THE FOLLOWING PRESENTATION OF THE PLAN OF OPERATION OF MADISON TECHNOLOGIES INC. SHOULD BE READ IN CONJUNCTION WITH THE AUDITED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION INCLUDED HEREIN.
Overview
Madison was incorporated in the
On
Effective the fourth quarter of fiscal 2020 Madison abandoned the Tuffy Pack product line to focus on the deployment of the Luxurie Legs line of products
On
On
Results of Operation for the Period Ended
During the fiscal year ended
We have not attained profitable operations and are dependent upon obtaining financing to complete our proposed business plan. For these reasons our auditors believe that there is substantial doubt that we will be able to continue as a going concern.
Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.
Liquidity and Capital Resources
As of
There are no assurances that Madison will be able to achieve further sales of its Common Stock or any other form of additional financing. If Madison is unable to achieve the financing necessary to continue its plan of operations, then Madison will not be able to continue its plan of operations and its business will fail.
For the fiscal year ended
The Company did not invest any cash in investing activities in either the year
ending
Net Cash Provided by Financing Activities
Net cash flows provided by financing activities was
Plan of Operation Luxurie Legs Products
Madison's plan of operation for the next 12 months is to deliver the Luxurie
Legs Products into the US market via the use of online marketing strategies
developed by Facebook, Instagram and Youtube and to use fulfillment services
including but not limited to
Management expects to expand Madison's sales distribution strategy beginning in
1. Initial inventory with an estimated cost of
2. Social media and online advertising of
Madison sales strategy is to develop online exposure through the use of social media marketing and brand influencers and top social media personas in an aggressive strategy to use the power of their social networks to help build and maintain the shave club membership base.
Sovryn Holdings, Inc.
Madison's plan is to acquire 50 independent TV stations in the top 30 DMA's over
the next 6-12 months. In addition, Madison expects to grow the station base to
100 tv stations nationwide through additional acquisitions targeting the top 100
DMA's across the nation, ultimately covering 80% of the population of the
Each licensed TV station has the capability of delivering 10+ different revenue
"streams" (channels) of content Over-the-Air, 24 hours per day/7 days per week .
If converted to the new
Madison will operate the stations remotely and centrally, eliminating the need
for in-market personnel or a studio facility. Remote operations of stations
results in significant cost efficiencies. Recent
In addition to the costs associated to Madison's sales and distribution strategy, management anticipates incurring the following expenses during the next 12 month period:
? Management anticipates spending approximately$30,000 in ongoing general and administrative expenses per month for the next 12 months, for a total anticipated expenditure of$360,000 over the next 12 months. The general and administrative expenses for the year will consist primarily of professional fees for the audit and legal work relating to Madison's regulatory filings throughout the year, as well as transfer agent fees, annual mineral claim fees and general office expenses. ? Management anticipates spending approximately$15,000 in complying with Madison's obligations as a reporting company under the Securities Exchange Act of 1934 and as a reporting issuer inCanada . These expenses will consist primarily of professional fees relating to the preparation of Madison's financial statements and completing and filing its annual report, quarterly report, and current report filings with theSEC and with SEDAR inCanada .
As at
During the 12 month period following the date of this annual report, management anticipates that Madison will not generate any revenue. Accordingly, Madison will be required to obtain additional financing in order to continue its plan of operations. Management believes that debt financing will not be an alternative for funding Madison's plan of operations as it does not have tangible assets to secure any debt financing. Rather, management anticipates that additional funding will be in the form of equity financing from the sale of Madison's Common Stock. However, Madison does not have any financing arranged and cannot provide investors with any assurance that it will be able to raise sufficient funding from the sale of its Common Stock to fund its plan of operations. In the absence of such financing, Madison will not be able to acquire any interest in a new technology and its business plan will fail. Even if Madison is successful in obtaining equity financing and acquire an interest in a new technology, additional research and development will be required before a determination as to whether the technology will be commercially viable. If Madison does not continue to obtain additional financing, it will be forced to abandon its business and plan of operations.
Purchase of Significant Equipment
We do not intend to purchase any significant equipment during the next 12 months.
Off-Balance Sheet Arrangements
Madison has no off-balance sheet arrangements including arrangements that would affect its liquidity, capital resources, market risk support and credit risk support or other benefits.
Material Commitments for Capital Expenditures
Madison had no contingencies or long-term commitments at
Going Concern
The independent auditors' report accompanying our
Tabular Disclosure of Contractual Obligations
Madison is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide the information required under this item.
Critical Accounting Policies
Madison's financial statements and accompanying notes are prepared in accordance
with generally accepted accounting principles in
Use of Estimates
The preparation of financial statements in accordance with
Fair Value Measurements
Madison follows FASB ASC 820, "Fair Value Measurements and Disclosures", for all financial instruments and non-financial instruments accounted for at fair value on a recurring basis. This new accounting standard establishes a single definition of fair value and a framework for measuring fair value, sets out a fair value hierarchy to be used to classify the source of information used in fair value measurement and expands disclosures about fair value measurements required under other accounting pronouncements. It does not change existing guidance as to whether or not an instrument is carried at fair value. Madison defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, Madison considers the principal or most advantageous market in which Madison would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. Madison has adopted FASB ASC 825, "Financial Instruments", which allows companies to choose to measure eligible financial instruments and certain other items at fair value that are not required to be measured at fair value. Madison has not elected the fair value option for any eligible financial instruments.
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