You should read the following discussion and analysis in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this annual report on Form 10-K. In preparing the management's discussion and analysis, the registrant presumes that you have read or have access to the discussion and analysis for the preceding fiscal year.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including, but not limited to, any projections of earning, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions of performance; and statements of belief; and any statements of assumptions underlying any of the foregoing. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ours to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: our ability to raise capital; and other factors referenced in the Form 10-K.
The use in this Form 10-K of such words as "believes", "plans", "anticipates", "expects", "intends", and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements present our estimates and assumptions only as of the date of this report. Except for our ongoing obligation to disclose material information as required by the federal securities laws, we do not intend, and undertake no obligation, to update any forward-looking statements.
Although we believe that the expectations reflected in any of the forward-looking statements are reasonable, actual results could differ materially from those projected or assumed or any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties.
9 Plan of Operations
Acquisition-Senior Living Facilities
On
In
Travel-and-living Business line
In
Business Apartment Service
In
Going Concern
The consolidated financial statements have been prepared on a going concern
basis, which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business. We generated a net loss of
These conditions raise substantial doubt regarding our ability to continue as a going concern. Our ability to continue as a going concern is dependent upon our ability to raise additional capital.
In the notes to our audited consolidated financial statements as of
There is limited historical financial information about the Company upon which to base of an evaluation of our performance. We shifted its focus to senior housing and retirement services and products. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new resource exploration company, including limited capital resources, unanticipated problems relating to exploration and additional costs and expenses that may exceed current estimates. To become profitable, we will attempt to implement a plan of operation as detailed above.
Our cash reserves are not sufficient to meet our obligations for the next twelve-month period. As a result, we will need to seek additional capital in the near future. We anticipate that additional capital will be raised in the form of equity financing from the sale of our common stock. As well, our management is prepared to provide us with short-term loans.
We cannot provide investors with any assurance that we will be able to raise sufficient capital from the sale of our common stock or through a loan from our directors to meet our obligations over the next twelve months. We do not have any arrangements in place for any future equity financing. If we are unable to arrange additional financing, our business plan will fail and operations will cease.
10 Results of Operations For the year ended June 30 2021 2020 Revenue$ 838,578 $ 489,831 Operating costs: Cost of food and beverages 155,701 133,701
General and administrative cost 744,996 1,070,308 Depreciation and amortization
160,091 148,514 Impairment loss - 2,719,643 Litigation reserve 952,558 1,217,240 Other cost 66,749 (43,550 ) Operating loss$ (1,019,307 ) $ (4,756,025 )
During the first half of 2020, we experienced a suspension due to COVID-19
outbreak in
Operating loss decreased
The decrease in impairment loss was mainly due to the rescission of the
Acquisition Agreement with
Litigation reserve is mainly generated from interest expense and default fee
related to the lawsuits with Shanghai Hongfu, by
Excluding the non-cash expenses of depreciation and amortization, impairment
loss and litigation reserve, the operating loss would have been
11 Balance Sheet Data
Historical results of operations may differ materially from future results.
This discussion and analysis should be read in conjunction with the accompanying
consolidated financial statements and related notes. The discussion and analysis
of the financial condition and results of operations are based upon the
consolidated financial statements, which have been prepared in accordance with
accounting principles generally accepted in
Actual results are likely to differ from those estimates under different assumptions or conditions, but the Company does not believe such differences will materially affect our financial position or results of operations. Critical accounting policies, the policies the Company believes are most important to the presentation of its financial statements and require the most difficult, subjective and complex judgments are outlined in Notes to financial statements 2 - Summary of Significant Accounting Policies.
Liquidity and Capital Resources
At
Capital Expenditures
On
? Property A: land use rights and adhesive substance use rights, right to own, and right to operate of the land located in Shanghai Pudong New Area Zhangjiang Ziwei Rd No. 372 and No. 376. ? Property B: land use right, adhesive substance under construction use rights, right to own, and right to operate of the land located in Shanghai Chongming District San Shuang Gong Lu No. 4797.
We have agreed to pay the purchase price totaling
Although we have the rights to operate the senior living facilities purchased
under this agreement, we have not yet received a deed for Property A because the
seller is involved in several lawsuits that have already resulted in a decision
to restrict transfer of this asset by a
Off-balance Sheet Arrangements
The Company has no off-balance sheet arrangements that would require disclosure.
12 Critical Accounting Policies
Our consolidated financial statements are prepared in accordance with accounting
principles generally accepted in
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