The following discussion and analysis of our financial condition and results of
operations for the years ended
Overview
We have no operations from a continuing business other than the expenditures related to running the Company. All of our historical business operations have ceased.
Management intends to explore and identify business opportunities within the
We do not currently engage in any business activities that provide revenue or
cash flow. During the next 12-month period we anticipate incurring costs in
connection with investigating, evaluating, and negotiating potential business
combinations and/or asset acquisitions, filing
Given our limited capital resources, we may consider a transaction with an
entity which has recently commenced operations, is a developing company or is
otherwise in need of additional funds for the development of new products,
services or assets, or expansion into new markets, or is an established business
or an established asset experiencing financial or operating difficulties and
needs additional capital. Alternatively, a transaction may involve the
acquisition of, or merger with, an entity that desires access to the
As of the date of this Form 10-K, our management has not had any discussions with any representative of any other entity regarding a potential business combination or asset acquisition. Any target business or asset that is selected may be financially unstable or in the early stages of development. In such event, we expect to be subject to numerous risks inherent in the business and operations of a financially unstable or early-stage entity. In addition, we may effect a business combination with an entity in an industry characterized by a high level of risk or in which our management has limited experience, and, although our management will endeavor to evaluate the risks inherent in a particular target business or asset, there can be no assurance that we will properly ascertain or assess all significant risks.
Our management anticipates that we will likely only be able to effect just one business combination or asset acquisition due to our limited capital. This lack of diversification will likely pose a substantial risk in investing in the Company for the indefinite future, because it will not permit us to offset potential losses from one venture or operating territory against gains from another. The risks we face will likely be heightened to the extent we acquire a business or assets operating in a single industry or geographical region.
We anticipate that the selection of a target business or asset will be a complex and risk-prone process. Because of general economic conditions, including unfavorable conditions caused by the coronavirus pandemic, increasing inflation, rapid technological advances being made in some industries and shortages of available capital, management believes that there are many firms seeking acquisition opportunities at this time at discounted rates against which we will compete. We expect that any potentially available acquisition opportunities may appear in a variety of different industries or regions and at various stages of development, all of which will likely make the task of comparative investigation and analysis of such opportunities extremely difficult and complicated.
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Once we have developed and begun to implement our business plan, management intends to fund our working capital requirements through a combination of our existing funds and future issuances of debt or equity securities. Our working capital requirements are expected to increase in line with the implementation of a business plan and commencement of operations.
Based upon our current operations, we do not have sufficient working capital to fund our operations over the next 12 months. If we are able to close a business combination or other acquisition, it is likely we will need capital as a condition of closing that transaction. Because of the uncertainties, we cannot be sure as to how much capital we need to raise or the type of securities we will be required to issue. In connection with a business combination that is structured as a reverse merger, or in connection with the acquisition of significant assets, we anticipate that we will be required to issue a controlling block of our securities to the target's shareholders or to the owner of such assets, which will be very dilutive to existing shareholders.
Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences, or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, including acquisition opportunities, which could significantly and materially restrict our business operations.
We anticipate that we will incur operating losses in the next 12 months,
principally costs related to our being obligated to file reports with the
Going Concern
We have only limited capital. Additional financing is necessary for us to
continue as a going concern. The report of the independent registered public
accounting firm accompanying our financial statements for the years ended
Results of Operations
Year Ended
During the years ended
For the years ended
For the year ended
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We had a net loss of
Our major expenses consist of fees to consultants, lawyers and accountants
incurred in connection with our obligation to file periodic reports with the
Liquidity and Capital Resources
At
For the year ended
Our management is not required to fund our operations by any contract or other obligation. In the event that we undertake to complete an acquisition that requires financing, we will likely depend on an outside source for such financing. However, we have not identified any debt or equity financing sources that can be relied upon to provide such financing.
Critical Accounting Policies
Refer to Note 2 of our financial statements contained elsewhere in this Form 10-K for a summary of our critical accounting policies and recently adopting and issued accounting standards.
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