FORWARD LOOKING STATEMENTS

Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.




                            DESCRIPTION OF BUSINESS


Business Development

We are a development-stage company, incorporated on January 29, 2018 in the State of Nevada, with a fiscal year end of December 31. We lease a property at Kemp House, 152 - 160 City Road, London EC1V 2NX, United Kingdom. Our telephone number is: 442039368036. The only employee of the Company is its sole officer and director, Vadim Rata. We are a development-stage company that intends to develop, market and sell a subscription-based income/expense tracking application service. The management is also discussing providing a secure physical wallet that only opens once an expenditure/earning is reflected in the application. To date, our operations have been limited to researching the marketplace for our proposed income/expense application product possibly connected to a physical wallet and the issues entailed in developing these products, as well as the preliminary design and development of our website. We have not yet implemented our business model or undertaken development of our proposed income/expense product nor the possible physical wallet. To date, we have generated no revenues from our operations. There can be no assurances that our efforts to develop our proposed income/expense service will succeed, or that we will be able to market our proposed income/expense service or the potential physical wallet, if developed.




Our Business

We intend to develop, launch, market and sell (via subscription), what will be (depending on user preferences) the most secure income/expense tracking system available today. We are considering development of a physical wallet with a Bluetooth lock controlled by our application on effectiveness of its functionality, available pricing of the product, designs and materials to use.

The Application

Our proposed LOVARRA Application (LOVARRA) will be an expense and earnings tracker with all modern features. The functionality of our future product shall include but will not be limited the following functionality:

GENERAL:

• Tracking both expenses and income.

• Support for multiple accounts and transfers between them.

• All entries, accounts, tags, parties and groups can be edited or deleted at any time.

• Photo and file attachments.

• Passcode protection to hide your financial data from unwanted eyes.

• Recurring entries, both expenses and earnings, with rich frequency options.

• History to view and adjust your previous entries.








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• Tags to organize your entries the way you like.

• Ability to specify vendors/payees and clients/payers (parties).

• Groups to separate your regular expenses from business or holiday trips.

• Time of entries is recorded as well.

REPORTS:

• Instant reports for any period of time and kind of expenses.

• Timeline bar graph reports for days, weeks and months, with whatever filter you set.

• Structure of expenses and income, split by tags, parties, accounts or groups, in percentages and absolute amounts, for any report filter.

• Daily, weekly and monthly averages.

• Reports for particular hours.

• Instant account balances.

• Report filter presets - switch between your favorite reports with just a tap.

MULTIPLE CURRENCIES:

• Full support for over 160 world currencies.

• Quick toggle between the currencies you are using most often.

• Currency conversion, with both automatically retrieved and user-defined exchange rates.

• Adjustable exchange rates update mode to reduce traffic fees (automatic, Wi-Fi only, manual).




EXPORT AND IMPORT:

• Ability to analyze your entries in a spreadsheet using CSV export.

• Backup and restore your data and settings over Wi-Fi or Email.

• Default email address to speed-up exporting via Email.

Why physical wallet?

In future, once we start generating revenues, we plan on developing a physical wallet with a lock on it. The lock will open via Bluetooth at a moment a user makes an entry to the application. That way we will exclude a chance for an expense or an income occur and stay unrecorded, thus, significantly increasing the efficiency of the users' budget planning and monitoring of their monies. The scope of the project is huge, and we expect it to take at least 12 months to be completed.

Monetization of the project:

We plan on providing one-month free trial for users to look-and-feel its usage comfort and enjoy its design. After that, users will be offered to purchase in-app subscriptions for 6/12/24 months. They will be able to pay simply using a credit/debit card that has been previously linked to the App.

Further, when the business is successful and as the physical wallets are developed, they will be available for sale on our website or purchased through the App.

The wallets will be delivered to their new owners with a promo-code of one-year App subscription.

Monetization from in-app advertisements will also be one of our income sources. We also maintain website at lovarra.com




Company Overview

We are a development-stage company that intends to provide subscription-based, highly secure expense and earnings tracking application service for personal and corporate use. We have not generated any revenues to date.




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                              RESULTS OF OPERATION

As of the nine months ended September 30, 2019, the Company has a net loss of $9,581. Our financial statements have been prepared assuming that we will continue as a going concern. We expect we will require additional capital to meet our long-term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

Three Month Period Ended September 30, 2019

Revenue

During the three months ended September 30, 2019 and 2018, the Company has not earned any revenue.




Operating Expenses

During the three-month period ended September 30, 2019, we incurred total expenses and professional fees of $1,720 compared to $237 during the three months ended September 30, 2018. General and administrative and professional fee expenses incurred generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting, developmental costs, and marketing expenses.

Net Loss

Our net loss for the three-month period ended September 30, 2019 was $1,720 compared to net loss of $237 during the three months ended September 30, 2018.

Nine Month Period Ended September 30, 2019

Revenue

During the nine months ended September 30, 2019 and 2018, the Company has not earned any revenue.




Operating Expenses

During the nine-month period ended September 30, 2019, we incurred total expenses and professional fees of $9,581 compared to $499 during the nine months ended September 30, 2018. General and administrative and professional fee expenses incurred generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting, developmental costs, and marketing expenses.

Net Loss

Our net loss for the nine-month period ended September 30, 2019 was $9,581 compared to net loss of $499 during the nine months ended September 30, 2018.




                        LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2019, our total assets were $3,989 compared to $3,914 in total assets as of December 30, 2018. As of September 30, 2019, and since the inception date to December 31, 2018, our liabilities were $9,685 and $29, respectively.

Stockholders' equity was $3,885 as of December 31, 2018, compared to stockholders' deficit of $(5,696) as of September 30, 2019.




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Cash Flows from Operating Activities

For the nine-month period ended September 30, 2019, net cash flows used in operating activities were $8,156 compared to $4,435 during the nine months ended September 30, 2018. The increase in cash used for operating activities is due to an increase in overall operating activity during the year.

Cash Flows from Financing Activities

Cash provided by financing activities during the nine-month period ended September 30, 2019 was $8,160 compared to $4,525. Financing for the current year was from the Chief Executive Officer of the Company which is unsecured, non-interest bearing, and due on demand whereas $4,500 of financing from the prior year was due to the issuance of common stock to the Chief Executive Officer of the Company.

Plan of Operation and Funding

We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next twelve months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.

Off-Balance Sheet Arrangements

As of the date of this Quarterly Report, we do not have any 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 are material to investors.

Going Concern

The independent auditors' report accompanying our December 31, 2018 financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business. There has been no change in our going concern assumption as at September 30, 2019.

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