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 SEC. Depending on the severity and longevity of the COVID-19 pandemic, our business, customers, and shareholders may experience a significant negative impact. (See Financial Statements, Note 2 - Summary of Significant Accounting Policies - Risks and Uncertainties.)





 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 the United States, Canada, Latin America, Asia and Africa, we have over 30 years of experience in heavy equipment sales and service and inventories of top-of-the-line equipment from manufacturers such as Taylor Machine Works Inc. and Terex Heavy Equipment. We were originally incorporated as Hamre Equipment Company, Inc. in California on November 17, 1989. We merged into AmeraMex International, Inc., a Nevada corporation, on November 2, 2006.





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Results of Operations

                                          March 31, 2022     March 31, 2021
  REVENUES                                  (unaudited)        (unaudited)

Sales of Equipment and Other Revenues $ 4,585,692 $ 3,245,982 Rentals and Leases

                              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 March 31, 2022 was $4,951,606 compared to $4,029,696 for the same time during 2021, a 23% increase. Sales of Equipment and Other Revenues for the three months ending March 31, 2022 was $4,585,692 and made up 93% of our Total Revenues. For the three months ending March 31, 2021, Sales of Equipment and Other Revenues made up $3,245,982, or 81% of Total Revenues. The remaining portion of Total Revenues, Rentals and Leases, for the respective periods were $365,914, or 7%, in 2022 and $783,714 or 19% in 2021. The 23% increase in Sales of Equipment and Other Revenues year over year is due to the consistently lower interest rates, which made financing easier for our customers, as well as the continued momentum we have experienced as the State of California reduces restrictions tied to the COVID-19 pandemic which shut down our state and halted all major sales from March 2020 through June 2020. Rentals and Leases revenue decreased by 53% year over year as customers converted long-term rentals into purchases, taking advantage of the prime financing at very low interest rates mentioned above.





Cost of Revenue


Costs of Revenue for the three months ending March 31, 2022 were $3,702,537 compared to $2,857,988, an increase of 30%. The price of used equipment has been increasing since the beginning of 2021 and was noticeably higher during the first quarter; however, the increase is directly tied to the increase in revenue from the sale of equipment.





Operating Expenses


Operating expenses increased by $309,285 during the three months ending March 31, 2022 compared to the three months ending March 31, 2021. This 81% increase is due to the Company paying higher wages in an effort to stay competitive in a highly volatile job market and the higher costs spent on marketing our equipment.





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Interest Expense

The three months ending March 31, 2022 compared to the three months ending March 31, 2021 shows a reduction in interest expense from $267,057 to $177,757. This 33% reduction is due to the Company's continuing efforts to pay off debt.

Operating Results

The Company had a net profit of $258,317 for the three months ending March 31, 2022 as compared to net profit of $365,829 for the three months ending March 31,2021. The 30% decrease in profit is tied to higher operational expenses. The first quarter of 2022 reflects the continuing trend of lower interest rates on financing making it easier for customers to purchase equipment offset by higher input costs and rising operational costs.

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 SEC issued Financial Reporting Release No. 60, "Cautionary Advice Regarding Disclosure About Critical Accounting Policies" suggesting that companies provide additional disclosure and commentary on their most critical accounting policies. In Financial Reporting Release No. 60, the SEC has defined the most critical accounting policies as the ones that are most important to the portrayal of a company's financial condition and operating results and require management to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. The nature of our business generally does not call for the preparation or use of estimates. Due to that fact, we do not believe that we have any such critical accounting policies.

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