The discussion and analysis of our financial condition and results of operations
are based on our financial statements, which we have prepared in accordance with
accounting principles generally accepted in
As used in this "Management's Discussion and Analysis of Financial Condition and
Results of Operation," except where the context otherwise requires, the term
"we," "us," "our," or "the Company," refers to the business of
Our cash balance is
Our net loss for our fiscal year ended
We have been utilizing and may utilize funds from minority shareholders
including
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We are a start-up stage company and have not generated any revenue to date. Long term financing is required to fully implement our business plan. The exact amount of funding will depend on funding required for full implementation of our business plan.
It should be noted that our plans for monetization and marketing of our
application are the same as those expressed at our fiscal year ended
The Company was incorporated in
We are a publicly quoted shell company seeking to merge with other entities with experienced management and opportunities for growth in return for shares of our common stock to create values for our shareholders. No potential merger candidate has been identified at this time.
Summary of Financial and Operating Performance
For the year ended September 30, 2022 Operating expenses $ 53,816 Net loss $ 53,816 Net loss per share (basic and diluted) 0.08
During the fiscal years ended
Results of Operations For the year ended September 30, 2022 2021 Operating expenses: Employment related costs$ 33,000 $ 42,000 Professional fees 9,000 10,200 Public entity expenditures 11,696 17,032 Other operating expenses 120 4,041 Total operating expenses 53,816 73,273 Other income - disposal of segment - - Net Income (Loss)$ (53,816 ) $ (73,273 )
Significant items affecting net income (loss) other than time differential are noted below:
Professional Fees for fiscal 2022 decreased as compared to fiscal 2021 primarily due to fewer public filings and complying with reporting requirements.
Other operating expenses include investor relations, general office expenditures, and other miscellaneous costs. Costs also decreased in fiscal 2022 as compared to fiscal 2021 primarily due to costs incurred by those employed generally absorbed as part of their employment expense.
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Employee related costs are from public filing costs and searching for potential merger candidates and decreased commensurate with professional fees.
Liquidity and Capital Resources
We have no revenue generating operations from which we can internally generate funds. To date, our ongoing operations have been financed by advances from related parties. While we believe we will be able to secure additional financings in the future, we cannot predict the size or pricing of any such financings. In addition, we may raise funds through mergers with operating companies that may believe they would benefit from being publicly traded, although current market conditions and the impacts of the COVID-19 pandemic have reduced the number of potential merger partners of any such interests.
As of
Unless we successfully transform operations through an operating transaction, we
expect that the Company will operate at a loss for the foreseeable future. The
Company's current planned operational needs are approximately
In addition to outstanding accounts payable and short-term liabilities, our
average monthly expenditures are approximately
We currently have no further material funding commitments or arrangements for additional financing at this time and there is no assurance that we will be able to obtain additional financing on acceptable terms, if at all. There is significant uncertainty that we will be able to secure any additional financing in the current equity or debt markets. The quantity of funds to be raised and the terms of any proposed equity or debt financing that may be undertaken will be negotiated by management as opportunities to raise funds arise. Management intends to pursue funding sources of both debt and equity financing, including but not limited to the issuance of equity securities in the form of Common Shares, warrants, subscription receipts, or any combination thereof in units of the Company pursuant to private placements to accredited investors or pursuant to equity lines of credit or public offerings in the form of underwritten/brokered offerings, at-the-market offerings, registered direct offerings, or other forms of equity financing and public or private issuances of debt securities including secured and unsecured convertible debt instruments or secured debt project financing. Management does not currently know the terms pursuant to which such financings may be completed in the future, but any such financings will be negotiated at arm's-length. Future financings involving the issuance of equity securities or derivatives thereof will likely be completed at a discount to the then-current market price of the Company's securities and will likely be dilutive to current shareholders.
Based on the conditions described within, management has concluded and the audit
opinion and notes that accompany our financial statements for the year ended
20 Year EndedSeptember 30, 2022
- Net Cash Provided by Financing Activities 101,115 Net Movement in Cash and Cash Equivalents $ 47,495 Operating Activities
During the year ended September30, 2022 the company's activities used
During the year ended
Investing Activities
During the years ended
Financing Activities
During the period from
We are dependent upon the receipt of capital investment or other financing to fund our ongoing operations and to execute our business plan to merge with another entity with experienced management and opportunities for growth in return for shares of our common stock to create value for our shareholders. In addition, we are dependent upon our controlling shareholder to provide continued funding and capital resources. If continued funding and capital resources are unavailable at reasonable terms, we may not be able to implement our plan of operations.
