Item 1. Financial Statements
Team
360 Sports Inc.
Balance
Sheets
(Unaudited)
|
|
June 30,
|
|
December 31,
|
|
|
2020
|
|
2019
|
Assets
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
358
|
|
|
$
|
214
|
|
Total Current Assets
|
|
|
358
|
|
|
|
214
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
358
|
|
|
$
|
214
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Deficit
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
14,049
|
|
|
$
|
14,671
|
|
Deferred revenue
|
|
|
3,624
|
|
|
|
4,902
|
|
Due to related party
|
|
|
2,781
|
|
|
|
2,781
|
|
Loan payable
|
|
|
58,310
|
|
|
|
37,420
|
|
Convertible notes, net of unamortized discount
|
|
|
91,240
|
|
|
|
90,545
|
|
Accrued compensation - related party
|
|
|
—
|
|
|
|
337,500
|
|
Liabilities to be settled in stock
|
|
|
350,000
|
|
|
|
350,000
|
|
Total Current Liabilities
|
|
|
520,004
|
|
|
|
837,819
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
520,004
|
|
|
|
837,819
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Deficit
|
|
|
|
|
|
|
|
|
Common stock: 100,000,000 authorized; $0.001 par value, 5,131,612 shares issued and outstanding
|
|
|
5,132
|
|
|
|
5,132
|
|
Additional paid in capital
|
|
|
1,933,100
|
|
|
|
1,345,600
|
|
Accumulated deficit
|
|
|
(2,457,878
|
)
|
|
|
(2,188,337
|
)
|
Total Stockholders' Deficit
|
|
|
(519,646
|
)
|
|
|
(837,605
|
)
|
Total Liabilities and Stockholders' Deficit
|
|
$
|
358
|
|
|
$
|
214
|
|
The accompanying notes are an integral part of
these unaudited financial statements.
Team
360 Sports Inc.
Statements of Operations
(Unaudited)
|
|
|
For the
Three Months
Ended
June 30,
|
|
|
|
For the
Six Months
Ended
June 30,
|
|
|
|
|
2020
|
|
|
|
2019
|
|
|
|
2020
|
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
640
|
|
|
$
|
640
|
|
|
$
|
1,279
|
|
|
$
|
1,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation expenses
|
|
|
125,000
|
|
|
|
112,500
|
|
|
|
250,000
|
|
|
|
225,000
|
|
General and administration expenses
|
|
|
5,879
|
|
|
|
8,615
|
|
|
|
17,753
|
|
|
|
15,440
|
|
Total operating expenses
|
|
|
130,879
|
|
|
|
121,115
|
|
|
|
267,753
|
|
|
|
240,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from operations
|
|
|
(130,239
|
)
|
|
|
(120,475
|
)
|
|
|
(266,474
|
)
|
|
|
(239,161
|
)
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expense)
|
|
|
3,317
|
|
|
|
(1,388
|
)
|
|
|
(3,067
|
)
|
|
|
(2,562
|
)
|
Total other expense
|
|
|
3,317
|
|
|
|
(1,388
|
)
|
|
|
(3,067
|
)
|
|
|
(2,562
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before taxes
|
|
|
(126,922
|
)
|
|
|
(121,863
|
)
|
|
|
(269,541
|
)
|
|
|
(241,723
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(126,922
|
)
|
|
$
|
(121,863
|
)
|
|
$
|
(269,541
|
)
|
|
$
|
(241,723
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per common share
|
|
$
|
(0.02
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.05
|
)
|
Weighted average number of common shares outstanding, basic and diluted
|
|
|
5,131,612
|
|
|
|
5,131,612
|
|
|
|
5,131,612
|
|
|
|
5,131,612
|
|
The accompanying notes are an integral part
of these unaudited financial statements.
