FORWARD-LOOKING STATEMENTS
This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.
Our unaudited consolidated financial statements are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly 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. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.
In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock.
As used in this quarterly report, the terms “we”, “us”, “our” and “our company” mean Panamera Healthcare Corporation, unless otherwise indicated.
We were incorporated under the laws of the State of Nevada on May 20, 2014. We intend to offer management and consulting services to healthcare organizations. We intend to focus on ambulatory surgical centers (ASCs) that currently have an incentive to be acquired by hospitals in order to increase compensation levels. We believe the short term strategy of converting to hospital based compensation is not sustainable because fundamental changes in the way healthcare is being provided are being undertaken by both government and private insurance carriers. The demographics of an aging population also mandate such changes to avoid economic disruption, healthcare rationing or unsustainable taxation.
We intend to offer management and consulting services to healthcare organizations. We intend to focus on ambulatory surgical centers (ASCs) that currently have an incentive to be acquired by hospitals in order to increase compensation levels. We believe the short term strategy of converting to hospital based compensation is not sustainable because fundamental changes in the way healthcare is being provided are being undertaken by both government and private insurance carriers.
Our address is 4180 Orchard Hill Drive, Edmond, OK 73025. Our telephone number is (405) 413-5735. Our corporate website is www.panamerahealth.com.
We have not ever declared bankruptcy, been in receivership, or involved in any kind of legal proceeding.
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. Factors that could cause or contribute to such differences include, but are not limited to those discussed below and elsewhere in this report. Our unaudited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.
The following summary of our results of operations should be read in conjunction with our consolidated financial statements for the three months ended October 31, 2019, which are included herein.
Our operating results for the three months ended October 31, 2019 and 2018 and the changes between those periods for the respective items are summarized as follows
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October 31,
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Operating expenses
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$
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11,531
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$
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11,311
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$
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220
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Interest expense
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$
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1,097
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$
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744
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$
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353
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Net loss
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$
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12,628
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$
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12,055
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$
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573
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During the three months ended October 31, 2019 and 2018, no revenues were recorded.
We had a net loss of $12,628 for the three months ended October 31, 2019, and $12,055 for the three months ended October 31, 2018. The increase in net loss of $573, was due to an increase in operating expenses of $220 and an increase in interest expenses of $353.
Operating expenses for the three months ended October 31, 2019 and 2018 were $11,531 and $11,311, respectively. The operating expenses were primarily attributed to professional fees for maintaining reporting status with the Securities and Exchange Commission (“SEC”) and general and administrative expenses.
Interest expenses for the three months ended October 31, 2019 and 2018, represent interest expense to a related party on funds advanced to the Company.
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Cash
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$
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387
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$
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671
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Current Assets
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$
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387
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$
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671
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Current Liabilities
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$
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102,986
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$
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90,642
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Working Capital (Deficiency)
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$
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(102,599
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)
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$
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(89,971
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As at October 31, 2019, our current assets were $387, and our current liabilities were $102,986 which resulted in working capital deficiency of $102,599. As of October 31, 2019, current assets were comprised of $387 in cash, compared to $671 in cash as of July 31, 2019. As of October 31, 2019, current liabilities were comprised of $102,986 in accounts payable and accrued liabilities of $3,250 and $99,736 in due to related parties and accrued interest, compared to $4,303 in accounts payable and accrued liabilities and $86,339 due to related party and accrued interest as of July 31, 2019.
As of October 31, 2019, our working capital deficiency increased by $12,628 from $89,971 on July 31, 2019, to $102,599 on October 31, 2019, primarily due to an increase in current liabilities of $12,344 and a decrease in current assets of $284.
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Cash Flows used in Operating Activities
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$
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(12,584
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)
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$
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(16,207
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$
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3,623
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Cash Flows provided by Financing Activities
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$
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12,300
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$
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13,500
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$
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(1,200
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)
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Net Change in Cash During Period
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$
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(284
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$
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(2,707
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$
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2,423
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Cash Flows from Operating Activities
We have not generated positive cash flows from operating activities. For the three months ended October 31, 2019, net cash flows used in operating activities was $12,584, consisting of a net loss of $12,628, increased by a decrease in accounts payable and accrued liabilities of $1,053, and reduced by an increase in accrued interest due to related parties of $1,097. For the three months ended October 31, 2018, net cash flows used in operating activities was $16,207, consisting of a net loss of $12,055, increased by a decrease in accounts payable and accrued liabilities of $4,896 and reduced by an increase in accrued interest due to related parties of $744.
Cash Flows used in Investing Activities
During the three months ended October 31, 2019 and 2018, we had no cash used in investing activities.
Cash Flows from Financing Activities
We have financed our operations from the issuance of equity and loans from related parties. For the three months ended October 31, 2019, and 2018, we received $12,300 and $13,500 from advances from related party loans, respectively.
Going Concern
As of October 31, 2019, our company had a net loss of $12,628 and has earned no revenues. Our company intends to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending July 31, 2020. The ability of our company to emerge from the development stage is dependent upon, among other things, obtaining additional financing to continue operations, and development of our business plan. In response to these problems, management intends to raise additional funds through public or private placement offerings. These factors, among others, raise substantial doubt about our 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.
Off-Balance Sheet Arrangements
We have no 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 stockholders.
Critical Accounting Policies
The discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with the accounting principles generally accepted in the United States of America. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financial statements.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.