RENEWABLE INNOVATIONS, INC. Our Management's Discussion and Analysis contains not only statements that are
historical facts, but also statements that are forward-looking. Forward-looking
statements are, by their very nature, uncertain and risky. These risks and
uncertainties include international, national and local general economic and
market conditions; demographic changes; our ability to sustain, manage, or
forecast growth; our ability to successfully make and integrate acquisitions;
raw material costs and availability; new product development and introduction;
existing government regulations and changes in, or the failure to comply with,
government regulations; adverse publicity; competition; the loss of significant
customers or suppliers; fluctuations and difficulty in forecasting operating
results; changes in business strategy or development plans; business
disruptions; the ability to attract and retain qualified personnel; the ability
to protect technology; and other risks that might be detailed from time to time
in our filings with the
Although the forward-looking statements in this Quarterly Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report and in our other reports as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects
The following discussion and analysis of financial condition and results of
operations of the Company is based upon, and should be read in conjunction with,
its unaudited financial statements and related notes elsewhere in this Quarterly
Report on Form 10-Q, which have been prepared in accordance with accounting
principles generally accepted in
Overview
We were incorporated in the
We are engaged in the business of providing digital media and marketing services for the real estate industry. We currently generate revenue from service fees (video creation and production) and referral fees from our LoseTheAgent.com website. At the core of our programs is our proprietary video creation technology which allows for an automated conversion of data (text, photos and video slices) to a video with voice over and music. We provide video search, storage and marketing capabilities on multiple platform dynamics for web and mobile. Once a home, personal or community video is created using our proprietary technology, it can be published to social media, email or distributed to multiple real estate websites. In addition, we own and operate the web site LoseTheAgent.com, which is a site dedicated to peer-to-peer real estate transactions between home sellers and buyers - the so called For Sale By Owner segment. We currently have approximately 100,000 home listings across all 50 states. We monetize the website by charging fees for both listing a home for sale and picking up possible buyers' messages of interest. We also plan on generating additional revenues by monetizing seller/buyer data with targeted, interested parties. The web site is fully functional and is being marketed via various online platforms.
20
Results of Operations for the Three Months Ended
Revenues
Total revenue for the three months ended
Cost of Revenue
Cost of revenues totaled
Operating Expenses
Our operating expenses, which include marketing and promotion, salaries and
benefits and general and administrative expenses, increased
21
General and administrative expenses amounted to
Three months Ended
May 31,
Expense 2022 2021 Increase/(Decrease)
Professional Fees $ 11,958 $ (4,448 ) $ 16,406
Stock based compensation 208,022 - 208,022
Dues and Subscriptions 582 574 8
Other 6,323 999 5,324
Total $ 226,8858 $ (2,875 ) $ 229,760
Other Income (Expenses)
Our other income (expense), net, decreased by $13,030 for the three months ended
May 31, 2022 , versus the prior year. A summary of other income (expense) is as
follows:
Three Months Ended
May 31,
2022 2021 Increase/(Decrease)
Interest expense $ (50) $ - $ 50
Gain of forgiveness of PPP #1 $ $ 13,080 $ (13,080)
Total $ (50) $ 13,080 $ (13,030)
Net Income/Loss
We had net loss of
Results for Six Month Period Ended
Revenues
Total revenue for the six months ended
Cost of Revenue
Cost of revenues totaled
22 Operating Expenses
Our operating expenses, which include salaries and benefits, marketing and
promotion and general and administrative expenses, increased 300,205 for the six
months ended
Six Months Ended
May 31,
Expense 2022 2021 Increase/(Decrease)
Professional Fees and legal fees $ 48,170 $ 14,133 $ 34,037
Dues & subscriptions 1,153 1,653 (500)
Stock based compensation 277,356 - 277,356
Other 6,504 2,394 4,110
Total $ 333,183 $ 18,180 $ 315,003
Other Income (Expenses)
Our other expense, net, increased by
Six Months Ended
May 31,
2022 2021 Increase/(Decrease)
Interest expense $ (7,308) $ - $ (7,308 )
Gain of forgiveness of PPP #1 $ 15,077 $ 13,080 $ 1,997
Loss on extinguishment of debt $ (72,198) - (72,198 )
Total $ (64,429) $ 13,080 $ (77,509)
Net Income/Loss
We had a net loss of
Liquidity and Capital Resources; Anticipated Financing Needs
On
Net cash used in operating activities was
Net cash provided by financing activities was
Our ability to continue as a going concern on a long-term basis is dependent upon our ability to generate sufficient cash flow from operations to meet our obligations on a timely basis, to obtain additional financing and ultimately attain profitability.
Based solely on our own internal estimates without the benefit of any independent third-party evaluation, we anticipate that our cash and cash flow will not be sufficient to satisfy our cash requirements over the next twelve months and we will likely require significant external financing. The magnitude of the additional financing and its timing is not yet precisely known. In the event that we are able to secure a sufficient amount of additional financing on a timely basis and on generous terms, it may include the issuance of equity or debt securities, obtaining credit facilities, or entering into other financing arrangements on such terms as then existing market conditions require. In the event that we were to issue additional equity or debt securities, stockholders may experience significant dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of our common stock. And in the case of any issuance of one or more debt securities, the debt covenants may restrict our operating ability and our ability to raise additional financing from debt. Our ability to obtain additional capital on terms that are reasonable cannot be assured. We may be forced to obtain additional capital on terms that could limit our long-term ability to remain in business or otherwise materially restrict our operations.
23 Critical Accounting Policies
In
In the ordinary course of business, we have made a number of estimates and
assumptions in preparing our financial statements in conformity with accounting
principles generally accepted in
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