The following discussion should be read in conjunction with our financial
statements, including the notes thereto, appearing elsewhere in this quarterly
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. Our financial
statements are stated in
Results of Operations
The Company has incurred losses since inception resulting in an accumulated
deficit of
We will require additional capital to meet our short- and long-term operating requirements. We expect to raise additional capital through, among other things, the sale of equity securities.
Three months ended
Revenues
Revenues for 2022 first quarter were
Costs and Expenses
Total costs and operating expenses decreased
• Cost of revenue decreased$1,092 , or 12.97%, to$7,328 in the 2022 first quarter compared to$8,419 in the 2021 first quarter. Our cost of revenue includes the cost of the supplements we sell as well as shipping and handling costs for shipments to customers. The decrease in cost of revenues is due to no revenue generated across all product lines in the 2022 first quarter. • Selling, general and administrative expenses increased$6,951 or 10.73%, to$71,720 in the 2022 first quarter from$64,769 in the 2021 first quarter. The decrease in SG&A is principally attributable to decreases in consulting and accounting expenses, legal expenses, office expenses and general expenses. Net Loss
Our net loss for the 2022 first quarter was
18
Liquidity and capital resources
Liquidity is the ability of a company to generate sufficient cash to satisfy its needs for cash. The following table summarizes our total current assets, total current liabilities and working capital deficit atMarch 31, 2022 as compared toDecember 31, 2021 . March 31, December 31, 2022 2021 (unaudited) Total current assets$ 20,544 $ 25,390 Total current liabilities$ 562,097 $ 517,256 Working capital deficit$ (541,553 ) $ (491,866 )
The reduction in total current assets between the periods primarily reflects a reduction in cash and decrease in prepaid expenses. The increase in total current liabilities reflects an increase in notes payable. We do not have any capital commitments and do not have any external sources of working capital available.
Going concern and management's liquidity plans
The COVID-19 pandemic has materially and adversely impacted the
The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Company is not able to estimate adverse effects of the COVID-19 outbreak on its results of operations, financial condition, or liquidity for fiscal year 2022.
We have experienced recurring operating losses and negative operating cash flows
and have financed our recent working capital requirements primarily through the
issuance of equity securities. During the three months ended
Our ability to continue to grow our business is dependent upon our ability to
raise additional sufficient capital to fund our operating expenses, including
advertising, until such time, if ever, that we are able to report profitable
operations, as well as for our short-term and long-term growth plans. We do not
generate operating income and we are presently are relying on cash we receive
from the holdback receivable to pay our operating expenses. Our management
estimates that we require approximately
19 Summary of cash flowsMarch 31 ,March 31, 2022 2021 (unaudited) (unaudited)
Net cash used in operating activities
The decrease in cash used in our operating activities in the 2022 first quarter as compared to the 2021 first quarter is due to the increase in net loss offset by decrease in prepaid expenses and increase in accounts payable and accrued expenses.
There was no net cash provided by or used in investing activities during 2022 and 2021 first quarters.
Net cash provided by financing activities during the 2022 first quarter reflects proceeds from notes payable.
Commitments and Contingencies
Information regarding our Commitments and Contingencies is contained in Note 6 to the unaudited Condensed Financial Statements.
Off-Balance Sheet Arrangements
We have not entered into 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 and would be considered material to investors.
Emerging Growth Company
We are an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012, or the "JOBS Act", and we are permitted to take advantage of certain exemptions from various public company reporting requirements, including not being required to have our internal controls over financial reporting audited by our independent registered public accounting firm pursuant to Section 404 of the Sarbanes-Oxley Act of 2002, or the "Sarbanes-Oxley Act", reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and any golden parachute payments. We may take advantage of these exemptions until we are no longer an "emerging growth company." In addition, the JOBS Act provides that an "emerging growth company" can delay adopting new or revised accounting standards until such time as
those standards apply to private companies.
We have elected to use the extended transition period for complying with new or revised accounting standards under the JOBS Act. This election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.
We could remain an emerging growth company for up to five years, or until the earliest of:
• the last day of the first fiscal year in which our annual gross revenues exceed$1.07 billion ; • the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended, or the "Exchange Act", which would occur if the market value of our common stock that is held by non-affiliates exceeds$700 million as of the last business day of our most recently completed second fiscal quarter; or • the date we have issued more than$1 billion in non-convertible debt during the preceding three-year period.
At this time, we expect to remain an emerging growth company until possibly as late as 2023. References herein to "emerging growth company" have the meaning associated with that term in the JOBS Act.
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