LINGERIE FIGHTING CHAMPIONSHIPS, INC. The following discussion of the results of our operations and financial condition should be read in conjunction with our financial statements and the related notes, which appear elsewhere in this report. The following discussion includes forward-looking statements. For a discussion of important factors that could cause actual results to differ from results discussed in the forward-looking statements, see "Forward Looking Statements."
Overview
LFC is a media company focused on the development, production, promotion and
distribution of original entertainment which we plan to make commercially
available predominantly through live entertainment events, as well as through
digital home video, broadcast television networks, video-on-demand and digital
media channels. As a result, we have ceased to be a shell company. Effective as
of
Results of Operations
Year ended
Our operating results for the year ended
Year Ended
December 31, Changes
Statement of Operations Data: 2021 2020 Amount %
Revenue $ 95,436 $ 27,776 $ 67,660 244 %
Cost of services (96,245 ) (27,652 ) (68,593 ) 248 %
Gross profit (loss) (809 ) 124 (933 ) (752 %)
Total operating expenses (411,655 ) (233,052 ) (178,603 ) 77 %
Other expense (3,111,090 ) (2,173,096 ) (937,994 ) 43 %
Net loss $ (3,524,363 ) $ (2,405,900 ) $ (1,118,463 ) 46 %
Revenues
We generated revenues of
Cost of Services
We incurred total cost of services of
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Operating Expenses
We incurred total operating expenses of
Other Income (Expenses)
We incurred total other expense of
Net Income (Loss)
We incurred net loss of
Liquidity and Capital Resources
December 31, December 31, Changes
Working Capital Data: 2021 2020 Amount %
Current Assets $ 41,981 $ 4,142 $ 37,839 914 %
Current Liabilities $ 6,840,790 $ 5,883,009 957,781 16 %
Working Capital Deficiency $ (6,798,809 ) $ (5,878,867 ) (919,942 ) 16 %
At
The ability of the Company to realize its business plan is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan. In response to these problems, management intends to raise additional funds through public or private placement offerings.
These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.
The following table sets forth certain information about our cash flow during
the year ended
Year Ended
December 31, Changes
Cash Flows Data: 2021 2020 Amount %
Cash Flows used in Operating
Activities $ (265,661 ) $ (78,915 ) $ (186,746 ) 237 %
Cash Flows provided by Financing
Activities 296,000 39,350 256,650 652 %
Net increase (decrease) in cash (177
during period $ 30,339 $ (39,565 ) $ 69,904 %)
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Cash Flows from Operating Activities
We have not generated positive cash flows from operating activities.
During the year ended
During the year ended
Cash Flows from Investing Activities
There was no investing activities during the year ended
Cash Flows from Financing Activities
During the year ended
During the year ended
Off-Balance Sheet Arrangements
As of
Significant Accounting Estimates and Policies
The preparation of financial statements in accounting principles generally
accepted in
Revenue Recognition
The Company recognizes revenue from the sale of products and services in accordance with ASC 606,"Revenue Recognition" following the five steps procedure:
Step 1: Identify the contract(s) with customers
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to performance obligations
Step 5: Recognize revenue when the entity satisfies a performance obligation
Convertible Instruments and Derivatives
The Company evaluates and account for conversion options embedded in convertible instruments in accordance with ASC 815 "Derivatives and Hedging Activities."
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Fair Value Measurement
The Company adopted the provisions of ASC Topic 820, "Fair Value Measurements and Disclosures," which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.
The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk.
ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:
Level 1 - quoted prices in active markets for identical assets or liabilities Level 2 - quoted prices for similar assets and liabilities in active markets or
inputs that are observable
Level 3 - inputs that are unobservable (for example cash flow modeling inputs
based on assumptions)
The derivative liability in connection with the conversion feature of the convertible debt, classified as a level 3 liability, is the only financial liability measured at fair value on a recurring basis.
Income Taxes
The Company accounts for income taxes pursuant to FASB ASC 740 "Income Taxes". Pursuant to ASC 740 deferred income taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences, and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The provision for income taxes represents the tax expense for the period, if any, and the change during the period in deferred tax assets and liabilities. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
ASC 740 also provides criteria for the recognition, measurement, presentation and disclosure of uncertain tax positions. Under ASC 740, the impact of an uncertain tax position on the income tax return may only be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority.
Recent accounting pronouncements
In
In
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