You should read the following discussion and analysis of our financial condition and operating results together with our audited financial statements and related notes included elsewhere in this Report.

Unless otherwise indicated, references in this section to the terms "Lovarra," the "Company," "we," "our" and "us" refer to Lovarra prior to the CreateApp Acquisition. The term "Legacy CreateApp" refers to the CreateApp business division of Logiq prior to its acquisition by Lovarra.

The financial information included in this Management's Discussion and Analysis of Financial Condition and Results of Operations is that of Lovarra prior to the CreateApp Acquisition because the CreateApp Acquisition was consummated after the period covered by the financial statements included in this Report. Accordingly, the historical financial information included in this Report, unless otherwise indicated or as the context otherwise requires, is that of Lovarra prior to the CreateApp Acquisition.





                                       17

This discussion and analysis contains forward-looking statements based upon current beliefs, plans and expectations that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under "Risk Factors" or in other parts of this Report.

Introduction and Recent Developments

As of December 31, 2021, we were a development stage shell company with minimal operations and no revenues. As of December 31, 2021, we intended to provide subscription-based, highly secure expense and earnings tracking application service for personal and corporate use. We have recently commenced business operations and have not generated any revenues to date

As discussed in further detail in Item 1 of this Report, on January 27, 2022, Lovarra completed the purchase of certain assets of Logiq, including Logiq's CreateApp platform, pursuant to the Separation Agreement and Master Distribution Agreement entered into between the parties on December 15, 2021. As a result of the CreateApp acquisition, the Company is no longer a shell company (as defined in Rule 12b-2 of the Act), and the Company's primary business is now that of CreateApp.





Results of Operations

Comparison of the years ended December 31, 2021 and 2020





Revenue

During the years ended December 31, 2021 and 2020, the Company did not earn any revenue.





Operating Expenses

During the year ended December 31, 2021, we incurred total expenses and professional fees of $27,800, compared to $26,022 during the year ended December 31, 2020. General and administrative and professional fee expenses incurred generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting and increase was due to legal and accounting expenses relating to our 10-Q and 10-K filing statements with the SEC. During the year ended December 31, 2020, we also incurred $11,000 of DTC costs.





Net Loss

Our net loss for the year ended December 31, 2021 was $27,800, compared to net loss of $26,022 during the year ended December 31, 2020.

Liquidity and Capital Resources





Sources of Liquidity

Historically, our sources of capital have come from proceeds of third-party financings. As of December 31, 2021, we had no cash and cash equivalents, a working capital deficit of $(42,643) and an accumulated deficit of $(65,550).

As of December 31, 2021, our total assets were $350, compared to $5,382 in total assets as of December 31, 2020. The year over year decrease in assets is due to the fact that we did not earned any revenue in 2021.

As of December 31, 2021 and 2020, our liabilities were $42,993 and $20,225, respectively. The year over year increase in liabilities is due to accrued audit fee and accounting bookkeeping of $19,000.

Stockholders' deficit was $42,643 as of December 31, 2021, compared to stockholders' deficit of $14,843 as of December 31, 2020. The difference was due to operations during the year ended December 31, 2020 which was supported by cash funding from our President and Director as opposed to the issuance of common shares and cash proceeds from our shareholders.





                                       18

We expect that we will use our future sources of liquidity and cash flows (post-CreateApp Acquisition) to fund ongoing operations, research and development projects for new products and technologies, and provide ongoing support services for our customers. Over the next two fiscal years, we anticipate that we will use our liquidity and cash flows from our operations to fund our growth. In addition, as part of our business strategy, we may occasionally evaluate potential acquisitions of businesses, products and technologies, and minority equity investments. Accordingly, a portion of our available cash may be used at any time for the acquisition of complementary products or businesses or minority equity investments. Such potential transactions may require substantial capital resources, which may require us to seek additional debt or equity financing. We cannot assure you that we will be able to successfully identify suitable acquisition or investment candidates, complete acquisitions or investments, integrate acquired businesses into our current operations, or expand into new markets. Furthermore, we cannot provide assurances that additional financing will be available to us in any required time frame and on commercially reasonable terms, if at all.

We expect that we will need to raise additional capital through the issuance of additional equity and/or debt. If financing is not available at adequate levels, we may need to reevaluate our operating plans. Based on projected activities, management projects that cash and cash equivalents on hand are not sufficient to support operations for at least the next 12 months, which raises substantial doubt about the Company's ability to continue as a going concern without implementing fund raising or support from its shareholders.

Cash Flows from Operating Activities

For the year ended December 31, 2021, net cash flows used in operating activities were $4,677 compared to $13,770 during the year ended December 31, 2020.

Cash Flows from Financing Activities

Cash provided by financing activities during the year ended December 31, 2021 was $0 compared to $18,407 as of December 31, 2020. Financing for the 2020 fiscal year was provided by the issuance of 1,231,000 shares of common stock to our shareholders.





Investing Activities

We had no investing activities during the years ended December 31, 2021 and 2020.

Contractual Obligations and Commitments

We had no material contractual obligations as of December 31, 2021.

Off-Balance Sheet Financing Arrangements

We had no obligations, assets or liabilities, which would be considered off-balance sheet arrangements as of December 31, 2021. We did not participate in transactions that created relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements. We have not entered into any off-balance sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or purchased any non-financial assets.

Critical Accounting Policies and Significant Judgments and Estimates

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the amounts reported in those financial statements and accompanying notes. Although we believe that the estimates we use are reasonable, due to the inherent uncertainty involved in making those estimates, actual results reported in future periods could differ from those estimates.

Our critical accounting policies and estimates are included in Note of notes to our audited financial statements for the year ended December 31, 2021, included elsewhere in this Report.

Recent Accounting Pronouncements

For a description of recent accounting pronouncements, see Note 2 of the notes to our audited financial statements for the year ended December 31, 2021, included elsewhere in this Report.

© Edgar Online, source Glimpses