This annual report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws. These include statements about our expectations, beliefs, intentions or strategies for the future, which we indicate by words or phrases such as "anticipate," "expect," "intend," "plan," "will," "we believe," "management believes" and similar language. Except for the historical information contained herein, the matters discussed in this "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere in this current report on Form 10-K are forward-looking statements that involve risks and uncertainties. The factors listed in the section captioned "Risk Factors," as well as any cautionary language in this current report on Form 10-K, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from those projected. Except as may be required by law, we undertake no obligation to update any forward-looking statement to reflect events after the date of this current report on Form 10-K.
Overview
We intend for this discussion to provide information that will assist in understanding our financial statements, the changes in certain key items in those financial statements, and the primary factors that accounted for those changes, as well as how certain accounting principles affect our financial statements.
Our company has experienced net losses to date, and it has not generated revenue from operations, we will need additional working capital to service debt and for ongoing operations, which raises substantial doubt about our ability to continue as a going concern. Management of our company has developed a strategy to meet operational shortfalls which may include equity funding, short term or long term financing or debt financing, to enable our company to reach profitable operations. If we fail to generate positive cash flow or obtain additional financing, when required, we may have to modify, delay, or abandon some or all of our business and expansion plans
Corporate History
Fiscal Years Ended
The following discussion and analysis should be read in conjunction with our
company's audited financial statements for the fiscal years ended
Results of Operations
Year Ended
Our operating results for the year endedAugust 31, 2020 andAugust 31, 2019 , and the changes between those periods for the respective items are summarized as follows: Ended Ended August 31, August 31, 2020 2019 Changes $ Change % Revenues$ 794 $ 2,774 $ (1,980 ) (71%) Operating Expenses$ 40,414 $ 35,632 $ 4,782 13 % Other Expenses$ 93,501 $ -$ 93,501 - Net loss$ (133,121 ) $ (32,858 ) $ (100,263 ) 305 %
On
During the year ended
20 Table of Contents
We had sales for the year ended
Operating expenses were
Other expenses incurred during the year ended
Liquidity and Capital Resources
Working Capital As of As of August 31, August 31, 2020 2019 Changes $ Change % Current Assets $ -$ 2,326 $ (2,326 ) (100%) Current Liabilities$ 105,599 $ 54,890 $ 50,709 92 %
Working Capital (Deficiency)
As ofAugust 31, 2020 , we had a working capital deficit of$105,599 compared to a working capital deficit of$52,564 as ofAugust 31, 2019 . The increase in working capital deficiency was mainly due to the increase in convertible note issued for payment made for operation expense on behalf of the Company and accrued interest. Cash Flows Year Year Ended Ended August 31, August 31, 2020 2019 Changes Change % Net cash used in operating (15%) activities$ (35,694 ) $ (41,863 ) $ 6,169 Net cash provided by investing (100%) activities $ - $ 53$ (53 ) Net cash provided by financing (22%) activities$ 33,846 $ 43,658 $ (9,812 ) Net increase(decrease) in cash and (200%) cash equivalents$ (1,848 ) $ 1,848 $ (3,696 )
Cash Flow from Operating Activities
During the year ended
During the year ended
21 Table of Contents
Cash Flow from Investing Activities
During the year ended
During the year ended
Cash Flow from Financing Activities
During the year ended
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.
Off-Balance Sheet Arrangements
As of
Critical Accounting Policies
We believe that the following accounting policies are the most critical to aid you in fully understanding and evaluating this "Management's Discussion and Analysis of Financial Condition and Results of Operation."
Use of Estimates
The preparation of consolidated financial statements in conformity with
accounting principles generally accepted in
Recent Accounting Pronouncements
Our company has implemented all new accounting pronouncements and does not believe that there are any other accounting pronouncements that have been issued that may have a material impact on its financial statements.
© Edgar Online, source