Cautionary Statement Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q, Unaudited Financial Statements, and Notes to Unaudited Financial Statements contain forward-looking statements that discuss, among other things, future expectations and projections regarding future developments, operations, and financial conditions. All forward-looking statements are based on management's existing beliefs about present and future events outside of management's control and on assumptions that may prove to be incorrect. If any underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected, or intended. We undertake no obligation to publicly update or revise any forward-looking statements to reflect actual results, changes in expectations or events or circumstances after the date this Quarterly Report on Form 10-Q is filed.

When this report uses the words "we," "us," "our," or "HDHC" and the "Company," they refer to High Desert Holding Corp.





Overview

Since our inception in 2013, we have been engaged in the identification, potential acquisition, and on-going exploration of precious and non-precious mineral properties located in the Western United States with an initial emphasis in Nevada. Until May 2015, we did not have patented or unpatented mineral claims and our activities only consisted of initial discussions and due diligence sample testing.

We currently hold ten (10) unpatented mining claims located in Esmeralda County, Nevada, commonly known as "Kibby Flats Property". We also hold fifty (50) unpatented mining claims commonly referred to as the "QR Property" located in Humboldt County, Nevada.

Funding permitted, we expect to devote the majority of our efforts permitting and exploring the QR Property. Since the end of the fiscal year ended December 31, 2016 and through the date of this report, we were unable to commence material field activities due our lack of financial resources.





Results of Operations



Revenues

We have not earned any revenues since our inception and we do not anticipate earning revenues in the near future.





Operating Expenses

For the three and nine months ended September 30, 2019 we incurred exploration costs of approximately $5,000 related to the annual claim maintenance costs, a reduction of approximately 70% from the comparable prior periods in 2018. We are continuing to focus on obtaining appropriate funding to begin our planned exploration program. As our funding permits, we expect to incur increasing exploration costs for at least the next twelve months.

During the three months ended September 30, 2019, our general and administrative costs decreased approximately $8,000 to approximately $16,000 from the prior comparable period of 2018. During the nine months ended September 30, 2019 our general and administrative costs decreased by approximately $15,000 to approximately $56,000 from approximately $71,000 incurred in the nine month period ended September 30, 2018. These decreases primarily consist of reductions in travel costs incurred. General and administrative expense primarily consists of director fees totaling $10,000 per quarter and professional fees associated with regulatory compliance and facilities costs to maintain our corporate office.









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Liquidity and Capital Resources

As of September 30, 2019, the Company had a working capital deficit of approximately $186,000. Nearly all current obligations due, inclusive of $155,000 of director fees, are held by related parties that informally agreed to defer payment until the Company's financial resources improve (however, they are under no formal obligation to continue to do so).

During the nine months ended September 30, 2019 our cash used in operations was due to the Company continuing to incur operating expenses included in our net loss of approximately $57,000.

Our current available capital reserves are not sufficient for the Company to remain operational. We require additional equity and / or debt financing to implement our exploration and other business plans.

Our auditors have issued a "going concern" opinion on our financial statements for the year ended December 31, 2018, meaning that there is substantial doubt we can continue as an on-going business for the next twelve months unless we obtain additional capital. No substantial revenues are anticipated until we have completed one or more financings and implemented our plan of operations. Our sole Officer, and other affiliates, have provided the financial resources to continue as a going concern, however, they have no obligations to do so.

We have achieved success in using shares of our restricted and unregistered shares of common stock in making capital asset acquisitions including mining equipment and mineral properties. We expect to continue to issue shares for certain future capital acquisitions and to compensate certain officers, directors, and other consultants; however, there is no guarantee we will be able to do so at terms favorable to our operating plans or at all.





Critical Accounting Policies

Our Unaudited Financial Statements and Notes to Unaudited Financial Statements have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires management to make estimates, judgments, and assumptions that affect reported amounts of assets, liabilities, revenues, and expenses. We continually evaluate the accounting policies and estimates used to prepare the condensed financial statements. The estimates are based on historical experience and assumptions believed to be reasonable under current facts and circumstances. Actual amounts and results could differ from these estimates made by management. Certain accounting policies that require significant management estimates and are deemed critical to our results of operations or financial position are discussed in our Annual Report on Form 10-K for the year ended December 31, 2018.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

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