Forward-Looking Statements

Certain statements made in this quarterly report on Form 10-Q are "forward-looking statements" in regard to the plans and objectives of management for future operations. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the registrant to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. The Company's plans and objectives are based, in part, on assumptions involving the continued expansion of business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes its assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance the forward-looking statements included in this quarterly report will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the registrant or any other person that the objectives and plans of the registrant will be achieved. Substantial risks exist with respect to an investment in the Company. These risks include but are not limited to, those factors discussed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2021, filed with the Securities and Exchange Commission ("Commission") on November 12, 2021. More broadly, these factors include, but are not limited to:





  ? We have incurred significant losses and expect to incur future losses;




  ? Our current financial condition and immediate need for capital;




    ?   Potential significant dilution resulting from the issuance of new
        securities for any funding, debt conversion   or any business combination;
        and




  ? We are a "penny stock" company.




Description of Business

Clancy Corp. ("the Company") was incorporated on March 22, 2016 under the laws of the State of Nevada. The Company initially was formed for the purpose of producing and selling handcrafted soaps.

On April 13, 2020, the Company registered Shanghai Clancy Enterprise Management Co., Ltd. (Shanghai Clancy) as a wholly foreign-owned entity and as a wholly owned subsidiary in Shanghai, China. Shanghai Clancy had no business activity from inception through April 30, 2022.

On April 24, 2020, Shanghai Clancy registered Beijing Clancy Information Technology Co., Ltd. (Beijing Clancy) in Beijing as its wholly-owned subsidiary and a second tier subsidiary of the Company.

From August 1, 2020 to April 30, 2021, the Company business centered on providing IT services to a small number of clients. In May 2021, the Company ceased its IT services and re-focused its operations to provide marketing services to small and median sized businesses. Clancy is now a product marketing consulting firm that provides product marketing consulting services to clients. The Company will develop marketing programs and strategies in line with customer needs. Our marketing programs will provide clients with detailed analysis on the market data in their industry, including historical data. We also will assist clients expand their marketing communication channels including but not limited to advertisements in the business journals, electronical communication tools such as WeChat marketing programs, etc. We charge an agreed upon fee based on technical difficulties and the marketing reach of the programs.





Results of Operations

While we commenced limited operations during the first fiscal quarter last year, at the present time, the Company still is considered a shell company as defined in Rule 504 of the Act. One of our principal business objective for the next 12 months and beyond such time will be to achieve meaningful business operations. Alternatively, if we are unable to successfully develop our business, we may seek a combination with a business rather than immediate, short-term earnings. The Company will not restrict our potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business.





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Comparison of Three and Nine Month Periods ended April 30, 2022 and 2021





Revenues

For the three months ended April 30, 2022 and 2021, the company had revenues of $0 and $15,050, respectively. For the nine months ended April 30, 2022 and 2021, the company had revenues of $0 and $44,688, respectively. The revenues for both periods in 2021 were from our IT related business conducted through Beijing Clancy. As mentioned above, we ceased our IT business in May 2021, and we have embarked on a new business model of providing marketing consulting services to clients. We did not receive any revenues from our new business model during the current three and six month periods.





Cost of Revenues

For the three months ended April 30, 202 and 2021, the Company had cost of revenues $0 and $67,687, respectively. For the nine months ended April 30, 202 and 2021, the Company had cost of revenues $0 and $142,548, respectively. Cost of revenues includes salaries and benefits of IT technicians. The decrease in cost of goods sold is due to the termination of our IT business which, as mentioned, ceased in May 2021. We did not have any cost of goods sold for our new business operations during the same period of the three and nine months ended April 30, 2022.





Operating Expenses

For the three months ended April 30, 2022, the Company had total operating expenses of $90,853, consisting of $63,745 in research and development ("R&D") expense, $27,108 in general and administrative expenses. These amounts compare with total operating expenses of $22,618 consisting of $1,093 in R&D expense and $21,525 in general and administrative expense for the three months ended April 30, 2021. The increase of $68,235 for the current period was due to the increase in R&D expense.

For the nine months ended April 30, 2022, the Company had total operating expenses of $300,466, consisting of $204,246 in R&D expense, $96,220 in general and administrative expenses. These amounts compare with total operating expenses of $125,844 consisting of $40,624 in R&D expense and $85,220 in general and administrative expense for the nine months ended April 30, 2021. The increase of $174,622 for the current period was due to the increase in R&D expense.





Net Loss

For the nine months ended April 30, 2022 and 2021, the Company had a net loss of $300,411 and $223,475, respectively, for the reasons discussed above.

For the three months ended April 30, 2022 and 2021, the Company had a net loss of $90,844 and $75,061, respectively, for the reasons discussed above.

Liquidity and Capital Resource

The Company had $35,441 and $54,375, respectively, in cash and cash equivalents as of April 30, 2022 and July 31, 2021.

As of April 30, 2022 and July 31, 2021, the Company had working capital deficit of $500,407 and $256,136, respectively. The increase in working capital deficit was due to increased operating losses during the current period.

The Company can provide no assurances that it can continue to satisfy its cash requirements for at least the next twelve months.





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The following is a summary of the Company's cash flows from operating and financing activities for the nine months ended April 30, 2022 and 2021:





                                             Nine Month Ended       Nine Month Ended
                                                April 30,              April 30,
                                                   2022                   2021

Net Cash Used in Operating Activities $ (258,622 ) $ (136,585 ) Net Cash Provided by Financing Activities

              240,208                317,565

Effects of Exchange rate Changes on Cash                  (521 )                1,716
Net Change in Cash                          $          (18,934 )   $          182,696




Operating Activities

During the nine months ended April 30, 2022, the Company had a net loss of $300,411 and after adjusting for lease expense, decreased cash amortization of prepaid expenses and decreased payment on accounts payable, net cash used in operating activities was $258,622. By comparison, during the nine months period ended April 30, 2021, the Company incurred net cash used in operating activities of $136,585, which was mainly from net loss of $223,475 for the prior period.





Financing Activities

During the nine months ended April 30, 2022, the Company had cash provided by financing activities of $240,208, which were loans from a related party (the Company's sole officer and major shareholder). By comparison, during the nine months ended April 30, 2021, the Company had cash provided by financing activities of $317,565, which mainly consisted of shares issued from an equity financing for $300,000, and loans of $17,565 from the related party.

Our financial statements reflect the fact that we do not have enough revenue to cover expenses. We are at present under-capitalized. The Company is dependent upon the receipt of capital investment or other financing to fund its ongoing operations and to execute its business plan of seeking a combination with a private operating company. In addition, the Company is dependent upon certain related parties to provide continued funding and capital resources. If continued funding and capital resources are unavailable at reasonable terms, the Company may not be able to implement its plan of operations.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company's financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.





Contractual Obligations

None except as disclosed in the notes to the financial statements.





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