ENERGY AND WATER DEVELOPMENT CORP. INTRODUCTORY STATEMENT
The following discussion should be read in conjunction with our condensed financial statements and the notes to those condensed financial statements that are included elsewhere in this Report. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors. See "Forward-Looking Statements."
RESULTS of OPERATIONS
Results of Operations for the Three Months ended
The following table sets forth our operations for each of the periods presented.
For the Three Months Ended
September 30,
2022 2021
(unaudited) (unaudited)
GENERAL and ADMINISTRATIVE EXPENSES
Marketing fees $ 129,714 $ 1,357
Officers' salaries and payroll taxes 128,545 68,195
Professional fees 106,853 68,272
Travel and entertainment 5,920 13,696
Other general and administrative expenses 146,268 56,356
TOTAL GENERAL and ADMINISTRATIVE EXPENSES 517,300 207,876
LOSS FROM OPERATIONS (517,300 ) (207,876 )
OTHER INCOME (EXPENSE)
Change in fair value of derivative liability - (178,673 )
Other expense (134,599 ) -
Interest income (expense), net - (115,506 )
TOTAL OTHER INCOME (EXPENSE) (134,599 ) (294,179 )
NET LOSS $ (651,899 ) (502,055 )
Revenue
The Company recognized no revenue during the three months ended
Cost of equipment sold
The Company recognized no cost of equipment sold during the three months ended
General and Administrative Expense
General and administrative expense increased by
The increase in general and administrative expenses was primarily due to an
increase in professional fees of
Other Income (Expense)
The Company had other expense of
20 Net Loss
Net loss increased by
Results of Operations for the Nine Months ended
The following table sets forth our operations for each of the periods presented.
For the Nine Months Ended
September 30,
2022 2021
(unaudited) (unaudited)
GENERAL and ADMINISTRATIVE EXPENSES
Marketing fees $ 223,313 $ 168,832
Officers' salaries and payroll taxes 364,818 225,472
Professional fees 398,593 159,538
Travel and entertainment 24,368 13,696
Other general and administrative expenses 384,559 103,169
TOTAL GENERAL and ADMINISTRATIVE EXPENSES 1,395,651 670,707
LOSS FROM OPERATIONS (1,395,651 ) (670,707 ) OTHER INCOME (EXPENSE) Change in fair value of derivative liability 243,653 4,820 Other expense (267,013 ) - Interest income (expense), net (125,712 ) (673,701 ) TOTAL OTHER INCOME (EXPENSE) (149,072 ) (668,881 ) NET LOSS (1,544,723 ) (1,339,588 ) Revenue
The Company recognized no revenue during the nine months ended
Cost of equipment sold
The Company recognized no cost of equipment sold during the nine months ended
General and Administrative Expense
General and administrative expense increased by
The increase in general and administrative expenses was primarily due to an
increase in professional fees of
Other Income (Expense)
The Company had other expense of
Net Loss
Net Loss increased by
21
LIQUIDITY and CAPITAL RESOURCES
We had
We have sustained operating losses since our operations began. At
We have satisfied our cash and working capital requirements in the nine months
ended
Comparison of Cash Flows for the Nine Months Ended
Nine Months Ended
September 30,
2022 2021
Net cash used in operating activities
(78,123 ) (4,301 )
Net cash provided by financing activities 891,000 1,014,461 Effect of exchange rate changes on cash (26,988 ) (13,933 ) Net (decrease) increase in cash
$ (532,685 ) $ 47,112
Net cash used in operating activities
We used
Cash Flows from Investing Activities
The Company used
Cash Flows from Financing Activities
We received
Financial Position
Total Assets - At
22
PLAN OF OPERATION AND FUNDING
We expect to generate more revenues which should, grow in time and lead to a positive cash flow. In the near future, we expect that working capital requirements will continue to be funded through lines of credit, convertible loans and/or further issuances of other securities in sufficient quantities that we will be able to meet our working capital requirement from these possible sources. Additional issuances of equity or convertible debt will result in dilution to our current shareholders.
We seek to focus on three main aspects of the water and energy business: (1) generation, (2) supply, and (3) maintenance. We seek to assist private companies, government entities and NGO's to build profitable and sustainable supplies/generation capabilities of water and energy as required, by selling them the required technology or technical service to enhance their productivity/operability. With its outsourced technical arm and its commission-based global network of vendors, the Company expects to create sustainable added value to each project it takes on while generating revenue from its engineering and technical consultancy services, project management, sale of our patent filed Self Sufficient Power Supply Atmosphere Water Generation Systems (eAWGs) Solar Energy Generation Systems and Energy Management Systems, royalties from the commercialization of energy and water in certain cases, and revenues from the licensed innovated technologies.
Through our
The Company plans to generate revenue from its engineering and technical consultancy services, project management, sale of our Patent filed Self Sufficient Power Supply Atmosphere Water Generation Systems (eAWGs), Solar Energy Generation Systems, and Energy Management Systems, royalties from the commercialization of energy and water in certain cases, and revenues from the licensed innovated technologies.
MATERIAL COMMITMENTS Employment Agreements
The Company entered into employment agreements with each of
Effective as of
Effective as of
On
23
OFF-BALANCE SHEET ARRANGEMENTS
We have no off-balance sheet arrangements.
GOING CONCERN
The next operational step to accomplish is to achieve sufficient sales volume to
yield positive a net income. Due to the timing of the project build out, the
Company has not currently recorded any revenue and consequently has incurred
operating losses since it began operations (
The Company's ability to transition to profitable operations is dependent upon achieving a level of revenue adequate to support its cost structure. The timing and amount of our actual expenditures will be based on many factors, including cash flows from operations and the anticipated growth of our business and availability to sufficient resources.
At the filling date of this report, management plans to conclude the sales in
The ability of the Company to continue as a going concern depends upon its ability to generate sales or obtain additional funding to finance operating losses until the Corporation is profitable.
ADDRESSING CHALLENGES POST-COVID-19
COVID-19 is an incomparable global public health emergency that has affected
almost every industry and has caused the worst global economic contraction of
the past 80 years (IMF). The concerted global efforts achieved the development
of vaccines that have helped to reduce a person´s risk of contracting the virus.
However, the current war in
If workers at one or more of our offices or the offices of our suppliers or manufacturers become ill or are quarantined and in either or both events are therefore unable to work, our operations could be subject to disruption. Further, if our manufacturers become unable to obtain necessary raw materials or components, we may incur higher supply costs or our manufacturers may be required to reduce production levels, either of which may negatively affect our financial condition or results of operations.
In light of these challenges, the Company is focusing its efforts on supporting key areas of our business that will help us to stabilize in the new environment and strategize for what comes next. Those key areas are: crisis and management response, workforce, operation and supply chain, finance and liquidity, tax, trade and regulatory, as well as strategy and brand.
CRITICAL ACCOUNTING POLICIES
Our critical accounting policies are set forth in Note 2 to the condensed financial statements.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
We do not expect the adoption of recently issued accounting pronouncements as discussed in Note 3 to have a significant impact on our results of operations, financial position or cash flow.
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