Team
360 Sport, Inc.
Statement of Stockholders’ Deficit
(Unaudited)
For the Six Months ended June 30, 2020
|
|
|
|
|
|
|
Additional
|
|
|
|
|
|
|
|
|
Common Stock
|
|
Paid in
|
|
Accumulated
|
|
|
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Deficit
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2019
|
5,131,612
|
|
$
|
5,132
|
|
$
|
1,345,600
|
|
$
|
(2,188,337)
|
|
$
|
(837,605)
|
|
Net loss for the period
|
—
|
|
|
—
|
|
|
—
|
|
|
(142,619)
|
|
|
(142,619)
|
Balance, March 31, 2020
|
5,131,612
|
|
|
5,132
|
|
|
1,345,600
|
|
|
(2,330,956)
|
|
|
(980,224)
|
|
Forgiveness of related party debt
|
—
|
|
|
—
|
|
|
587,500
|
|
|
—
|
|
|
587,500
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(126,922)
|
|
|
(126,922)
|
Balance, June 30, 2020
|
5,131,612
|
|
$
|
5,132
|
|
$
|
1,933,100
|
|
$
|
(2,457,878)
|
|
$
|
(519,646)
|
For the Six Months ended June 30, 2019
|
|
|
|
|
|
|
Additional
|
|
|
|
|
|
|
|
|
Common Stock
|
|
Paid in
|
|
Accumulated
|
|
|
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Deficit
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2018
|
5,131,612
|
|
$
|
5,132
|
|
$
|
783,100
|
|
$
|
(1,298,450)
|
|
$
|
(510,218)
|
|
Net loss for the period
|
—
|
|
|
—
|
|
|
—
|
|
|
(119,860)
|
|
|
(119,860)
|
Balance, March 31, 2019
|
5,131,612
|
|
|
5,132
|
|
|
783,100
|
|
|
(1,418,310)
|
|
|
(630,078)
|
|
Forgiveness to related party debt
|
—
|
|
|
—
|
|
|
562,500
|
|
|
—
|
|
|
562,500
|
|
Net loss for the period
|
—
|
|
|
—
|
|
|
—
|
|
|
(121,863)
|
|
|
(121,863)
|
Balance, June 31, 2019
|
5,131,612
|
|
$
|
5,132
|
|
$
|
1,345,600
|
|
$
|
(1,540,173)
|
|
$
|
(189,441)
|
The accompanying notes are an integral part
of these unaudited financial statements.
Team
360 Sports Inc.
Statements of Cash Flows
(Unaudited)
|
|
|
For the
Six
Months Ended
June
30,
|
|
|
|
|
2020
|
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(269,541
|
)
|
|
$
|
(241,723
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
Amortization of discount on convertible note
|
|
|
695
|
|
|
|
—
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
(622
|
)
|
|
|
2,077
|
|
Accrued compensation - related party
|
|
|
250,000
|
|
|
|
225,000
|
|
Deferred revenue
|
|
|
(1,278
|
)
|
|
|
(1,279
|
)
|
Net Cash Used In Operating Activities
|
|
|
(20,746
|
)
|
|
|
(15,925
|
)
|
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from loans
|
|
|
20,890
|
|
|
|
15,925
|
|
Net Cash Provided by Financing Activities
|
|
|
20,890
|
|
|
|
15,925
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
144
|
|
|
|
—
|
|
Cash, beginning of period
|
|
|
214
|
|
|
|
214
|
|
Cash, end of period
|
|
$
|
358
|
|
|
$
|
214
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
$
|
—
|
|
|
$
|
—
|
|
Cash paid for taxes
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosure of Non-Cash Financing Activity
|
|
|
|
|
|
|
|
|
Forgiveness of related party debt
|
|
$
|
587,500
|
|
|
$
|
562,500
|
|
The accompanying notes are an integral part
of these unaudited financial statements.
Team
360 Sports Inc.
Notes to Unaudited Financial Statements
June 30, 2020
NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS AND
GOING CONCERN
Organization
The Company incorporated in the State of Nevada
on February 26, 2013. Effective April 4, 2016, the Company changed its name to Team 360 Sports Inc. The Company will provide amateur
sports clubs, leagues and teams with easy to use robust digital administration management systems.
