We use the terms "Magellan," "we," "our," and "us" to refer to
The following discussion and analysis provides information that management
believes is relevant for an assessment and understanding of our results of
operations and financial condition. This information should be read in
conjunction with our audited financial statements, which are included in our
Annual Report on Form 10-K for the fiscal year ended
COVID-19 Pandemic
In
The COVID-19 pandemic is rapidly evolving. The information in this Quarterly Report is based on data currently available to us and will likely change as the pandemic progresses. As COVID-19 continues to spread throughout areas in which we operate, we believe the outbreak has the potential to have a material negative impact on our operating results and financial condition. The extent of the impact of COVID-19 on our operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on our operators, employees and vendors, and the impact on the Company's ability to obtain debt and equity financing to fund ongoing exploration activities, all of which are uncertain and cannot be predicted. Given these uncertainties, we cannot reasonably estimate the related impact to our business, operating results and financial condition.
We expect the trends highlighted above with respect to the impact of the COVID-19 pandemic to continue and, in some cases, accelerate. The extent of the COVID-19 pandemic's continued effect on our operational and financial performance will depend on future developments, including the duration, spread and intensity of the outbreak, the pace at which jurisdictions across the country re-open and restrictions begin to lift, the availability of government financial support to our business, tenants and operators and whether a resurgence of the outbreak occurs. Due to these uncertainties, we are not able at this time to estimate the ultimate impact of the COVID-19 pandemic on our business, results of operations, financial condition and cash flows but it could be material.
Forward-Looking Statements
Some of the information presented in this Form 10-Q constitutes "forward-looking statements". These forward-looking statements include, but are not limited to, statements that include terms such as "may," "will," "intend," "anticipate," "estimate," "expect," "continue," "believe," "plan," or the like, as well as all statements that are not historical facts. Forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from current expectations. Although we believe our expectations are based on reasonable assumptions within the bounds of our knowledge of our business and operations, there can be no assurance that actual results will not differ materially from expectations.
All forward-looking statements speak only as of the date on which they are made. We undertake no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they are made.
Overview
We were incorporated on
We have only had exploration and project development operations to date, and we rely upon the sale of our securities and borrowings from officers, directors and other significant investors to fund our operations, as we have not generated any revenue.
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Magellan entered into a stock purchase agreement to acquire
In consideration for 100% of the issued and outstanding shares of Clearwater,
Magellan has agreed to pay its sole shareholder 1,000,000 shares of Magellan
common stock and
Results of Operations for the three months ended
Three months ended June 30, 2022 2021 Operating expenses: General and administrative expenses$ 31,211 $ 531,550 Total operating expenses 31,211 531,550 Operating loss (31,211 ) (531,550 ) Other expense: Interest expense (94,318 ) (84,893 ) Loss on change in derivative liability (306,552 ) (16,491 ) Total other expense (400,870 ) (101,384 ) Net loss$ (432,081 ) $ (632,934 ) Operating expenses
During the three months ended
Other expense
During the three months ended
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Results of Operations for the six months ended
Six months ended June 30, 2022 2021 Operating expenses: General and administrative expenses$ 99,808 $ 1,250,987 Total operating expenses 99,808 1,250,987 Operating loss (99,808 ) (1,250,987 ) Other income (expense): Interest expense (160,007 ) (148,494 ) Loss on change in derivative liability (277,012 ) (7,392 ) Total other expense (437,019 ) (155,886 ) Net loss$ (536,827 ) $ (1,406,873 ) Operating expenses
During the six months ended
Other expense
During the six months ended
Liquidity and Capital Resources
Our unaudited consolidated financial statements have been prepared on a going
concern basis, which assumes that we will be able to meet our obligations and
continue our operations during the next fiscal year. Asset realization values
may be significantly different from carrying values as shown in our consolidated
financial statements and do not give effect to adjustments that would be
necessary to the carrying values of assets and liabilities should we be unable
to continue as a going concern. At
During the six months ended
We anticipate that additional funding will be in the form of additional loans from officers, directors or significant shareholders, or equity financing from the sale of our common stock but cannot assure that any future financings will occur.
15 Cash Flows A summary of our cash provided by and used in operating, investing and financing activities is as follows: Six months endedJune 30, 2022 2021
Net cash used in operating activities
Net cash used in investing activities (769 ) (36,727 )
Net cash provided by financing activities 70,000 412,185
Net change in cash (16,057 ) 177,099 Cash beginning of period 18,766 - Cash end of period$ 2,709 $ 177,099
At
Net cash used in operating activities during the six months ended
Net cash used in operating activities from during the six months ended
Net cash used in investing activities during the six months ended
Net cash used in investing activities during the six months ended
During the six months ended
During the six months ended
Off Balance Sheet Arrangements
We do not have and have never had any off-balance sheet arrangements.
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Critical Accounting Policies and Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in
Management believes its application of accounting policies, and the estimates inherently required therein, are reasonable. These accounting policies and estimates are periodically reevaluated, and adjustments are made when facts and circumstances dictate a change.
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