The following discussion of the Company's historical performance and financial
condition should be read together with the financial statements and related
notes in "Item 1. Financial Statements"" of this Report. This discussion
contains forward-looking statements based on the views and beliefs of our
management, as well as assumptions and estimates made by our management. These
statements by their nature are subject to risks and uncertainties, and are
influenced by various factors. As a consequence, actual results may differ
materially from those in the forward-looking statements. See "Item 1A. Risk
Factors" of this report for the discussion of risk factors.
Plan of Operations
We had working capital of <$16,818> as of June 30, 2021. We anticipate the need
for additional funding in order to continue our operations at their current
levels, and to pay the costs associated with being a public company. As
announced on April 7, 2021, we may also require additional funding in the future
to expand or complete acquisitions. In the event we require additional funding,
we plan to raise that through the sale of debt or equity, which may not be
available on favorable terms, if at all, and may, if sold, cause significant
dilution to existing stockholders. If we are unable to access additional capital
moving forward, it may hurt our ability to grow and to generate future revenues.
We reiterate that the Company's business plan changed significantly and
materially in April 2021, during the period for which the financial statements
presented hereby cover. As a result, these results do not represent the
Company's potential results in the future.
RESULTS OF OPERATIONS
Results of Operations for the Six months ended June 30, 2021, compared to the
Six months Ended June 30, 2020
We had no revenue for the six months ended June 30, 2021, compared with $4,500
for the six months ended June 30, 2020. The decrease in revenue was the result
of a change in focus in 2021 as Wookey sold the Company to SevenScore.
Our operating expenses for the six months ended June 30, 2021, were $15,848
which consisted of legal and professional fees of $14,383 and general and
administrative expenses of $1,465. For the six months ended June 30, 2020, our
operating expenses were $111,734 which consisted of amortization of intangible
assets of $2,258 legal and professional fees of $46,344 and general and
administrative expenses of $63,132 which was primarily driven by legal expenses
in connection with maintenance of the company and the expense related to
granting 1 million shares of Stock to Gary Allen during the first quarter of
2020. Our operating expenses were lower in the first six months of 2021 due to
decreased activities pending the sale to SevenScore. In addition, the expense
for granting 1 million shares of stock to Gary Allen was reversed in Q2 of 2021
when those shares were cancelled and returned to the company in connection with
the sale to SevenScore. This reversal has been recorded in Other Income for the
six months ended June 30, 2021.
Additionally, in connection with the sale of the company to SevenScore during
April of 2021, Wookey Project Corp & Wookey Search Technologies Corporation,
both related parties, forgave amounts paid on behalf of Regnum in 2020 and the
first quarter of 2021 that had previously been recorded as Due to Related Party.
The forgiveness of these related party payables has been reported as Other
Income on the Statement of Operations for the three and six months ended June
30, 2021.
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We had a net income of $93,175 for the six months ended June 30, 2021, compared
to net loss of $107,234 for the six months ended June 30, 2020. The decrease in
net loss is primarily because the expense for granting stock to Gary Allen in
2020 was reversed in April of 2021 when those shares were returned and cancelled
in connection with the sale of Regnum to SevenScore. Additionally, amounts paid
in 2020 on behalf of Regnum by Wookey Project Corp & Wookey Search Technologies
Corporation, both related parties, were forgiven upon sale of Regnum to
SevenScore in April of 2021. Further, Legal and professional fees and general
and administrative expenses also declined in the second quarter of 2021.
Liquidity and Capital Resources
The Company's cash position was $0 on June 30, 2021, and on June 30, 2020. For
six months ended June 30, 2021, the company's cash needs were met via payments
made on its behalf by Wookey Project Corp, and SevenScore which are related
parties of the company and were recorded as accounts payable - related party.
Upon the sale of the Company to SevenScore, Wookey forgave the amounts paid on
behalf of the Company and those liabilities were removed from the Company's
accounting records. During Q2 of 2021, SevenScore made payments on behalf of the
Company for accounting and audit services totaling $7,000 which has been
recorded as Due to Related Party at June 30, 2021.As of June 30, 2021, the
Company had current assets of $4,000 and current liabilities of $20,818 compared
to $4,500 and $54,893, respectively, as of December 31, 2020. This resulted in
working capital of <$16,818> on June 30, 2021, and <$50,393> on December 31,
2020.
Net cash used in operating activities amounted to $0 for the six months ended
June 30, 2021, compared to using net cash of $7,444 for the six months ended
June 30, 2020.
Net cash used in investing activities was $0 for the six months ended June 30,
2021 and $6,000 for the six months ended June 30, 2020.
Net cash provided by financing activities was $0 for the six months ended June
30, 2021 and 2020.
We do not currently have any additional commitments or identified sources of
additional capital from third parties or from our officers, directors or
majority stockholders. Additional financing may not be available on favorable
terms, if at all.
In the future, we may be required to seek additional capital by selling
additional debt or equity securities, or otherwise be required to bring cash
flows in balance when we approach a condition of cash insufficiency. The sale of
additional equity or debt securities, if accomplished, may result in dilution to
our then stockholders. Financing may not be available in amounts or on terms
acceptable to us, or at all. In the event we are unable to raise additional
funding and/or obtain revenues sufficient to support our expenses, we may be
forced to curtail or abandon our business operations, and any investment in the
Company could become worthless.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements.
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Critical Accounting Policies
Our discussion and analysis of our financial condition and results of operations
are based upon our financial statements, which have been prepared in accordance
with accounting principles generally accepted in the United States of America.
The preparation of these financial statements requires us to make estimates and
judgments that affect the reported amounts of assets, liabilities, revenues and
expenses, and related disclosure of contingent assets and liabilities. We
monitor our estimates on an on-going basis for changes in facts and
circumstances, and material changes in these estimates could occur in the
future. Changes in estimates are recorded in the period in which they become
known. We base our estimates on historical experience and other assumptions that
we believe to be reasonable under the circumstances. Actual results may differ
from our estimates if past experience or other assumptions do not turn out to be
substantially accurate.
Certain of our accounting policies are particularly important to the portrayal
and understanding of our financial position and results of operations and
require us to apply significant judgment in their application. As a result,
these policies are subject to an inherent degree of uncertainty. In applying
these policies, we use our judgment in making certain assumption and estimates.
Our critical accounting policies are outlined in "Note 1 - Summary of
Significant Accounting Policies" to the financial statements included herein.
Critical Accounting Policies:
Emerging Growth Company. Section 107 of the Jumpstart Our Business Startups Act
of 2012 (the "JOBS Act") provides that an "emerging growth company" can take
advantage of the extended transition period provided in Section 7(a)(2)(B) of
the Securities Act for complying with new or revised accounting standards. In
other words, an "emerging growth company" can delay the adoption of certain
accounting standards until those standards would otherwise apply to private
companies. We have elected to take advantage of the benefits of this extended
transition period. Our financial statements may therefore not be comparable to
those of companies that comply with such new or revised accounting standards.
RECENTLY ISSUED ACCOUNTING STANDARDS
For more information on recently issued accounting standards, see "Note 1 -
Summary of Significant Accounting Policies" to the Notes to Financial Statements
included herein.
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