The following discussion should be read in conjunction with the accompanying unaudited consolidated financial information for the three and nine month periods ended September 30, 2020 and September 30, 2019, prepared by management, and the audited consolidated financial statements for the twelve months ended December 31, 2019 as presented in the Company's Form 10K and amendments as filed.

Special Note Regarding Forward Looking Statements

Certain statements in this report and elsewhere (such as in other filings by the Company with the Securities and Exchange Commission ("SEC"), press releases, presentations by the Company of its management and oral statements) may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and "should," and variations of these words and similar expressions, are intended to identify these forward-looking statements. Actual results may materially differ from any forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures and constantly changing technology and market acceptance of the Company's products and services. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.





The Company's Services

The Company has been working to obtain the rights to build our own systems in the civilian aviation sector with the belief that this would improve control over the business outcomes compared to the contract manufacturing business.

The Company has been working on an agreement to purchase the worldwide rights to manufacture a single engine Turbo Prop airplane with industrial applications from a subsidiary of a large international aerospace company. Unfortunately, the Company was unable to obtain suitable financing for its projected plans, the agreement did not materialize and the project has been abandoned. The Company has a further agreement to retain up to a 35% interest in the project with an engineering firm that has expressed further interest in the project.





Results of Operations

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

Gross revenues from all sources for the three month period ended September 30, 2020 were $0 compared to $0 in the comparative prior three month period. Gross revenues from all sources for the nine month period ended September 30, 2020 were $0 compared to $0 in the comparative prior nine month period. In prior years the Company earned modest consulting fees as the Company continued to reorganize its business.

There was a net loss for the nine month period ended September 30, 2020 of $111,656 compared to a net loss of $388,376 for the nine months ended September 30, 2019. The decrease in the losses is a result of the collapse of its project due to lack of funding.


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There was a net loss for the three month period ended September 30, 2020 of $46,518 compared to a net loss of $59,274 for the three months ended September 30, 2019 due to a non cash recovery of foreign exchange. The net operations were otherwise comparable to the prior year as the Company continued to reduce office and administration expenses as well as engineering and marketing expenses.

Comparison of Financial Position at September 30, 2020 with December 31, 2019

The Company's working capital deficiency increased at September 30, 2020 to $5,451,483 with current liabilities of $5,478,273 which are in excess of current assets of $26,790. At December 31, 2019 the Company had a working capital deficiency of $5,339,827. See also legal liabilities, note 3 to the financial statements for the nine months ended September 30, 2020.

Critical Accounting Policies and Estimates

We have adopted various accounting policies that govern the application of accounting principles generally accepted in the United States of America in the preparation of our financial statements. Our significant accounting policies are described in the footnotes to our annual financial statements at December 31, 2019. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.

Although these estimates are based on our knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Certain accounting policies involve significant judgments and assumptions by us and have a material impact on our financial condition and results. Management believes its critical accounting policies reflect its most significant estimates and assumptions used in the presentation of our financial statements. Our critical accounting policies include revenue recognition, accounting for stock based compensation and the evaluation of the recoverability of long-lived and intangible assets. We do not have off-balance sheet arrangements, financings or other relationships with unconsolidated entities or other persons, also known as "special purpose entities".

Liquidity and Capital Resources

Cash outflow for the nine months ended September 30, 2020 was $9,664 compared to an outflow of cash of $184,232 in the comparative prior nine months ended September 30, 2019. During the current period, the Company received $nil ($nil in the comparative prior period) from equity funding leaving cash on hand at September 30, 2020 of $26,790 compared to cash on hand of $53,545 at September 30, 2019. Until the Company receives revenues from new contracts it will be dependent upon equity and loan financings to compensate for the outflow of cash anticipated from operations.

At this time, no commitment for funding has been made to the Company.

The Company's continued operations are dependent upon obtaining revenues from outside sources or raising additional funds through debt or equity financing.

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