CARRIAGE HOUSE EVENT CENTER, INC. Statements in this Management's Discussion and Analysis of Financial Condition
and Results of Operation, as well as in certain other parts of this Annual
Report on Form 10-K (as well as information included in oral statements or other
written statements made or to be made by
We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this Form 10-K.
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Overview
We are a company formed for the purpose of developing a unique Event Center, encompassing a variety of additional services in the same location. However, the Covid-19 Pandemic has had a dramatic effect on the progress of the Company. As noted above, if the Pandemic of Covid-19 and the variances does not subside immediately, the Company may have to move quickly in another direction, including seeking a merger candidate.
The Year Ended
For the years ended
Operating expenses
For the years ended
Net Loss
For the years ended
Liquidity and Capital Resources
Our cash balance at
Operating Activities
Net cash used in operating activities was
Investing Activities
We neither generated nor used cash in investing activities during the years
ended
Financing Activities
Cash flows provided by financing activities were
We have not yet generated sustained profits from our operations. Our independent
accountants have expressed a "going concern" opinion. As of
While our current burn rate is nominal, it is expected that our costs of operations will continue to exceed revenues, primarily due to the costs associated with being a public reporting company. Based upon our current business plan, we may continue to incur losses in the foreseeable future and there can be no assurances that we will ever establish profitable operations. These and other factors raise substantial doubt about our ability to continue as a going concern.
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Plan of Operation
Our auditor has issued a going concern opinion. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we raise additional capital either through the sale of common stock or debt. There is no assurance we will ever reach that point. In the meantime, the continuation of the Company is dependent upon the continued financial support from our shareholders, our ability to obtain necessary equity financing to continue operations and the attainment of profitable operations.
Our plan of operation for the fiscal year 2022 will be on to attempt to raise the capital needed to construct the event center and pursue those companies that would desire to be a part of the overall concept. However, the Covid-19 Pandemic has had a dramatic effect on the progress of the Company and if the Pandemic does not subside quickly, the Company may have to move in a different direction.
We anticipate spending
Management intends to keep the Company current in its filings with the
Critical Accounting Policies, Judgments and Estimates
Refer to Note 2 for a summary of our significant accounting policies.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
Going Concern
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As shown in the accompanying financial
statements, we have incurred net losses of
Management believes the Company will continue to incur losses and negative cash flows from operating activities for the foreseeable future and will need additional equity or debt financing to sustain its operations until it can achieve profitability and positive cash flows, if ever. Management plans to seek additional debt and/or equity financing for the Company but cannot assure that such financing will be available on acceptable terms.
In 2020, the Company filed an S-1 Registration Statement to register 1,000,000
shares of the Company's common stock to be sold to the public at the price of
The shares were sold by the officers and Directors of the Company and no broker commissions were paid as a result of the sales. There can be no assurances that any additional shares of common stock will be sold on the S-1 offering or that a trading market will develop for the shares.
The funds raised on the offering were used for the payment of costs incurred in the filing of the S-1 Registration Statement and for operating capital for the Company and the payment of some debt.
With the filing of the S-1 Registration Statement, the Company became a
"
Our current management has agreed to advance funds to the Company on an "as needed" basis. Should existing management, stockholders or our affiliates refuse to advance needed funds, however, we would be forced to turn to outside parties to either lend funds to us or buy our securities. There is no assurance that we will be able to raise the necessary funds, when needed, from outside sources. Such a lack of funds could result in severe consequences to us, including among others:
? failure to make timely filings with the SEC as required by the Exchange
Act, which may also result in suspension of trading or quotation of our
stock and could result in fines and penalties to us under the Exchange
Act; and
? failure to increase sales and income for the Company.
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The Company's continuation as a going concern is dependent upon its ability to ultimately attain profitable operations, generate sufficient cash flow to meet its obligations, and obtain additional financing as may be required. Our auditors have included a "going concern" qualification in their Report of Independent Certified Public Accountants accompanying our audited financial statements appearing elsewhere herein which cites substantial doubt about our ability to continue as a going concern. Such a "going concern" qualification may make it more difficult for us to raise funds when needed. The outcome of this uncertainty cannot be assured.
The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. There can be no assurance that management will be successful in implementing its business plan or that the successful implementation of such business plan will actually improve.
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