FELLAZO CORP. RESULTS OF OPERATIONS
The following summary of our results of operations should be read in conjunction with our financial statements included elsewhere in this annual report.
As at
Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation. We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.
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Comparison of the years ended
Years ended
August 31,
2022 2021 Change %
Revenue $ 81,846 $ 246,861 $ (165,015 ) (67%)
Cost of Goods Sold 55,941 182,306 (126,365 ) (69%)General and administrative expenses 372,020 391,378 (19,358 ) (5%) Net loss
$ 346,115 $ 326,823 $ 19,292 6%
For the year ended
The decrease in revenue is mainly due to the economic climate resulted from the still lingering Covid-19 pandemic. The decrease in cost of revenue is mainly due to a decrease in revenue.
Our general and administrative expenses were
Liquidity and Capital Resources
Working Capital
August 31, August 31,
2022 2021 Change %
Current assets $ 20,873 $ 7,361 $ 13,512 23 %
Current liabilities $ 1,756,280 $ 1,422,950 $ 333,330 23 %
Working capital deficiency $ (1,735,407 ) $ (1,415,589 ) $ (319,818 ) 23 %
The Company's current assets consists of cash of
As at
Cash Flows
Years ended
August 31,
2022 2021 Change
Cash provided by operating activities
(47,127 ) (68,163 ) 21,036
Effects on changes in foreign exchange rate (1,896 ) (76 ) (1,820 ) Net change in cash
$ 1,694 $ 696 $ 998
Cash Flow from Operating Activities
Cash flows provided by operations was
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Cash Flow from Financing Activities
Cash flows used in financing activities was
Plan of Operation and Funding
We expect that working capital requirements will continue to be funded through
further issuances of our securities and loans from our executive officers and
principal shareholders, including
Existing working capital, further advances and debt instruments, and anticipated cash flow are not expected to be adequate to fund our operations and potential acquisitions over the next twelve months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) the acquisition of businesses in the health-related industry; (ii) acquisition of inventory; (iii) developmental expenses associated with a start-up business; and (iv) marketing expenses. We intend to finance these expenses with further issuances of equity securities and debt instruments. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our Common Stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.
We will also be sourcing funds from potential investors to finance purchases of raw materials needed to support our operations and surplus for potential buyers.
We believe our business plan will create a significant growth potential to the Company which would generate more than sufficient revenue and liquidity to sustain the Company for the next twelve months and a significant future growth.
Off-Balance Sheet Arrangements
As of the date of this Annual Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
Going Concern
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.
As of
These conditions raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern.
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Critical Accounting Policies
We have identified the following policies below as critical to our business and results of operations. Our reported results are impacted by the application of the following accounting policies, certain of which require management to make subjective or complex judgments. These judgments involve making estimates about the effect of matters that are inherently uncertain and may significantly impact quarterly or annual results of operations. For all of these policies, management cautions that future events rarely develop exactly as expected, and the best estimates routinely require adjustment. Specific risks associated with these critical accounting policies are described in the following paragraphs.
Use of Estimates
The preparation of financial statements in conformity with
Recent Accounting Pronouncements
Our Company has implemented all new accounting pronouncements and does not believe that there are any other accounting pronouncements that have been issued that may have a material impact on its financial statements.
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