) Months Ended
We had revenues of
General and administrative expenses were
Our salaries expense was
Our professional fees were
Our interest expense was
Our change in fair value of derivative was
We recorded a net loss of (
Liquidity and Capital Resources
Cash Flow Activities
Our cash decreased
Our cash increased
Investing Activities
During the nine months ended
Financing Activities
In
During the nine (9) months ended
Critical Accounting Policies and Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions
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that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments
Our financial instruments consist of cash and cash equivalents, prepaid expenses, payables and accrued expenses. Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. We consider the carrying values of our financial instruments in the consolidated financial statements to approximate fair value, due to their short-term nature.
Revenue Recognition
Revenue is recognized when earned. Revenue is recognized on a gross basis in accordance with ASC 606.
Property and Equipment
Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is provided for using straight-line methods over the estimated useful lives of the respective assets.
Valuation of Long-Lived Assets
We periodically evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated future cash flows (undiscounted and without interest charges) from the use of an asset were less than the carrying value, a write-down would be recorded to reduce the related asset to its estimated fair value.
Derivatives
The Company evaluates its convertible debt, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for. The result of this accounting treatment is that under certain circumstances the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income or expense. Upon conversion or exercise of a convertible note containing an embedded derivative instrument, the instrument is marked to fair value at the conversion date and that fair value is reclassified to equity. The shares issued upon conversion of the note are recorded at their fair value with gain or loss recognition as applicable.
Equity instruments that are initially classified as equity that become subject to reclassification under this accounting standard are reclassified to liability at the fair value of the instrument on the reclassification date.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements as defined in Regulation S-K Item 303(a)(4).
Recent Accounting Pronouncements
(See "Recently Issued Accounting Pronouncements" in Note 3m) of Notes to the unaudited Consolidated Financial Statements.)
Plan of Operations
As of
COVID-19 pandemic
The Company's management is unable to predict the full impact of COVID-19 on the Company.
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The corona virus pandemic and subsequent
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