Results of Operations
Three Months Ended December 31, 2019 and December 31, 2018
Three Months Three Months
Ended Ended
December 31, December 31,
2019 2018 Changes
Revenues $ - $ - $ -
Operating Expenses $ 14,236 $ 22,015 $ (7,779 )
Other Expenses $ 2,144 $ 2,144 $ -
Net Loss $ (16,380 ) $ (24,159 ) $ 7,779We had no operations during the three months ended December 31, 2019 or 2018,
nor do we have operations as of the date of this filing. We had a net loss of
$16,380 and $24,159 for the three months ended December 31, 2019 and 2018,
respectively. The decrease was mainly attributable to the decrease in
professional fees incurred during the three months ended December 31, 2019.
Professional fees were $13,164 and $18,755 for the three months ended December
31, 2019 and 2018, respectively. The decrease in professional expenses was
mainly attributable to the decrease in legal fees. General and administrative
expenses were $1,072 and $3,260 for
the three months ended December 31, 2019 and 2018, respectively. The decrease in
general and administrative expenses was mainly attributable to the decrease in
filing, listing and transfer agent fees.
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Nine Months Ended December 31, 2019 and December 31, 2018
Nine Months Nine Months
Ended Ended
December 31, December 31,
2019 2018 Changes
Revenues $ - $ - $ -
Operating Expenses $ 49,775 $ 171,420 $ (121,645 )
Other Expenses $ 6,407 $ 6,407 $ -
Net Loss $ (56,182 ) $ (177,827 ) $ 121,645We had no operations during the nine months ended December 31, 2019 or 2018, nor
do we have operations as of the date of this filing. We had a net loss of
$56,182 and $177,827 for the nine months ended December 31, 2019 and 2018,
respectively. The decrease was mainly attributable to the decrease in
professional fees incurred during the nine months ended December 31, 2019.
Professional fees were $42,414 and $151,621 for the nine months ended December
31, 2019 and 2018, respectively. The decrease in professional expenses was
mainly attributable to the decrease in legal fees. General and administrative
expenses were $7,361 and $19,799 for the nine months ended December 31, 2019 and
2018, respectively. The decrease in general and administrative expenses was
mainly attributable to the decrease in filing, listing and transfer agent fees.
Liquidity and Capital Resources
As of As of
December 31, March 31,
2019 2019 Changes
Current Assets $ - $ 7,000 $ (7,000 )
Current Liabilities $ 555,460 $ 506,278 $ 49,182
Working Capital (Deficiency) $ (555,460 ) $ (499,278 ) $ (56,182 )As of December 31, 2019, and March 31, 2019, our total assets were $0 and
$7,000, respectively.
As of December 31, 2019, and March 31, 2019, our total liabilities were $555,460
and 506,278, respectively.
Stockholders' deficit was at $555,460 as of December 31, 2019 compared to
deficit of $499,278 as of March 31, 2019.
We had no cash on hand as of December 31, 2019 to meet ongoing expenses and
debts that may accumulate. Accumulated deficit was at $866,260 as of December
31, 2019, compared to accumulated deficit of $810,078 as of March 31, 2019.
As at December 31, 2019, we had a working capital deficit of $555,460 compared
with a working capital deficit of $499,278 as at March 31, 2019. The increase in
working capital deficit was primarily attributed to the increase in amount due
to related parties for advancement from directors paying off vendors on behalf
of the Company.
Nine Months Nine Months
Ended Ended
December 31, December 31,
2019 2018 Changes
Net cash used in operating activities $ (45,361 ) $ (214,223 ) $ 168,862
Net cash provided by financing activities $ 45,361 $ 214,223 $ (168,862 )
Net changes in cash and cash equivalents $
- $ - $ -
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Cash Flow from Operating Activities
We have not generated any positive cash flow from operating activities. For the
nine months ended December 31, 2019, net cash flows used in operating activities
was $45,361. The net cash used in operating activities for the nine months ended
December 31, 2019 was attributed to a net loss of $56,182, increased by a
decrease in accounts payable and accrued liabilities of $2,586 and was offset by
a decrease in prepaid expenses of $7,000 and an increase in accrued interest
from note payable of $6,407.
For the nine months ended December 31, 2018, net cash flows used in operating
activities was $214,223. The net cash used in operating activities for the nine
months ended December 31, 2018 was attributed to a net loss of $177,827,
increased by a decrease in accounts payable and accrued liabilities of $38,635
and was offset by an increase in prepaid expenses of $4,167 and an increase in
accrued interest from note payable of $6,406.
Cash Flow from Financing Activities
We have financed our operations primarily from either advances and loans from
related and third parties or the issuance of equity instruments. For the nine
months ended December 31, 2019, net cash from financing activities was $45,361
compared to $214,223 for the nine months ended December 31, 2018.
As of December 31, 2019 and March 31, 2019, the Company owed $11,590 and $0,
respectively, to the director of the Company.
As of December 31, 2019 and March 31, 2019, the Company owed $408,877 and
$375,106, respectively, to the former director of the Company.
As of December 31, 2019 and March 31, 2019, the Company owed $1,250 and $1,250,
respectively, to a former shareholder for the payment of transfer agent
termination fees on behalf of the Company.
On July 5, 2017, the Company issued an 8% convertible note in the principal
amount of $106,292 to a former shareholder for the payment of the Company's
promissory notes and accrued interest at $84,588 and accounts payable and
accrued liabilities of $21,704. The convertible note is due on demand, bears
interest of 8% per annum and is convertible at a conversion price of $0.01 per
share. No beneficial conversion was recognized because the note conversion price
of $0.01 per share exceeded the Company stock trading price of $0.0001 on July
5, 2017. As of December 31, 2019, and March 31, 2019, the accrued interest
payable on the convertible note was $21,177 and $14,770, respectively.
Going Concern
Our independent auditors have added an explanatory paragraph to their audit
issued in connection with the financial statements for the period ended March
31, 2019, relative to our ability to continue as a going concern. The Company,
which has not generated any revenues, has incurred net losses, has nominal
assets and a stockholders' deficit. These conditions, among others, raise
substantial doubt about the Company's ability to continue as a going concern.
The Company's continuation as a going concern is dependent on its ability to
meet its obligations, to obtain additional financing as may be required and
ultimately to attain profitability. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty
The Company is dependent on advances from its principal shareholders or other
affiliated parties for continued funding. There are no commitments or guarantees
from any third party to provide such funding nor is there any guarantee that the
Company will be able to access the funding it requires to continue its
operations.
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,
capital expenditures or capital resources that is material to an investor in our
securities.
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XENOUS HOLDINGS, INC. 
