CYTTA CORP. The following is management's discussion and analysis of certain significant
factors that have affected our financial position and operating results during
the periods included in the accompanying consolidated financial statements, as
well as information relating to the plans of our current management. This report
includes forward-looking statements. Generally, the words "believes,"
"anticipates," "may," "will," "should," "expect," "intend," "estimate,"
"continue," and similar expressions or the negative thereof or comparable
terminology are intended to identify forward-looking statements. Such statements
are subject to certain risks and uncertainties, including the matters set forth
in this report or other reports or documents we file with the
While our financial statements are presented on the basis that we are a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business over a reasonable length of time, our auditors have raised a substantial doubt about our ability to continue as a going concern.
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Results of Operations for the years ended
The following tables set forth key components of our results of operations for the periods indicated:
2022 2021
Revenue $ 6,089 $ 94,626
COGS $ - $ 41,872
Gross Profit $ 6,089 $ 52,754
Operating Expenses $ 5,058,255 $ 2,625,302
Operating Loss $ (5,052,166 ) $ (2,572,548 )
Net Loss $ (5,100,102 ) $ (2,593,537 ) Revenues of
For the year ended
Operating expenses were
September 30,
Increase
Description 2022 2021 (decrease)
Stock based expenses $ 2,178,973 $ 1,365,667 $ 813,306
Professional fees 414,633 196,317 218,316
Consulting expenses (excluding stock
expenses) 627,657 173,735 453,922
Related party expenses (excluding stock
expenses) 1,005,757 492,579 513,178
Depreciation expense 47,616 40,866 6,750
Equipment and demo expenses 305,762 69,035 236,727
General and Administrative officers 59,955 112,385 (52,430 )
Auto, Travel and
21,496 16,732 4,764
Transfer agent and filing fees 48,445 5,968 42,477
Bad debt expense - 20,040 (20,040 )
Other operating expenses 118,618 60,074 58,544
Total Operating expenses $ 5,058,255 $ 2,625,302 $ 2,432,953
The following tables set forth key components of our balance sheet as of
September 30, 2022 and 2021.
2022 2021
Current Assets $ 788,019 $ 1,102,449
Property and Equipment $ 122,990 $ 170,605
Total Assets $ 911,009 $ 1,273,054
Current Liabilities $ 449,217 $ 406,810
Total Liabilities $ 449,217 $ 406,810
Stockholders' Equity $ 461,792 $ 866,244 Total Liabilities and Stockholders' Equity
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Liquidity and Capital Resources
As of
The accompanying financial statements have been prepared on a going concern
basis, which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business. As of
For the year ended
As of
In
Operating Activities
For the year ended
For the year ended
Investing Activities
There was no investment activity for the year ended
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Financing Activities
For the year ended
Critical Accounting Policies
Our significant accounting policies are summarized in Note 4 of our financial statements. While all these significant accounting policies impact our financial condition and results of operations, we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause an effect on our results of operations, financial position or liquidity for the periods presented in this report.
Property and Equipment
Property and equipment are stated at cost, and depreciation is provided by use of a straight-line method over the estimated useful lives of the assets.
The Company reviews property and equipment for potential impairment whenever events or changes in circumstances indicate that the carrying amounts of assets may not be recoverable. The estimated useful lives of property and equipment is as follows:
Vehicles and equipment 5 years
Software 3 years Revenue Recognition
Effective
Stock-Based Compensation
The Company accounts for its stock based compensation under the recognition and
measurement principles of the fair value recognition provisions of Statement of
Financial Accounting Standards No. 123 (revised 2004) "Share-Based Payment"
("SFAS No. 123R")(ASC 718) using the modified prospective method for
transactions in which the Company obtains employee services in share-based
payment transactions and the
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Earnings (Loss) Per Share
The Company computes net loss per share in accordance with FASB ASC 260, "Earnings per Share." ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the statement of operations. Basic EPS is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including stock options, using the treasury stock method, and convertible notes and stock warrants, using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options, warrants and conversion of convertible notes. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive.
Off Balance Sheet Arrangements
We have no off-balance sheet arrangements including arrangements that would affect our liquidity, capital resources, market risk support and credit risk support or other benefits.
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