Cautionary Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q, including this discussion and analysis by
management, contains or incorporates forward-looking statements. All statements
other than statements of historical fact made in report are forward looking. In
particular, the statements herein regarding industry prospects and future
results of operations or financial position are forward-looking statements.
These forward-looking statements can be identified by the use of words such as
"believes," "estimates," "could," "possibly," "probably," anticipates,"
"projects," "expects," "may," "will," or "should" or other variations or similar
words. No assurances can be given that the future results anticipated by the
forward-looking statements will be achieved. Forward-looking statements reflect
management's current expectations and are inherently uncertain. Our actual
results may differ significantly from management's expectations.
The following discussion and analysis should be read in conjunction with our
financial statements, included herewith. This discussion should not be construed
to imply that the results discussed herein will necessarily continue into the
future, or that any conclusion reached herein will necessarily be indicative of
actual operating results in the future. Such discussion represents only the best
present assessment of our management.
Going Concern
We have indicated on our consolidated financial statements for the nine months
ended September 30, 2020 that conditions exist that raise substantial doubt
about our ability to continue as a going concern due to our recurring losses
from operations, deficit in equity, and the need to raise additional capital to
fund operations. A "going concern" opinion could impair our ability to finance
our operations through the sale of debt or equity securities.
We require additional funding to meet its ongoing obligations and to fund
anticipated operating losses. Our auditor has expressed substantial doubt about
our ability to continue as a going concern. Our ability to continue as a going
concern is dependent on raising capital to fund its initial business plan and
ultimately to attain profitable operations. These consolidated financial
statements do not include any adjustments relating to the recoverability and
classification of recorded asset amounts, or amounts and classification of
liabilities that might result from this uncertainty.
We expect to incur marketing and professional and administrative expenses as
well expenses associated with maintaining our filings with Securities and
Exchange Commission. We will require additional funds during this time and will
seek to raise the necessary additional capital. If we are unable to obtain
additional financing, we may be required to reduce the scope of our business
development activities, which could harm our business plans, financial condition
and operating results. Additional funding may not be available on favorable
terms, if at all. We intend to continue to fund its business by way of equity or
debt financing and advances from related parties. Any inability to raise capital
as needed would have a material adverse effect on our business, financial
condition and results of operations.
If we cannot raise additional funds, we will have to cease business operations.
As a result, our common stock investors would lose all of their investment.
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Results of Operations
Three months ended September 30, 2020 compared to the three months ended
September 30, 2019
Net revenue: We did not have any revenue generating activity for the three
months ended September 30, 2020 and 2019. We have had limited business
operations since incorporation.
General and administrative expenses: General and administrative expenses
primarily consisted of legal and professional service fees. General and
administrative expenses were $10,818 for the three months ended September 30,
2020, as compared to $17,245 for the three months ended September 30, 2019,
which represented a decrease of $6,427, or 37%. The decrease in general and
administrative expenses was primarily attributable to the decrease in
accounting, legal and professional fees.
Net loss: Our net loss was $10,818 for the three months ended September 30,
2020, as compared to net loss of $17,245 for the three months ended September
30, 2019.
Nine months ended September 30, 2020 compared to the nine months ended September
30, 2019
Net revenue: We did not generate any revenue for the nine months ended September
30, 2020 and 2019. We have had limited business operations since incorporation.
General and administrative expenses: General and administrative expenses
primarily consisted of legal and professional service fees. General and
administrative expenses were $32,292 for the nine months ended September 30,
2020, as compared to $52,325 for the nine months ended September 30, 2019, which
represented a decrease of $20,033, or 38%. The decrease in general and
administrative expenses was primarily attributable to the decrease in
accounting, legal and professional fees.
Net loss: Our net loss was $32,291 for the nine months ended September 30, 2020,
as compared to net loss of $52,325 for the nine months ended September 30, 2019.
Liquidity and Capital Resources
Cash and cash equivalents were $1,348 at September 30, 2020 and $1,347 at
December 31, 2019. Our total current assets were $1,348 at September 30, 2020,
as compared to $1,347 at December 31, 2019. Our total current liabilities were
$302,175 at September 30, 2020, as compared to $269,883 at December 31, 2019.
We had negative working capital of $300,827 at September 30, 2020, compared to
negative working capital of $268,536 at December 31, 2019. The increase in
negative working capital was primarily due to the increase in accrued expense
and due to related parties.
Net cash from operating activities was $1 for nine months ended September 30,
2020 and $150 for the nine months ended September 30, 2019. The net losses from
both periods were offset with changes in assets and liabilities.
We had no net cash flow from investing or financing activities during the nine
months ended September 30, 2020 and 2019.
Net increase in cash and cash equivalent amounted to $1 and $150 for the nine
months ended September 30, 2020 and 2019, respectively.
Critical Accounting Policies
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America ("U.S. GAAP") requires
estimates and assumptions that affect the reported amounts of assets and
liabilities, revenues and expenses, and related disclosures of contingent assets
and liabilities in the financial statements and accompanying notes. The SEC has
defined a company's critical accounting policies as the ones that are most
important to the portrayal of the company's financial condition and results of
operations, and which require the company to make its most difficult and
subjective judgments, often as a result of the need to make estimates of matters
that are inherently uncertain. Based on this definition, we have not identified
any additional critical accounting policies and judgments. We also have other
key accounting policies, which involve the use of estimates, judgments and
assumptions that are significant to understanding our results, which are
described in the Note 1 to our financial statements. Although we believe that
our estimates, assumptions and judgments are reasonable, they are based upon
information presently available. Actual results may differ significantly from
these estimates under different assumptions, judgments or conditions.
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Off-balance Sheet Arrangements
We were not aware of any off-balance sheet arrangements as of September 30,
2020.
Recent Accounting Pronouncements
The Company has reviewed all recently issued, but not yet effective, accounting
pronouncements and do not believe the future adoption of any such pronouncements
may be expected to cause a material impact on its financial condition or the
results of its operations.
Inflation
Our opinion is that inflation has not had a material effect on our operations
and is not expected to have any material effect on our operations.
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