Cautionary Note Regarding Forward Looking Statements
This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding management's future plans for the Company, our liquidity and ability to raise capital, our business strategy, and our future operations. All statements other than statements of historical facts contained in this report, including statements regarding our future financial position, liquidity, working capital sources, business strategy and plans, and objectives of management for future operations, are forward-looking statements. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs.
The results anticipated by any or all of these forward-looking statements might
not occur. Important factors, uncertainties, and risks that may cause actual
results to differ materially from these forward-looking statements include the
ongoing impact of the coronavirus pandemic and its negative effect on the
Organizational History of the Company and Overview
The Company was organized to buy the electric transportation products wholesale
from Chinese manufacturers and sell these products via our website. The Company
intended to concentrate its first year of operation in
The Company's fiscal year-end is
The Company has been dormant since
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The evaluation and selection of a business opportunity is a complex and
uncertain process, and we have not yet identified a target operating business
for acquisition. Business opportunities that we believe are in the best
interests of the Company and its shareholders may be scarce, or we may be unable
to obtain the businesses we identify as viable for our objectives, including due
to competitive forces in the marketplace beyond our control. There can be no
assurance that we will be able to locate compatible business opportunities for
the Company. See -"Risk Factors" in our annual report on Form 10-K for the
fiscal year ended
Plan of Operation
The Company has no operations from a continuing business other than expenditures
related to running the Company as of the date of this Report. We are currently
in the process of developing a business plan. Management intends to explore and
identify viable business opportunities within the
During the remainder of the fiscal year ending
Given our limited capital resources, we may consider a business combination with
an entity that has recently commenced operations, is a developing company or is
otherwise in need of additional funds for the development of new products or
services or expansion into new markets, or is an established business
experiencing financial or operating difficulties and is in need of additional
capital. Alternatively, a business combination may involve the acquisition of,
or a merger with, an entity that desires access to the
Our management anticipates that we will likely only be able to effect one business combination due to our limited capital. This lack of diversification will likely pose a substantial risk in investing in the Company for the indefinite future because it will not permit us to offset potential losses from one venture or operating territory against gains from another. The risks we face will likely be heightened to the extent we acquire a business operating in a single industry or geographical region.
We anticipate that the selection of a business combination will be a complex and risk-prone process. Because of general economic conditions, including unfavorable conditions caused by the coronavirus pandemic, rapid technological advances being made in some industries, and shortages of available capital, management believes that there are a number of firms seeking business opportunities at this time at discounted rates with which we will compete. We expect that any potentially available business combinations may appear in a variety of different industries or regions and at various stages of development, all of which will likely render the task of comparative investigation and analysis of such business opportunities extremely difficult and complicated.
Once we have developed and begun to implement our business plan, management intends to fund our working capital requirements through a combination of our existing funds and future issuances of debt or equity securities. Our working capital requirements are expected to increase in line with the implementation of a business plan and commencement of operations.
Based on our current operations, we do not have sufficient working capital to fund our operations over the next 12 months. If we are able to close a reverse merger, it is likely we will need capital as a condition of closing that acquisition. Because of the uncertainties, we cannot be certain as to how much capital we need to raise or the type of securities we will be required to issue. In connection with a reverse merger, we will be required to issue a controlling block of our securities to the target's shareholders which will be very dilutive.
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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.
Our prospects must be considered in light of the risks, expenses, and difficulties frequently encountered by companies in their early stage of development. Such risks for us include but are not limited to, an evolving and unpredictable business model, recognition of revenue sources, and the management of growth. To address these risks, we must, among other things, develop, implement, and successfully execute our business and marketing strategy, respond to competitive developments, and attract, retain, and motivate qualified personnel. There can be no assurance that we will be successful in addressing such risks, and the failure to do so could have a material adverse effect on our business prospects, financial condition, and results of operations.
Liquidity and Capital Resources
We have
COVID-19 Update
To date, the COVID-19 pandemic has not had a material impact on the Company,
particularly due to our current lack of operations. The pandemic may, however,
have an impact on our ability to evaluate and acquire an operating entity
through a reverse merger or otherwise. See "Risk Factors" contained in our
annual report on Form 10-K for the fiscal year ended
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