Plan of Operation

The Company's cash balance is insufficient to satisfy the Company's cash requirements for the next 12 months. Due to issues surrounding prior litigation, the ability to deliver products to customers has been delayed.

Our notes to the financial statements disclose that the cash flow of the Company has been absorbed in operating activities, has incurred net losses for the fiscal year and has a working capital deficiency. Due to the prior litigation and the current restructuring, the Company operations are not likely to produce positive cash flow until at least the fiscal year ended March 31, 2022. These factors raise substantial doubt about our ability to continue as a going concern. Our going concern uncertainty may affect our ability to raise additional capital, and may also affect our relationships with suppliers and customers. Investors should carefully examine our financial statements and read the notes to the financial statements.

Results of Operations for the year ended March 31, 2022 as compared to the year ended March 31, 2021.





Revenues -

The Company had no revenues for the fiscal year ended March 31, 2022.

The Company had no revenues for the fiscal year ended March 31, 2021.





Other Income-



Other Income-

Other Income for the fiscal year ended March 31, 2022 was $576,426 resulting from the Court decision and the terms of the agreed Dutro litigation settlement. The total gain from the extinguishment of debt was composed of the forgiveness and related release of the following: Professional Services & Consulting fees - $274,529; NP - Ed Johnson - $86,615; NP - L Brown - $20,000; NP - Legal Fees - $50,000 and Accrued interest on NP - $145,282.

Other Income for the fiscal year ended March 31, 2021 was $2,115,532 which represents the gain on the extinguishment of debt resulting from the Court decision and the agreed Dutro litigation settlement. The total gain was composed of Dutro Litigation extinguishment of $939,191 and extinguishment of other accrued and contingent legal fees of $1,176,341. The Dutro litigation extinguishment of $939,191 consists of extinguishment of Dutro Company Loan - $250,000, Vicki Davis Loan - $168,000, William Dutro Loan - $65,000, Contingent fee - Reality Engineering - $ $50,000, Contingent Fee - Lee Allen - $18,000, Contingent Interest - Dutro Company - $209,073, Contingent Interest - Vicki Davis - $129,150 and Contingent Interest - William Dutro - $49,968.





Cost of Sales -

The Company had no cost of sales or other operating expenses for the fiscal year ended March 31, 2022.

The Company had no cost of sales or other operating expenses for the fiscal year ended March 31, 2021.

General and Administrative Expenses -

General and administrative expenses were $34,578 for the fiscal year ended March 31, 2022. These expenses are made up of insurance expenses - $17,885, filing fees - $6,098 and state franchise fees and other - $10,595. The primary difference from the prior year is that the Company is no longer accruing wages and payroll taxes and the impact of the litigation settlement.


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General and administrative expenses were $48,596 for the fiscal year ended March 31, 2021. These expenses are made up professional fees - $20,000, litigation expenses/travel - $20,000, insurance expenses - $17,094, filing fees - ($10,512) & state franchise fees - $2,014. The primary difference from the prior year is that the Company is no longer accruing wages and payroll taxes and the impact of the litigation settlement.





Depreciation Expense -

Depreciation expense was $0 for the fiscal year ended March 31, 2022.

Depreciation expense was $0 for the fiscal year ended March 31, 2021.





Interest expense

The Company had interest expense of $17,119 for the year ended March 31, 2022.

The Company had interest expense of $47,226 for the year ended March 31, 2021. The primary difference from the prior year is that the Company is no longer accruing interest on unpaid wages and the impact of the litigation settlement.





Other expense

The Company had no other expense for the year ended March 31, 2022.

The Company had no other expense for the year ended March 31, 2021.

Liquidity and Capital Resources





Cash and cash equivalents -

We believe our bank balance of $0 with a deficit in working capital of $9,851,464 as of March 31, 2022 is not sufficient to meet our working capital requirements for the coming year.





Total assets -

We currently have $0 assets for the year ended March 31, 2022.





Working capital -

As of this filing date, the Company is in the process of restructuring its operations in order to raise capital and continue in its efforts to manufacture and distribute its products. The restructuring is ongoing, and no plans have been finalized as of the date of this report. Potential funding for operations is not expected until sometime in the fiscal year ended March 31, 2023 or beyond.

