The following discussion should be read in conjunction with our financial
statements, including the notes thereto, appearing elsewhere in this annual
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 Annual Report. Our audited
consolidated financial statements are stated in United States Dollars and are
prepared in accordance with United States Generally Accepted Accounting
Results of Operations
The following summary of our operations should be read in conjunction with our
audited financial statements for the years ended August 31, 2021 and 2020, which
are included herein.
2021 2020 Changes %
General and administrative expenses $ 61,545 $ 14,364 $ 47,181 328 %
Net loss $ 61,545 $ 14,364 $ 47,181 328 %
We recognized no revenues for the years ended August 31, 2021 and 2020.
Gross margin is calculated by subtracting cost of sales from revenue. Gross
margin percentage is calculated by dividing gross margins by revenue.
We did not record any cost of goods sold for either of the years ended August
31, 2021, and 2020. As such, we did not realize any gross margin for either of
the years ended August 31, 2021 and 2020.
Operating expenses totaled $61,545 for the year ended August 31, 2021, compared
to $14,364 in operating expenses for the year ended August 31, 2020, or an
increase of $47,181.
Our operating expenses are primarily comprised of professional fees or
administrative contracted services, such as legal and accounting, and other
general and administrative costs. The increase in operating expenses was due to
an increase in professional services rendered in relation to our financial
reporting and other matters.
We incurred a net loss from of $61,545, or $0.02 per share, for the year ended
August 31, 2021, compared to a net loss of $14,364, or $0.00 per share, for the
year ended August 31, 2020. The increase in net loss was due to the increase in
above operating expenses.
Liquidity and Capital Resources
2021 2020 Changes %
Current Assets $ - $ 5,676 $ 5,676 (100 )%
Current Liabilities $ 53,634 $ 11,400 $ 42,234 370 %
Working Capital Deficiency $ 53,634 $ 5,724 $ 47,910 837 %
5 | Page
2021 2020 Changes %
Cash flows used in operating
activities $ (53,652 ) $ (11,864 ) $ (41,788 ) 352 %
Cash flows provided by financing
activities $ 47,976 $ 1,800 $ 46,176 2565 %
Net changes in cash $ (5,676 ) $ (10,064 ) $ 4,388 (44 )%
As at August 31, 2021, our Company had no cash and assets.
As at August 31, 2021, our Company had total liabilities of $53,634, which
included accrued expenses $9,500 and amount due to related party $44,134. As at
August 31, 2020, our Company had total liabilities of $11,400 which included
convertible stock payable of $1,950 and amount due to related party of $9,450.
As at August 31, 2021, our Company had a working capital deficiency of $53,634
compared with a working capital deficiency of $5,724 as at August 31, 2020. The
increase in working capital deficit was primarily due to an increase in amount
due to related party.
Cash Flow from Operating Activities
We have not generated positive cash flow from operating activities. During the
year ended August 31, 2021, net cash used in operating activities was $53,652
compared to $11,864 used during the year ended August 31, 2020. Operating
activities mainly consists of professional fees (audit fees, legal fees, filing
fees and transfer agent cost) and general and administrative expenses.
Cash flows used in operating activities during the year ended August 31, 2021,
comprised of a net loss of $61,545 which was reduced by non-cash expenses of
$343 for depreciation, $9,500 for accrued expense, and write-off of stock
payable of $1,950.
Cash flows used in operating activities during the year ended August 31, 2020,
comprised of a net loss of $14,364, which was reduced by non-cash expenses of
$317 for depreciation , $1,950 for stock payable, and $233 for account payable.
The increase in cash used in operating activities during the year ended August
31, 2021 was mainly due to increase in operating expenses.
Cash Flow from Investing Activities
During the years ended August 31, 2021 and 2020, our Company did not have any
Cash Flow from Financing Activities
During the year ended August 31, 2021, our Company received $47,976 via advances
from related party.
During the year ended August 31, 2020, our Company received $1,800 from stock
6 | Page
The Company's financial statements as of August 31, 2021, are prepared using
generally accepted accounting principles in the United States of America
applicable as a going concern, which contemplates the realization of assets and
liquidation of liabilities in the ordinary course of business. The Company has
yet to establish an ongoing source of revenue to finance its operating expenses
and to continue operating as a going concern. The Company has accumulated loss
from inception (February 17, 2017) to August 31, 2021 of $92,626. These factors
raised substantial doubt about the ability of the Company to continue operating
as a going concern for a reasonable period of time.
In order to continue operating as a going concern, the Company is committed to
work on procuring financial resources and develop business plans. The Management
plans to procure financial resources from the Management and major shareholders
to fund operating expenses as well as seeking third party equity and/or debt
financing to implement its business plans. However, the Management is not able
to provide any assurances that the Company will successfully executing the plans
in the near term. These financial statements do not include any adjustments
related to the recoverability and classification of assets or the amounts and
classification of liabilities that might be necessary should the Company be
unable to continue as a going concern.
Plan of Operation and Funding
We expect that working capital requirements will continue to be funded through
further issuances of securities/ debt securities. Our working capital
requirements are expected to increase in line with the growth of our business.
Existing working capital, further advances and equity/ debt financing, the
anticipated cash flow are expected to be adequate to finance our operations over
the next twelve months. We have no lines of credit or other bank financing
arrangements. Generally, we have financed operations to date through the
proceeds of the private placement of equity and debt instruments. In connection
with our business plans, the Management anticipates additional increases in
operating expenses and capital expenditures relating to: (i) developmental
expenses associated with a start-up business and (ii) marketing expenses. We
intend to finance these expenses with further issuances of securities, and debt
issuances. Thereafter, we expect we will need to raise additional capital and
generate revenues to meet long-term operating requirements. Additional issuances
of equity or convertible debt securities will result in dilution to our current
shareholders. Further, such securities might have rights, preferences or
privileges senior to our common stock. Additional financing may not be available
upon acceptable terms, or at all. If adequate funds are not available or are not
available on acceptable terms, we may not be able to take advantage of
prospective new business endeavors or opportunities, which could significantly
and materially restrict our business operations.
As of the date of this Annual Report, we do not have any material commitments.
Off-Balance Sheet Arrangements
As of the date of this Annual 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.
Recent Accounting Pronouncements
Management has considered all recent accounting pronouncements issued. Our
Company's management believes that these recent pronouncements will not have a
material effect on our financial statements.
© Edgar Online, source Glimpses