BRIDGEWAY NATIONAL CORP. FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements.
We caution that the factors described herein, and other factors could cause our actual results of operations and financial condition to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The Company
Prior to the transactions that took place on
Results of Operations
Three months ended
The following comparative analysis on results of operations was based primarily
on the comparative consolidated financial statements, footnotes and related
information for the periods identified below and should be read in conjunction
with the consolidated financial statements and the notes to those statements
that are included elsewhere in this report. The results discussed below are for
the three months ended
Revenue
Total revenue was
-3- Cost of Revenue
We had no cost of revenues for the period ended
Operating Expenses
Total operating expenses were
Other Income (Expenses)
Other income for the three-month period ended
Net Profit (Loss)
The net profit (loss) was
Nine months ended
The following comparative analysis on results of operations was based primarily
on the comparative consolidated financial statements, footnotes and related
information for the periods identified below and should be read in conjunction
with the consolidated financial statements and the notes to those statements
that are included elsewhere in this report. The results discussed below are for
the nine months ended
Revenue
Total revenue was
Cost of Revenue
We had no cost of revenues for the period ended
Operating Expenses
Total operating expenses were
Other Income (Expenses)
Other expenses for the nine-month period ended
-4- Net Loss
The net loss was
Liquidity
Liquidity is the ability of an enterprise to generate adequate amounts of cash
to meet its needs for cash requirements. As of
Net cash used in operating activities for continued operations was (
Capital Resources
The Company is a holding company and its liquidity needs are primarily for fixed and recurring operational expenses.
As of
Our subsidiaries' principal liquidity requirements arise from cash used in operating activities, debt service, R&D expenditures, development of back-office systems, operating costs and expenses, and income taxes.
We expect to finance our future growth and operations, through public offerings and private placements of debt and equity securities, credit facilities, vendor financing, capital lease financing and other financing arrangements, as well as cash generated from the operations of our subsidiaries. In the future, we may also choose to sell assets or certain investments to generate cash.
At this time, we believe that we will be able to continue to meet our liquidity requirements and fund our fixed obligations and other cash needs for our operations for at least the next twelve months through a combination of distributions from our subsidiaries and from raising of debt or equity, refinancing of certain of our indebtedness or preferred stock, other financing arrangements and/or the sale of assets and certain investments. We anticipate that as we continue to scale our operations, we will reinvest cash and receivables into the growth of our various businesses, and therefore do not anticipate keeping a large amount of cash on hand at the holding company level. The ability of our subsidiaries to make distributions to the Company is and will be in the future subject to numerous factors, including restrictions contained in each subsidiary's financing agreements, regulatory requirements and the availability of sufficient funds at each subsidiary. Although the Company believes that it will be able to raise equity capital, refinance indebtedness or preferred stock, enter into other financing arrangements or engage in asset sales and sales of certain investments sufficient to fund any cash needs that we are not able to satisfy with the funds expected to be provided by our subsidiaries, there can be no assurance that it will be able to do so on terms satisfactory to the Company if at all. Such financing options, if pursued, may also ultimately have the effect of negatively impacting our liquidity profile and prospects over the long-term. In addition, the sale of assets or the Company's investments may also make the Company less attractive to potential investors or future financing partners.
-5-
Current and Future Financings
Subsequent Events
The Company's management has evaluated subsequent events up to the date the unaudited consolidated financial statements were issued, pursuant to the requirements of ASC 855 and has determined the following material subsequent event:
On
Inflation
In the opinion of management, inflation has not and will not have a material effect on our operations in the immediate future. Management will continue to monitor inflation and evaluate the possible future effects of inflation on our business and operations.
Off-Balance Sheet Arrangements
Under
-6- CRITICAL ACCOUNTING POLICIES
Our significant accounting policies are disclosed in Note 2 of our Unaudited Consolidated Financial Statements included elsewhere in this Quarterly Report.
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