The following discussion and analysis of our financial condition and results of operations should be read together with our financial statements and the related notes and other financial information included elsewhere in this Annual Report. Some of the information contained in this discussion and analysis or set forth elsewhere in this Annual Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. See "Cautionary Note Regarding Forward-Looking Statements."
Cautionary Note Concerning Factors That May Affect Future Results
This Annual Report, including "Management's Discussion and Analysis of Financial
Condition and Results of Operations" contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. The Company
may also make forward-looking statements in other reports filed with the
Forward-looking statements relate to future events and typically address the Company's expected future business and financial performance. Words such as "plan," "expect," "aim," "believe," "project," "target," "anticipate," "intend," "estimate," "should," "could," "forecast" and other words and terms of similar meaning, typically identify such forward-looking statements. In particular, these include, among others, statements relating to:
? the Company's strategy for growth, future revenues, earnings, cash flow, uses of cash and other measures of financial performance, and market position, ? worldwide economic, political, and capital markets conditions, such as interest rates, foreign currency exchange rates, financial conditions of our suppliers and customers, and natural and other disasters or climate change affecting the operations of the Company or our suppliers and customers, ? new business opportunities, product development, and future performance or results of current or anticipated products, ? the scope, nature or impact of acquisition, strategic alliance and divestiture activities, ? the outcome of contingencies, such as legal and regulatory proceedings, ? future levels of indebtedness, common stock repurchases and capital spending, ? future availability of and access to credit markets, ? asset impairments, ? tax liabilities, ? information technology security, and ? the effects of changes in tax (including the newly enacted Tax Cuts and Jobs Act), environmental and other laws and regulations inthe United States and other countries in which we operate. Overview
We were incorporated on
On
9 Results of Operations
Fiscal Year Ended
The following table summarizes the results of our operations during the fiscal
years ended
Percentage Increase Increase Line Item 6/30/2021 6/30/2020 (Decrease) (Decrease) Revenues$ 9,489,187 $ 253,803 $ 9,235,384 3,638 % Operating expenses 4,020,368 97,319 3,923,049 4,031 % Other income 20,049 131 19,918 15,205 % Net loss (2,716,347 ) (57,003 ) 2,659,344 4,665 %
Loss per share of common stock (0.23 ) (0.01 ) (0.22 ) 2,200 %
During the year ended
Operating expenses totaled
We recorded a net loss of
Liquidity and Capital Resources
Liquidity and Capital Resources for the year endedJune 30, 2021 compared to the year endedJune 30, 2020 June 30, 2021 June 30, 2020
Summary of Cash Flows:
Net cash (used in) provided by operating activities
(8,443,822 ) - Net cash provided by financing activities 6,232,225 4,279,500 Foreign exchange rate fluctuations gain (loss) 646,728 (39,531 ) Net increase (decrease) in cash (4,127,393 ) 4,254,124 Beginning - cash on hand 4,271,326 17,202 Ending - cash on hand$ 143,933 $ 4,271,326
To the extent that we raise additional capital through the sale of equity or convertible debt securities, the issuance of such securities may result in dilution to existing stockholders. If additional funds are raised through the issuance of debt securities, these securities may have rights, preferences and privileges senior to holders of common stock and the terms of such debt could impose restrictions on our operations. Regardless of whether our cash assets prove to be inadequate to meet our operational needs, we may seek to compensate providers of services by issuance of stock in lieu of cash, which may also result in dilution to existing shareholders. Even if we are able to raise the funds required, it is possible that we could incur unexpected costs and expenses, fail to collect significant amounts owed to us, or experience unexpected cash requirements that would force us to seek alternative financing.
10
No assurance can be given that sources of financing will be available to us and/or that demand for our equity/debt instruments will be sufficient to meet our capital needs, or that financing will be available on terms favorable to us. If funding is insufficient at any time in the future, we may not be able to take advantage of business opportunities or respond to competitive pressures or may be required to reduce the scope of our planned service development and marketing efforts, any of which could have a negative impact on our business and operating results. In addition, insufficient funding may have a material adverse effect on our financial condition, which could require us to:
? Curtail our operations significantly, or ? Seek arrangements with strategic partners or other parties that may require us to relinquish significant rights to technology platform and correlated services, or ? Explore other strategic alternatives including a merger or sale of our Company. Operating Activities
Net cash used in operating activities of
Investing Activities
Net cash used in investing activities for the year ended
Financing Activities
Net cash provided by financing activities for the year ended
Future Capital Requirements
Our current available cash and cash equivalents are insufficient to satisfy our
liquidity requirements. Our capital requirements for the fiscal year ending
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.
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.
11 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.
Going Concern
The accompanying financial statements have been prepared on a going concern
basis. For the year ended
Management believes that the Company's cash on hand will not be sufficient to fund all of our obligations and commitments for the next twelve months. Historically, we have depended on equity and debt capital raises to provide us with working capital as required. There is no guarantee that such funding will be available in the future and there can be no assurance that our stockholders, or any of them, will continue making loans or advances to us in the future.
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.
Inflation
Our business and operating results are not affected in any material way by inflation.
Critical Accounting Policies
The
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