Going Concern and Liquidity Considerations
The accompanying financial statements have
been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the
normal course of business. The Company has had minimal revenue and has accumulated a deficit of $2,457,878 as of June 30, 2020.
The Company requires capital for its contemplated operational and marketing activities. The Company’s ability to raise additional
capital through the future issuances of common stock is unknown. The obtainment of additional financing, the successful development
of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations
are necessary for the Company to continue operations. These conditions and the ability to successfully resolve these factors raise
substantial doubt about the Company’s ability to continue as a going concern within one year from the date these financial
statements are issued. The financial statements of the Company do not include any adjustments that may result from the outcome
of these uncertainties.
The Company has discussed ways in order to
mitigate conditions or events that may raise substantial doubt about its ability to continue as a going concern, there are no assurances
that any of these measures will successfully mitigate or be effective at all. (1) The Company shall pursue financing plans to raise
funds to judiciously spend towards operational expenses, (2) The Company shall continue to employ low cost measures to operate
its business and analyze any unnecessary cost or expense, (3) The Company will seek to avoid unnecessary expenditures, travel,
and lodging costs that are not mission critical to its business, (4) The Company shall seek to continuously maximize its assets
and business licensing strategies to increase revenue as well as to gain new customers.
COVID-19
A novel strain of coronavirus (COVID-19) was
first identified in December 2019, and subsequently declared a global pandemic by the World Health Organization on March 11, 2020.
As a result of the outbreak, many companies have experienced disruptions in their operations and in markets served. The Company
has instituted some and may take additional temporary precautionary measures intended to help ensure the well-being of its managers
and minimize business disruption. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined
that there were no material adverse impacts on the Company’s results of operations and financial position at June 30, 2020.
The full extent of the future impacts of COVID-19 on the Company’s operations is uncertain. A prolonged outbreak could have
a material adverse impact on financial results and business operations of the Company, including the timing and ability of the
Company to obtain financing to fund the operation and to develop its business plan
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America for
interim financial statements and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States
Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes
required by accounting principles generally accepted in the United States of America for annual financial statements. In the
opinion of the Company’s management, the accompanying unaudited financial statements contain all the adjustments
necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of June 30, 2020
and the results of operations and cash flows for the periods presented. The results of operations for the period ended June
30, 2020 are not necessarily indicative of the operating results for the full fiscal year or any future period. These
unaudited financial statements should be read in conjunction with the financial statements and related notes thereto included
in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on April 15,
2020.
Revenue Recognition
The Company records revenue in accordance
with FASB Accounting Standards Codification (“ASC”) as topic 606 (“ASC 606”). The revenue recognition standard
in ASC 606 outlines a single comprehensive model for recognizing revenue as performance obligations, defined in a contract with
a customer as goods or services transferred to the customer in exchange for consideration, are satisfied. The standard also requires
expanded disclosures regarding the Company’s revenue recognition policies and significant judgments employed in the determination
of revenue.
On November 1, 2016, the Company entered into
a Licensing Agreement. The agreement grants the Licensee rights to grant sublicenses to third parties. The license agreement calls
for a one-time nonrefundable fee of $10,000 and a $3,000 set up and training fee. The license agreement also calls for a five percent
(5%) royalty on further sales by licensees, but no royalty fees have been received to date. All fees and royalty payments
are to be recognized over the life of the agreement, which terminates on December 1, 2021.
The setup and training services are
essential in allowing the licensee the ability to license the software to third parties. As a result, the license and set up and
training fees are not distinct from one another and constitute a single performance obligation under the contract. Therefore, the
onetime nonrefundable fee and the set up and training fees are being recognized over time.
The Company recognized $1,279 and $1,279 of
revenue during the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, and December 31, 2019, there was
deferred revenue of $3,624 and $4,902, respectively.
