The following management's discussion and analysis ("MD&A") should be read in
conjunction with financial statements of JJY Holding Group for the three and
nine months ended September 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
JJY Holding Group 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 JJY Holding Group's MD&A.
Readers should not place undue reliance on any such forward-looking statements.
JJY Holding Group 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.
Overview
JJY Holding Group is a developmental stage company, incorporated under the laws
of the State of Nevada on September 4, 2007. Our plan of business has not been
implemented but will incorporate trading agricultural products, food processing,
and be a supply chain for supermarkets. We have not started any operations as of
the date of this filing.
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.
Three Months Ended September 30, 2022 and 2021
Revenue
For the three ended September 30, 2022 and 2021, the Company had not generated
any revenues.
Operating Expenses
Operating expenses for the three months ended September 30, 2022 were $4,721
compared to $12,297 for the three months ended September 30, 2021. For the three
months ended September 30, 2022, professional fees were $3,380, a decrease of
$7,820, as compared to $11,200 for the three months ended of September 30, 2021.
Operating expenses decrease in 2022 due to additional professional fees and
other general and administrative fees incurred for being a SEC public reporting
company in 2021.
Other Income and Expenses
For the three months ended September 30, 2022 and 2021, the Company did not have
any other income or expenses.
Net Income (Loss)
For the three months ended September 30, 2022, the Company had a net loss of
$4,721 compared to the three months ended March 31, 2021 of a net loss of
$12,297.
12
Nine Months Ended September 30, 2022 and 2021
Revenue
For the nine ended September 30, 2022 and 2021, the Company had not generated
any revenues.
Operating Expenses
Operating expenses for the nine months ended September 30, 2022 were $62,968
compared to $28,287 for the nine months ended September 30, 2021. For the nine
months ended September 30, 2022, professional fees were $35,156, an increase of
$18,956, as compared to $16,200 for the nine months ended of September 30, 2021.
The increase is related to accounting and audit fees, consulting fees, corporate
service fees, and SEC filing fees incurred being a public reporting company
between the two periods. The Company also incurred additional fees for corporate
actions and registration statement filings.
Other Income and Expenses
For the nine months ended September 30, 2022 and 2021, the Company did not have
any other income or expenses.
Net Income (Loss)
For the nine months ended September 30, 2022, the Company had a net loss of
$62,968 compared to the nine months ended September 30, 2021 of a net loss of
$28,287.
Liquidity and Capital Resources
As of September 30, 2022, we had no cash and a working capital deficit of
$5,537.
The Company has not generated any revenues from operations, and may be unable to
fund on-going activities. We cannot guarantee that we will be successful in our
business operations. Our business is subject to risks inherent in the
establishment of a new business enterprise, including limited capital resources,
possible delays in developing our own hardware and software, and the possibility
of new regulations that will make our company difficult or impossible to
operate.
If we are unable to meet our needs for cash from either our operations, or
possible alternative sources, then we may be unable to continue, develop, or
expand our operations.
If we are unable to complete any phase of our development program or fail to
raise additional capital to maintain our operations in the future, we may be
unable to carry out our full business plan or we may be forced to cease
operations.
The Company's related party will continue to advance the necessary capital to
pay the expenses of the Company and there are no formal financing agreements in
place. The outstanding amount due to related parties was $4,638 and $39,349 as
of September 30, 2022 and December 31, 2021.
Operating Activities
Net cash used in operating activities increased $27,828, from $20,917 for the
nine months period ended September 30, 2021 to $48,745 for the nine months
period ended September 30, 2022. This increase was due to the increase of a
$18,043 in stock-based compensation, a decrease of $3,820 in accounts payable
and accrued expenses, along with a net loss of $62,968.
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Investing Activities
No investing activities occurred during the nine months ended September 30, 2022
and 2021.
Financing Activities
During the nine months ended September 30, 2022 and 2021, the Company received
advances of $48,745 and $20,917 from a related party for working capital
purposes.
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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