FORWARD LOOKING STATEMENTS
Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). These statements often can be identified by the use of terms such as "may," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.
Recent Developments Related to the COVID-19 Outbreak
All of the disclosures set forth in this Item 2 should be read in the context of the recent COVID-19 related developments discussed immediately below. All of the disclosures recited in "Recent Developments Related to the COVID-19 Outbreak" are as of the date of this filing.
The occurrence of the COVID-19 pandemic may negatively affect our operations depending on the severity and longevity of the pandemic.
The COVID-19 pandemic is currently impacting countries, communities, supply
chains and markets as well as the global financial markets. The pandemic has
resulted in social distancing, travel bans and quarantine, and this has limited
and may continue to limit access to our facilities, customers, management,
support staff and professional advisors. These factors, in turn, may not only
impact our operations, financial condition and demand for our goods and services
but our overall ability to react timely to mitigate the impact of this event.
Also, it may hamper our efforts to comply with our filing obligations with the
Overview of the Business
We sell, lease, and rent heavy equipment to companies within four industries:
construction (light and infrastructure), shipping logistics, mining, and
commercial farming. With customers in
13 Results of Operations March 31, 2022 March 31, 2021 REVENUES (unaudited) (unaudited)
Sales of Equipment and Other Revenues
365,914 783,714 Total Revenues 4,951,606 4,029,696 COST OF REVENUES Sales of Equipment and Other Revenues 3,552,821 2,613,032 Rentals and Leases 149,716 244,956 Total Cost of Revenues 3,702,537 2,857,988 GROSS PROFIT 1,249,069 1,171,708 OPERATING EXPENSES Selling Expense 323,441 139,189 General and Administrative 369,336 244,303 Total Operating Expenses 692,777 383,492 INCOME FROM OPERATIONS 556,292 788,216 OTHER INCOME (EXPENSE) Interest Expense, net (177,757 ) (267,057 )
Loss from Early Extinguishment of Debt (15,345 ) (12,333 ) Other Income
554 10,078 Total Other Income (Expense) (192,548 ) (269,312 ) PROFIT BEFORE BENEFIT FOR INCOME TAXES 363,744 518,904 PROVISION FOR INCOME TAXES 105,427 153,075 NET PROFIT$ 258,317 $ 365,829 Revenue
Revenue for the three months ending
Cost of Revenue
Costs of Revenue for the three months ending
Operating Expenses
Operating expenses increased by
14 Interest Expense
The three months ending
Operating Results
The Company had a net profit of
Liquidity
Moving forward, we expect to generate sufficient cash flows from operations to meet our obligations and expect to continue to obtain financing for equipment purchases in the normal course of business. The Company believes that our expected cash flows from operations, together with our available credit facilities, will be sufficient to operate in the normal course of business for the next 12 months.
Off-Balance Sheet Arrangements
We have no 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.
Seasonality
Our operating results are not affected by seasonality.
Inflation
Our business and operating results are not affected in any material way by inflation.
Critical Accounting Policies
The
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