Results of Operations
Our operations for the years ended
22 Table of Contents
Year ended
Years Ended December 31, Change 2021 2020 Amount Revenue$ 13,430,991 $ 14,355,341 $ (924,350 ) Cost of goods sold$ 13,362,614 $ 14,281,300 $ (918,686 ) Gross profit$ 68,377 $ 74,041 $ (5,664 ) Operating expenses$ 799,370 $ 3,086,862 $ (2,287,492 ) Other income (expense)$ 11,096,752 $ (22,767,970 ) $ 33,864,722 Provision for income taxes$ (14,895 ) $ (20,541 ) $ 5,646 Net income (loss)$ 10,350,864 $ (25,801,332 ) $ 36,152,196
The revenue for the year ended
Cost of goods sold for the year ended
Operating expenses for the year ended
Other income (expense) for the year ended
Net income for the year ended
For the year endedDecember 31, 2021 and 2020 our results of operations segment, are as follows: Total Year Ended December 31, 2021 Holding Company Oil and gas Consolidated Revenue $ -$ 13,430,991 $ 13,430,991 Cost of goods sold - (13,362,614 ) (13,362,614 ) Operating expenses (754,087 ) (45,283 ) (799,370 ) Other income 11,096,752 - 11,096,752 Provision for income taxes - (14,895 ) (14,895 ) Net income$ 10,342,665 $ 8,199 $ 10,350,864 Holding Total Year Ended December 31, 2020 Company Oil and gas Consolidated Revenue $ -$ 14,355,341 $ 14,355,341 Cost of goods sold - (14,281,300 ) (14,281,300 ) Operating expenses (3,041,551 ) (45,311 ) (3,086,862 ) Other expenses (22,767,970 ) - (22,767,970 ) Provision for income taxes - (20,541 ) (20,541 ) Net income (loss)$ (25,809,521 ) $ 8,189 $ (25,801,332 ) 23 Table of Contents Holding Company Years Ended December 31, Change 2021 2020 Amount Revenue $ - $ - $ - Operating expenses$ 754,087 $ 3,041,551 $ (2,287,464 ) Other income (expense)$ 11,096,752 $ (22,767,970 ) $ 33,864,722 Provision for income taxes $ - $ - $ - Net income (loss)$ 10,342,665 $ (25,809,521 ) $ 36,152,186
Operating expense mainly consists of professional fees for ongoing regulatory requirements and compensation for our management. The decrease in operating expense is primarily due to a decrease in our management fee and professional fee.
Other income (expense) mainly consists of interest expense and change in fair value of derivative liability from convertible notes.
Oil and Gas Years Ended December 31, Change 2021 2020 Amount Revenue$ 13,430,991 $ 14,355,341 $ (924,350 ) Cost of goods sold$ 13,362,614 $ 14,281,300 $ (918,686 ) Gross profit$ 68,377 $ 74,041 $ (5,664 ) Operating expenses$ 45,283 $ 45,311 $ (28 ) Other income (expense) $ - $ - $ - Provision for income taxes$ 14,895 $ 20,541 $ (5,646 ) Net income$ 8,199 $ 8,189 $ 10
The decrease in revenue is primarily due to the effects of COVID-19 which caused a decrease in demand and consequently the pricing in prior period. The decrease in cost of goods sold is primarily due to a decrease in revenue. The percentage of gross profit is 0.5% in 2021 and 2020.
Liquidity and Capital Resources
The following table provides selected financial data about our Company as of
Working Capital
The following table provides selected financial data about our Company as of
December 31, December 31, Change 2021 2020 Amount Cash$ 101,876 $ 185,948 $ (84,072 ) Current Assets$ 17,305,167 $ 10,129,206 $ 7,175,961 Current Liabilities$ 13,961,595 $ 20,245,188 $ (6,283,593 ) Working Capital (Deficiency)$ 3,343,572 $ (10,115,982 ) $ 13,459,554
The increase in working capital was primarily attributed to a decrease in current liabilities and an increase in current assets. The increase in current assets was primarily attributed to an increase in accounts receivable. The decrease in current liabilities was primarily attributed to a decrease in derivative liabilities offset by an increase in accounts payable.
24 Table of Contents Cash Flow Years Ended December 31, Change 2021 2020 Amount
Cash Flows used in operating activities
$ (84,072 ) $ (91,681 ) $ 7,609
Cash Flow from Operating Activities
During the year ended
Cash Flow from Investing Activities
During the year ended
Cash Flow from Financing Activities
During the year ended
Critical Accounting Policies and Estimates
The preparation of consolidated financial statements and related disclosures in
conformity with
How cash is transferred through our organization
We do not transfer, and have never transferred, cash though or between our
subsidiaries, or between
We do not have any intention to distribute earnings or settle amounts owed.
No dividends, transfers or distributions have ever bween made from a subsidiary to Phoenix Rising Companies. Similarly, no dividends or distributions have ever been made to by us to any investor.
Describe any restrictions on foreign exchange and your ability to transfer cash between entities, across borders, and to U.S. investors. Describe any restrictions and limitations on your ability to distribute earnings from the company, including your subsidiaries to the parent company and U.S. investors.
To the extent cash in the business is in any PRC or
We do not have any cash management policies that dictate how funds are transferred between Phoenix Rising Companies and its subsidiaries.
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, capital expenditures or capital resources that is material to investors.
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