The following discussion and analysis should be read in conjunction with our unaudited financial statements and the related notes thereto. The management's discussion and analysis contains forward-looking statements, such as statements of our plans, objectives, expectations, and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words "believe," "plan," "intend," "anticipate," "target," "estimate," "expect" and the like, and/or future tense or conditional constructions ("will," "may," "could," "should," etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Our actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this Quarterly Report on Form 10-Q.

Overview

On August 5, 2020, Eagle Lake Laboratories, Inc., a Florida corporation ("Eagle") acquired controlling interest in the Company. Eagle is a Florida based science, technology, and engineering solutions corporation offering products that ensure their clients data integrity through collection, storage, and transmission. Eagle intends to merge with the Company; however, there can no assurances, that this will occur. Currently, Eagle personnel are managing the Company. New management will be steering the Company toward commercialization of proprietary data platforms as the Company moves away from touch screen manufacturing. The Company expects to generate revenue with Eagle's innovative flagship product, the Blockchain Archive Server™ that can be utilized to protect client data from ransomware. Blockchain technology is a leading-edge tool for data security, providing an added layer of security against data loss due to malware.

A complete description of the Company's activities can be found under Note 1, Organization and Description of Business.

Impact of Covid-19

Impact of COVID-19

On January 30, 2020, the World Health Organization announced a global health emergency because of the spread of a new strain of the novel coronavirus ("COVID-19"). On March 11, 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic. COVID-19 has and continues to significantly affect the United States and global economies.

The outbreak has and may continue to, spread, which could materially impact the Company's business. The full extent of potential impacts on the Company's business, financing activities and the global economy will depend on future developments, which cannot be predicted due to the uncertain nature of the continued COVID-19 pandemic, government-mandated shut-downs, and its adverse effects, including new information which may emerge concerning the severity of COVID-19 and the actions to contain COVID-19 or treat its impact, among others. These effects could have a material adverse impact on the Company's business, operations, financial condition, and results of operations.

Results of Operations

Comparison of Results of Operations for the Three and Six Months Ended September 30, 2020, and 2019

During the six months ended September 30, 2020, we purchased inventory from Eagle and generated revenue for the first time since our inception. Therefore, any comparison to the prior period is not indicative of current operations or trends.

Revenue

During the three and six months ended September 30, 2020, we recorded $135,000 in revenue from the sale of servers with customized software compared to $-0- during the three and six months ended September 30, 2019.




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Gross Profit

Our gross profit on revenue was $90,000 for the three and six months ended September 30, 2020, compared to $-0- for the three and six months ended September 30, 2019.

Operating Expenses

Operating expenses for the three months ended September 30, 2020 were $98,440 compared to $-0- during the three months ended September 30, 2019. The increase in the 2020 period includes a commission expense of $90,000 on the sale of servers to third party distributors.

Operating expenses for the six months ended September 30, 2020, were $2,010,858 compared to $-0- during the six months ended September 30, 2019. The increase in operating expenses in the 2020 period is primarily attributable to a one-time, non-cash charge of $1,900,000 to stock-based compensation related to the issuance of 19,000,000 shares of Series A preferred stock to Mr. Lazar.

During the quarter ended September 30, 2020, the Company began negotiating the terms of an employment agreement with Mr. Beavers and an operating lease for our principal executive offices. Additionally, we began recruiting employees, some of whom were hired in October 2020. As a result, we expect our operating expense to increase in future periods.

Liquidity and Capital Resources

Prior to August 5, 2020, all of our funding was provided by Custodian Ventures, the Court appointed custodian. Subsequent to August 5, 2020, our funding has been provided by Eagle, a related party. Subsequent to the change of control on August 5, 2020, we generated revenue of $135,000 from the sale of custom servers to a third party; however, we did not record any profit on the transaction. Until we generate increasing sales at a profitable margin, we will be reliant on Eagle to provide our financing. There can be no assurance that Eagle will continue to do so, and currently, we have no other sources of financing. We may attempt to raise capital in the near future through the sale of equity or through debt financing; however, there can be assurances we will be successful in doing so. There can be no assurance that such additional financing will be available to us on acceptable terms or at all.

Going Concern

The accompanying unaudited financial statements have been prepared assuming we will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-months following the date of these unaudited financial statements. We have incurred significant operating losses since inception. Because we do not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about our ability to continue as a going concern. Therefore, we will need to raise additional funds and are currently exploring sources of financing. Historically, we have raised capital through private offerings of debt and equity and officer loans to finance working capital needs. There can be no assurances that we will be able to continue to raise additional capital through the sale of common stock or other securities or obtain short-term loans.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Contractual Obligations

As a "smaller reporting company", we are not required to provide tabular disclosure obligations.




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Critical Accounting Estimates

Our unaudited financial statements and accompanying notes have been prepared in accordance with GAAP. The preparation of these unaudited financial statements requires management to make estimates, judgments, and assumptions that affect reported amounts of assets, liabilities, revenues, and expenses. We continually evaluate the accounting policies and estimates used to prepare the unaudited financial statements. The estimates are based on historical experience and assumptions believed to be reasonable under current facts and circumstances. Actual amounts and results could differ from these estimates made by management. Certain accounting policies that require significant management estimates and are deemed critical to our results of operations or financial position. Our critical accounting estimates are more fully discussed in Note 2, "Summary of Significant Accounting Policies," to our unaudited financial statements contained herein.

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