Liquidity and Capital Resources

As of September 30, 2019 and September 30, 2018, we had cash and cash equivalents in the amount of $20,198,362 and $22,737,755, respectively. The decrease in cash is attributed to decrease of deferred income and accounts payable. These accounts payable were mainly unpaid commissions to Force Club premium members and these payments were completed as of the date of this report. Currently, our cash balance is sufficient to fund our operations without the need for additional funding.





Revenues


We recorded revenue of $28,393,548 for the year ended September 30, 2019 as opposed to $34,878,988 for the year ended September 30, 2018. The decrease in revenue, in our opinion, is attributed to a decrease in recruitment activities of premium force club members.





Net income (loss)


We recorded net loss of $132,017 for the year ended September 30, 2019 and net income of $2,375,632 for the year ended September 30, 2018. The decrease in net income is attributed to a decrease in revenue from 2018 to 2019.





Cash flow


For the year ended September 30, 2019, we had negative cash flows from operations in the amount of $4,953,889. For the year ended September 30, 2018, we generated cash flows from operations in the amount of $10,665,370. The decrease in operating cash flow, in our opinion, is attributed to decreases in net income, accounts payable and deferred income.





Working capital


As of September 30, 2019 and 2018, we had working capital of $15,318,405 and $13,436,660, respectively. The increase in working capital, in our opinion, is attributed to decreases in accounts payable and deferred income.





Advertising


Advertising costs are expensed as incurred and included in selling and distributions expenses. Advertising expenses were $1,908,950 and $913,480 for the years ended September 30, 2019 and 2018, respectively.

Advertising expenses were comprised of, but not limited to, sales events hosted for sales agents, exhibitions to promote and display company product offerings, signboards, and public relations activities.





Future Plans


Over the course of the next twelve months, the Company intends to focus on expanding its sales network in order to strengthen its business activities. Currently, revenue is derived primarily from sales of the Company's Force Club premium package. While it is the intention of the Company to maintain this revenue stream, and to further increase the number of premium users of the Force Club, the Company also intends to diversify its operations and develop additional business activities.

In order to do so, the Company intends to focus on development of an online educational platform on which additional advertising income can be generated. At present, there are no definitive plans that have been made regarding the implementation or direction of this future online educational platform. However, we intend to begin efforts to hire additional personnel with extensive experience in web marketing in order to assist in the development of our future platform.

© Edgar Online, source Glimpses