FORWARD LOOKING STATEMENTS
Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events. Overview of the Business
The Company was incorporated on
Results of Operations
Three Months Ended
The following table summarizes the results of our operations for the three
months ended
Percentage Three months Three months Increase Increase Line Item ended 9/30/22 ended 9/30/21 (Decrease) (Decrease) Revenues$ 2,903,014 $ 743,677 $ 2,159,337 290 % Operating expenses 81,857 67,325 14,532 22 % Net (loss) income 418,835 (29,373 ) 448,208 1,526 % Income (Loss) per share of common stock 0.03 (0.00 ) 0.03 1,526 % During the three months endedSeptember 30, 2022 , we had revenues of$2,903,014 , compared to revenues of$743,677 for the three months endedSeptember 30, 2021 , an increase of$2,159,337 , or 290.4%, due to the increase in sales volume and increased service income.
Operating expenses totaled
We recorded net income of
Liquidity and Capital Resources
As ofSeptember 30, 2022 , we had cash of$608,550 , total assets of$12,486,135 , working capital of$6,478,073 and total stockholders' equity of$12,101,393 . Net cash provided by operating activities was$227,302 for the three months endedSeptember 30, 2022 . As ofJune 30 30, 2022, we had cash of$405,786 , total assets of$12,886,288 , working capital of$6,448,105 and stockholders' equity of$12,424,946 . Our net cash used in operating activities was$115,760 for the three months endedSeptember 30, 2021 . We recorded$2,903,014 in revenues for the three months endedSeptember 30, 2022 , while we reported $$743,677 in revenues for the three months endedSeptember 30, 2021 . Management believes that the Company's cash on hand may not be sufficient to fund all Company obligations and commitments for the next twelve months; however, our income from operations will be sufficient to run the Company for the next twelve months from the date these consolidated financial statements were issued. Historically, we have depended on loans from our principal shareholders and their affiliated companies to augment our working capital as required. There is no guarantee that such funding will be available when required and there can be no assurance that our stockholders, or any of them, will continue making loans or advances to us in the future. Our current available cash will be sufficient to satisfy our liquidity requirements with our income from operations. Our capital requirements for the next twelve months will depend on numerous factors, including management's evaluation of the timing of projects to pursue. Subject to our ability to generate revenues and cash flow from operations and our ability to raise additional capital (including through possible joint ventures and/or partnerships), we expect to incur substantial expenditures to carry out our business plan, as well as costs associated with our capital raising efforts, and being a public company. If we were unable to obtain additional financing, we may be required to reduce the scope of, delay or eliminate some or all of our planned activities and limit our operations which could have a material adverse effect on our business, financial condition and results of operations. 3 Operating Activities Net cash provided by operating activities for the three months endedSeptember 30, 2022 was$227,302 , primarily as a result of net income increase of$418,835 , including depreciation and amortization expenses of$4,670 , an increase in advance from customers of$50,609 and a decrease in advance to suppliers - current of$1,089,233 offset by increase in accounts receivable of$677,278 , increase in inventories of$483,977 and increase in other receivable of$61,018 . Net cash used in operating activities for the three months endedSeptember 30, 2021 was$115,760 primarily as a result of net loss of$29,373 , depreciation and amortization expense of$4,692 , forgiveness of debt by an officer and director of$19,974 , and due to net increase in operating assets of$71,105 due to increase in accounts receivable of$840,354 , decrease in accounts receivable - related parties of$772,809 , increase in accounts payable of$38,422 , decrease in advances and deposits of$30,912 , and decrease in accrued expenses and other payable of$11,070 . Future Capital Requirements Our capital requirements for the fiscal year endingJune 30, 2023 , will depend on numerous factors, including management's evaluation of the timing of projects to pursue. Subject to our ability to generate revenues and cash flow from operations and our ability to raise additional capital (including through possible joint ventures and/or partnerships), we expect to incur substantial expenditures to carry out our business plan, as well as costs associated with our capital raising efforts, and being a public company. Our plans to finance our operations include seeking equity and debt financing, alliances or other partnership agreements, or other business transactions, that would generate sufficient resources to ensure continuation of our operations. Management believes that the Company's cash on hand will be sufficient to fund all Company obligations and commitments for the next twelve months. Historically, we have depended on loans from our principal shareholders and their affiliated companies to augment our working capital as required The sale of additional equity or debt securities may result in additional dilution to our shareholders. If we raise additional funds through the issuance of debt securities or preferred stock, these securities could have rights senior to those of our common stock and could contain covenants that would restrict our operations. Any such required additional capital may not be available on reasonable terms, if at all. If we were unable to obtain additional financing, we may be required to reduce the scope of, delay or eliminate some or all of our planned activities and limit our operations which could have a material adverse effect on our business, financial condition and results of operations. Inflation The amounts presented in our financial statements do not provide for the effect of inflation on our operations or financial position. The net operating losses shown would be greater than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement costs or by using other inflation adjustments.
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 or capital expenditures or capital resources that is material to an investor in our securities. Seasonality
Our operating results are not affected by seasonality.
Critical Accounting Policies
The Securities and Exchange Commission issued Financial Reporting Release No. 60, "Cautionary Advice Regarding Disclosure About Critical Accounting Policies" suggesting that companies provide additional disclosure and commentary on their most critical accounting policies. In Financial Reporting Release No. 60, theSecurities and Exchange Commission has defined the most critical accounting policies as the ones that are most important to the portrayal of a company's financial condition and operating results and require management to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. The nature of our business generally does not call for the preparation or use of estimates. 4
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