Forward looking statement notice

Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

Financial information contained in this quarterly report and in our unaudited interim financial statements is stated in United States dollars and are prepared in accordance with United States generally accepted accounting principles.

General

Boatim Inc.. ("we", "our, "Boatim", the "Company") is a for profit corporation established under the corporate laws of the State of Nevada on August 15, 2014. Its fiscal year end is August 31.

Boatim, Inc. established Boatim Europe S.L. ("Boatim Europe") as a private limited company pursuant to the laws of Spain on December 18, 2019, with the Company having indirect control of one hundred percent of the issued and outstanding membership interests of Boatim Europe. Boatim Europe commenced operations in February 2020 and is engaged in the business of providing software development, marketing, and selling services for Boatim Inc.

All membership interests of Boatim Europe are currently held in trust by the Company´s CEO for practical reasons and only until the formal transfer into the name of Company has been completed according to the requirements of applicable Spanish law. In December 2020, the Company finalized the process of collecting and submitting all required paperwork to the Spanish authorities to enter Boatim Inc. as direct owner on public records in Spain, making Boatim Europe a wholly owned subsidiary of the Company.

Originally in the business of producing and distributing furniture, the business was changed to online food blogging as a promotion channel for restaurants, bars and fine dining. Subsequently, following the acquisition of the Boatim software platform, the Company expanded into the boating industry by further developing the software platform. The Boatim software platform is an online boat trading marketplace, combining data-driven technology and our digital marketing capabilities to offer a rolling subscription for service model of access to the platform for the extensive market of global boat dealers.

Results of operations

The following comparative analysis on results of operations was based primarily on the comparative financial statements, footnotes and related information for the periods identified below and should be read in conjunction with the financial statements and the notes to those statements that are included elsewhere in this report.

Results of Operations for the Three Months Ended February 28, 2022 and February 28, 2021

Operating expenses

Operating expenses comprised of general and administrative expenses were $1,082,427 for the three months ended February 28, 2022, compared to $1,330,596 for the three months ended February 28, 2021, a decrease of $248,169. The decrease is due to a reduction in selling and marketing staff in the European office because of restructuring.




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Net Loss

Net loss for the three months ended February 28, 2022 was $1,206,180 compared to $1,506,244 for the three months ended February 28, 2021, an decrease of $300,064. As well as the reasons discussed above, Other income (expenses) comprised interest expense of $99,233, a loss on foreign exchange of $2,294.

Results of Operations for the Six Months Ended February 28, 2022 and February 28, 2021

Operating expenses

Operating expenses comprised of general and administrative expenses were $2,518,113 for the six months ended February 28, 2022, compared to $1,609,124 general and administrative expense for the six months ended February 28, 2021, an increase of $908,989 in general and administrative expenses. The increase is due primarily to stock based compensation associated with our convertible notes totaling $883,841.

Net Loss

Net loss for the six months ended February 28, 2022 was $2,638,351 compared to $2,445,563 for the six months ended February 28, 2021. As well as the reasons discussed above, Other income (expenses) comprised interest expense of 99,218 and a gain of $1,205.

Liquidity and capital resources

At February 28, 2022, we had $186,843 in cash and there were outstanding liabilities of $3,115,271 (cash of $69,827 and liabilities of $2,489,789 on August 31, 2021, respectively). The stockholders' deficit was $2,298,290 as of February 28, 2022 and $1,804,402 as of August 31, 2021.

There was $501,137 cash used by operations in the six months ended February 28, 2022 ($875,064 net cash used in operating activities during the six months ended February 28, 2021), $112,716 used in cash for investing activities for the six months ended February 28, 2022 ($217,077 used in cash for investing activities during the six month period ended February 28, 2021) and $719,047 cash provided through financing activities during the six months ended February 28, 2022 ($1,058,643 up to February 28, 2021). This resulted in $117,015 changes in net cash during the six months ended February 28, 2022 and $33,498 change in net cash during the six months ended February 28, 2021, respectively.

Cayo Ventures GmbH has verbally agreed to continue to loan the company funds for operating expenses in a limited scenario, but it has no legal obligation to do so.

There is limited historical financial information about us upon which to base an evaluation of our performance. We have meaningfully commenced business operations based upon the amount of revenue we have been able to generate. We are in start-up stage of operations. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services and products.

We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholders.

Off-balance sheet arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.


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