Results of Operations

Our operations for the years ended December 31, 2021 and 2020 are outlined below:






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Year ended December 31, 2021 compared to year ended December 31, 2020





                                      Years Ended
                                      December 31,                 Change
                                 2021             2020             Amount
Revenue                      $ 13,430,991     $  14,355,341     $   (924,350 )
Cost of goods sold           $ 13,362,614     $  14,281,300     $   (918,686 )
Gross profit                 $     68,377     $      74,041     $     (5,664 )
Operating expenses           $    799,370     $   3,086,862     $ (2,287,492 )
Other income (expense)       $ 11,096,752     $ (22,767,970 )   $ 33,864,722
Provision for income taxes   $    (14,895 )   $     (20,541 )   $      5,646
Net income (loss)            $ 10,350,864     $ (25,801,332 )   $ 36,152,196

The revenue for the year ended December 31, 2021 decreased by $924,350 to $13,430,991 compared with the same period in 2020. The decrease is mainly due to the effects of COVID-19 causing a decrease in demand and consequently the pricing in this period.

Cost of goods sold for the year ended December 31, 2021 decreased by $918,686 to $13,362,614 compared with the same period in 2020. The decrease is mainly due to the effects of COVID-19 causing a decrease in revenue in this period.

Operating expenses for the year ended December 31, 2021 increased by $2,287,492 to $799,370 compared with the same period in 2020. The decrease is mainly due to a decrease in stock-based compensations.

Other income (expense) for the year ended December 31, 2021 increased by $33,864,722 to $11,096,752 compared with the same period in 2019. The increase in other income is mainly due to change in fair value of derivative liabilities related to convertible notes.

Net income for the year ended December 31, 2021 was $10,350,864 compared to net loss of $25,801,332 in the same period in 2020. The change is mainly due to change in fair value of derivative liabilities related to convertible notes.





For the year ended December 31, 2021 and 2020 our results of operations segment,
are as follows:



                                                                                Total
Year Ended December 31, 2021         Holding Company       Oil and gas       Consolidated
Revenue                             $               -     $  13,430,991     $   13,430,991
Cost of goods sold                                  -       (13,362,614 )      (13,362,614 )
Operating expenses                           (754,087 )         (45,283 )         (799,370 )
Other income                               11,096,752                 -         11,096,752
Provision for income taxes                          -           (14,895 )          (14,895 )
Net income                          $      10,342,665     $       8,199     $   10,350,864




                                  Holding                              Total
Year Ended December 31, 2020      Company         Oil and gas      Consolidated
Revenue                        $           -     $  14,355,341     $  14,355,341
Cost of goods sold                         -       (14,281,300 )     (14,281,300 )
Operating expenses                (3,041,551 )         (45,311 )      (3,086,862 )
Other expenses                   (22,767,970 )               -       (22,767,970 )
Provision for income taxes                 -           (20,541 )         (20,541 )
Net income (loss)              $ (25,809,521 )   $       8,189     $ (25,801,332 )





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Holding Company



                                      Years Ended
                                      December 31,                 Change
                                 2021             2020             Amount
Revenue                      $          -     $           -     $          -
Operating expenses           $    754,087     $   3,041,551     $ (2,287,464 )
Other income (expense)       $ 11,096,752     $ (22,767,970 )   $ 33,864,722
Provision for income taxes   $          -     $           -     $          -
Net income (loss)            $ 10,342,665     $ (25,809,521 )   $ 36,152,186

Operating expense mainly consists of professional fees for ongoing regulatory requirements and compensation for our management. The decrease in operating expense is primarily due to a decrease in our management fee and professional fee.

Other income (expense) mainly consists of interest expense and change in fair value of derivative liability from convertible notes.





Oil and Gas



                                      Years Ended
                                     December 31,                Change
                                 2021             2020           Amount
Revenue                      $ 13,430,991     $ 14,355,341     $ (924,350 )
Cost of goods sold           $ 13,362,614     $ 14,281,300     $ (918,686 )
Gross profit                 $     68,377     $     74,041     $   (5,664 )
Operating expenses           $     45,283     $     45,311     $      (28 )
Other income (expense)       $          -     $          -     $        -
Provision for income taxes   $     14,895     $     20,541     $   (5,646 )
Net income                   $      8,199     $      8,189     $       10

The decrease in revenue is primarily due to the effects of COVID-19 which caused a decrease in demand and consequently the pricing in prior period. The decrease in cost of goods sold is primarily due to a decrease in revenue. The percentage of gross profit is 0.5% in 2021 and 2020.

Liquidity and Capital Resources

The following table provides selected financial data about our Company as of December 31, 2021 and 2020, respectively.





Working Capital

The following table provides selected financial data about our Company as of December 31, 2021 and 2020, respectively.





                               December 31,      December 31,         Change
                                   2021              2020             Amount
Cash                           $     101,876     $     185,948     $    (84,072 )

Current Assets                 $  17,305,167     $  10,129,206     $  7,175,961
Current Liabilities            $  13,961,595     $  20,245,188     $ (6,283,593 )
Working Capital (Deficiency)   $   3,343,572     $ (10,115,982 )   $ 13,459,554

The increase in working capital was primarily attributed to a decrease in current liabilities and an increase in current assets. The increase in current assets was primarily attributed to an increase in accounts receivable. The decrease in current liabilities was primarily attributed to a decrease in derivative liabilities offset by an increase in accounts payable.






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Cash Flow



                                                     Years Ended
                                                    December 31,              Change
                                                 2021           2020          Amount

Cash Flows used in operating activities $ (676,568 ) $ (903,260 ) $ 226,692 Cash Flows used in investing activities $ - $ (20,044 ) $ 20,044 Cash Flows provided by financing activities $ 591,093 $ 827,944 $ (236,851 ) Effects on changes in foreign exchange rate $ 1,403 $ 3,679 $ (2,276 ) Net change in cash during period

$  (84,072 )   $  (91,681 )   $    7,609

Cash Flow from Operating Activities

During the year ended December 31, 2021, our Company used $676,568 in operating activities, compared to $903,260 during the year ended December 31, 2020. The increase in cash used in operation activities is primarily due to an increase in operating assets.

Cash Flow from Investing Activities

During the year ended December 31, 2021 and 2020, we used $0 and $20,044 in investing, respectively. For the year ended December 31, 2020, the amount of $20,044 relates to the available cash of the subsidiary deconsolidated during the year.

Cash Flow from Financing Activities

During the year ended December 31, 2021 and 2020, our Company received $591,093 and $827,944 from financing activities, respectively. For the year ended December 31, 2021, the Company received $688,500 from convertible notes and $10,131 from loans from related parties, and repaid loans from related parties for $107,538. For the year ended December 31, 2020, the Company received $912,000 from convertible notes and $2,500 from loans from related parties, and repaid loans from related parties for $23,556 and convertible notes for $63,000.

Critical Accounting Policies and Estimates

The preparation of consolidated financial statements and related disclosures in conformity with U.S. generally accepted accounting principles and the Company's discussion and analysis of its financial condition and operating results require the Company's management to make judgments, assumptions and estimates that affect the amounts reported. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates, and such differences may be material.

Off-Balance Sheet Arrangements

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 is material to investors.

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