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OFFON

NEW MOMENTUM CORPORATION

(NNAX)
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NEW MOMENTUM : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (form 10-Q)

11/12/2020 | 02:52pm EDT

The following information should be read in conjunction with (i) the financial statements of New Momentum Corporation, a Nevada corporation (the "Company"), and the notes thereto appearing elsewhere in this Form 10-Q together with (ii) the more detailed business information and the December 31, 2019 audited financial statements and related notes included in the Company's Form 10-K (File No. 000-52273; the "Form 10-K"), as filed with the Securities and Exchange Commission on March 30, 2020. Statements in this section and elsewhere in this Form 10-Q that are not statements of historical or current fact constitute "forward-looking" statements.



OVERVIEW


The Company was incorporated in the State of Nevada on July 1, 1999, and established a fiscal year end of December 31.



Going Concern


To date the Company has little operations or revenues and consequently has incurred recurring losses from operations. No revenues are anticipated until we complete the financing we endeavor to obtain, as described in the Form 10-K, and implement our initial business plan. The ability of the Company to continue as a going concern is dependent on raising capital to fund our business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company's ability to continue as a going concern.

Our activities have been financed from related-party loans and the proceeds of share subscriptions. During October 2015, the Company raised a total of $300,500 in cash from offerings of our common stock. We have no outstanding loans.

The Company plans to raise additional funds through debt or equity offerings. There is no guarantee that the Company will be able to raise any capital through this or any other offerings.



PLAN OF OPERATION


We are an early stage corporation and have generated revenues of $5,872 from our business during the nine months ended September 30, 2020. We have developed and operate an online ticketing platform named Gagfare.com, which provides a ticketing system for individuals and agencies to search, book and issue flight tickets and other services. During the 12 months following the date of filing of this Quarterly Report on Form 10-Q, will be focused on attempting to raise $750,000 of funds to expand our business. We have no assurance that future financing will materialize. If that financing is not available, we may be unable to continue. Management believes that if we are successful in raiding $750,000, we will be able to generate sales revenue within the following twelve months thereof. However, if such public financing is not available, we could fail to satisfy our future cash requirements. We have no assurance that future financing will materialize. If that financing is not available we may be unable to continue. Management believes that if subsequent private placements are successful, we will be able to generate sales revenue within the following twelve months thereof. However, additional equity financing may not be available to us on acceptable terms or at all, and thus we could fail to satisfy our future cash requirements.




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If we are unsuccessful in raising the additional proceeds through a private placement offering we will then have to seek additional funds through debt financing, which would be highly difficult for an early-stage company to secure. Therefore, the Company is highly dependent upon the success of the anticipated private placement offering and failure thereof would result in the Company having to seek capital from other sources such as debt financing, which may not even be available to the Company. However, if such financing were available, because we are an early stage company, it would likely have to pay additional costs associated with high risk loans and be subject to an above market interest rate. At such time these funds are required, management would evaluate the terms of such debt financing and determine whether the business could sustain operations and growth and manage the debt load. If we cannot raise additional proceeds via a private placement of its common stock or secure debt financing it would be required to cease business operations. As a result, investors in our common stock would lose all of their investment.

With new investors joining, the Company will develop a travel services businesses, which includes an online ticketing platform Gagfare, which provides to travelers a "Book Now, Pay Later" business model, for travelers to secure the best fares and reserve flights well ahead of time. The Company will also become the driving force behind a bold new hospitality concept that takes nature lovers and intrepid travelers to exciting new and established destinations. The curated collection of boutique properties, each with a focus on diving, sustainability, conservation, and cultural authenticity, offers a thoroughly contemporary travel experience that is intrinsically linked to the destination, its heritage and its culture.




RESULTS OF OPERATIONS



Comparison of the three months ended September 30, 2020 and 2019

As of September 30, 2020, we suffered from a working capital deficit of $108,530. As a result, our continuation as a going concern is dependent upon improving our profitability and the continuing financial support from our stockholders or other capital sources. Management believes that the continuing financial support from the existing shareholders and external financing will provide the additional cash to meet our obligations as they become due. Our financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets and liabilities that may result in the Company not being able to continue as a going concern.

The following table sets forth certain operational data for the three months ended September 30, 2020 and 2019:



                              Three Months Ended September 30,
                                 2020                   2019
Revenues                   $           5,872       $            44
Cost of revenue                       (5,214 )                   -
Gross profit                             658                    44
Total operating expenses             (13,414 )              (4,347 )
Other income                               1                     1
Loss before Income Taxes             (12,755 )              (4,302 )
Income tax expense                         -                     -
Net loss                             (12,755 )              (4,302 )



Revenue. We generated revenues of $5,872 and $44 for the three months ended September 30, 2020 and 2019. The significant increase is due to the increase in business volume in booking services.

