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 unaudited condensed financial statements for the three months ended September 30, 2019 and the Form 10-K for the fiscal year ended June 30, 2019.





OVERVIEW

The Company's inflight connectivity technology is targeted at two distinct markets. BizjetMobile and Chiimp are designed for business jets and has been sold in North America, Europe and the Middle East. The Company's fflya system is designed for, and marketed to, low-cost airlines in Europe and Asia.





RESULTS OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2019 COMPARED TO THREE MONTHS ENDED SEPTEMBER 30, 2018

In the three months period ended September 30, 2019, the Company recorded revenue of $23,471, compared to revenue of $12,801 in the corresponding three month period ended September 30, 2018 as a result of a Chiimp system sale. After Cost of Sales of $8,461, the Company had a Gross Profit of $15,010 in the three months ended September 30, 2019. In the three months ended September 30, 2018, the Company recorded Cost of Sales of $2,153, which resulted in a Gross Profit of $10,648.

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 $195,461 in the three months ended September 30, 2019 and $165,780 in the three months ended September 30, 2018. Main components are engineering, management, marketing and audit expenses. In the three months ended September 30, 2019, the Company recorded an Operating Loss of $180,451 compared to an Operating Loss of $155,132 in the three months ended September 30, 2018.

The development and marketing costs have been funded in part through interest bearing convertible notes. As a result, the Company's Other Expenses, were interest of $36,770 and $36,214 in the three months ended September 30, 2019 and 2018 respectively. This resulted in Net Losses of $217,221 and $191,346 in the three months ended September 30, 2019 and 2018 respectively.


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LIQUIDITY AND CAPITAL RESOURCES

The cash and cash equivalents balance increased from $192 at June 30, 2019 to $366 at September 30, 2019.

The Company reported revenue of $23,471 in the three months ended September 30, 2019 compared to $12,801 in the three month period ended September 30, 2018. The Company incurred a net loss of $180,451 from operating activities for the three months to September 30, 2019, compared to a net loss of $155,132 from operating activities for the three months to September 30, 2018. Net cash used in operating activities for the three months ended September 30, 2019 was $80,406 compared to $116,126 during the three months ended September 30, 2018. Operating cash requirement in the three months ended September 30, 2019 was reduced through increased related party payables.

The cash flow of the Company from financing activities for the three months ended September 30, 2019 was $81,935 as a result of funds received pending issue of common stock. In the three months ended September 30, 2018, the cash flow from financing activities was $97,096 mainly 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 and hence its ability to continue as a going concern.

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