The following discussion should be read in conjunction with our financial
statements, including the notes thereto, appearing elsewhere in this annual
report. The following discussion contains forward-looking statements that
reflect our plans, estimates and beliefs. Our actual results could differ
materially from those discussed in the forward-looking statements. Factors that
could cause or contribute to such differences include but are not limited to
those discussed below and elsewhere in this Annual Report. Our audited financial
statements are stated in United States Dollars and are prepared in accordance
with United States Generally Accepted Accounting Principles.
COVID-19
A novel strain of coronavirus (COVID-19) was first identified in December 2019,
and subsequently declared a global pandemic by the World Health Organization on
March 11, 2020. As a result of the outbreak, many companies have experienced
disruptions in their operations and in markets served. The Company considered
the impact of COVID-19 on the assumptions and estimates used and determined that
there were no material adverse impacts on the Company's results of operations
and financial position as of July 31, 2022. The full extent of the future
impacts of COVID-19 on the Company's plan of operations is uncertain. A
prolonged outbreak could have a material adverse impact on the Company's ability
to identify and/or consummate an acceptable merger or acquisition transaction.
Plan of Operations and Cash Requirements
We previously intended to offer management and consulting services to healthcare
organizations. Because we have not been successful in launching our previous
business plan, we are seeking new opportunities or business arrangements
primarily in the environmental services industry, emerging innovative
technologies and individual health choices led by innovation and integration.
Results of Operations
The following summary of our results of operations should be read in conjunction
with our audited financial statements for the year ended July 31, 2022, which
are included herein.
Our operating results for the years ended July 31,2022 and 2021 and the changes
between those periods for the respective items are summarized as follows
Year Ended
July 31,
2022 2021 Changes
Revenues $ 41,666 $ - $ 41,666
Operating expenses $ 74,168 $ 90,749 $ (16,581 )
Interest expense $ 1,542 $ 4,603 $ (3,061 )
Net loss $ 34,044 $ 95,352 $ (61,308 )During the years ended July 31, 2022, and 2021, we generated $41,666 and $0
revenues, respectively. The revenues are related to consulting services rendered
to one customer and $33,334 has been paid and July 2022 fees of $8,332 has been
paid on August 1,2022.
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We had a net loss of $34,044 for the year ended July 31, 2022, and $95,352 for
the year ended July 31, 2021. The decrease in net loss of $61,308, was due to an
increase in revenue of $41,666 and a decrease in operating expenses of
$16,581and interest expenses of $3,061.
Operating expenses for the years ended July 31,2022 and 2021 were $74,168 and
$90,749, respectively. For the year ended July 31,2022, the operating expenses
were primarily attributed to professional fees for maintaining reporting status
with the Securities and Exchange Commission ("SEC") of $22,953, general and
administrative expenses of $51,215 including wages expenses - related party of
$38,214. For the year ended July 31,2021, the operating expenses were primarily
attributed to professional fees for maintaining reporting status with the
Securities and Exchange Commission ("SEC") of $36,450, general and
administrative expenses of $4,299 and consulting fees - related party of
$50,000.
Interest expenses for the years months ended July 31, 2022, and 2021, represent
interest expense of $1,542 and $4,603 to a related party on funds advanced to
the Company, respectively.
Balance Sheet Data:
July 31, 2022 July 31, 2021 Changes
Cash $ 3,087 $ 10 $ 3,077
Working capital deficiency $ (47,614 ) $ (15,112 ) $ (32,502 )
Total assets $ 12,572 $ 10 $ 12,562
Total liabilities $ 60,186 $ 15,122 $ 45,064
Total stockholders' deficit $ (47,614 ) $ (15,112 ) $ (32,502 )
As of July 31, 2022, our current assets were $12,572, and our current
liabilities were $60,186 which resulted in working capital deficiency of
$47,614. As of July 31, 2022, current assets were comprised of $3,087 in cash,
$55 in prepaid expenses, $8,332 in accounts receivable and $1,098 in prepaid
wages-related party, compared to $10 in cash as of July 31, 2021. As of July 31,
2022, current liabilities were comprised of $24,740 in accounts payable, $33,946
in due to related party and $1,500 in customer deposit, compared to $13,514 in
accounts payable and $1,608 in due to related party as of July 31, 2021.
As of July 31, 2022, our working capital deficiency increased by $32,502 from
$15,112 on July 31, 2021, to $47,614 on July 31, 2022, primarily due to a
increase in current liabilities of $45,064 and offset by an increase in current
assets of $12,562.
