Forward-Looking Statements
This report contains forward-looking statements that involve risks and
uncertainties. We use words such as anticipate, believe, plan, expect, future,
intend and similar expressions to identify such forward-looking statements. You
should not place too much reliance on these forward-looking statements. The
Company's actual results are likely to differ materially from those anticipated
in these forward-looking statements for many reasons.
Plan of Operation
Legacy Ventures International, Inc. ("Legacy" or the "Company"), was
incorporated on March 4, 2014 under the laws of the State of Nevada.
Liquidity and Capital Resources
As of December 31, 2021, the Company's primary source of liquidity consisted of
$0 (June 30, 2021 - $22,780) in cash. The Company financed its operations
through a combination of advances from third parties and the issuance of secured
promissory notes and convertible promissory notes.
On August 13, 2021, the Company issued a Secured Promissory Note ("Secured
Note") to an accredited investor. The Secured Note has an aggregate principal
amount of $40,000, and is payable on August 13, 2022, (the "Maturity Date"), and
bears an interest rate of 4% per annum and a default interest rate of 18% per
annum. The amount owing under the Secured Note is secured by the assets of the
Company. The note may be converted, the terms of which are to be negotiated
between the Company and the note holder.
The Company has sustained net losses which have resulted in a total
stockholders' deficiency at December 31, 2021, and is currently experiencing a
shortfall in operating capital which raises substantial doubt about the
Company's ability to continue as a going concern. The Company anticipates a net
loss for the year ending June 30, 2022 and with the expected cash requirements
for the coming months, without additional cash inflows from a corporate
transaction, there is substantial doubt as to the Company's ability to continue
operations.
We may seek to secure additional debt or equity capital to finance substantial
business development initiatives. There is presently no agreement in place with
any source of financing for the Company and there can be no assurance that the
Company will be able to raise any additional funds, or that such funds will be
available on acceptable terms. Funds raised through future equity financing will
likely be substantially dilutive to current shareholders. Lack of additional
funds will materially affect the Company and its business, and may cause the
Company to cease operations. Consequently, shareholders could incur a loss of
their entire investment in the Company.
Net Cash Used in Operating Activities
During the six months ended December 31, 2021, cash used in operations was
$62,780 and $33,114 for the six months ended December 31, 2020, respectively.
Cash used in operating activities was primarily the result of settlement of
accrual liabilities.
Net Cash Used in Investing Activities
There was no cash used in or provided from investing activities for the six
months ended December 31, 2021 and 2020.
Net Cash Provided by Financing Activity
There was cash provided from financing activity of $40,000 and $65,000,
respectively for the six months ended December 31, 2021 and 2020, as a result of
the proceeds received from the issuance of a secured promissory note.
11
Results of Operations
For the three months ended December 31, 2021
Operating expenses. Operating expenses for the three months ended December 31,
2021, was $8,344 compared with $12,766 for the three months ended December 31,
2020. Operating expenses were lower with the three months ended December 31,
2021 largely due to lower professional fees.
Other income (expenses). There was no other income for the three months ended
December 31, 2021, compared with the other expenses for the three months ended
December 31, 2020.
Net income (Loss). Net loss for the three months ended December 31, 2021, was
$8,344, compared with net loss of $18,682 for the three months ended December
31, 2020.
For the six months ended December 31, 2021
Operating expenses. Operating expenses for the six months ended December 31,
2021, was $17,504 compared with $27,332 for the six months ended December 31,
2020. Operating expenses were lower with the six months ended December 31, 2021
largely due to lower professional fees.
Other income (expenses). Other income was higher for the six months ended
December 31, 2021, compared with the other expenses for the six months ended
December 31, 2020, primarily due to gain on cancellation of secured promissory
notes and convertible notes, gain on cancellation of interest payable and gain
on cancellation of third party advances and accrued liabilities.
Net income (Loss). Net income for the six months ended December 31, 2021, was
$254,674, compared with net loss of $36,895 for the six months ended December
31, 2020.
Off-Balance Sheet Arrangements
We do not have any off balance sheet arrangements that have or are reasonably
likely to have a current or future effect on the Company's financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures, or capital resources that is material to
investors.
Personnel
The Company has no full-time employees, but utilizes other project-based
contract personnel to carry out the Company's business. We utilize contract
personnel on a continuous basis, primarily in connection with the filing of
reports with the Securities and Exchange Commission which require a high level
of specialization for one or more of the service components offered.
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