FORWARD-LOOKING STATEMENTS
This Management's Discussion and Analysis of Financial Condition and Results of
Operations (MD&A) contains forward-looking statements that involve known and
unknown risks, significant uncertainties and other factors that may cause our
actual results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed, or implied, by those forward-looking statements. You can
identify forward-looking statements by the use of the words may, will, should,
could, expects, plans, anticipates, believes, estimates, predicts, intends,
potential, proposed, or continue or the negative of those terms. These
statements are only predictions. In evaluating these statements, you should
consider various factors which may cause our actual results to differ materially
from any forward-looking statements. Although we believe that the exceptions
reflected in the forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements. Therefore,
actual results may differ materially and adversely from those expressed in any
forward-looking statements. We undertake no obligation to revise or update
publicly any forward-looking statements for any reason.
In December 2019, a novel strain of corona virus (COVID-19) was reported in
Wuhan, China and has spread throughout the United States and the rest of the
world. The World Health Organization has declared the outbreak to constitute a
"Public Health Emergency of International Concern." This contagious disease
outbreak, which has not been contained, and is disrupting supply chains and
affecting production and sales across a range of industries in United States and
other companies as a result of quarantines, facility closures, and travel and
logistics restrictions in connection with the outbreak, as well as the worldwide
adverse effect to workforces, economies and financial markets, leading to a
global economic downturn. Therefore, the Company expects this matter to
negatively impact its operating results. However, the related financial impact
and duration cannot be reasonably estimated at this time.
RESULTS OF OPERATION
Three and Nine months ended March 31, 2022 Compared to Three and Nine months
ended March 31, 2021
During the three months ended March 31, 2022, we had revenue of $26,305 compared
to $0 incurred during the three months ended December 31, This change was due to
the start up of our crypto mining operation in February 2022.
During the three months ended March 31, 2022, we had cost of good sold of$39,654
compared to $0 incurred during the three months ended March 31, 2021, This
change was due to the start up of our crypto mining operation in February 2022.
Our net loss for the three months ended March 31, 2022 was ($103,882) compared
to a net loss of ($43,901) during the December 31, 2021. This was due to the
increase in Professional and management fees.
During the three months ended March 31, 2022, we incurred operating expenses of
$79,963 compared to $43,901 incurred during the three months ended March 31,
2021. This was due to the increase in Professional and management fees.
During the three months ended March 31, 2022, we incurred interest expenses of
$0 compared to $0 incurred during the three months ended March 31, 2021.
Our net loss for the nine months ended March 31, 2022 was ($1,007,174) compared
to a net loss of ($421,917) during the March 31, 2021. The increase in net loss
was mainly due to an increase in warrants issued for services in 2022.
During the nine months ended March 31, 2022, we had revenue of $26,305 compared
to $0 incurred during the three months ended March 31, 2021. This change was due
to the start up of our crypto mining operation in February 2022
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During the nine months ended March 31, 2022, we had cost of good sold of$39,654
compared to $0 incurred during the three months ended March 31, 2021, This
change was due to the start up of our crypto mining operation in February 2022.
During the Nine months ended March 31, 2022, we incurred operating expenses of
$1,007,174 compared to $421,917 incurred during the Nine months ended March 31,
2021. The increase in expenses was mainly due to an increase in shares based
expense for the warrant issued in the second quarter of 2022. This was due to
the increase in Professional fees, share based expense and management fees.
During the Nine months ended March 31, 2022, we incurred interest expenses of $0
compared to $0 incurred during the Nine months ended March 31, 2021.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2022, our current assets were $46,334 and our current
liabilities were $52,971, which resulted in a working capital deficit of $6,637.
As of March 31, 2022, and December 31, 2021, our total liabilities were
comprised entirely of current liabilities.
Cash Flows from Operating Activities
For the Nine months ended March 31, 2022, net cash flows used in operating
activities was $103,302 compared to net cash used in operating activity of $0
for the same period in 2021.
Cash Flows from Investing Activities
For the Nine months ended March 31, 2022, net cash flows used in investing
activities was $437,544 compared to $0 for the same period in 2021.
Cash Flows from Financing Activities
For the Nine months ended March 31, 2022, net cash flows from financing
activities was $560,875 compared to $0 for the same period in 2021.
PLAN OF OPERATION AND FUNDING
We expect that working capital requirements will continue to be funded through a
combination of our proceeds from the sales of stock and generation of revenues
from acquisitions. Our working capital requirements are expected to increase in
line with the growth of our business.
Our principal demands for liquidity are to increase business operations and for
general corporate purposes. We intend to meet our liquidity requirements,
including capital expenditures related to future business operations, and the
expansion of our business, through cash flow provided by funds raised through
proceeds from the issuance of debt or equity.
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MATERIAL COMMITMENTS
Convertible Debenture
As of June 30, 2014, we had a note payable dated June 30, 2010 in the principal
amount of $1,253,095. As of March 31, 2016, this note has been either converted
to stock or paid. The note payable accrues interest at the rate of 5% per annum;
however that interest has been forgiven each year by the note holders. As of
September 21, 2014, the note payable balance of $691,926 ($650,000 at June 30,
2013 plus additional advances of $41,926 for the year ended June 30, 2021) has
been converted into shares of common stock.
PURCHASE OF SIGNIFICANT EQUIPMENT
In nine months ended March 31, 2022 we purchased capital equipment valued at
$447,544. On December 24, 2021, the company acquired cryptocurrency mining
equipment, which was put into service during the three months ended March 31,
2022.
OFF-BALANCE SHEET ARRANGEMENTS
As of the date of this Quarterly Report, 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 are material to investors.
Recently Issued Accounting Pronouncements
From time to time, new accounting pronouncements are issued by the Financial
Accounting Standards Board ("FASB") or other standard setting bodies that are
adopted by us as of the specified effective date. Unless otherwise discussed, we
believe that the impact of recently issued standards that are not yet effective
will not have a material impact on our consolidated financial position or
results of operations upon adoption.
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