Cost of Revenue. Cost of revenue for the three months ended September 30, 2020, was $5,214. Cost of revenue increased primarily as a result of the increase in our business volume.

Gross Profit. We achieved a gross profit of $658 and $44 for the three months ended September 30, 2020 and 2019, respectively. The increase in gross profit is primarily attributable to the increase in our business volume.

General and Administrative Expenses ("G&A"). We incurred G&A expenses of $13,414 and $4,347 for the three months ended September 30, 2020 and 2019, respectively. The increase in G&A is primarily attributable to the increase in our business volume.




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Income Tax Expense. Our income tax expenses for the quarters ended September 30, 2020 and 2019 were $0.

Net Loss. During the three months ended September 30, 2020, we incurred a net loss of $12,755, as compared to $4,302 for the same period ended September 30, 2019.

Comparison of the nine months ended September 30, 2020 and 2019

The following table sets forth certain operational data for the nine months ended September 30, 2020 and 2019:



                               Nine Months Ended September 30,
                                 2020                   2019
Revenues                   $         16,202       $            315
Cost of revenue                      (5,214 )                    -
Gross profit                         10,988                    315
Total operating expenses            (33,773 )              (20,889 )
Other income                              1                      4
Loss before Income Taxes            (22,782 )              (20,570 )
Income tax expense                        -                      -
Net loss                            (22,782 )              (20,570 )



Revenue. We generated revenues of $16,202 and $315 for the nine months ended September 30, 2020 and 2019.

Cost of Revenue. Cost of revenue for the nine months ended September 30, 2020, was $5,214. Cost of revenue increased primarily as a result of the increase in our business volume.

Gross Profit. We achieved a gross profit of $10,988 and $315 for the nine months ended September 30, 2020 and 2019, respectively. The increase in gross profit is primarily attributable to the increase in our business volume.

General and Administrative Expenses ("G&A"). We incurred G&A expenses of $16,131 and $20,889 for the nine months ended September 30, 2020, and 2019, respectively. The increase in G&A is primarily attributable to the increase in our business volume.

Income Tax Expense. Our income tax expenses for the nine months ended September 30, 2020 and 2019 were $0.

Net Loss. During the nine months ended September 30, 2020, we incurred a net loss of $22,782, as compared to $20,570 for the same period ended September 30, 2019.

Liquidity and Capital Resources

As of September 30, 2020, we had cash and cash equivalents of $34,067, accounts receivable of $6,163, deposits, prepayments and other receivables of $11,778.

We believe that our current cash and other sources of liquidity discussed below are adequate to support general operations for at least the next 12 months.



                                                           Nine Months Ended September
                                                                       30,
                                                              2020             2019
Net cash provided used in operating activities             $  (20,171 )     $  (14,803 )
Net cash provided by (used in) investing activities                 -                -
Net cash provided by financing activities                      45,061           15,443




Net Cash Used In Operating Activities.

For the nine months ended September 30, 2020, net cash used in operating activities was $20,171, which consisted primarily of a net loss of $22,782, offset by an decrease in accounts receivables of $5,660, a decrease in deposits, prepayments and other receivables of $307 and an increase in accrued expenses and other payables of $8,578.




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For the nine months ended September 30, 2019, net cash used in operating activities was $14,803, which consisted primarily of a net loss of $20,570, non-cash items, offset by an increase in accounts receivables of $4,238, an increase in deposits, prepayments and other receivables of $7,447 and a decrease in accrued expenses and other payable of $5,916.

We expect to continue to rely on cash generated through financing from our existing shareholders and private placements of our securities, however, to finance our operations and future acquisitions.

Net Cash Provided By Investing Activities.

For the nine months ended September 30, 2020, there is no net cash provided by investing activities.

For the nine months ended September 30, 2019, there is no net cash provided by investing activities.

Net Cash Provided By Financing Activities.

For the nine months ended September 30, 2020, net cash provided by financing activities was $45,061 consisting primarily of $22,840 repayment to related companies of the Company and offset by $67,901 advances from a director.

For the nine months ended September 30, 2019, net cash provided by financing activities was $15,443, consisting primarily of $38,589 repayment to related companies of the Company and offset by $54,032 advances from the Company's related parties.

Off-Balance Sheet Arrangements

We had no off-balance sheet arrangements for the nine months ended September 30, 2020.




Subsequent Events



None through date of this filing.

© Edgar Online, source Glimpses

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Financials (USD)
Sales 2020 0,24 M - -
Net income 2020 -4,15 M - -
Net Debt 2020 0,15 M - -
P/E ratio 2020 -30,0x
Yield 2020 -
Capitalization 7,76 M 7,76 M -
EV / Sales 2019 -
EV / Sales 2020 1 073x
Nbr of Employees -
Free-Float 49,0%
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