The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with our unaudited consolidated
financial statements and the notes thereto. This discussion and analysis may
contain forward-looking statements based on assumptions about our future
business.
The terms the "Company", "we", "us", "our" and similar terms refer to Empire
Global Gaming, Inc.
In General
We presently sell our ancillary gaming products in the United States but
contemplate selling and leasing our products worldwide.
We are controlled by two individuals (our President and Chief Financial Officer)
who devote approximately 25 hours a week each of their time to the business of
the Company.
Although the Company has obtained the license for the manufacturing, sale,
marketing and licensing of the four roulette patents, and certain other patents,
we have not yet applied to any State Gaming Commission(s) to seek approval to
sell any of our products. The Company has not, as of yet, arranged for any lines
of credit, and we have no commitments, written or oral, from officers, directors
or shareholders to provide the Company with advances, loans or other funding for
our operations.
Critical Accounting Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America required management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. On an on-going basis, we evaluate our estimates,
based on historical experience, and various other assumptions that are believed
to be reasonable under the circumstances, the results of which form the basis
for making judgments about the carrying values of assets and liabilities that
are not readily apparent from other sources. Actual results could differ from
those estimates.
Liquidity and Capital Resources
We believe that the Company currently does not have the necessary working
capital to support existing operations through 2021 since the Company has had
minimal revenues and accumulated deficit of $1,290,935 through March 31, 2021.
Our primary capital source will be loans from stockholders. We are seeking to
develop and market the patented technologies, manufacture and sell gaming
equipment that will generate cash from operations.
For the remainder of the fiscal year ending December 31, 2021, we anticipate
incurring a loss as a result of continued expenses associated with compliance
with the reporting requirements of the Securities Exchange Act of 1934.
Plan of Operations
During the remainder of the fiscal year ending December 31, 2021, we will
continue with efforts to develop and market the patented technologies, a pick 3
lotto evaluation and analysis program, manufacture and sell gaming equipment
that will generate cash from operations. We also plan to file all required
periodic reports and to maintain our status as a fully-reporting company under
the Exchange Act.
Based upon our current cash reserves, although we feel it will be adequate, we
may not have adequate resources to meet our short term or long-term cash
requirements. No specific commitments to provide additional funds have been made
by management, the principal stockholders or other stockholders, and we have no
current plans, proposals, arrangements or understandings with respect to the
sale or issuance of additional securities. Accordingly, there can be no
assurance that any additional funds will be available to us to allow us to cover
our expenses.
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Three Months Ended March 31, 2021 compared to the Three Months Ended March 31,
2020
The following table summarizes the results of our operations during the three
months ended March 31, 2021 and 2020, respectively, and provides information
regarding the dollar and percentage increase or (decrease) from the current
year's three month period to the prior year's three month period:
Three Months Ended:
March 31, March 31,
2021 2020 Variance Percentage
Revenue $ - $ - $ - 0.00 %
Operating expenses (12,999 ) (8,788 ) (4,211 ) 47.92 %
Other expense (37,306 ) (2,778 ) (34,528 ) 1242.91 %
Net loss $ (50,305 ) $ (11,566 ) $ (38,739 ) 334.94 %
Loss per share of common stock $ (0.00 ) $ (0.00 ) $ 0.00
The variance between the net loss of $50,305 for the three months ended March
31, 2021 compared to the net loss of $11,566 for the same period in 2020 was
primarily attributable to interest expense on notes of $5,630, amortization of
debt discount of $19,176 and loss on debt extinguishment of $12,500.
Commitment and Contingencies
None.
Off-Balance Sheet Arrangements
At March 31, 2021, we did not have any off-balance sheet arrangements as defined
in Item 303(a)(4) of Regulation S-K that have had or are likely to have a
material current or future effect on our financial statements.
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