The following discussion should be read in conjunction with our financial
statements, including the notes thereto, appearing elsewhere in this Report. The
following discussion contains forward-looking statements that reflect our plans,
estimates and beliefs. Our actual results could differ materially from those
discussed in the forward- looking statements. Factors that could cause or
contribute to such differences include, but are not limited to those discussed
below and elsewhere in this Report. Our audited financial statements are stated
in United States Dollars and are prepared in accordance with United States
Generally Accepted Accounting Principles.
Trans Global Group, Inc. (the "Company") was formed in the State of Delaware on
December 31, 1993 as Teletek, Inc. On October, 2007, the Company changed its
name to Trans Global Group, Inc., its current name. The Company's purpose is to
seek, investigate and, if such investigation warrants, acquire an interest in
business opportunities presented to it by persons or firms who or which desire
to seek the perceived advantages of an issuer who has complied with the Exchange
Act. The Company will not restrict its search to any specific business,
industry, or geographical location and the Company may participate in a business
venture of virtually any kind or nature and we have not established any
particular criteria upon which we consider a business opportunity. This
discussion of the proposed business herein is purposefully general and is not
meant to be restrictive of the Company's virtually unlimited discretion to
search for and enter into potential business opportunities. Management
anticipates that it may be able to participate in only one potential business
venture because the Company has nominal assets and limited financial resources.
Results of Operations
During the years ended December 31, 2021 and 2020, we generated no revenues. Our
operating expenses for the same periods were comprised of operating expenses of
$48,938 and $168,104, respectively, resulting in net loss of $48,938 for the
year ended December 31, 2021 compared to a net loss of $168,104 for the year
ended December 31, 2020. Our operating expenses consisted of mainly professional
fees for the year ended December 31, 2021 and consisted of mainly professional
fee and payroll expenses for the year ended December 31, 2020. The decrease of
operating expenses was mainly due to the decrease of payroll expenses.
Our total assets as of December 31, 2021 were $Nil.
As of December 31, 2021, the Company had 62,049,990 shares of common stock
issued and outstanding.
On January 30, 2020, the Company exchanged 1,200,000 shares of old series AA
preferred stock for 200,000 shares of new series AA preferred stock. On
September 20, 2020, the Company issued 800,000,000 shares of common stock to VS
Services, LLC for conversion of note and accrued interests. On September 22,
2020, the Company issued 20,000 shares of series B preferred stock to Chen Ren.
48
Liquidity and Capital Resources
As for the year ended December 31, 2021 and 2020, the Company had a negative
cash flow of $48,170 and $72,000 respectively. The Company's principal sources
and uses of funds were as follows:
For the year ended December 31, 2021, the Company used $48,170 in cash for
operations as compared to $72,000 for the year ended December 31, 2020. Such
decrease was primarily due to lower net loss in year ended December 31, 2021.
The net cash provided by the financing activities for the year ended December
31, 2021 was $48,170 as compared to $72,000 from related parties for the year
ended December 31, 2020. Such decrease was a result of less advances from the
related parties.
The Company's financial statements have been prepared on a going-concern basis
which contemplates the realization of assets and the settlement of liabilities
and commitments in the normal course of business. The Company's liquidity and
capital needs relate primarily to working capital and other general corporate
requirements. The Company's operations do not currently provide cash flow. To
date, the Company has funded its operations by advances from related parties.
The business will require significant amounts of capital in the near term to
sustain operations and make the investments it needs to continue operations and
execute its longer-term business plan.
As of December 31, 2021 we had cash of $Nil and there were outstanding
liabilities of $78,170. As of December 31, 2020, we had $Nil in cash and the
outstanding liabilities were $29,232. The working capital deficits were $78,170
and $29,232, as of December 31, 2021 and 2020, respectively. These factors raise
substantial doubt about our ability to continue as a going concern as discussed
in the footnotes to our financial statements. We will be unable to conduct its
planned operations unless we obtain financing in the near term to meet the needs
of our on-going operations, generate future revenue from operations and/or
obtain the necessary financing to meet our obligations and repay our liabilities
arising from normal business operations when they come due. In order to
implement its business plan, management's plan includes raising capital by
equity and/or debt financing. However, management cannot provide any assurances
that the Company will be successful in accomplishing any of its plans. If we
issue equity or equity equivalents to raise additional funds, our existing
stockholders will experience substantial dilution and the new holders of
securities may have rights, preferences and privileges senior to those of our
existing stockholders. Management also cannot provide any assurance that
unforeseen circumstances will not increase the need for the Company to raise
additional capital on an immediate basis. There can be no assurance that we will
be able to continue to raise funds if at all, or on terms acceptable to the
Company in which case the Company may be unable to continue its operations or to
meet its obligations. If adequate capital is not available when needed, we will
be required to significantly modify our business model or cease operations.
Chen Ren, our Chief Executive Officer, is financing our operations by making
advances of funds to cover our expenses. The advances are repayable upon demand
and the obligations do not bear interest. We expect that Chen Ren will continue
to fund our operations until he sells his interest in the Company, and that we
will continue to require additional financing to maintain our existence as a
shell company for the next twelve months. Our management is not required to fund
our operations by any contract or other obligation. In the event that we
undertake to complete an acquisition that requires financing, we will likely
depend on an outside source for such financing. However, we have not identified
any debt or equity financing sources that can be relied upon to provide such
financing.
It is unlikely that we will be able to raise financing through a public offering
of debt or equity.
On March 11, 2020 the World Health Organization declared the novel strain of
coronavirus (COVID-19) a global pandemic and recommended containments and
mitigation measures worldwide. The Company is monitoring this closely, and
although operations have not been materially affected by the coronavirus
outbreak to date, the ultimate severity of the outbreak is uncertain. Operations
of the Company are ongoing. Further the uncertain nature of the spread of
COVID-19 globally may impact our business operations due to the quarantine of
employees, customers, and third-party service providers.
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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