Earnings (loss) per share
Basic earnings (loss) per share
calculations are determined by dividing net income (loss) by the weighted average number of shares outstanding during each
period. Diluted earnings (loss) per share calculations are determined by dividing net income (loss) by the weighted average
number of shares. For the six months ended June 30, 2020, the Company had $350,000 in liabilities to settle stock and
$100,164 in convertible debt and accrued interest, representing 350,000 and 20,032,804 shares of
common stock not yet issued, respectively, and for the six months ended June 30, 2019, the Company had $112,500 in
liabilities to be settled in stock, representing 112,500 shares of common stock not yet issued, which are potentially
dilutive. Since the Company has incurred losses for all periods, the impact of the common stock equivalents would be anti-
dilutive and therefore are not included in the calculation.
NOTE 3 – LOAN PAYABLE
The loan payable is cash payment
for settlement of vendors’ invoices on behalf of the Company, at an interest rate of 10% per annum, matures on demand. On
July 6, 2019, the holder of this note demanded payment on the outstanding principle and interest of the loan in the amount of $66,240.
On July 8, 2019, the holder of the note agreed to refinance the outstanding amount into a convertible note (see Note 4).
During the six months ended June
30, 2020, the total of $20,890 was paid to vendors on behalf of the Company. The total outstanding balance as of June 30, 2020
and December 31, 2019 was $61,966 and $38,757, which included $58,310 and $37,420 of principal and $3,656 and $1,337 in accrued
interest, respectively. For the six months ended June 30, 2020 and 2019, the Company recorded $1,242 and $2,562 of interest expense,
respectively.
NOTE 4 – CONVERTIBLE NOTE PAYABLE
On July 9, 2019, the Company entered into
a convertible note agreement with the holder of the promissory note, whereby the holder agreed to refinance for an aggregate principal
amount of $66,240 and $25,000 for administrative and consulting fees for a total note amount of $91,240.
The note earns an interest rate equal to 10%
per annum and matures on January 1, 2021. The Company recorded a debt discount of $25,000 as result of the original issue discount.
The note is convertible at fixed rate of $0.005 of common stock. Because of the fixed nature of the conversion the Company determined
that there was no beneficial conversion feature which would have qualified it for derivative accounting under ASC 815-15, “Derivatives
and Hedging.”
For the six months ended June 30, 2020
and 2019, the Company recorded $695 and $0, respectively, in amortization of the debt discount on the note. The total outstanding
balance as of June 30, 2020 and December 31, 2019, was $100,164 and $99,416, which included $8,924 and $8,871 in accrued interest
and unamortized debt discount of $0 and $695, respectively. For the six months ended June 30, 2020 and 2019, the Company recorded
interest expense of $1,130 and $0, respectively. For the three months ended June 30, 2020, the Company recorded a recovery on interest
expense of $3,317, to reconcile accrued interest to actual.
NOTE 5 – RELATED PARTY TRANSACTIONS
On January 1, 2020, the Company amended
the January 1, 2015 Executive and Consulting Agreement with Sandor Miklos, President, and member of the Board of Directors for
services rendered. The amended agreement calls for annual compensation of 500,000 shares of the Company’s common stock fully
earned immediately to be assigned and registered fully as at the end of the fiscal year. In 2019 the compensation was 450,000 shares
annually. For the six months ended June 30, 2020, 250,000 shares valued at $1.00 per share for a total of $250,000 was accrued
as compensation for Sandor Miklos.
On June 30, 2020, Sandor Miklos forgave
accrued stock compensation owed to him valued at $587,500, which represents the compensation for the nine months of year 2019 ($337,500)
and the six months ended June 30, 2020 ($250,000).
On November 20, 2018, the Company
received a loan payable in the amount of $2,781 from a more than 5% shareholder for the payment of Company expenses. This loan
is unsecured, non-interest bearing, and has no specific terms for repayment. As of June 30, 2020, and December 31, 2019, the Company
had a loan payable of $2,781 to the same party.
