THE FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH OUR UNAUDITED FINANCIAL STATEMENTS AND NOTES THERETO INCLUDED HEREIN. IN CONNECTION WITH, AND BECAUSE WE DESIRE TO TAKE ADVANTAGE OF, THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, WE CAUTION READERS REGARDING CERTAIN FORWARD LOOKING STATEMENTS IN THE FLOWING DISCUSSION AND ELSEWHERE IN THE THIS REPORT AND IN ANY OTHER STATEMENT MADE BY, OR AN BEHALF, WHETHER OR NOT IN FUTURE FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, FORWARD-LOOKING STATEMENTS ARE STATEMENT NOT BASED ON HISTORICAL INFORMATION AND WHICH RELATE TO FUTURE OPERATIONS, STRATEGIES, FINANCIAL RESULTS OR OTHER DEVELOPMENTS. FORWARD-LOOKING STATEMENTS ARE NECESSARILY BASED UPON ESTIMATES AND ASSUMPTIONS THAT ARE INHERENTLY SUBJECT TO SIGNIFICANT BUSINESS, ECONOMIC AND COMPETITIVE UNCERTAINTIES, MANY OF WHICH ARE BEYOND OUR CONTROL AND MANY OF WHICH, WITH RESPECT TO FUTURE BUSINESS DECISIONS, ARE SUBJECT TO CHANGE, THESE UNCERTAINTIES AND CONTINGENCIES CAN AFFECT ACTUAL RESULTS AND COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FORM THOSE EXPRESSED IN ANY FORWARD-LOOKING STATEMENTS AND COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN ANY FORWARD LOOKING STATEMENTS MADE BY, OR ON OUR BEHALF, WE DIS TO UPDATE FORWARD-LOOKING STATEMENTS.





PLAN OF OPERATION

As of January 1, 2022, the management decided to change the operation model from used auto parts being its core business and scrap metal processing and sale business as secondary business to Scrap Metal being its core business and used auto parts become its secondary business.

The reason for such a decision is based on the fact that due to increase in prices of raw materials, i.e., wrecked automobiles prices have increased by 100% , the available working capital is not sufficient to operate successfully. While for scrap metal the need of capital is relatively less than what is needed to build and replace inventory of used auto parts.

The management thus decided to impair and/or sell all of its existing used auto parts inventory as scrap metal and wait until it can mobilize sufficient working capital to rebuild the inventory needed for used auto parts business. The management estimates that it should have a financial backing of about $80,000 per month for a period of twelve (12) months to concentrate of the used auto parts business.

Efforts are being made at multiple levels to have access to such capital. However, there is no certainty as to when such arrangements will be concluded.

The Company through its subsidiaries, namely, Accurate Auto Parts, Inc. and Motor & Metals, Inc. has made a sale of $60,731 of Automobile Parts, Services and Processed Scrap. The Company continues seeking additional sales both in the domestic and international markets.

RESULTS OF OPERATIONS

The Company did recognize revenue for a sum of $60,731 during the three months ended March 31, 2022 and $216,440 of revenues during the Three month ended March 31, 2021. The net revenues for the period ended March 31, 2022were less by $155,709 than for the same period during 2021 and the Cost of Goods Sold was low by $19,509 during the period ended March 31, 2022 as compared to the same period during 2021. The Gross Profit had a decrease, i.e. by $ 136,201during the period ended March 31, 2022 as compared to the same period during 2021.

During the Three months ended March 31, 2022, the Company incurred operational expenses of $67,798. This compares to $95,092 for the three months ended March 31, 2021. This decrease in operational expenses reflects the decrease in operation staff.

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During the three months ended March 31, 2022 the company recognized a net loss of $2,602,289 as compared to the profit of $48,709 for the corresponding period in the year 2021, thus recognizing a significant increase in loss as compared to a profit for the three months ended March 31, 2021. This is a result due to the fact that the inventory in hand has been impaired and/or salvaged. In the opinion of the management, it would have cost more in administrative and selling expenses than the anticipated revenues that could otherwise have been derived. The subject inventory would have complimented sale of new inventory, had new inventory been purchased. Accurate Auto Parts, Inc. during the entire year of 2021 hardly purchased adequate new inventory due to lack of funds to afford purchase at the inflated market prices of wrecked automobiles.

The books show an operating net loss of $2,602,289 the Company has impaired and/or disposed off its inventory by $2,525,484 thus showing a total inventory at NIL value as on March 31, 2022 compared to an inventory at cost for a sum of $2,525,484 as on December 31, 2021.

The company continues its inventory valuation which is based on the industry standards, the management reviewed financial statements of other companies that are listed on NASDAQ and are audited by PCAOB firms like BDO. The management found that their approach was exactly same thus the inventory valuation is managements view is substantially accurate. Selling price of parts do not have too much fluctuations, in spite of this fact, the management does review their inventory price and the internal monthly reports do reflect any downward change which is subsequently reported in the quarterly reports. The Company has limited history, but the management has access to records to the previous owners' activities which go back to over 10 years.

The tax returns for the previous years have been filed and there are no tax liabilities due to the fact that the books reflect a net loss.

The company's administrative office has been relocated at 6269 Caledon Road, King George, VA 22485.

LIQUIDITY

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