FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact are "forward-looking statements", including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing.
Forward-looking statements may include the words "may," "could," "will," "estimate," "intend," "continue," "believe," "expect" or "anticipate" or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report. Except for our ongoing obligation to disclose material information as required by the federal securities laws, we do not intend, and undertake no obligation, to update any forward-looking statement.
Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. Some of the key factors impacting these risks and uncertainties include, but are not limited to:
? our failure to obtain additional financing; ? our inability to continue as a going concern; ? the unique difficulties and uncertainties inherent in the business; ? local and multi-national economic and political conditions, and ? our common stock.
Unless expressly indicated or the context requires otherwise, The terms "HQDA",
"Company", "we", "our", and "us" refer to
General
The Company has not had any bankruptcy, receivership or similar proceeding since incorporation.
Our business plan is owning, leasing and/or operating senior living residences
that provide seniors with a supportive, home life setting with care and
services, including activities of daily living, life enrichment and health and
wellness in certain cities in
The Senior Living Industry
Through our newly acquired and wholly-owned subsidiary,
The senior living industry encompasses a broad spectrum of senior living service and care options, which include independent living, assisted living and skilled nursing care. Our primary focus will be on the independent living services. Independent living is designed to meet the needs of seniors who choose to live in an environment surrounded by their peers where they receive services such as housekeeping, meals and activities, but are not reliant on assistance with activities of daily living (for example, bathing, eating and dressing), although we may offer these services through contracts with third parties.
Our operating philosophy is to provide services and care which meet the individual needs of its residents, and to enhance their physical and mental well-being, thereby allowing them to live longer and to "age in place." These facilities will offer, on a 24-hour basis, personal, supportive and home health care services appropriate for their residents in a home-like setting, which allow residents to maintain their independence and quality of life. We predict that the average of the residents at our facilities will be between 55 and 70.
Our primary focus will be in
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The long-term care industry encompasses a wide continuum of services and residential arrangements for elderly senior citizens. Skilled nursing facilities provide the highest level of care and are designed for elderly senior citizens who need chronic nursing and medical attention and are not able to live on their own. Further, skilled nursing facilities tend to be one of the most expensive alternatives while providing elderly senior citizens with limited independence and a diminished quality of life. On the other end of the continuum is home-based care, which typically is provided in an individual's private residence. While this alternative allows the elderly individual to "age in place" in his or her home and, in certain instances, can provide most of the services available at a skilled nursing facility, it does not foster any sense of community or the ability to participate in group activities.
Assisted living facilities generally are designed to fill the gap in the middle
of this continuum. Assisted living facilities have been described by the
The assisted living industry is highly fragmented in
Our facilities will provide services and care which are designed to meet the individual needs of its residents, enhance their physical and mental well-being and promote a supportive, independent and home-like setting. Most of our facilities will be primarily designed as premium facilities at which residents receive a comprehensive, bundled package of standard services for a single monthly fee.
We will strive to combine in our facilities the best aspects of independent living with the protection and safety of assisted living, with trained staff members who provide 24-hour care and monitoring of every resident. The senior living facilities will be designed and decorated to have a home-like atmosphere. Residents will be encouraged to furnish their rooms with personal items they have collected during their lifetime. Our senior living facilities differ from skilled nursing facilities in that our senior living facilities will not provide the more extensive, and costly, nursing and medical care found in nursing homes.
12 Results of Operations Three months ended March 31 2022 2021 Changes Revenue$ 199,584 $ 130,027 $ 69,557 Operating costs: Cost of food and beverages 102,793 27,298 75,495 Selling, general and administrative expenses 21,280 212,637 (190,747 ) Depreciation and amortization 81,865 42,685 39,180 Total operating expenses 206,548 282,620 (76,072 ) Operating loss$ (6,964 ) $ (152,593 ) $ 145,629 Nine months ended March 31 2022 2021 Changes Revenue$ 625,069 $ 638,389 $ (13,320 ) Operating costs: Cost of food and beverages 165,198 126,706 38,492 Selling, general and administrative expenses 345,347 614,465 (269,118 ) Depreciation and amortization 168,608 131,768 36,840 Total operating expenses 679,153 872,939 (193,786 ) Operating loss$ (54,084 ) $ (234,550 ) $ 180,466
Three months ended
The revenue for the three months ended
The total operating loss amounted
Nine months ended
The revenue for the nine months ended
The total operating loss amounted
Liquidity and Capital Resources
As of
Capital Expenditures
On
? Property A: land use rights and adhesive substance use rights, right to own, and right to operate of the land located in Shanghai Pudong New Area Zhangjiang Ziwei Rd No. 372 and No. 376. ? Property B: land use right, adhesive substance under construction use rights, right to own, and right to operate of the land located in Shanghai Chongming District San Shuang Gong Lu No. 4797.
We have agreed to pay the purchase price totaling
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Off-balance Sheet Arrangements
We have no 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 is material to stockholders.
Critical Accounting Policies
Our interim financial statements are prepared in accordance with accounting
principles generally accepted in
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