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 United States Dollars and are
prepared in accordance with United States Generally Accepted Accounting
Principles.
Results of Operations
The following summary of our operations should be read in conjunction with our
audited consolidated financial statements for the year ended June 30, 2021 and
2020.
Year Ended June 30, 2021 Compared to Year Ended June 30, 2020
Our operating results for the year ended June 30, 2021 and 2020, and the changes
between those periods for the respective items are summarized as follows:
Year Ended
June 30, June 30,
2021 2020 Change %
Operating expenses $ (29,689 ) $ (25,037,849 ) $ 25,008,160 (100%)
Other expenses $ (60,049 ) $ (96,660 ) $ 36,611 (38%)
Net loss $ (89,738 ) $ (25,134,509 ) $ 25,044,771 (100%)
No revenue was generated for year ended June 30, 2021 and 2020.
Net loss was $89,738 for the year ended June 30, 2021 as compared to net loss of
$25,134,509 for the year ended June 30, 2020 mainly attributed to the decrease
in operating expenses and other expenses. During the year ended June 30, 2020,
the Company incurred stock based compensation of $25,000,000 from stock payable
of 25,000,000 outstanding common shares based on stock trading price at $1.00
per share to the Company's Chief Executive Officer as compensation for the year
2019.
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Liquidity and Capital
Working Capital
June 30, June 30,
2021 2020 Change %
Current Assets $ - $ - $ - 0 %
Current Liabilities $ 173,010 $ 114,731 $ 58,279 51 %
Working Capital (Deficit) $ (173,010 ) $ (114,731 ) $ (58,279 ) 51 %
Year Ended
June 30, June 30,
2021 2020
Cash Flows used in Operating Activities $ (35,483 ) $ (32,205 )
Cash Flows provided by Financing Activities 35,483 32,205
Net Changes in Cash During Period
$ - $ -
The financial statements included in this yearly report 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 shown in the
financial statements at June 30, 2021 and June 30, 2020, we had an accumulated
deficit of $25,472,698 and $25,382,960 of continuing operations, respectively,
and retained earnings of $109,905 and $109,905 from discontinued operations, as
of June 30, 2021 and June 30, 2020, respectively. We had a working capital
deficit (total current liabilities exceeded total current assets) of $173,010
and $114,731 at June 30, 2021 and June 30, 2020, respectively. The increase in
working capital deficiency was mainly attributed to the increase in convertible
notes and accrued interest. Our cash balance and revenues generated are not
currently sufficient and cannot be projected to cover our operating expenses for
the next 12 months from the filing date of this report. These factors among
others raise substantial doubt about our ability to continue as a going concern
for a reasonable period of time.
Cash Flows from Operating Activities
Net cash used in our operating activities for the year ended June 30, 2021
totaled $35,483, compared to net cash used in our operations for the year ended
June 30, 2020 of $32,205.
For the year ended June 30, 2020, net cash flows used in operating activities
was $35,483, consisting of a net loss of $89,738, decreased by amortization of
debt discount of $26,159 and changes in operating liabilities of $28,096.
For the year ended June 30, 2020, net cash flows used in operating activities
was $32,205, consisting of a net loss of $25,134,509, decreased by stock based
compensation of $25,000,000, amortization of debt discount of $83,801 and
changes in operating liabilities of $18,503.
Cash Flows from Investing Activities
For the year ended June 30, 2021 and June 30, 2020, we had no investing
activities.
Cash Flows from Financing Activities
For the year ended June 30, 2021, net cash provided by financing activities was
$35,483 from proceeds from issuance of convertible notes of $26,159 and
advancement from the Director of the Company for paying off operating expenses
on behalf of the Company of $9,324.
For the year ended June 30, 2020, net cash provided by financing activities was
$32,205 from proceeds from issuance of convertible notes.
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Our existence is dependent upon management's ability to develop profitable
operations. Management is devoting substantially all of its efforts to
developing our business and raising capital and there can be no assurance that
our efforts will be successful. No assurance can be given that management's
actions will result in profitable operations or the resolution of our liquidity
problems. The financial statements do not include any adjustments that might
result should we be unable to continue as a going concern. In order to improve
our liquidity, management is actively pursuing additional equity financing
through discussions with investment bankers and private investors. There can be
no assurance that we will be successful in our effort to secure additional
equity financing.
Liquidity and Capital Resources
Our cash balance at June 30, 2021 was $NIL, with $173,010 in outstanding current
liabilities, consisting of $12,277 in accounts payable and accrued liabilities,
$46,749 in accrued interest, $104,660 in convertible notes and $9,324 in amount
due to related party. We estimate total expenditures over the next 12 months are
expected to be approximately $50,000.
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 the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. A change in managements' estimates or assumptions could have a
material impact on our financial condition and results of operations during the
period in which such changes occurred. Actual results could differ from those
estimates. Our financial statements reflect all adjustments that management
believes are necessary for the fair presentation of their financial condition
and results of operations for the periods presented.
Recent Accounting Pronouncements
Management has considered all recent accounting pronouncements issued. Our
management believes that these recent pronouncements will not have a material
effect on our company's financial statements.
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