Cash Flow Considerations
The Company has historically relied upon equity financings, and to a lesser degree, debt financings, to satisfy its capital requirements and will continue to depend heavily upon equity capital to finance its activities. The Company may pursue debt financing in the medium term if it is able to procure such financing on terms more favorable than available equity financing; however, there can be no assurance the Company will be able to obtain any required financing in the future on acceptable terms.
The Company has limited financial resources compared to its proposed expenditures, no source of operating income, and no assurance that additional funding will be available to it for current or future projects, although the Company has been successful in the past in financing its activities through related party advances.
It is our current intention to seek to raise debt and/or equity financing to meet ongoing operating expenses and attempt to merge with another entity with experienced management and opportunities for growth in return for shares of our common stock to create value for our shareholders. There is no assurance that this series of events will be satisfactorily completed.
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Future losses are likely to occur as, until we are able to merge with another
entity with experienced management and opportunities for growth in return for
shares of our common stock to create value for our shareholders, we have no
sources of income to meet our operating expenses. As a result of these, among
other factors, we received from our registered independent public accountants in
their report for the financial statements for the years ended
Debt Covenants
The Company's related party agreements are informal, so the Company was in
compliance with its lenders as of
Off-Balance Sheet Arrangements
Per
Environmental Not applicable. Forward-Looking Statements
The foregoing discussion and analysis, as well as certain information contained elsewhere in this Annual Report on Form 10-K, contain "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, and are intended to be covered by the safe harbor created thereby. See the discussion in "Forward-Looking Statements" in Item 1., "Business."
Accounting Developments
We have reviewed all the recently issued, but not yet effective, accounting pronouncements and do not believe any of these pronouncements will have a material impact on our financial statements.
Critical Accounting Policies
A summary of our significant accounting policies is detailed in Note 3 to the Financial Statements. We have outlined below those policies identified as being critical to the understanding of our business and results of operations and that require the application of significant management judgment. All companies are required to include a discussion of critical accounting policies and estimates used in the preparation of their financial statements. On an on-going basis, we evaluate our critical accounting policies and estimates. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form our 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.
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Carrying Value of Long-Lived Assets
The recoverability of the carrying values of mineral properties is dependent upon economic reserves being discovered or developed on the properties, permitting, financing, start-up, and commercial production from, or the sale/lease of, or other strategic transactions related to these properties. Development and/or start-up of a project will depend on, among other things, management's ability to raise sufficient capital for these purposes. We assess the carrying cost of our mineral properties for impairment whenever information or circumstances indicate the potential for impairment. This would include events and circumstances such as our inability to obtain all the necessary permits, changes in the legal status of our mineral properties, government actions, the results of exploration activities and technical evaluations and changes in economic conditions, including the price of commodities or input prices. Such evaluations compare estimated future net cash flows with our carrying costs and future obligations on an undiscounted basis. If it is determined that the estimated future undiscounted cash flows are less than the carrying value of the property, an impairment loss will be recorded. Where estimates of future net cash flows are not determinable and where other conditions indicate the potential for impairment, management uses available market information and/or third-party valuation experts to assess if the carrying value can be recovered and to estimate fair value.
We review and evaluate our long-lived assets, other than mineral properties, for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment loss is measured and recorded based on the estimated fair value of the long-lived assets being tested for impairment and their carrying amounts.
Income Taxes
We account for income taxes using the liability method, recognizing certain temporary differences between the financial reporting basis of our liabilities and assets and the related income tax basis for such liabilities and assets. This method generates a net deferred income tax liability or asset, as measured by the statutory tax rates in effect. We derive our deferred income tax expense or benefit by recording the change in the net deferred income tax liability or asset balance for the year. With respect to the earnings we derive from the operations of our subsidiaries, in those situations where the earnings are indefinitely reinvested, no deferred taxes have been provided on the unremitted earnings (including the excess of the carrying value of the net equity of such entities for financial reporting purposes over the tax basis of such equity) of our subsidiaries.
We are subject to reviews of our income tax filings and other tax payments, and
disputes can arise with the taxing authorities over the interpretation of its
contracts or laws. We recognize and record potential tax liabilities and record
tax liabilities for anticipated tax audit issues in the
Valuation of Deferred Tax Assets
Our deferred income tax assets include certain future tax benefits. We record a valuation allowance against any portion of those deferred income tax assets when we believe, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. We review the likelihood that we will realize the benefit of our deferred tax assets and therefore the need for valuation allowances on a quarterly basis, or more frequently if events indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or group recording the net deferred tax asset is considered, along with all other available positive and negative evidence.
Other
The Company has one class of shares, being Common Shares. It has 619,085
outstanding shares, with no share options, warrants, and convertible debt
options outstanding as of
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