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 March 31, 2020 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 MARCH 31, 2020 COMPARED TO THREE MONTHS ENDED MARCH 31, 2019

In the three months period ended March 31, 2020, the Company recorded revenue of $3,838, compared to revenue of $8,224 in the corresponding three month period ended March 31, 2019, as a result of lower Chiimp service fees. After Cost of Sales of $1,079, the Company had a Gross Profit of $2,759 in the three months ended March 31, 2020. In the three months ended March 31, 2019, the Company recorded Cost of Sales of $4,130, which resulted in a Gross Profit of $4,094.

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 $164,984 in the three months ended March 31, 2020 and $182,765 in the three months ended March 31, 2019. Main components are engineering, marketing and management expenses. In the three months ended March 31, 2020, the Company recorded an Operating Loss of $162,225 compared to an Operating Loss of $178,671 in the three months ended March 31, 2019.

The development and marketing costs have been funded in part through interest bearing convertible notes. As a result, the Company's Other Expenses, included interest of $36,552 and $29,866 in the three months ended March 31, 2020 and 2019 respectively. This resulted in Net Losses of $198,777 and $213,937 in the three months ended March 31, 2020 and 2019 respectively.


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NINE MONTHS ENDED MARCH 31, 2020 COMPARED TO NINE MONTHS ENDED MARCH 31, 2019

In the nine months period ended March 31, 2020, the Company recorded revenue of $41,137, compared to revenue of $62,694 in the corresponding nine month period ended March 31, 2019, as a result of lower Chiimp system sales and service fees. After Cost of Sales of $14,624, the Company had a Gross Profit of $26,513 in the nine months ended March 31, 2020. In the nine months ended March 31, 2019, the Company recorded Cost of Sales of $23,866, which resulted in a Gross Profit of $38,828.

The Company incurred operating costs of $538,731 in the nine months ended March 31, 2020 and $506,284 in the nine months ended March 31, 2019. Main components are engineering, marketing and management expenses. In the nine months ended March 31, 2020, the Company recorded an Operating Loss of $512,218 compared to an Operating Loss of $467,456 in the nine months ended March 31, 2019.

The development and marketing costs have been funded in part through interest bearing convertible notes. As a result, the Company's Other Expenses, included interest of $111,087 and $114,793 in the nine months ended March 31, 2020 and 2019 respectively. This resulted in Net Losses of $623,305 and $595,086 in the nine months ended March 31, 2020 and 2019 respectively.

LIQUIDITY AND CAPITAL RESOURCES

The Company's primary sources of liquidity are cash received from issue of common stock and accounts payable for expenses incurred with related parties. Without the continuation of these sources of funding, as stated in Note 2 above, the Company's ability to continue as a going concern is in substantial doubt. This will continue until the company is able to generate sufficient cash flow from its operations.

The cash and cash equivalents balance increased from $192 at June 30, 2019 to $14,943 at March 31, 2020.

The Company reported revenue of $41,137 in the nine months ended March 31, 2020 compared to $62,694 in the nine month period ended March 31, 2019. The Company incurred a net loss of $623,305 from operating activities for the nine months to March 31, 2020, compared to a net loss of $595,086 from operating activities for the nine months to March 31, 2019. Net cash used in operating activities for the nine months ended March 31, 2020 was $490,856 compared to $493,806 during the nine months ended March 31, 2019. Operating cash requirement in the nine months ended March 31, 2020 was reduced through increased accounts payable.

The cash flow of the Company from financing activities for the nine months ended March 31, 2020 was $505,607 as a result of funds received pending issue of common stock and advances from related parties. In the nine months ended March 31, 2019, the cash flow from financing activities was $455,520 mainly from issue of common stock and advances from related parties.

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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