The following discussion should be read in conjunction with our audited
financial statements and the related notes for the years ended
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Our audited financial statements are stated in
Cash Requirements
There is limited historical financial information about us upon which to base an evaluation of our performance. We have not generated any revenues from activities. We cannot guarantee we will be successful in our business activities. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources, possible delays in the exploration of our properties, and possible cost overruns due to price and cost increases in services.
Over the next twelve months we intend to use any funds that we may have available to fund our operations and conduct exploration on our Labrador Claims. We expect to review other potential exploration projects from time to time as they are presented to us.
Not accounting for our working capital deficit of
Our auditors have issued a going concern opinion for our year ended
Plan of Operation
The Plan of Operation for the next 12 months is to raise
As at
The continuation of our business is dependent upon obtaining further financing, a successful program of exploration and/or development, and, finally, achieving a profitable level of operations. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.
There are no assurances that we will be able to obtain further funds required for our continued operations. As noted herein, we are pursuing various financing alternatives to meet our immediate and long-term financial requirements. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we will be unable to conduct our operations as planned, and we will not be able to meet our other obligations as they become due. In such event, we will be forced to scale down or perhaps even cease our operations.
Purchase of Significant Equipment
We did not purchase any significant equipment over the twelve months ending
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Results of Operations for the Years Ended
The following summary of our results of operations should be read in conjunction
with our audited financial statements for the years ended
Our operating results for the years endedMay 31, 2022 and 2021 are summarized as follows: Year Ended May 31 2022 2021 Revenue $ - $ -
Operating expenses
$ (3,681,269 ) $ (176,650 ) Revenues
We have not earned any revenues since our inception and we do not anticipate earning revenues in the near future.
Operating Expenses
Our operating expenses for the years endedMay 31, 2022 and 2021 are outlined in the table below: Year EndedMay 31 2022 2021
General and administrative
$ 3,400,807 $ 161,390
The increase in general and administrative expenses for the year ended
º an increase in consulting fees of$183,253 , mainly due to an increase in consulting services that were settled with shares during the year; º an increase in professional fees of$82,875 , due to an increase in expenses associated with public company reporting obligations; º an increase in transfer agent and filing fees of$46,921 , mainly due to an increase in share issuances to settle accounts payable; º an increase in administrative late fees of$12,396 due to an increase in vendor accounts which are past due. º and an increase in office expenses of$7,025 .
Mineral property and exploration costs increased by
Impairment of mineral properties increased by
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Liquidity and Financial Condition
Working Capital At At May 31, May 31, 2022 2021 Current assets$ 9,349 $ 18,424 Current liabilities 81,517 335,456 Working deficit$ (72,168 ) $ (317,032 ) Cash Flows Year Ended May 31 2022 2021
(7,334 ) (2,668 )
Net Cash Provided by Financing Activities 301,493 44,703
Net change in cash during period
Operating Activities
Net cash used in operating activities during the year ended
Investing Activities
Net cash provided by investing activities during the year ended
Financing Activities
During the year ended
Contractual Obligations
As a "smaller reporting company", we are not required to provide tabular disclosure obligations.
Off-Balance Sheet Arrangements
We have no significant 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 are material to stockholders.
APPLICATION OF CRITICAL ACCOUNTING POLICIES
Our audited financial statements and accompanying notes are prepared in
accordance with generally accepted accounting principles used in
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Mineral Property Costs
Our company has been in the exploration stage since its inception on
Stock-based Compensation
Our company records stock-based compensation in accordance with ASC 718, "Compensation-Stock Compensation" and ASC 505, "Equity Based Payments to Non-Employees", using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the grant date fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.
NEW ACCOUNTING PRONOUNCEMENTS
The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
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