CYTTA CORP. The following is management's discussion and analysis of certain significant
factors that have affected our financial position and operating results during
the periods included in the accompanying condensed consolidated financial
statements, as well as information relating to the plans of our current
management. This report includes forward-looking statements. Generally, the
words "believes," "anticipates," "may," "will," "should," "expect," "intend,"
"estimate," "continue," and similar expressions or the negative thereof or
comparable terminology are intended to identify forward-looking statements. Such
statements are subject to certain risks and uncertainties, including the matters
set forth in this report or other reports or documents we file with the
Although the Company believes that the expectations reflected in the
forward-looking statements are reasonable, the Company cannot guarantee future
results, levels of activity, performance, or achievements. Except as required by
applicable law, including the securities laws of
Our financial statements are prepared in accordance with accounting principles
generally accepted in
The following discussion should be read in conjunction with our unaudited financial statements and the related notes that appear elsewhere in this Quarterly Report on Form 10-Q.
THE COMPANY
The following tables set forth key components of our results of operations for
the three months ended
December 31,
2021 % 2020 %
Revenue $ 937 100.0 $ 70,520 100.0
COGS $ - 0.0 $ 25,277 35.8
Gross Profit $ 937 100.0 $ 45,243 64.2
Operating Expenses
Operating Loss$ (1,118,049 ) 1,193.2$ (472,920 ) 670.6 Net Loss$ (1,164,106 ) 1,242.4$ (472,319 ) 669.8 17 Table of Contents
Revenues consist of hardware imbedded with our proprietary software, integration
consulting services, tech support and product maintenance billed to the
customer. Revenues decreased for the three months ended
December 31,
Increase
Description 2021 2020 (decrease)
Stock based expenses $ 455,985 $ 205,156 $ 250,829
Professional fees 111,296 66,619 44,677
Consulting expenses (excluding stock
expenses) 18,450 23,667 (5,217 )
Related party expenses (excluding stock
expenses) 426,119 110,334 315,785
Depreciation expense 11,904 7,989 3,915
Equipment and demo expenses 8,891 23,572 (14,681 )
General and Administrative officers 3,670 32,183 (28,513 )
Auto, Travel and Meals and Entertainment 28,560 14,394 14,166
Rent expense 4,147 4,071 76
Investor relations expense 13,954 -0- 13,954
Other operating expenses 36,010 30,178 5,832
Total Operating expenses $ 1,118,986 $ 518,163 $ 600,823 Stock-based expenses increased in the current period compared to the prior
period substantially as a result of
Related party expenses increased for the three months ended
Three months ended
December 31,
2021 2020
Management fees, Chief Executive Officer (CEO)
145,000 36,000
Chief Administration Officer (CAO) 120,000 30,000
Office rent and expenses 16,219 8,334
Total $ 426,119 $ 110,334
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Effective
The following tables set forth key components of our balance sheet as of
December 31, September
2021 30, 2021
Current Assets $ 3,948,687 $ 1,102,449
Property and Equipment $ 158,701 $ 170,605
Total Assets $ 4,107,388 $ 1,273,054
Current Liabilities $ 282,650 $ 406,089
Total Liabilities $ 282,650 $ 406,089
Stockholders' Equity $ 3,824,738 $ 866,245
Total Liabilities and Stockholders' Equity $ 4,107,388 $ 1,273,054 Liquidity and Capital Resources
Our current capital and our other existing resources will be sufficient to
provide the working capital needed for our current business Additional capital
will be required to further expand our business. We may be unable to obtain the
additional capital required. Our inability to generate capital or raise
additional funds when required will have a negative impact on our business
development and financial results. These conditions among others raise
substantial doubt about our ability to continue as a going concern as well as
our recurring losses from operations and the need to raise addition. This "going
concern" could impair our ability to finance our operations through the sale of
debt or equity securities. During the three months ended
As of
In
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Operating Activities
For the three months ended
For the three months ended
Investing Activities
For the three months ended
Financing Activities
For the three months ended
As of
Critical Accounting Policies
Our significant accounting policies are summarized in Note 3 of our financial statements. While all these significant accounting policies impact our financial condition and results of operations, we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause an effect on our results of operations, financial position or liquidity for the periods presented in this report.
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Property and Equipment
Property and equipment are stated at cost, and depreciation is provided by use of a straight-line method over the estimated useful lives of the assets.
The Company reviews property and equipment for potential impairment whenever events or changes in circumstances indicate that the carrying amounts of assets may not be recoverable. The estimated useful lives of property and equipment is as follows:
Vehicles and equipment 5 years
Software 3 years Revenue Recognition
Effective
Stock-Based Compensation
The Company accounts for its stock based compensation under the recognition and
measurement principles of the fair value recognition provisions of Statement of
Financial Accounting Standards No. 123 (revised 2004) "Share-Based Payment"
("SFAS No. 123R")(ASC 718) using the modified prospective method for
transactions in which the Company obtains employee services in share-based
payment transactions and the
Earnings (Loss) Per Share
The Company computes net loss per share in accordance with FASB ASC 260, "Earnings per Share." ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the statement of operations. Basic EPS is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including stock options, using the treasury stock method, and convertible notes and stock warrants, using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options, warrants and conversion of convertible notes. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive.
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Off Balance Sheet Arrangements
We have no off-balance sheet arrangements including arrangements that would affect our liquidity, capital resources, market risk support and credit risk support or other benefits.
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