General
The following is a discussion by management of its view of the Company's business, financial condition, and corporate performance for the past year. The purpose of this information is to give management's recap of the past year, and to give an understanding of management's current outlook for the near future. This section is meant to be read in conjunction with the Financial Statements of this Annual Report on Form 10-K.
Overview
QIND is a
QIND's operating companies specialize in the manufacturing and assembling of process equipment, piping, and modules for the oil, gas, and energy sectors with key end-users in the fields of Oil & Gas, Off-shore, Refineries & Petrochemical, Waste-water, Chemical, Fertilizer, Metals and Mineral Processing.
Factors Affecting Our Performance
The primary factors affecting our results of operations include:
Our business is impacted by the global economic environment, employment levels,
consumer confidence, government, and municipal spending. Global instability in
securities markets and the war in
Impact of Acquisitions
A significant component of our growth is through the acquisition and consolidation of operating companies in our targeted sectors. We typically incur upfront costs as we incorporate and integrate acquired businesses into our operating philosophy and operational excellence. This includes consolidation of supplies and raw materials, optimized logistics and production processes, and sales synergies within the operating businesses with the aim to expand globally. The benefits of these integration efforts may not positively impact our financial results instantly but is expected to do so in the medium to long-term future.
32 Table of Contents Plan of Operations First Half of 2023
QIND acquired 52% of Quality International Co Ltd FCZ (QI) on
The company forecasts revenue upwards of
QIND is engaging with an
Second Half of 2023
In the second half of 2022, QIND anticipates acquiring additional companies in the industrial and manufacturing sectors and will continue with the integration and optimization of its current operating companies. With the group's expansion and growth, we also anticipate hiring executives and personnel with significant industry experience to streamline financial reporting, compliance, Investor Relations and to improve our corporate governance in line with the anticipated uplist to a major stock exchange.
Results of Operations Revenues
We earned
Operating Expenses
Operating expenses increased from
We anticipate that our operating expenses will increase as we undertake our expansion plan associated with our acquisitions. The increase will be attributable to administrative and operating costs associated with our business activities and the professional fees associated with our reporting obligations.
Other Income/Expenses
We had other expenses of
33 Table of Contents Net Income/Net Loss
We incurred net income of
Liquidity and Capital Resources
As of
Financing activities provided
Going Concern
The accompanying condensed consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in
Management evaluated all relevant conditions and events that are reasonably known or reasonably knowable, in the aggregate, as of the date the consolidated financial statements are issued and determined. The Company's ability to continue as a going concern is dependent on the Company's ability to continue to generate sufficient revenues and raise capital within one year from the date of filing.
Over the next twelve months management plans to use borrowings and security sales to mitigate the effects of cash flow deficits; however, no assurance can be given that debt or equity financing, if and when required, will be available.
Impact of Acquisitions
Historically a significant component of our growth has been through the acquisition of businesses in our targeted sectors. We typically incur upfront costs as we incorporate and integrate acquired businesses into our operating philosophy and operational excellence. This includes consolidation of supplies and raw materials, optimized logistics and production processes, and other restructuring and improvements initiatives. The benefits of these integration efforts and upcoming planned acquisitions may not positively impact our financial results instantly but has historically been the case in future periods.
Critical Accounting Policies.
In
34 Table of Contents
Off-Balance Sheet Arrangements
We have no significant 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 are material to stockholders.
Recently Issued Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
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