The following discussion should be read in conjunction with the Company's consolidated financial statements, which are included elsewhere in this Form 10-K.
7 Results of Operations
Management's Plan of Operation
Overview
The Company's current business objective is to seek a business combination with an operating company. We intend to use the Company's limited personnel and financial resources in connection with such activities. The Company will utilize its capital stock, debt, or a combination of capital stock and debt, in effecting a business combination. It may be expected that entering into a business combination will involve the issuance of restricted shares of capital stock. The issuance of additional shares of our capital stock:
? may significantly reduce the equity interest of our stockholders;
? will likely cause a change in control if a substantial number of our shares of
capital stock are issued, and most likely will also result in the resignation
or removal of our present officer and director; and
? may adversely affect the prevailing market price for our common stock.
Similarly, if we issued debt securities, it could result in:
? default and foreclosure on our assets if our operating revenues after a
business combination were insufficient to pay our debt obligations;
? acceleration of our obligations to repay the indebtedness even if we have made
all principal and interest payments when due if the debt security contained
covenants that required the maintenance of certain financial ratios or reserves
and any such covenants were breached without a waiver or renegotiations of such
covenants;
? our immediate payment of all principal and accrued interest, if any, if the
debt security was payable on demand; and
? our inability to obtain additional financing, if necessary, if the debt
security contained covenants restricting our ability to obtain additional
financing while such security was outstanding.
Liquidity
As of
If we require additional financing, we cannot predict whether equity or debt financing will become available at terms acceptable to us, if at all. The Company depends upon services provided by Management and an affiliated party to fulfill its filing obligations under the Exchange Act. At present, the Company has no financial resources to pay for such services.
8
The Company does not currently engage in any business activities that provide
cash flow. The costs of investigating and analyzing business combinations,
maintaining the filing of Exchange Act reports, the investigation, analyzing,
and consummation of acquisition for an unlimited period of time will be paid
from additional money contributed by
Off-Balance Sheet Arrangements
As of
Contractual Obligations and Commitments
As of
Critical Accounting Policies
Our significant accounting policies are described in the notes to our financial
statements for the years ended
Going Concern
The accompanying financial statements have been prepared assuming the Company
will continue as a going concern, which contemplates the realization of assets
and the satisfaction of liabilities in the normal course of business for the
twelve months following the date of these financial statements. As of
Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company's ability to continue as a going concern. Historically, the Company has raised capital through private placements, as an interim measure to finance working capital needs and may continue to raise additional capital through the sale of common stock or other securities and obtaining some short-term loans.
Critical Accounting Policies
The financial statements and the related notes of our company are prepared in
accordance with generally accepted accounting principles in
Use of Estimates
The preparation of financial statements in conformity with
Recent Accounting Pronouncements
There are no recent accounting pronouncements that impact the Company's operations
© Edgar Online, source