FORWARD-LOOKING STATEMENTS
This Management's Discussion and Analysis of Financial Condition and Results of
Operations (MD&A) contains forward-looking statements that involve known and
unknown risks, significant uncertainties and other factors that may cause our
actual results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed, or implied, by those forward-looking statements. You can
identify forward-looking statements by the use of the words may, will, should,
could, expects, plans, anticipates, believes, estimates, predicts, intends,
potential, proposed, or continue or the negative of those terms. These
statements are only predictions. In evaluating these statements, you should
consider various factors which may cause our actual results to differ materially
from any forward-looking statements. Although we believe that the exceptions
reflected in the forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements. Therefore,
actual results may differ materially and adversely from those expressed in any
forward-looking statements. We undertake no obligation to revise or update
publicly any forward-looking statements for any reason.
In December 2019, a novel strain of coronavirus (COVID-19) was reported in
Wuhan, China and has spread throughout the United States and the rest of the
world. The World Health Organization has declared the outbreak to constitute a
"Public Health Emergency of International Concern." This contagious disease
outbreak, which has not been contained, and is disrupting supply chains and
affecting production and sales across a range of industries in United States and
other companies as a result of quarantines, facility closures, and travel and
logistics restrictions in connection with the outbreak, as well as the worldwide
adverse effect to workforces, economies and financial markets, leading to a
global economic downturn. Therefore, the Company expects this matter to
negatively impact its operating results. However, the related financial impact
and duration cannot be reasonably estimated at this time.
RESULTS OF OPERATION
Three and six months ended December 31, 2021 Compared to Three and six months
ended December 31, 2020
Our net loss for the three months ended December 31, 2021 was ($840,805)
compared to a net loss of ($41,479) during the three months end December 31,
2020.
During the three months ended December 31, 2021, we incurred operating expenses
of $840,805 compared to $41,479 incurred during the three months ended December
31, 2020.
During the three months ended December 31, 2021, we incurred interest expenses
of $0 compared to $0 incurred during the three months ended December 31, 2020.
Our net loss for the six months ended December 31, 2021 was ($913,862) compared
to a net loss of ($378,018) during the six months ended December 31, 2020. The
increase in net loss was mainly due to an increase in shares issued for services
in 2020.
During the six months ended December 31, 2021, we incurred operating expenses of
$913,862 compared to $378,018 incurred during the six months ended December 31,
2020. The increase in expenses was mainly due to an increase in shares issued
for services in 2020.
During the six months ended December 31, 2021, we incurred interest expenses of
$0 compared to $0 incurred during the six months ended December 31, 2020.
LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 2021, our current assets were $1,360 and our current
liabilities were $22,971, which resulted in a working capital deficit of
$21,611.
As of December 31, 2021, and 2020, our total liabilities were comprised entirely
of current liabilities.
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Cash Flows from Operating Activities
For the six months ended December 31, 2021, net cash flows used in operating
activities was $3,115 compared to net cash used in operating activity of $0 for
the same period in 2020.
Cash Flows from Investing Activities
For the six months ended December 31, 2021, net cash flows used in investing
activities was $356,400. Compared to $0 for the same period in 2020.
Cash Flows from Financing Activities
For the six months ended December 31, 2021, net cash flows from in financing
activities was $360,875. Compared to $0 for the same period in 2020.
PLAN OF OPERATION AND FUNDING
We expect that working capital requirements will continue to be funded through a
combination of our proceeds from the sales of stock and generation of revenues
from acquisitions. Our working capital requirements are expected to increase in
line with the growth of our business.
Our principal demands for liquidity are to increase business operations and for
general corporate purposes. We intend to meet our liquidity requirements,
including capital expenditures related to future business operations, and the
expansion of our business, through cash flow provided by funds raised through
proceeds from the issuance of debt or equity.
MATERIAL COMMITMENTS
Convertible Debenture
As of June 30, 2014, we had a note payable dated June 30, 2010, in the principal
amount of $1,253,095. As of March 31, 2016, this note has been either converted
to stock or paid. The note payable accrues interest at the rate of 5% per annum,
however that interest has been forgiven each year by the note holders. As of
September 21, 2014, the note payable balance of $691,926 ($650,000 at June 30,
2013 plus additional advances of $41,926 for the year ended June 30, 2021) has
been converted into shares of common stock.
PURCHASE OF SIGNIFICANT EQUIPMENT
In December of 2021 we purchased capital equipment valued at $356,400.
OFF-BALANCE SHEET ARRANGEMENTS
As of the date of this Quarterly Report, we do not have any 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 are material to investors.
Recently Issued Accounting Pronouncements
From time to time, new accounting pronouncements are issued by the Financial
Accounting Standards Board ("FASB") or other standard setting bodies that are
adopted by us as of the specified effective date. Unless otherwise discussed, we
believe that the impact of recently issued standards that are not yet effective
will not have a material impact on our consolidated financial position or
results of operations upon adoption.
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