OVERVIEW
The following discussion of the financial condition, changes in financial
condition and results of operations of the Company for the fiscal years ended
December 31, 2020 and 2019 should be read in conjunction with the financial
statements of the Company and related notes included therein.
The Company was incorporated on August 31, 1995 as Visioneering Corporation. In
1999, the Company acquired 20/20 Web Design, Inc., a Colorado corporation wholly
owned by Crown Partners, Inc. In August, 2009, Crown Partners transferred its
shares of the Company to Crown Marketing Corporation ("Crown Marketing") in
exchange for marketing and public relation services to be provided by Crown
Marketing.
The Company continues to search for additional areas in which it can generate
revenue so that the Company will become profitable but there can be no guarantee
that profitability will be achieved in the near- or long-term.
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The Company will attempt to carry out its business plan as discussed below. The
Company's business plan is to continue building its network of online publishing
sites, as well as continuing to provide the consulting and services to its
client on an as-needed basis. These services include general and financial
management to private and public companies with an emphasis on their financial
reporting and filing requirements. Such service is subject to the needs of its
clients and may vary by company. The Company will attempt to carry out its
business plan as described above. The Company cannot predict to what extent its
lack of liquidity and capital resources will hinder its business plan prior to
the consummation of a business combination.
LIQUIDITY AND CAPITAL RESOURCES
Since inception, the Company's most significant change in liquidity or capital
resources or stockholders' equity has been receipts of proceeds from offerings
of its capital stock. The revenue transaction does not reflect the ability of
the Company to fund itself without outside sources in the future. Further, there
exist no agreements or understandings with regard to loan agreements by or with
the Officers, Directors, principals, affiliates or shareholders of the Company.
In the past, officers and directors of the Company have lent or advanced monies
to the Company to fund operations, there are no formal agreements or
arrangements for them to continue to do so. As of December 31, 2020, the Company
has $3,047 in cash, $180,587 held in brokerage accounts and $15,045 of long-term
debt.
At December 31, 2020, the Company had negative working capital of $444,256 which
consisted of current assets of $183,634 and current liabilities of $627,890. The
current liabilities of the Company at December 31, 2020 are composed of accounts
payable and accrued expenses of $137,793, accounts payable and accrued expenses
and notes payable to related party of $444,246 and $5,508, respectively,
deferred revenue from related party $11,333, current portion of long term debt
of $29,010.
Cash flows used in operating activities during the year ended December 31, 2020
was $72,957 compared to cash flow used of $67,675 for the same period in 2019.
Cash flows used in investing activities were $174,597 and $0 for the years ended
December 31, 2020 and 2019.
Cash flows provided by financing activities was $249,604 for the year ended
December 31, 2020 compared to $55,378 for the same period in 2019. The financing
activities in 2020 consisted mostly of proceeds from sale of stock.
As of December 31, 2020, the Company had total assets of $199,139 and total
liabilities of $642,935. Stockholders' deficit as of December 31, 2020 was
$443,796 compared to a deficit of $318,425 at December 31, 2019. The Company
will attempt to carry out its plan of business as discussed above. The Company
cannot predict to what extent its lack of liquidity and capital resources will
hinder its business plan. The Company will need additional capital to fund that
proposed operation.
NEED FOR ADDITIONAL FINANCING
The Company's existing capital may not be sufficient to meet the Company's cash
needs, including the costs of compliance with the continuing reporting
requirements of the Securities Exchange Act of 1934, as amended.
No commitments to provide additional funds have been made by management or other
stockholders. Accordingly, there can be no assurance that any funds will be
available to the Company to allow it to cover its expenses.
The Company might seek to compensate providers of services by issuances of stock
in lieu of cash.
RESULTS OF OPERATIONS - Comparison of the Year Ended December 31, 2020 to the
Year Ended December 31, 2019
REVENUES
Sales for the year ended December 31, 2020 were $7,948 compared to $53,793 for
the year ended December 31, 2019, a decrease of $45,845. Of the $7,948 revenue
in 2020, $5,100 was from related parties.
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OPERATING EXPENSES
During the year ended December 31, 2020, we incurred $639,820 in operating
expenses, compared to $147,363 in the same period ended December 31, 2019, an
increase of $492,547 mainly due to increase in administrative contract expenses.
OTHER INCOME AND EXPENSES
During the year ended December 31, 2020, we incurred other expenses of $542,796,
consisting of interest expense of $7,461, amortization of the beneficial
conversion feature of our convertible notes of $8,370, investment expense of
$17,000 and loss on settlement of accounts payable of $543,987. In the year
ended December 31, 2019 we had other expenses of $59,456, consisting of interest
expense of $21,885 and amortization of the beneficial conversion feature of our
convertible notes of $38,920 and gain on extinguishment of debt of $1,349.
During the year ended December 31, 2020, we had other income of $34,022 from
gains realized on stocks held.
NET LOSS
The Company had a net loss for the year ended December 31, 2020 of $1,174,015
compared to a net loss of $153,026 for the year ended December 31, 2019, an
increase of $1,020,989 mainly due to increase in administrative contract
expenses and loss on settlement of accounts payable for services.
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