OVERVIEW

The Company maintains a low-cost structure as it has no employees, contracting the services of executives and support as required. Because of the low-cost structure, the Company anticipates that the proceeds from stock issues and revenue from service and system sales, will be sufficient to meet the Company's operating and capital requirements for approximately 12 months.

RESULTS AND PLAN OF OPERATIONS

The Company had accumulated losses from inception to June 30, 2020 of $12,824,290. Major components of the loss include capital raising costs, consulting and management fees, engineering fees and operations costs. The Company may be required to make significant additional expenditures in connection with the development of the BizjetMobile and fflya programs. The Company's ability to continue its operations is dependent upon its receiving funds through its anticipated sources of financing including capital raisings, borrowings and revenues from operations.

YEAR ENDED JUNE 30, 2020 COMPARED WITH YEAR ENDED JUNE 30, 2019

In the first half of 2020, Covid19 severely impacted the companies programs with virtually every customer program grounded. To ensure the ongoing viability of the company and to continue the refinement and implementation of the fflya airline program, in 2020 all payments to executives and associated engineering


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and support services were reduced by 50%, on the basis that by May 2021 the shortfall would be addressed once back to normal.

During the second half of 2020 the company executed a plan to come back online and by the end of 2020, both the business jet and airline programs were back in full operation. While Covid19 still has operational impact, bizjet sales, recommenced in November 2020 and the first airlines installation was completed on Wizzair in February 2021.

The Company received revenue of $36,205 from its BizjetMobile business in the year ended June 30, 2020, compared to $51,099 in the year ended June 30, 2019. Revenue from BizjetMobile service fees decreased from $29,374 to $19,387 and BizjetMobile system sales decreased from $21,725 to $16,818 in the years ended June 30, 2019 and June 30, 2020 respectively.

Operating expenses increased from $639,419 for the twelve-month period ended June 30, 2019 to $653,841 for the twelve month period ended June 30, 2020 due mainly to increased marketing and communication costs to support the launch.

The Company recorded a net loss from operations for the twelve month period ended June 30, 2020 of $617,636, compared to a loss of $588,320 for the twelve month period ended June 30, 2019.

Other expenses decreased from $164,259 in the year ended June 30, 2019, to $147,536 in the year ended June 30, 2020, mainly due to decreased capital raising fees.

The Company recorded a net loss for the twelve month period ended June 30, 2020 of $765,184, compared to a loss of $752,579 for the twelve month period ended June 30, 2019.

LIQUIDITY AND CAPITAL RESOURCES

The Company's cash and cash equivalents cash equivalents increased from $192 at June 30, 2019 to $8,958 at June 30, 2020.

The Company's revenue for the twelve months ended June 30, 2020 was $36,205, compared to $51,099 in the twelve month period to June 30, 2019. Operating costs increased for the period from July 1, 2019 to June 30, 2020 mainly as a result increased marketing and communication costs. After increased accounts payables but after decreased stock compensation for interest and services, the Company had a net cash outflow of $332,533 from operating activities for the period from July 1, 2019 to June 30, 2020, compared to a net cash outflow from operating activities of $353,590 for the period from July 1, 2018 to June 30, 2019.

The Company had no cash flow from investing activities for the twelve months ended June 30, 2020, and June 30, 2019 respectively.

The cash flow of the Company from financing activities for the twelve months ending June 30, 2020 was from subscription for common stock. In the twelve months ended June 30, 2019, financing activities was from advances from related parties and issue of common stock.

The Company's business plan is based on developing the BizjetMobile business as well as expansion into the airline business with its fflya program. This plan may require significant capital from the Company for marketing and technical and product support. The Company may not have sufficient funds to finance its operations in which case it will have to seek additional capital. The Company may raise additional capital by the sale of its equity securities, through an offering of debt securities, or from borrowings. The Company does not have a policy on the amount of borrowing or debt that the Company can incur.

The Company has no commitment for capital expenditure in the near future.





OUTLOOK

The following are forward looking statements and should be read in conjunction with the Forward Looking Statement in Part I. of this Form 10-K.

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The Company's current revenue is from service fees and system sales generated by BizjetMobile. Revenue is based on hardware sales of the Bluetooth systems, plus on-going revenue from monthly service charges for the provision of connectivity. BizjetMobile sales are expected to increase with the introduction of the Iridium Next technology which will offer superior internet capabilities which the Company expects to be able to leverage off.

The Company has continued to invest in development, which has led to an expanded product range to enable it to market to a broader range of business, airline and government aircraft operators.

Having secured a launch customer, the Company is now focused on its first connectivity instlation on board a Wizz Air Airbus A321.

The company's fflya business model is based on offering free messaging to be paid for by general and destination specific advertising. In the post Covid environment, in which airlines are relying more on their Apps for boarding passes and other flight information, passengers on customer airlines will be able to access the fflya system for messaging as well as bookings for tours and attractions. Under the fflya program, an airline will receive the system on a revenue share basis on terms to be agreed. As the equipment cost is a fraction of a Wi-Fi platform, the Company needs minimal commissions to justify the cost of the hardware. The Company believes LCA's will be attracted to this business model.





REVENUE RECOGNITION

The Company recognizes revenue from the sales of goods and services under ASC 606 by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. The Company has adopted the modified retrospective method for recording revenue.





GOING CONCERN

The financial statements appearing elsewhere in this report have been prepared assuming that the Company will continue as a going concern. As such, they do not include adjustments relating to the recoverability of recorded asset amounts and classification of recorded assets and liabilities. As noted in the auditor's report included in this 10-K, "The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements the Company has suffered recurring losses from operations that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are described in Note 1 to the financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty."

The Company's ability to continue its operations is dependent upon its raising of capital through debt or equity financing in order to meet its working needs. These conditions raise substantial doubt about the Company's ability to continue as a going concern, and if substantial additional funding is not acquired or alternative sources developed, management will be required to curtail its operations.

The Company may raise additional capital by the sale of its equity securities, through an offering of debt securities, or from borrowing from a financial institution. The Company does not have a policy on the amount of borrowing or debt that the Company can incur. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern.

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