The following discussion of our financial condition and results of operations
should be read in conjunction with our financial statements and the related
notes, and other financial information included in this Form 10-Q.
Our Management's Discussion and Analysis contains not only statements that are
historical facts, but also statements that are forward-looking. Forward-looking
statements are, by their very nature, uncertain and risky. Although the
forward-looking statements in this Quarterly Report reflect the good faith
judgment of our management, such statements can only be based on facts and
factors currently known by them. Consequently, and because forward-looking
statements are inherently subject to risks and uncertainties, the actual results
and outcomes may differ materially from the results and outcomes discussed in
the forward-looking statements. You are urged to carefully review and consider
the various disclosures made by us in this report as we attempt to advise
interested parties of the risks and factors that may affect our business,
financial condition, and results of operations and prospects.
FORWARD LOOKING STATEMENTS
The information contained in this Form 10-Q contains certain forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements involve risks and uncertainties, including among other things,
statements regarding our capital needs, business strategy and expectations. Any
statement which does not contain a historical fact may be deemed to be a
forward-looking statement. In some cases, you can identify forward-looking
statements by terminology such as "may", "will", "should", "expect", "plan",
"intend", "anticipate", "believe", "estimate", "predict", "potential" or
"continue", the negative of such terms or other comparable terminology. In
evaluating forward looking statements, you should consider various factors
outlined in our Form 10-K report for the year ended September 30, 2019, filed
with the U.S. Securities Exchange Commission ("SEC") and, from time to time, in
other reports we file with the SEC. These factors may cause our actual results
to differ materially from any forward-looking statement. We disclaim any
obligation to publicly update these statements or disclose any difference
between our actual results and those reflected in these statements.
Overview
In July 2017 we acquired Solar Quartz Technologies Limited, a New Zealand
corporation. We continue to seek new financing in the form of equity, debt or a
combination thereof to meet development and general operating obligations.
Absent achieving sufficient funds soon, our viability is in doubt. The Company
has managed to raise some capital by sale of shares, but as of March 31, 2021,
the Company has not been successful in raising sufficient funds; However, work
is underway to secure funding, and we believe that funding for the Company is
possible in the near future although no assurance can be made as to the amount
of funds, if any, or the terms thereof.
Current Business and Operations
We continue to develop our detailed plans for multi-faceted production
facilities in Queensland Australia to enable us to process raw high purity
quartz from the region into higher value high purity quartz products and sands
(HPQS). Further work is proceeding in respect to graphene production capability
and business planning on thin film capability.
We are currently actively seeking interim working capital in order to complete
mining plans and build a pre-processing plant in Townsville, North Queensland,
Australia, build upon our management team and market high purity quartz (HPQS)
to established markets with whom our management team have had prior
relationships. These organizational efforts will be to secure significant new
capital for the acquisition of a site and the building of the pre-processing
plant. Upon completion, that plant will enable the Company to upgrade its newly
mined HPQS to a higher level of purity that has a significant world-wide demand
for use in the production of advanced PV solar Panels and all high-end
electronics, lighting, telecom, optic and microelectronics. Failure to secure
these financings will have a negative impact on the Company's ability to
continue as a going concern.
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Results of Operations
For the fiscal quarters ended March 31, 2021 and 2020 we generated no revenues,
and thus no cost of sales or gross profits.
For the fiscal quarters ended March 31, 2021 and 2020, we incurred $3,584,604
and $163,796 respectively in operating expenses.
For the fiscal quarter ended March 31, 2021 we recorded other expenses of
$13,233 while in March 31, 2020 we incurred expenses of $13,104 both items are
represented by accrued interest on debt. Other income of $2,318 was earned in
the fiscal quarter, March 31, 2021.
For the six months ended March 31, 2021, we reported net loss before taxes of
$4,237,022 while in the six months ended March 31, 2020, we reported a net loss
before taxes of $362,150. Since there were no tax obligations in either year,
net income / loss in each year was the same as that reported before taxes.
For the periods ended September 30, 2020 and March 31, 2021, our cash positions
were $12 and $147 respectively.
As of March 31, 2021, we had total current liabilities of $2,010,324 while as of
September 30, 2020, we had total current liabilities of $1,684,546 an increase
of about 19%. Accrued interest payable increased from $132,099 to $146,702 all
attributable to accruals on the loans and the convertible notes payable.
Liquidity and Capital Resources
As of March 31, 2021, we had $15,870 in total current assets and $2,010,324 in
total current liabilities. Accordingly, we had a working capital deficit of
$1,994,454.
Operating activities used $164,076 in cash for the quarter ended March 31, 2021,
as compared to $147,095 for the quarter ended March 31, 2020.
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Off-Balance Sheet Arrangements
There are no off-balance sheet arrangements.
Critical Accounting Policies and Estimates
For a discussion of our accounting policies and related items, please see the
Notes to the Financial Statements, included in Item 1.
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GRAPHENE & SOLAR TECHNOLOGIES LIMITED 