NOTE 6 – SUBSEQUENT EVENTS
The
Company’s management evaluated subsequent events through the date the financial statements were issued and there were no
subsequent events to report.
Item 2. Management’s Discussion and
Analysis of Financial Condition and Results of Operations.
FORWARD-LOOKING STATEMENTS
This Report on Form 10-Q contains forward-looking
statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.
Reference is made in particular to the description of our plans and objectives for future operations, assumptions underlying such
plans and objectives, and other forward-looking statements included in this report. Such statements may be identified by the use
of forward-looking terminology such as “may,” “will,” “expect,” “believe,” “estimate,”
“anticipate,” “intend,” “continue,” or similar terms, variations of such terms or the negative
of such terms. Such statements are based on management’s current expectations and are subject to a number of factors and
uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. Such
statements address future events and conditions concerning, among others, capital expenditures, earnings, litigation, regulatory
matters, liquidity and capital resources, and accounting matters. Actual results in each case could differ materially from those
anticipated in such statements by reason of factors such as future economic conditions, changes in consumer demand, legislative,
regulatory and competitive developments in markets in which we operate, results of litigation, and other circumstances affecting
anticipated revenues and costs, and the risk factors set forth in the financial statements and related notes included on the Company’s
Annual Report on Form 10-K filed on April 15, 2020.
As used in this Form 10-Q, “we,”
“us,” and “our” refer to Team 360 Sports Inc., which is also sometimes referred to as the “Company.”
General Overview
We were incorporated in Nevada on February
26, 2013, and on April 4, 2016, amended the Articles of Incorporation to change the name of the company to Team 360 Sports Inc.
The Company provides amateur sports clubs, leagues and teams with easy to use robust digital administration management systems.
The Company has had minimal revenues as the
Company has been developing its technology and platform. The trend in the marketplace is to provide services to teams versus large
organizations such as leagues and clubs. The Company is planning to move into that marketplace, however there can be no assurances
that it will succeed.
The Company’s fiscal year end is December
31.
COVID-19
A novel strain of coronavirus (COVID-19) was
first identified in December 2019, and subsequently declared a global pandemic by the World Health Organization on March 11, 2020.
As a result of the outbreak, many companies have experienced disruptions in their operations and in markets served. The Company
has instituted some and may take additional temporary precautionary measures intended to help ensure the well-being of its managers
and minimize business disruption. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined
that there were no material adverse impacts on the Company’s results of operations and financial position at June 30, 2020.
The full extent of the future impacts of COVID-19 on the Company’s operations is uncertain. A prolonged outbreak could have
a material adverse impact on financial results and business operations of the Company, including the timing and ability of the
Company to obtain financing to fund the operation and to develop its business plan.
Results of Operations
The following discussion and analysis
should be read in conjunction with our company’s unaudited financial statements for the six months ended June 30, 2020 and
2019 and accompanying notes appended thereto that are included in this quarterly report.
For the Three Months Ended
June 30, 2020 and 2019
Our operating results for the three
months ended June 30, 2020 and 2019, are as follows:
|
|
Three Months Ended
|
|
|
|
|
June 30,
|
|
|
|
|
2020
|
|
2019
|
|
Changes ($)
|
Revenues
|
|
$
|
640
|
|
|
$
|
640
|
|
|
$
|
—
|
|
Operating expenses
|
|
|
130,879
|
|
|
|
121,115
|
|
|
|
9,764
|
|
Interest recovery (expense)
|
|
|
3,317
|
|
|
|
(1,388
|
)
|
|
|
4,705
|
|
Net loss
|
|
$
|
126,922
|
|
|
$
|
121,863
|
|
|
$
|
5,059
|
|
Revenues is related to Licensing Agreement
dated November 1, 2016. The onetime nonrefundable fee and the set up and training fees are being recognized over the life of agreement,
which terminates on December 1, 2021.
