06/23/2025 | Press release | Distributed by Public on 06/23/2025 15:23
Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward- looking statements. Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.
Results of Operations for the three months ended April 30 2025 and 2024:
Revenue and cost of goods sold
The company had no revenues for the three months ended April 30, 2025 and 2024.
Operating expenses
Total expenses for the three months ended April 30 , 2025 and 2024 were $184,594 and $5,580, respectively. The expenses for the three months ended April 30, 2025 and 2024 consisted of management compensation of $112,500 and $0 respectively; stock issued for services of $3,001 and $0, respectively; professional fees of $68,249 and $0, respectively; general and administrative costs of $544 and $5,580, respectively and rent expense of $300 and $0, respectively.
Net Loss
The net loss for the three months ended April 30, 2025 and 2024 was $184,594 and $5,580 respectively.
Liquidity, and Capital Resources, and Cash Requirements
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern which contemplates, among other things, the realization of assets and satisfaction of liabilities in the ordinary course of business.
As of April 30, 2025, the Company had $0 in cash and cash equivalents. The Company has not generated revenues and has relied primarily upon capital generated from public and private offerings of its securities.
The Company sustained a loss of $659,293 for the three ended April 30, 2025 and $3,616 for the three months ended April 30, 2024. The Company has accumulated losses totaling $1,332,939 at April 30, 2025. Because of the absence of positive cash flows from operations, the Company will require additional funding for continuing the development and marketing of products. These factors raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.
We are presently able to meet our obligations as they come due through our borrowing and the support of our shareholders. At April 30, 2025, we had a working capital deficit of $8,396,980. Our working capital deficit is due to the results of operations.
Cash flows
The following table sets forth the primary sources and uses of cash and cash equivalents for the three months ended April 30, 2025 and 2024 as presented below:
For the Three Months Ended April 30, |
||||
2025 |
2024 |
|||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||
Net loss |
$ |
(659,293) |
$ |
(3,616) |
Adjustment to reconcile net loss to net cash provided in operations: |
||||
Change in fair market value of derivatives |
306,141 |
--- |
||
Amortization of debt discount |
40,138 |
--- |
||
Depreciation and amortization |
- |
115 |
||
Stock issued for services provided |
8,001 |
--- |
||
Change in assets and liabilities: |
||||
Accounts receivable, net |
- |
(1,964) |
||
Accounts payable and accrued expenses |
69,093 |
(6,279) |
||
Accrued compensation |
112,500 |
--- |
||
Accrued interest |
1,060,291 |
--- |
||
Warrant liability |
- |
--- |
||
Net Cash provided by (used in) operating activities |
936,871 |
(11,744) |
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||
Payments of notes payable, related party |
(190,000) |
--- |
||
Net Cash used in investing activates |
(190,000) |
--- |
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||
Proceeds (payments) notes payable, related party |
- |
11,714 |
||
Groovy Company, Inc. Acquisition |
(746,871) |
--- |
||
Net Cash provided by (used in) financing activates |
(746,871) |
11,714 |
||
Net change in cash and cash equivalents |
- |
(30) |
||
Cash and cash equivalents Beginning of period |
- |
30 |
||
Cash and cash equivalents End of period |
$ |
- |
$ |
- |
Supplemental cash flow information |
||||
Cash paid for interest |
$ |
- |
$ |
- |
Cash paid for taxes |
$ |
- |
$ |
- |
We cannot guarantee that we will manage to sell all the shares required within current offerings. We will attempt to raise the necessary funds to proceed with all phases of our plan of operation.
Management believes that current trends toward lower capital investment in start-up companies pose the most significant challenge to the Company's success over the next year and in future years. Additionally, the Company will have to meet all the financial disclosure and reporting requirements associated with being a public reporting company. The Company's management will have to spend additional time on policies and procedures to make sure it is compliant with various regulatory requirements, especially that of Section 404 of the Sarbanes-Oxley Act of 2002. This additional corporate governance time required of management could limit the amount of time management has to implement is business plan and impede the speed of its operations. Accordingly, the Company's management has concluded that these conditions raise substantial doubt about our ability to continue as a going concern. There can be no assurance that we will be able to achieve our business plan objectives or be able to achieve or maintain cash- flow-positive operating results. If we are unable to generate adequate funds from operations or raise sufficient additional funds, we may not be able to repay our existing debt, continue to operate our business network, respond to competitive
pressures or fund our operations. As a result, we may be required to significantly reduce, reorganize, discontinue or shut down our operations.
Limited operating history; need for additional capital
There is no historical financial information about us upon which to base an evaluation of our performance. We are in a start-up stage of operations and have generated minimal revenues since inception. We cannot guarantee that we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services and products.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company's financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.