Cash Flow Data:
Year Ended
July 31,
2022 2021 Changes
Cash Flows used in Operating Activities $ (29,261 ) $ (99,364 ) $ 70,103
Cash Flows used in Investing Activities $ - $ - $ -
Cash Flows provided by Financing Activities $ 32,338 $ 97,142 $ (64,804 )
Net Change in Cash During Period
$ 3,077 $ (2,222 ) $ 5,299
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Cash Flows from Operating Activities
We have not generated positive cash flows from operating activities. For the
year ended July 31, 2022, net cash flows used in operating activities was
$29,261, consisting of a net loss of $34,044, reduced by imputed interest on
related party loan of $1,542, reduced by an increase in accounts payable of
$11,226 and customer deposit of $1,500 and offset by an increase in prepaid
wages from related party of $1,098, accounts receivable of $8,332, and prepaid
expenses of $55.
For the year ended July 31, 2021, net cash flows used in operating activities
was $99,364, consisting of a net loss of $95,352, reduced by an increase in
accounts payable of $7,032 and an increase in accrued interest -related party of
$11,044
Cash Flows from Financing Activities
We have financed our operations loans from a related party. For the years ended
July 31, 2022, and 2021, we received $32,338 and $15,858 from advances to pay
certain operation expenses from related party loans, respectively. During the
year ended July 31,2021, the Company issued 21,220,000 shares of common stock in
cash for amount of $201,335 and repaid related party loan of $120,051.
Going Concern
As of July 31, 2022, our company had a net loss of $34,044 and has earned
$41,666 revenues. Our company intends to fund operations through equity
financing arrangements, which may be insufficient to fund its capital
expenditures, working capital and other cash requirements for the year ending
July 31, 2023. The ability of our company to emerge from the development stage
is dependent upon, among other things, obtaining additional financing to
continue operations, and development of our business plan. In response to these
problems, management intends to raise additional funds through public or private
placement offerings. These factors, among others, raise substantial doubt about
our company's ability to continue as a going concern. The accompanying financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.
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.
Critical Accounting Policies
The discussion and analysis of our financial condition and results of operations
are based upon our financial statements, which have been prepared in accordance
with the accounting principles generally accepted in the United States of
America. Preparing financial statements requires management to make estimates
and assumptions that affect the reported amounts of assets, liabilities,
revenue, and expenses. These estimates and assumptions are affected by
management's application of accounting policies. We believe that understanding
the basis and nature of the estimates and assumptions involved with the
following aspects of our financial statements is critical to an understanding of
our financial statements.
Revenue Recognition
The Company recognizes revenue from its contracts with customers in accordance
with ASC 606 - Revenue from Contracts with Customers. The Company recognizes
revenues when satisfying the performance obligation of the associated contract
that reflects the consideration expected to be received based on the terms of
the contract.
Revenue related to contracts with customers is evaluated utilizing the following
steps:
(i) Identify the contract, or contracts, with a customer;
(ii) Identify the performance obligations in the contract;
(iii) Determine the transaction price;
(iv) Allocate the transaction price to the performance obligations in the
contract;
(v) Recognize revenue when the Company satisfies a performance obligation.
When the Company enters into a contract, the Company analyses the services
required in the contract in order to identify the required performance
obligations which would indicate the Company has met and fulfilled its
obligations. For the current contracts in place, the Company has identified
performance obligations as one single event, the sign-off by both parties that
production is completed, and the product (film) is ready for distribution. To
appropriately identify the performance obligations, the Company considers all of
the services required to be satisfied per the contract, whether explicitly
stated or implicitly implied. The Company allocates the full transaction price
to the single performance obligation being satisfied.
The company recognizes the monthly revenue at the beginning of the month and any
cash payments received in advanced are recorded as deferred revenue until all
obligations have been met as specified in the related customer contract.
During the year ended July 31,2022, the Company entered in a consulting
agreement in the field of Healthcare for monthly $8,333 with First DP Ventures,
LP. The services were performed by a member of the Company's board of directors.
As of July 31,2022, all revenue of $41,666 and accounts receivable of $8,332
were diverted from one customer.
Cost of revenue
During the year ended July 31,2022, the cost of revenue of $38,214 was for the
payroll expenses related to a member of the Company's board of directors, who
performed the consulting agreement's services.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements. The estimates and judgments will also affect the
reported amounts for certain revenues and expenses during the reporting period.
Actual results could differ from these good faith estimates and judgments.
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