Results of Operations

For the years ended December 31, 2021 and 2020





Revenue

The Company had no operations and no revenue for the years ended December 31, 2021 and 2020 and its only income was from interest income on its short-term investments which are classified as cash and cash equivalents.





Operating Expenses



The following table presents our total operating expenses for the years ended
December 31, 2021 and 2020.



                                                 Year Ended
                                                December 31,
                                             2021         2020
Audit and professional fees                  38,173        68,000
Payroll                                      20,582        20,502
Stock based compensation                          -        90,000

Other general and administrative expense 12,898 13,542

$ 71,653     $ 192,044

Operating expenses consist mostly of audit and accounting fees and payroll. There were less operating expenses for the year ended December 31, 2021, mainly due to lower legal and professional fees than were incurred in 2021. There was no stock based compensation in 2021. Other general and administrative expenses are comprised of transfer agent and EDGAR filer services and other services. These expenses were directly related to the maintenance of the corporate entity and the preparation and filing of reports with the Securities and Exchange Commission.






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Loss from Operation

The Company incurred a loss from operations of $71,653 and $192,044 for the years ended December 31, 2021 and 2020, respectively.





Other Income (Expense)

The following table presents our total Other Income (Expense) for the years ended December 31, 2021 and 2020.





                                      Year Ended
                                     December 31,
                                   2021          2020

Interest and other income      $        117     $ 1,010
Warrant modification expense     (1,450,890 )         -
                               $ (1,450,773 )   $ 1,010

Other income (expense) increased by $(1,451,783) for the year ended December 31, 2021 as compared to the year ended December 31, 2020. The increase was caused by 2021 Warrant modification expenses (See Note 6 on the accompanying financial statements) and less interest income due to fewer investable funds and low interest rates.





Net Loss

The Company had a net loss of $1,522,426 for the year ended December 31, 2021, compared with a net loss of $191,034 for the year ended December 31, 2020. The increase in net loss was due to the above-mentioned effect of the warrant modification expense.

Losses per share for the years ended December 31, 2021 and 2020 were $(0.02) and $(0.00) per share, respectively, based on the weighted-average shares issued and outstanding.

It is anticipated that future operating expenses will decrease and then stabilize as the Company complies with its periodic reporting requirements; however, expenses may increase as the Company works to effect a business combination, although there can be no assurance that the Company will be successful in effecting a business combination.

Liquidity and Capital Resources

At December 31, 2021 the Company had cash and cash equivalents of $497,135, consisting mostly of money market funds and U.S. Treasury and government securities maturing in 3 months or less. Management believes that its cash and cash equivalents are sufficient for its business activities for at least the next twelve months and for the costs of seeking an acquisition of an operating business.

The following table provides detailed information about our net cash flow for all years presented in this Report.





Cash Flow



                                                   Year Ended
                                                  December 31,
                                              2021           2020

Net cash used in operating activities $ (73,536 ) $ (108,476 ) Net cash provided by investing activities

           -              -
Net cash provided by financing activities           -              -
Net cash outflow                            $ (73,536 )   $ (108,476 )

Net cash of $73,536 and $108,476 were used in operations during the year ended December 31, 2021 and 2020, respectively.

The use of cash of $73,536 used in operating activities for the year ended December 31, 2021, principally resulted from our net loss of $1,522,426, as adjusted for a non-cash charge for warrants modification expense of $1,450,890, and a change in accounts payable and accrued expenses of $2,000.

The use of cash of $108,476 used in operating activities for the year ended December 31, 2020, principally resulted from our net loss of $191,034, as adjusted for non-cash charges for stock-based compensation of $90,000, and changes in accounts payable and accrued expenses of $7,442.

No cash flows were used in or provided by investing activities during the years ended December 31, 2021 and 2020.






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No cash proceeds were used in or provided by financing activities during the years ended December 31, 2021 and 2020.

New Accounting Pronouncements

Refer to the discussion of recently adopted/issued accounting pronouncements under Part II, Item 8, Notes to Financial Statements, Note 3: Significant Accounting Policies.

Factors Which May Affect Future Results

Future earnings of the Company are dependent on interest rates earned on the Company's invested balances and expenses incurred. The Company expects to incur significant expenses in connection with its objective of identifying a merger partner or acquiring an operating business.

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