VEMANTI GROUP, INC. Forward-Looking Statements
The following management's discussion and analysis should be read in conjunction
with our historical financial statements and the related notes thereto. The
management's discussion and analysis contain forward-looking statements, such as
statements of our plans, objectives, expectations and intentions. Any statements
that are not statements of historical fact are forward-looking statements. When
used, the words "believe," "plan," "intend," "anticipate," "target," "estimate,"
"expect" and the like, and/or future tense or conditional constructions ("will,"
"may," "could," "should," etc.), or similar expressions, identify certain of
these forward-looking statements. These forward-looking statements are subject
to risks and uncertainties, including those under "Risk Factors" in our Annual
Report on Form 10-K, which we filed with the
Basis of Presentation
The following discussion highlights our results of operations and the principal
factors that have affected our financial condition as well as our liquidity and
capital resources for the periods described and provides information that
management believes is relevant for an assessment and understanding of the
statements of consolidated financial condition and results of operations
presented herein. The following discussion and analysis are based on our
unaudited condensed consolidated financial statements contained in this
Quarterly Report, which we have prepared in accordance with
Overview
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Until
For the six months ended
As reflected in the unaudited condensed consolidated interim financial
statements, we used cash in operations of
While we believe in the viability of our strategy to generate sufficient revenues and in our ability to raise additional funds, there can be no assurances that we will be successful or that our cash position will be sufficient to support our daily operations. Our continued existence is dependent upon our ability to continue to execute our operating plan and to obtain additional debt or equity financing. There can be no assurance the necessary debt or equity financing will be available or will be available on terms acceptable to our Company. Accordingly, we may decide to exit our existing business and explore potential strategic alternatives, including establishing a new business, or target an existing business for acquisition, without restriction to any specific business, industry or geographical location.
Recent Developments
Sale of
On
As consideration for the sale of the Shares and the Accounts Receivable to
Fvndit, the Company acquired all rights to the documentation, copyrights, and
proprietary information associated with Fvndit's online investment marketplace
business in
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Results of Operations
The six months ended June 30, 2022 , compared to the six months ended June 30,
2021
2022 2021
Amount Amount
Sales $ 73,781 $ 73,927
Cost of sales $ 12,173 $ 10,452
Gross margin $ 61,608 $ 63,475
Total other income (expense) net $ 436 $ (6,226 )
Total operating expenses $ 622,774 $ 570,747
Income taxes $ - $ -
Net loss $ (560,730 ) $ (514,298 )
Revenues
Revenues were
Gross Profit and Gross Profit Margin
Gross profit was
General and Administrative Expenses
General and administrative (G&A) expenses were
Operating Loss
Total operating loss was
As of
The Company annually conducts an analysis of its tax positions and has concluded
that it has no uncertain tax positions as of
The Company had
Net Loss
As a result of the above factors, we had a net loss of
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The three months ended June 30, 2022 compared to the three months ended June 30,
2021
2022 2021
Amount Amount
Sales $ 36,181 $ 37,684
Cost of sales $ 6,652 $ 5,049
Gross margin $ 29,529 $ 32,635
Total other income (expense) net $ - $ (4,575 )
Total operating expenses $ 293,824 $ 471,591
Income taxes $ - $ -
Net loss $ (264,295 ) $ (444,331 )
Revenues
Revenues were
Gross Profit and Gross Profit Margin
Gross profit was
General and Administrative Expenses
General and administrative (G&A) expenses were
Operating Loss
Total operating loss was
Net Income
As a result of the above factors, we had a net loss of
LIQUIDITY AND CAPITAL RESOURCES
Historically, our primary uses of cash have been to finance working capital needs. We expect that we will be able to meet our needs to fund operations, capital expenditures and other commitments in the next 12 months primarily with our cash balance and operating cash flows.
We may need to raise additional capital to fund our operating expenses, pay our obligations, and grow our Company in the future. Our current resources may be insufficient to satisfy all of our cash requirements and we may seek to sell additional equity or debt securities or obtain a credit facility. Our future operations may be dependent on our ability to secure additional financing. Even if we are able to raise the funds required, it is possible that we could incur unexpected costs and expenses, fail to collect amounts owed to us, or experience unexpected cash requirements that would force us to seek alternative financing. Furthermore, if we issue additional equity or debt securities, stockholders may experience additional dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of our common stock.
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Currently, the Company has sufficient cash to remain in business for the next 12 months.
The following table sets forth a summary of our cash flows for the periods
indicated.
For the Six Months
Item Ended June 30,
2022 2021
Net cash used in operating activities $ 203,483 $ 196,500 Net cash (provided by) used in investing activities (5,886 ) 10,000 Net cash provided by financing activities
337,500 415,000
Net increase in cash 139,903 208,500
Cash at the beginning of period 295,937 243,494
Cash at the end of period $ 435,840 $ 451,994
Operating Activities
Net cash used in operating activities was
Investing Activities
There was net cash provided by investing activities of
Financing Activities
Net cash provided by financing activities was
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