Off Balance Sheet Arrangements
There are no off-balance sheet arrangements.
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Results of Operations for the years ended March 31, 2022 and 2021
For the year ended March 31, 2022, we incurred total operating expenses of
$99,222 which included professional fees of $75,222 and rent of $24,000. We had
a gain on the extinguishment of debt of $678,233 and interest expense of $24,100
resulting in net income $554,911 for the year ended March 31, 2022.
For the year ended March 31, 2021, we incurred total operating expenses of
$8,090 which included professional fees of $5,090 and rent of $3,000. We had
interest expense of $69,842 resulting in a net loss of $77,932 for the year
ended March 31, 2021.
Liquidity
Operating Activities
For the year ended March 31, 2022, we had income of $554,911. For the year ended
March 31, 2022, we had a gain on the extinguishment of debt of $678,233, an
increase in accrued interest payable of $24,100 and an increase in accounts
payable and promissory notes of $30,000. As a result, we had net cash used in
operating activities of $(69,222) for the year ended March 31, 2022.
For the year ended March 31, 2021, we had a net loss of $77,932. For the year
ended March 31, 2021, we had an increase in accrued interest payable of $69,842
and an increase in accounts payable and promissory notes of $2,990. As a result,
we had net cash used in operating activities of $(5,100) for the year ended
March 31, 2021.
Investing Activities
For the year ended March 31, 2022, we did not pursue any investing activities.
For the year ended March 31, 2021, we did not pursue any investing activities.
Financing Activities
For the year ended March 31, 2022, we had proceeds from the sale of our common
stock for cash of $200,000. As a result, we had net cash provided by financing
activities of $200,000 for the year ended March 31, 2022.
For the year ended March 31, 2021, we had proceeds from a note payable - related
party of $5,100. As a result, we had net cash provided by financing activities
of $5,100 for the year ended March 31, 2021.
Plan of Operation
Over the next twelve months, we expect to incur costs and expenses related to:
- maintaining our corporate existence, such as annual fees due to the State of
Nevada;
- filing periodic reports under the Exchange Act, including filing, accounting
and legal fees;
- investigating and analyzing targets and possibly consummating a business
transaction.
We expect to incur costs associated with filing reports under the Exchange Act
over the next twelve months of approximately $25,000 to $45,000. Costs
associated with investigating and analyzing targets and possibly consummating a
business transaction are difficult to quantify given the multitude of variables
associated with such activities. Our ongoing expenses will result in continued
net operating losses that will increase until we can consummate a business
transaction with a profitable target business, if ever. We estimate that these
costs will be in the range of to $30,000 to $55,000 per year, and that we will
be able to meet these costs as necessary, with funds from the aforementioned
private placement.
Capital Resources.
We had no material commitments for capital expenditures as of March 31, 2022 and
2021.
Critical Accounting Policies
Our discussion and analysis of our financial condition and results of operations
are based upon our audited financial statements, which have been prepared in
accordance with accounting principles generally accepted in the United States.
The preparation of these financial statements requires us to make estimates and
judgments that affect the reported amounts of assets, liabilities, revenues and
expenses, and related disclosure of contingent assets and liabilities. We
continually evaluate our estimates, including those related to income taxes, and
the valuation of equity transactions. We base our estimates on historical
experience and on various other assumptions that we believed to be reasonable
under the circumstances, the results of which form the basis for making
judgments about the carrying values of assets and liabilities that are not
readily apparent from other sources. Any future changes to these estimates and
assumptions could cause a material change to our reported amounts of revenues,
expenses, assets and liabilities. Actual results may differ from these estimates
under different assumptions or conditions.
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Use of Estimate
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles (GAAP) requires management to make estimates and
assumptions that affect the amounts reported in the financial statements.
Estimates are based on historical experience, management expectations for future
performance, and other assumptions as appropriate. Key areas affected by
estimates include the assessment of the recoverability of long-lived assets,
which is based on such factors as estimated future cash flows. We re-evaluate
estimates on an ongoing basis; therefore, actual results may vary from those
estimates.
Fair Values of Financial Instruments
The carrying values of cash, accounts receivable, accounts payable and accrued
expenses approximate the fair values of these instruments due to their
short-term nature. The carrying amount for borrowings under the financing
agreement approximates fair value because of the variable market interest rates
charged for these borrowings.
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