MANAGEMENT DISCUSSION AND ANALYSIS
THE FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH OUR AUDITED
CONSOLIDATED FINANCIAL STATEMENTS AND NOTES THERETO INCLUDED HEREIN.
THIS DISCUSSION CONTAINS FORWARD-LOOKING STATEMENTS, SUCH AS STATEMENTS RELATING TO OUR FINANCIAL CONDITION, RESULTS OF OPERATIONS, PLANS, OBJECTIVES, FUTURE PERFORMANCE AND BUSINESS OPERATIONS. THESE STATEMENTS RELATE TO EXPECTATIONS CONCERNING MATTERS THAT ARE NOT HISTORICAL FACTS. THESE FORWARD-LOOKING STATEMENTS REFLECT OUR CURRENT VIEWS AND EXPECTATIONS BASED LARGELY UPON THE INFORMATION CURRENTLY AVAILABLE TO US AND ARE SUBJECT TO INHERENT RISKS AND UNCERTAINTIES. ALTHOUGH WE BELIEVE OUR EXPECTATIONS ARE BASED ON REASONABLE ASSUMPTIONS, THEY ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND THERE ARE A NUMBER OF IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. BY MAKING THESE FORWARD-LOOKING STATEMENTS, WE DO NOT UNDERTAKE TO UPDATE THEM IN ANY MANNER EXCEPT AS MAY BE REQUIRED BY OUR DISCLOSURE OBLIGATIONS IN FILINGS WE MAKE WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE FEDERAL SECURITIES LAWS. OUR ACTUAL RESULTS MAY DIFFER MATERIALLY FROM OUR FORWARD-LOOKING STATEMENTS.
THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM'S REPORT ON THE COMPANY'S
FINANCIAL STATEMENTS AS OF
PLAN OF OPERATIONS
Auto Parts Division:
The company decided to sell all its saleable auto parts inventory until it could raise the adequate capital to that is needed to stay in the used auto parts business. Thus, until such time the arrangements are matured there would be no building of auto parts inventory. The use of the sales portal, namely Hollander has also been suspended. See subsequent events below.
Having received the letter of intent from a bonafide buyer the Company began sourcing scrap metal for export and after nearly six month of vigorous efforts concluded that none of the existing processors were prepared to offer the shredded steel. The Company was already processing scrap metal but in very limited quantities which were not enough for export trade.
The management began to work on expanding its own scrap metal processing
capabilities and upon getting a reconfirmation of zoning from the
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Upon the news being made public, the Company has received from other qualified
buyer abroad "expression of interest" to purchase scrap metal. The annual sales
of scrap metal are expected to exceed
RESULTS OF OPERATIONS
FOR THE YEAR ENDED
During the year ended
During the year ended
During the year ended
LIQUIDITY
At
At
SHORT TERM
On a short-term basis, the Company did not generate revenues sufficient to cover operations. For long term needs the Company will be dependent on receipt, if any, from the growth in sales.
CAPITAL RESOURCES
The Company's capitalization is 100,000,000 common shares with a par value of
NEED FOR ADDITIONAL FINANCING
The Company does not have capital sufficient to meet its expansion Capital needs. The Company will have to seek loans or equity placements to cover such cash needs.
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No commitments to provide additional funds have been made by the Company's management or other stockholders. Accordingly, there can be no assurance that any additional funds will be available to the Company to allow it to cover the Company's expansion budget.
The Company has completed of a Private Placement Memorandum (PPM) under rule 506
(c) of the SEC Act of 1933 for a sum of Nineteen Million Five Hundred Thousand
Dollars
SIGNIFICANT ACCOUNTING POLICIES
REVENUE RECOGNITION
The Company recognizes revenue on arrangements in accordance with
EARNINGS PER SHARE
The Company has adopted ASC 260-10-50, EARNINGS PER SHARE, which provides for
calculation of "basic" and "diluted" earnings per share. Basic earnings per
share includes no dilution and is computed by dividing net income or loss
available to common shareholders by the weighted average common shares
outstanding for the period. Diluted earnings per share reflect the potential
dilution of securities that could share in the earnings of an entity. Basic and
diluted losses/profits per share were the same at the reporting dates as there
were no common stock equivalents outstanding at
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