INTRODUCTION
This section provides management's discussion of the financial condition,
changes in financial condition and results of operations of Quantum Energy Inc.
with specific information on results of operations and liquidity and capital
resources. It includes management's interpretation of our financial results, the
factors affecting these results, the major factors expected to affect future
operating results and future investment and financing plans. This discussion
should be read in conjunction with our consolidated financial statements and
notes thereto.
Several factors exist that could influence our future financial performance,
some of which are described in Item 1A above, "Risk Factors". They should be
considered in connection with evaluating forward-looking statements contained in
this report or otherwise made by or on behalf of us since these factors could
cause actual results and conditions to differ materially from those set out in
such forward-looking statements.
Cautionary Statement for the Purposes of the Safe Harbor under the Private
Securities Litigation Reform Act of 1995
The statements contained in this Annual Report on Form 10-K may contain
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All
statements other than statements of historical fact included in this Report are
forward-looking statements made in good faith by us and are intended to qualify
for the safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. When used in this Report, or any other of our
documents or oral presentations, the words "anticipate", "believe", "estimate",
"expect", "forecast", "goal", "intend", "objective", "plan", "projection",
"seek", "strategy" or similar words are intended to identify forward-looking
statements. Such forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
expressed or implied in the statements relating to our strategy, operations,
markets, services, and other factors all of which are difficult to predict and
many of which are beyond our control. Accordingly, while we believe these
forward-looking statements to be reasonable, there can be no assurance that they
will approximate actual experience or that the expectations derived from them
will be realized. Further, we undertake no obligation to update or revise any of
our forward-looking statements whether as a result of new information, future
events or otherwise.
Results of Operations
Year Ended February 28, 2022 Compared to Year Ended February 28, 2021.
Sales for the year ended February 28, 2022 was $324,240 compared to $-0- for the
year ended February 28, 2021. Cost of goods sold for the year ended February 28,
2022 was $109,253 compared to $-0- for the year ended February 28, 2021.
Operating expenses for the year ended February 28, 2022 was $59,003,351 compared
to $622,696 for the year ended February 28, 2021. The increase in operating
expenses was due to the fact that the Company had cash available and therefore
were able to resume operations and their SEC filings. Other income and (expense)
for the year ended February 28, 2022 was $11,184,313 compared to $(6,814,746)
for the year ended February 28, 2021. During the year ended February 28, 2022
the Company had $221,268 in gain on debt settlement, $10,616,456 in unrealized
gain on common stock payable, gain on issued common stock payable of $360,000
and $(13,411) in interest expense, compared to the year ended February 28, 2021
where the Company had $(21,787) loss on derivative for a convertible note
payable, $(6,808,276) in unrealized loss on common stock payable and incurred
($28,257) in interest expense.
Net Income (Loss)
Net income (loss) for the years ended February 28, 2022 and 2021 was
($47,604,051) and $(7,437,442), respectively. The decrease in income of
$(40,166,609) was due to the sales of $324,240, the cost of goods sold of
$109,253, the increase in operating expenses of $58,380,655 and increase in
other income and (expense) of $17,999,059.
Liquidity and Capital Resources:
As of February 28, 2022, our assets totaled $18,490,088 which consisted of
$6,366,730 in cash, $118,358 in work in progress and $12,005,000 in deposits -
related party. The Company's total liabilities were $21,007,525 which consisted
of accounts payable and accrued expenses, accounts payable and accrued expenses
- related parties, common stock payable - for contracts/agreements, , common
stock payable - deposits received on subscriptions agreements, promissory notes
payable and promissory notes payable - related parties. As of February 28, 2022,
the Company had an accumulated deficit of $67,452,348 and working capital
deficit of $14,522,437.
Cash Used in Operating Activities
Net cash used in operating activities for the years ended February 28, 2022 and
2021 was $3,426,104 and $210,367, respectively. The increase in the amount used
was attributed to the resumption of operations.
Cash from Investing Activities
Net cash used in investing activities was $11,618,261 and $1,200,000 for the
years ended February 28, 2022 and 2021, respectively due to the purchase of
treasury stock of $813,261 and deposits to a related party of $10,805,000.
Cash from Financing Activities
Net cash provided by financing activities was $19,441,587 and $3,379,828 for the
for the years ended February 28, 2022 and 2021, respectively, which was due to
cash received from sale of common stock of $25,000, cash received from sale of
common stock subscriptions of $19,484,087 and repayment of a convertible note
payable of $67,500.
10
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses
QUANTUM ENERGY, INC. 
