This quarterly report on Form 10-Q includes "forward-looking statements" as
defined by the Securities and Exchange Commission. These statements may involve
known and unknown risks, uncertainties and other factors which may cause actual
results, performance or achievements to be materially different from future
results, performance or achievements expressed or implied by any forward-looking
statements. Forward-looking statements, which involve assumptions and describe
future plans, strategies and expectations, are generally identifiable by use of
the words "may," "will," "could", "should," "expect," "anticipate," "estimate,"
"believe," "intend" or "project" or the negative of these words or other
variations on these words or comparable terminology. These forward-looking
statements are based on assumptions that may be incorrect. Actual results could
differ materially from those expressed or implied by the forward-looking
statements as a result of various factors. The company undertakes no obligation
to update publicly any forward-looking statements for any reason, even if new
information becomes available or other events occur in the future.
The following discussion should be read in conjunction with the accompanying
unaudited condensed financial statements for the three months ended September
30, 2021 and the Form 10-K for the fiscal year ended June 30, 2021.
OVERVIEW
The Company's inflight connectivity technology is targeted at two distinct
markets. BizjetMobile and CrewX are designed for business jets and has been sold
in North America, Europe and the Middle East. The Company's fflya system is
designed for, and marketed to, low-cost airlines in Europe and Asia.
The Company has continued investing in the development and marketing of the
airline versions of its fflya and CrewX technology. As a result, the Company
has recently completed flight trials and been working with Wizz Air, installing
a system on an A321 and is now progressing to passenger trials.
Implementation of the Company's fflya program was delayed due to the impact of
Covid19, which has necessitated renegotiation of outstanding loans and debts, as
well as raising additional funding.
RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2021 COMPARED TO THREE MONTHS ENDED SEPTEMBER
30, 2020
In the three months period ended September 30, 2021, the Company recorded
revenue of $0, compared to revenue of $16,032 in the corresponding three-month
period ended September 30, 2020, as there were no system sales due to the
impending release in November of the new Iridium Certus mid band internet
solution, which will form the basis of an enhanced BizjetMobile service.
The Company incurred operating costs of $203,214 in the three months ended
September 30, 2021 and $284,331 in the three months ended September 30, 2020.
Main components are engineering and marketing expenses. In the three months
ended September 30, 2021, the Company recorded an operating loss of $203,214
compared to an Operating Loss of $268,299 in the three months ended September
30, 2020.
The development and marketing costs have been funded in part through interest
bearing convertible notes. As a result, the Company's Other Expenses, included
interest of $87,020 and $41,862 in the three months ended September 30, 2021 and
2020 respectively. This resulted in Net Losses of $290,234 and $310,161 in the
three months ended September 30, 2021 and 2020 respectively.
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LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of liquidity are cash received from issue of
common stock and accounts payable for expenses incurred with related parties.
Without the continuation of these sources of funding, as stated in Note 2 above,
the Company's ability to continue as a going concern is in substantial doubt.
This will continue until the company is able to generate sufficient cash flow
from its operations.
The cash and cash equivalents balance was $262,834 at September 30, 2021 and
$157,601 at June 30, 2021.
The Company reported revenue of $0 in the three months ended September 30, 2021
compared to $16,032 in the three month period ended September 30, 2020. The
Company incurred a loss of $290,234 from operating activities for the three
months to September 30, 2021, compared to a loss of $310,161 from operating
activities for the three months to September 30, 2020. Net cash used in
operating activities for the three months ended September 30, 2021 was $209,824
compared to $110,148 during the three months ended September 30, 2020. Operating
cash requirement in the three months ended September 30, 2021 was increased
mainly through increased audit, management, engineering and technical support
costs.
The cash flow of the Company from financing activities for the three months
ended September 30, 2021 was $315,057 as a result of funds received pending
issue of common stock and increased loans. In the three months ended September
30, 2020, the cash flow from financing activities was $167,391 mainly from funds
received from issue of common stock and funds received pending issue of common
stock.
The Company may raise additional capital by the sale of its equity securities,
through an offering of debt securities, or from borrowing from a financial
institution or other funding sources. The Company does not have a policy on the
amount of borrowing or debt that the Company can incur. There are no guarantees
on the company's ability to raise additional capital and hence its ability to
continue as a going concern.
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