This quarterly report on form 10-Q includes "forward-looking statements" as defined by the Securities and Exchange Commission. These statements may involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe future plans, strategies and expectations, are generally identifiable by use of the words "may," "will," "could", "should," "expect," "anticipate," "estimate," "believe," "intend" or "project" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect. Actual results could differ materially from those expressed or implied by the forward-looking statements as a result of various factors. The company undertakes no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur in the future.

The following discussion should be read in conjunction with the accompanying financial statements for the three and nine months ended March 31, 2019 and the Form 10-K for the fiscal year ended June 30, 201.

RESULTS AND PLAN OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2019 COMPARED TO THREE MONTHS ENDED MARCH 31 2018

In the three months period ended March 31, 2019, the Company recorded revenue of $8,224, compared to revenue of $20,803 in the corresponding three month period ended March 31, 2018. After Cost of Sales of $4,130, the Company had a Gross Profit of $4,094 in the three months ended March 31, 2019. In the three months ended March 31, 2018, the Company recorded Cost of Sales of $4,578, which resulted in a Gross Profit of $16,225.

The Company continued investing in the development and marketing of the airline versions of its fflya and CrewX technology. As a result, the product is now in production and has received favourable responses from potential airline customers and strategic partners. In addition, the airline product will be used to upgrade the business jet offering which is expected to open new marketing opportunities for the Company. The Company incurred operating costs of $182,765 in the three months ended March 31, 2019 and $236,773 in the three months ended March 31, 2018. Main components are engineering, management, marketing and trade show expenses. In the three months ended March 31, 2019, the Company recorded an Operating Loss of $178,671 compared to an Operating Loss of $220,548 in the three months ended March 31, 2018.

The development and marketing costs have been funded in part through interest bearing convertible notes. As a result, the Company's Other Expenses, which also included capital raising costs, were $35,266 and $40,992 in the three months ended March 31, 2019 and 2018 respectively. This resulted in Net Losses of $213,937 and $261,540 in the three months ended March 31, 2019 and 2018 respectively.

NINE MONTHS ENDED MARCH 31, 2019 COMPARED TO NINE MONTHS ENDED MARCH 31, 2018

In the nine month period ended March 31, 2019, the Company recorded revenue of $62,694, compared to revenue of $96,847 in the corresponding nine month period ended March 31, 2018. After Cost of Sales of $23,866, the Company had a Gross Profit of $38,828. In the nine months ended March 31, 2018, the Company recorded Cost of Sales of $23,028, which resulted in a Gross Profit of $73,819.

The Company's operating costs decreased from $625,794 in the nine months ended March 31, 2018 to $506,284 in the nine months ended March 31, 2019. Main components of operating expenses are engineering, management, marketing and trade show expenses. In the nine months ended March 31, 2019, the Company recorded an Operating Loss of $467,456 compared to an Operating Loss of $551,975 in the nine months ended March 31, 2018.

The development and marketing costs have been funded in part through interest bearing convertible notes. As a result, the Company's Other Expenses, which also included capital raising costs, increased from $60,507 in the nine


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months ended March 31, 2018 to $127,629 in the nine months ended March 31, 2018. This resulted in Net Losses of $595,086 and $612,482 in the nine months ended March 31, 2019 and 2018 respectively.

LIQUIDITY AND CAPITAL RESOURCES

The cash and cash equivalents balance decreased from $40,457 at June 30, 2018 to $2,171 at March 31, 2019.

The Company reported revenue of $62,694 in the nine months ended March 31, 2019 compared to $96,847 in the nine month period ended March 31, 2018. The Company incurred a net loss of $467,456 from operating activities for the nine months to March 31, 2019, compared to a net loss of $551,975 from operating activities for the nine months to March 31, 2018. Net cash used in operating activities for the nine months ended March 31, 2019 was $448,629 compared to $462,438 during the nine months ended March 31, 2018. Operating cash requirement in the nine months ended March 31, 2019 was reduced through increased related party payables.

The cash flow of the Company from financing activities for the nine months ended March 31, 2019 was $410,343 as a result of proceeds from issue of common. In the nine months ended March 31, 2018, the cash flow from financing activities was $604,119 of advances from unrelated parties, subsequently converted to convertible notes, and from issue of common stock.

The Company may raise additional capital by the sale of its equity securities, through an offering of debt securities, or from borrowing from a financial institution or other funding sources. The Company does not have a policy on the amount of borrowing or debt that the Company can incur. There are no guarantees on the company's ability to raise additional capital.

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