NEXT-CHEMX CORPORATION Management's Discussion and Analysis of Financial Condition and Results of Operations
Caution Regarding Forward-Looking Information
This Quarterly Report on Form 10-Q, including, without limitation, statements containing the words "believes", "anticipates", "expects" and words of similar import, constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Such factors include, among others, the following: international, national and local general economic and market conditions: demographic changes; the ability of the Company to sustain, manage or forecast its growth; the ability of the Company to successfully make and integrate acquisitions; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; fluctuations and difficulty in forecasting operating results; changes in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; and other factors referenced in this and previous filings.
Given these uncertainties, readers of this Form 10-Q and investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.
Overview
The Company was organized on
The Company qualifies as an "emerging growth company" as defined in the
Jumpstart Our Business Startups Act which became law in
Overview of the Business
The Company was originally formed as to provide consulting services. From 2018
through the first quarter of 2021, the company name was
On
3 Results of Operations
The following table summarizes the results of our operations during the three
months ended
Three Months Ended
September 30,
2021 2020 Change
Revenues $ - $ - $ -
Operating expenses 440,977 10,244 430,733
Other income 7,482 - 7,482
Gain from discontinued operations - 176,168 (176,168 )
Net profit (loss) (433,495 ) 165,924 (599,419 )
Profit (Loss) per share of common stock (0.02 ) 0.02 (0.04 )
The increase in operating expenses is primarily due to amortization of intangible assets acquired in 2021, payroll and consulting expenses.
Gain from discontinued operations is derived from subsidiaries disposed in 2020.
Net loss for the three months ended
The following table summarizes the results of our operations during the nine
months ended
Nine Months Ended
September 30,
2021 2020 Change
Revenues $ - $ - $ -
Operating expenses 917,457 42,788 874,669
Other income 4,698 - 4,698
Gain from discontinued operations - 463,339 (463,339 )
Net profit (loss) (912,759 ) 420,551 (1,333,310 )
Profit (Loss) per share of common stock (0.05 ) 0.05 (0.10 )
The increase in operating expenses is primarily due to amortization of intangible assets acquired in 2021, payroll and consulting expenses.
Gain from discontinued operations is derived from subsidiaries disposed in 2020.
Net loss for the nine months ended
Liquidity and Capital Resources
As of
Our operating activities used
Our cash requirements are primarily pilot plant equipment and operating expenses for the development of pilot plant systems and its demonstration to potential customers, as well as our payroll expense.
4
Management believes that the Company's cash on hand will not be sufficient to fund all Company obligations and commitments for the next twelve months. Historically, we have depended on loans from our principal shareholders and their affiliated companies to provide us with working capital as required. There is no guarantee that such funding will be available when required and there can be no assurance that our stockholders, or any of them, will continue making loans or advances to us in the future.
Off Balance Sheet Arrangements
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 or capital expenditures or capital resources that is material to an investor in our securities.
Seasonality
Our operating results are not affected by seasonality.
Inflation
Our business and operating results are not affected in any material way by inflation.
Critical Accounting Policies
Our financial statements and accompanying notes have been prepared in accordance with GAAP. The preparation of these financial statements requires management to make estimates, judgments, and assumptions that affect reported amounts of assets, liabilities, revenues and expenses. We continually evaluate the accounting policies and estimates used to prepare the financial statements. The estimates are based on historical experience and assumptions believed to be reasonable under current facts and circumstances. Actual amounts and results could differ from these estimates made by management. Certain accounting policies that require significant management estimates and are deemed critical to our results of operations or financial position. Our critical accounting estimates are more fully discussed in Note 2 to our unaudited financial statements contained herein.
© Edgar Online, source
