The following discussion should be read in conjunction with our financial
statements, including the notes thereto, appearing elsewhere in this Report. The
following discussion contains forward-looking statements that reflect our plans,
estimates and beliefs. Our actual results could differ materially from those
discussed in the forward- looking statements. Factors that could cause or
contribute to such differences include, but are not limited to those discussed
below and elsewhere in this Report. Our audited financial statements are stated
in United States Dollars and are prepared in accordance with United States
Generally Accepted Accounting Principles.
Results of Operation
For the three and nine months ended September 30, 2022 and 2021
Three months ended
September 30,
2022 2021 2022 vs 2021
Revenues $ 422,548 $ - $ 422,548
Cost of revenues (669,975 ) - (669,975 )
Gross loss (247,427 ) - (247,427 )
Gross loss margin 59 % - % 100 %
Operating expenses (588,903 ) (18,500 ) (570,403 )
Other income, net 3,752 - 3,752
Income tax expense (2,179 ) - (2,179 )
Net loss $ (834,757 ) $ (18,500 ) $ (816,257 )
Nine months ended
September 30,
2022 2021 2022 vs 2021
Revenues $ 422,548 $ - $ 422,548
Cost of revenues (669,975 ) - (669,975 )
Gross loss (247,427 ) - (247,427 )
Gross loss margin 59 % - % 100 %
Operating expenses (693,995 ) (39,763 ) (654,232 )
Other income, net 3,752 - 3,752
Income tax expense (2,179 ) - (2,179 )
Net loss $ (939,849 ) $ (39,763 ) $ (900,086 )
Revenues
Revenue was $422,548 for the three months ended September 30, 2022, reflecting
an increase of $422,548 from $0 for the three months ended September 30, 2021.
Revenue was $422,548 for the nine months ended September 30, 2022, reflecting an
increase of $422,548 from $0 for the nine months ended September 30, 2021. The
increase is the result of the Company's continued efforts to increase the sales
of beverages.
Cost of Revenues
Cost of revenue was $669,975 for the three months ended September 30, 2022,
reflecting an increase of $669,975 from $0 for the three months ended September
30, 2021. The increase was mainly the amortization cost of intangible assets of
$588,765.
Cost of revenue was $669,975 for the nine months ended September 30, 2022,
reflecting an increase of $669,975 from $0 for the nine months ended September
30, 2021. The cost of revenues fluctuated in line with our revenues, and the
increase was mainly the amortization cost of intangible assets of $588,765.
1
Gross Loss
Gross loss was $247,427 and $0 for the three months ended September 30, 2022 and
2021, respectively, reflecting an increase of $247,427.
Gross loss was $247,427 for the nine months ended September 30, 2022, reflecting
an increase of $247,427 from $0 for the nine months ended September 30, 2021.
The gross profit margins increased when the periods are compared to each other,
but they have yet to show consistency over time, given the amount time measured
is still relatively short.
Operating Expenses
Operating expense was $588,903 for the three months ended September 30, 2022,
reflecting an increase of $570,403, from $18,500 for the three months ended
September 30, 2021. The increase was mainly the marketing expenses for sales.
Operating expense was $693,995 for the nine months ended September 30, 2022,
reflecting an increase of $654,232 from $39,763 for the nine months ended
September 30, 2021, due to the increase in marketing expenses for expand the
brand name and professional service fees. The increase was mainly the marketing
expenses for sales.
Net loss
For the three months ended September 30, 2022, net loss was $834,757, compared
to net loss of $18,500 for the three months ended September 30, 2021, reflecting
an increase of $816,257. The increase was mainly the amortization cost of
intangible assets and marketing expenses for sales.
For the three months ended September 30, 2022, net loss was $939,849, compared
to net loss of $39,763 for the nine months ended September 30, 2021, reflecting
an increase of $900,086. The increase was mainly the amortization cost of
intangible assets and marketing expenses for sales.
Liquidity and Capital Resources
Working Capital as of September 30, 2022 and December 31, 2021
As of
September 30, December 31,
2022 2021 2022 vs 2021
Total current assets $ 877,447 $ - $ 877,447
Total current liabilities (1,516,336 ) (78,170 ) (1,438,166 )
Working capital $ (638,889 ) $ (78,170 ) $ (560,719 )
As of September 30, 2022, we had cash and cash equivalents of $48,664, and we
had working capital deficit of $1,516,336 as compared to working capital deficit
of $78,170 as of December 31, 2021. The increasing in working capital deficit
was mainly reflected in the customer advances that were recognized as revenue
during the period. As a result, we depend substantially on our previous
financing activities to provide us with the liquidity and capital resources we
need to meet our working capital requirements and to make capital investments in
connection with ongoing operations. The Company expects its current capital
resources to meet our basic operating requirements for approximately twelve
months.
Cash Flows for the nine months ended September 30, 2022 and 2021
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