THE FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH OUR UNAUDITED FINANCIAL STATEMENT SAND 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

N.B. Market conditions may change, which my adversely affect the future results.

The Company liquidated most of its inventory as scrap metal due to the fact that cash resources available were not enough to purchase new inventory. Without fresh new inventory the sales of auxiliary parts, that were in hand, was negligible. This is due to the fact that the prices of end-of-life and wrecked automobiles has increased to more than double the previous prices. Accordingly, keeping in view the present market conditions the management felt that it would take a pause in building used auto parts' inventory, according to a fresh review of the situation, the management is of the opinion that until and unless a sum of $1,000,000 to $2,000,000 has been mobilized for the used auto parts business.

Progress has been reported in Note 6 under "subsequent events" as above.

The Company through its subsidiaries, namely, Accurate Auto Parts, Inc. and Motor & Metals, Inc. has made a sale of $185,650 of Automobile Parts, Services and Processed Scrap. The Company continues seeking additional sales both in the domestic and international markets.

Regarding scrap metal processing: Motors & Metals, Inc., the subsidiary which is licensed to operate as scrap metal processor completed its scope of equipment and machinery and thereafter, on July 4, 2020 the company received a firm quotation from an equipment manufacturer. The cost of the project is estimated at $9,000,000 with a projected EBITDA of about 20% on an estimated annual revenue of $10,000,000. Financing arrangements are currently being worked upon and the Company is waiting to see success in its offering under the Private Placement Memorandum.

A firm contract with the machinery suppliers will be executed as soon as financing is arranged.

City Autos, Corp. - the subsidiary of the Company has received the business license to operate as used car dealership which encompasses the business of auto leasing and renting. Application to the DMV in the Commonwealth of Virginia will soon be filed to obtain the dealer license. City Autos plans to confine its business to auto "Lease - Rent To Own" only. The model City Autos has chosen is a weekly program to Lease - Rent To Own on affordable weekly payments. City Autos plans to stay with a 50 cars fleet until such time that adequate staff is hired and trained.


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RESULTS OF OPERATIONS

The existing cash resources were thus diverted to trading activities in Scrap Metal business. Eight containers have been exported since January 2022 with a target to export 4 to 5 containers per month. This requires less investment and once the targeted shipments are achieved, the company will be able to make enough profits and eliminate the deficit from operations.

The Company did recognize revenue for a sum of $185,650during the nine months ended September 30, 2022 and $616,806 of revenues during the nine month ended September 30, 2021. While the net revenues for the period ended September 30, 2022 were lower by $431,156 than for the same period during 2021 and the Cost of Goods Sold was less by $123,160 during the period ended September 30, 2022 as compared to the same period during 2021. This 42 % decrease in cost of goods sold was due to decrease in automobile activities and decline in other overheads. The general and administrative expenses for the period ended September 30, 2022 were $109,426 as compared to $158,113 for the same period during 2021. During the period of 2022 the Company purchased less vehicles as compared to the same period and in the business of scrap metals due to which operation of the Company reduced which leads into decrease in Administrative expenses.

During the nine months ended September 30, 2022 the company recognized a gross profit of $14,975 as compared to $322,971for the corresponding period in the year 2021, this decrease of $307,996 in Gross profit equates to approximately 95% as compared to the nine months ended September 30, 2021.

During the nine month ended September 30, 2022 the company recognized a net operating loss of $222,634 as compared to operating profit of $1,381 for the corresponding period in the year 2021, this operating loss of $224,015 is due to the fact that the sales was decreased by $431,156 and the fixed professional and financial expenses were significantly high thus yielding a low margin of profit.

Management has opted to provide for the depreciation of equipment, trucks and building at the end of the year instead of providing for it on quarterly basis.

LIQUIDITY

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