Results of Operations

For the years ended December 31, 2020 and 2019





Revenue

The Company had no operations and no revenue for the years ended December 31, 2020 and 2019 and its only income was from interest income on its short-term investments which are classified as cash and cash equivalents.





Operating Expenses



The following table presents our total operating expenses for the years ended
December 31, 2020 and 2019.



                                                 Year Ended
                                                December 31,
                                             2020          2019
Audit and professional fees                   68,000        50,814
Payroll                                       20,502        18,867
Stock based compensation                      90,000        92,100

Other general and administrative expense 13,542 22,374

$ 192,044     $ 184,155





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Operating expenses consist of i) audit, accounting and legal fees, ii) payroll, and iii) other general and administrative expenses, including directors' compensation of $90,000 paid in stock, transfer agent and EDGAR filer services and other service expenses directly related to the maintenance of the corporate entity and the preparation and filing of reports with the Securities and Exchange Commission. The increase in audit and professional fees in 2020 was mainly due to the increase in legal, audit, and accounting fees, and other general and administrative expenses including investment banking fees.





Loss from Operation

The Company incurred a loss from operations of $192,044 and $184,155 for the years ended December 31, 2020 and 2019, respectively.





Other Income (Expense)

The following table presents our total Other Income (Expense) for the years ended December 31, 2020 and 2019.





                                     Year Ended
                                    December 31,
                                2020          2019

Interest and other income      $ 1,010     $    8,681
Warrant modification expense         -       (567,194 )
                               $ 1,010     $ (558,513 )

Other income (expense) increased by $559,523 for the year ended December 31, 2020 as compared to the year ended December 31, 2019. The increase was caused by no 2020 Warrant modification expenses and less interest income due to fewer investable funds and lower interest rates.





Net Loss

The Company had a net loss of $191,034 for the year ended December 31, 2020, compared with a net loss of $742,668 for the year ended December 31, 2019.

Losses per share for the years ended December 31, 2020 and 2019 were $(0.00) and $(0.01) per share, respectively, based on the weighted-average shares issued and outstanding.

It is anticipated that future operating expenses may increase as the Company complies with its periodic reporting requirements and effects a business combination, although there can be no assurance that the Company will be successful in effecting a business combination.






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Liquidity and Capital Resources

At December 31, 2020 the Company had cash and cash equivalents of approximately $570,671 consisting mostly of money market funds and U.S. Treasury and government securities maturing in 3 months or less. Management believes that its cash and cash equivalents are sufficient for its business activities for at least the next twelve months and for the costs of seeking an acquisition of an operating business.

The following table provides detailed information about our net cash flow for all years presented in this Report.





Cash Flow



                                                   Year Ended
                                                  December 31,
                                               2020          2019

Net cash used in operating activities $ (108,476 ) $ (76,724 ) Net cash provided by investing activities

            -             -
Net cash provided by financing activities            -             -
Net cash outflow                            $ (108,476 )   $ (76,724 )

Net cash of $108,476 and $76,724 were used in operations during the year ended December 31, 2020 and 2019, respectively.

The use of cash of $108,476 used in operating activities for the year ended December 31, 2020, principally resulted from our net loss of $191,034, as adjusted for non-cash charges for stock-based compensation of $90,000, and changes in accounts payable and accrued expenses of $(7,442).

The use of cash of $76,724 used in operating activities for the year ended December 31, 2019, principally resulted from our net loss of $742,668, as adjusted for non-cash charges for warrants modification expense of $567,194, stock-based compensation of $92,100, and changes in accounts payable and accrued expenses of $6,650.

No cash flows were used in or provided by investing activities during the years ended December 31, 2020 and 2019.

No cash proceeds were used in or provided by financing activities during the years ended December 31, 2020 and 2019.

New Accounting Pronouncements

Refer to the discussion of recently adopted/issued accounting pronouncements under Part II, Item 8, Notes to Financial Statements, Note 3: Significant Accounting Policies.

Factors Which May Affect Future Results

Future earnings of the Company are dependent on interest rates earned on the Company's invested balances and expenses incurred. The Company expects to incur significant expenses in connection with its objective of identifying a merger partner or acquiring an operating business.

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