The following discussion should be read in conjunction with our consolidated
financial statements, including the notes thereto, appearing elsewhere in this
annual 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 Annual Report. Our audited
consolidated financial statements are stated in
Results of Operations The following summary of our operations should be read in conjunction with our audited financial statements for the years endedDecember 31, 2021 and 2020, which are included herein. Year ended December 31, 2021 2020 Changes % Operating expenses Professional fees$ 35,660 $ 24,081 $ 11,579 48 % Salaries and wages - related party 104,250,000 46,500,000 57,750,000 124 % Web development cost - 10,030 (10,030 ) (100 %) Total operating expenses 104,285,660 46,534,111 57,751,549 124 % Other expenses 195,410 82,792 112,618 136 % Net Loss$ 104,481,070 $ 46,616,903 $ 57,864,167 124 %
We recognized no revenues for the years ended
Net loss increased
8 Table of Contents
Liquidity and Capital Resources
Working Capital As of As of December 31, December 31, 2021 2020 Changes % Current Assets $ - $ - $ - Current Liabilities$ 392,620 $ 205,116 $ 187,504 91 % Working Capital Deficiency$ (392,620 ) $ (205,116 ) $ (187,504 ) 91 % Cash Flows Year ended December 31, 2021 2020 Changes %
Cash flows used in operating activities
$ - $ - $ - -
As at
As at
As at
Cash Flow from Operating Activities
We have not generated positive cash flow from operating activities. During the
year ended
Cash flows used in operating activities during the year ended
Cash flows used in operating activities during the year ended
Cash Flow from Investing Activities
During the years ended
9 Table of Contents
Cash Flow from Financing Activities
During the years ended
Going Concern
As of the year ended
Contractual Obligations
As a "smaller reporting company", we are not required to provide tabular disclosure obligations.
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 that is material to stockholders.
Critical Accounting Policies
The preparation of financial statements in accounting principles generally
accepted in
Fair Value of Financial Instruments
ASC 820 "Fair Value Measurements and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
These tiers include:
Level 1: defined as observable inputs such as quoted prices in active markets;
Level 2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3: defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
The carrying value of cash, prepayments and the Company's loan from shareholder approximates its fair value due to their short-term maturity.
10 Table of Contents Web Development Cost
In accordance with FASB ASC350-50 "Web Development Costs", all costs incurred
during the website planning stage are incurred. During the website application
and infrastructure development stage, software tool costs and internet domain
costs are capitalized, and website hosting costs are expensed. Cost incurred in
the graphics development, content development and operating stage are generally
expensed unless the costs are software related and should then be capitalized.
During the year ended
Share-based Expenses
ASC 718 "Compensation - Stock Compensation" prescribes accounting and reporting standards for all share-based payment transactions in which employee services and non-employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees and non-employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).
Recent Accounting Pronouncements
Management has considered all recent accounting pronouncements issued. Our Company's management believes that these recent pronouncements will not have a material effect on our financial statements.
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