The following management's discussion and analysis ("MD&A") should be read in
conjunction with financial statements of Nhale, Inc. for the nine months ended
Sept. 30, 2022 and 2021, and the notes thereto.
Safe Harbor for Forward-Looking Statements
Certain statements included in this MD&A constitute forward-looking statements,
including those identified by the expressions anticipate, believe, plan,
estimate, expect, intend, and similar expressions to the extent they relate to
Nhale, Inc. or its management. These forward-looking statements are not facts,
promises, or guarantees; rather, they reflect current expectations regarding
future results or events. These forward-looking statements are subject to risks
and uncertainties that could cause actual results, activities, performance, or
events to differ materially from current expectations. These include risks
related to revenue growth, operating results, industry, products, and
litigation, as well as the matters discussed in Nhale, Inc.'s MD&A. Readers
should not place undue reliance on any such forward-looking statements. Nhale,
Inc. disclaims any obligation to publicly update or to revise any such
statements to reflect any change in the Company's expectations or in events,
conditions, or circumstances on which any such statements may be based, or that
may affect the likelihood that actual results will differ from those set forth
in the forward-looking statements.
Our business plan is the development, branding and distribution of non-flame
smoking devices. In summary, NHLE is focused on raising capital for its business
plan. As of this filing, we have not raised any capital and our business is not
yet operational.
Results of Operations
The following discussion of our financial condition and results of operations
should be read in conjunction with our financial statements and the related
notes included in this report.
Nine Months Ended Sept. 30, 2022 and Sept. 30, 2021
Revenue
For the nine months ended Sept. 30, 2022 and Sept. 30, 2021, the Company had not
generated any revenues.
Operating Expenses
Operating expenses for the nine months ended Sept. 30, 2022, were $0 compared to
$0 for nine months ended Sept. 30, 2021.
Operating expenses did not increase in 2022.
For the nine months ended Sept. 30, 2022, professional fees were $0, an increase
of $0 for the nine months ended of Sept. 30, 2021.
Other Income and Expenses
For the nine months ended Sept. 30, 2022 and 2021, the Company had $210,713 in
other operating expenses due to interest expenses.
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Net Income (Loss)
For the three-month ended Sept. 30, 2022, the Company had a net loss of $70,238
compared to the three-month period ended Sept. 30, 2021 of a net loss of
$70,238.
For the nine months ended Sept. 30, 2022, the Company had a net loss of $210,713
compared to a net loss of $210,713 for the nine-month period ended Sept. 30,
2022. The net loss resulted from an increase in finance expenses.
Liquidity and Capital Resources
As of Sept. 30, 2022, we had no cash and a working capital deficit of
$3,278,315.
Operating Activities
No operating activities occurred during the nine months ended Sept. 30, 2022 and
2021.
Investing Activities
No investing activities occurred during the nine months ended Sept. 30, 2022,
and 2021.
Financing Activities
No financing activities occurred during the nine months ended Sept. 30, 2022,
and 2021.
Off-Balance Sheet Arrangements
There are no off-balance sheet arrangements with any party.
Critical Accounting Policies
Our discussion and analysis of results of operations and financial condition are
based upon our condensed consolidated financial statements, which have been
prepared in accordance with accounting principles generally accepted in the
United States of America. The preparation of these condensed consolidated
financial statements requires us to make estimates and judgments that affect the
reported amounts of assets, liabilities, revenues and expenses, and related
disclosure of contingent assets and liabilities. We evaluate our estimates on an
ongoing basis, including those related to provisions for uncollectible accounts
receivable, inventories, valuation of intangible assets and contingencies and
litigation. We base our estimates on historical experience and on various other
assumptions that are believed to be reasonable under the circumstances, the
results of which form the basis for making judgments about the carrying values
of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates under different assumptions or
conditions.
The accounting policies that we follow are set forth in Note 2 to our financial
statements as included in the SEC report filed. These accounting policies
conform to accounting principles generally accepted in the United States and
have been consistently applied in the preparation of the financial statements.
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