The following management's discussion and analysis ("MD&A") should be read in
conjunction with financial statements of Eline Entertainment Group,, Inc. 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
Eline Entertainment Group, 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 Eline
Entertainment Group, Inc's MD&A. Readers should not place undue reliance on any
such forward-looking statements. Eline Entertainment Group, 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.
Eline Entertainment Group, Inc, Inc. is a blank check company and has no
operations. Our business plan includes acquisitions of operating companies. In
summary, EEGI 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 September 30, 2022 and 2021
Revenue
For the nine months 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 $2,501
compared to $0 for the three months ended September 30, 2021.
Operating expenses increased in 2022 due to other professional fees and other
general and administrative fees incurred for this period.
For the nine months ended September 30, 2022, professional fees were $21,214 an
increase of $21,214 as compared to $0 for the nine months ended of September 30,
2021.
The increase is related to accounting and audit fees, and SEC filing fees
between the two periods.
Other Income and Expenses
For the nine months ended September 30, 2022 and 2021, the Company did not have
any other income or expenses.
9
Net Income (Loss)
For the three month ended September 30, 2022, the Company had a net loss of
$2,501 compared to the three month period ended September 30, 2021 of a net loss
of $0.
For the six months ended June 30, 2022, the Company had a net loss of $18,713
compared to a net loss of $2,501 for the nine months ended September 30, 2022.
The net loss resulted from increase of operating expenses
Liquidity and Capital Resources
As of September 30, 2022, we had no cash and a working capital deficit of
$21,214.
Operating Activities
For nine months ended September 30, 2022 net operating loss increased to $21,214
as compared to $0 for the nine months ended September 30, 2021. Accounts payable
and accrued expenses increased by $21,214 as compared to $0 for the nine months
ended September 30, 2021. The increase in accrued expenses is related to other
professional fees and loans from related parties.
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, the Company received advances
of $21,214 from a related party for working capital purposes. During the nine
months ended September 30, 2022 the Company issued $0 common stock for cash.
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.
10
© Edgar Online, source Glimpses