Our auditors are of the opinion that our continuation as a going concern is in doubt. Our continuation as a going concern is dependent upon continued financial support from our shareholders and other related parties. THE FINANCIAL STATEMENTS, RELATED NOTES AND THE OTHER INFORMATION INCLUDED IN THIS REPORT HAVE NOT BEEN REVIEWED BY THE COMPANY'S OUTSIDE ACCOUNTANT PRIOR TO THE FILING OF THIS REPORT.


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Liabilities -

Current liabilities as of March 31, 2022 were $9,851,464. The balance was composed of accounts payable and accrued liabilities of $9,687,464 and note payable to outside investors of $164,000.

Current liabilities as of March 31, 2021 were $10,376,193. The balance was composed of accounts payable and accrued liabilities of $10,055,578 and note payable to outside investors of $320,615.

Long term liabilities as of March 31, 2022 were $0.

Long term liabilities as of March 31, 2022 were $0.

Total liabilities as of March 31, 2022 were $9,851,464.





Cash flows -



                                                   Year Ended   Year Ended
                                                   March 31,    March 31,
Sources and Uses of Cash                              2022         2021
Net cash provided by / (used in)
Operating activities                               $0           $0
Investing activities                               0            0
Financing activities                               0            0

Increase/(decrease) in cash and cash equivalents   $0           $0

Years ended March 31, 2022 and 2021
Cash and cash equivalents                          $0           $0




Operating Activities -

Cash used in operations for the year ended March 31, 2022 was $0. This included an income from operation of $524,729 and a net change in accounts payable and accrued liabilities of ($524,729). Income was generated from the extinguishment of debt resulting from the litigation settlement.

Cash used in operations for the year ended March 31, 2021 was $0. This included an income from operation of $2,019,710 and a net change in accounts payable and accrued liabilities of ($2,019,710). Income was generated from the extinguishment of debt resulting from the litigation settlement.





Investing Activities -

There was no cash used in Investing Activities for the year ended March 31, 2022.

There was no cash used in Investing Activities for the year ended March 31, 2021.





Financing Activities -

There was no of cash provided in financing activities for the year ended March 31, 2022.

There was no of cash provided in financing activities for the year ended March 31, 2021.

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Critical Accounting Policies

The discussions and analysis of our financial condition and results of operations, including the discussion on liquidity and capital resources, are based upon the financial statements, which have been prepared in accordance with US GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, management re-evaluates its estimates and judgments, particularly those related to the determination of the impairment of its intangible assets. Actual results could differ from the estimates. We believe the following are the critical accounting policies used in the preparation of the consolidated financial statements.





Revenue -

The Company had no sales activity during the current fiscal year ended March 31, 2022. The Company records sales of its products based upon the terms of the contract; when title passes to its customers; and, when collectability is reasonably assured.





Income Taxes -

The amount of income taxes recorded by us requires the interpretation of complex rules and regulations of various taxing jurisdictions throughout the world. We have recognized deferred tax assets and liabilities for all significant temporary differences, operating losses and tax credit carryforwards. We routinely assess the potential realization of our deferred tax assets and reduce such assets by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. We routinely assess potential tax contingencies and, if required, establish accruals for such contingencies. The accruals for deferred tax assets and liabilities are subject to a significant amount of judgment by us and we review and adjust routinely our estimates based on changes in facts and circumstances. Although we believe our tax accruals are adequate, material changes in these accruals may occur in the future, based on the progress of ongoing tax audits, changes in legislation and resolution of pending tax matters.





Litigation -

An estimated loss from a loss contingency is recorded when information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Accounting for contingencies such as legal matters requires the use of judgment as to the probability of the outcome and the amount. Many legal contingencies can take years to be resolved. An adverse outcome could have a material impact on our financial condition, operating results and cash flows.





Going Concern Qualification

Due to the prior litigation, the Company has a significant risk of not being able to continue as a going concern. Investors should carefully examine our financial statements.

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