Operating Expenses
For the three months ended June
30, 2020, operating expenses were $125,000 for related party compensation expenses, $4,230 for professional fees, and $1,649 for
office expenses.
For the three months ended June
30, 2019, operating expenses were $112,500 for related party compensation expenses, $7,460 for professional fees, and $1,155 for
office expenses.
Other Revenue (Expenses)
For the three months ended June
30, 2020 and 2019, other income (expense) was $3,317 and ($1,388), for interest on loans, respectively. During the three month
period ended June 30, 2020, the Company recognized a recovery on interest expense, to reconcile accrued interest to actual at June
30, 2020.
For the Six Months Ended June
30, 2020 and 2019
Our operating results for the six
months ended June 30, 2020 and 2019, are as follows:
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
|
2020
|
|
2019
|
|
Changes ($)
|
Revenues
|
|
$
|
1,279
|
|
|
$
|
1,279
|
|
|
$
|
—
|
|
Operating expenses
|
|
|
267,753
|
|
|
|
240,440
|
|
|
|
27,313
|
|
Interest expense
|
|
|
3,067
|
|
|
|
2,562
|
|
|
|
505
|
|
Net loss
|
|
$
|
269,541
|
|
|
$
|
241,723
|
|
|
$
|
27,818
|
|
Revenues is related to Licensing Agreement
dated November 01, 2016. The onetime nonrefundable fee and the set up and training fees are being recognized over the life of agreement,
which terminates on December 1, 2021.
Operating Expenses
For the six months ended June 30, 2020, operating
expenses were $250,000 for related party compensation expenses, $15,230 for professional fees, and $2,523 for office expenses.
For the six months ended June 30,
2019, operating expenses were $225,000 for related party compensation expenses, $12,879 for professional fees, and $2,561 for office
expenses.
Other Expenses
For the six months ended June 30,
2020 and 2019, other expenses were $3,067 and $2,562 for interest on loans, respectively and $695 and $0 for amortization discount
on convertible note, respectively.
Liquidity and Capital Resources
The following table provides selected
financial data about our company as of June 30, 2020 and December 31, 2019, respectively:
Working Capital
|
|
June 30,
|
|
December 31,
|
|
|
2020
|
|
2019
|
Cash
|
|
$
|
358
|
|
|
$
|
214
|
|
|
|
|
|
|
|
|
|
|
Current Assets
|
|
|
358
|
|
|
|
214
|
|
Current Liabilities
|
|
|
520,004
|
|
|
|
837,819
|
|
Working Capital (Deficiency)
|
|
$
|
(519,646
|
)
|
|
$
|
(837,605
|
)
|
Cash Flows
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
|
2020
|
|
2019
|
|
Changes ($)
|
Cash Flows (used in) Operating Activities
|
|
$
|
(20,746
|
)
|
|
$
|
(15,925
|
)
|
|
$
|
(4,821
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows provided by Financing Activities
|
|
|
20,890
|
|
|
|
15,925
|
|
|
|
4,965
|
|
Net Change in Cash During Period
|
|
$
|
144
|
|
|
$
|
—
|
|
|
$
|
144
|
|
As of June 30, 2020, and December 31, 2019,
our current assets were $358 and $214, respectively, solely from cash.
As of June 30, 2020, our current liabilities
and working capital deficiency decreased as compared to December 31, 2019, primarily from the forgiveness of related party debt.
As of June 30, 2020, current liabilities
consisted primarily from $350,000 to liabilities to be settled in stock, $91,240 to convertible notes payable, $61,966 to loan
payable, $2,781 due to related party, $10,393 to accounts payable and accrued liabilities and $3,624 to deferred revenue.
As of December 31, 2019, our
current liabilities consisted primarily from $350,000 to liabilities to be settled in stock, $337,500 to accrued related
party compensation, $90,545 to convertible notes, $38,757 to loan payable, $2,781 due to related party, $13,334 to accounts
payable and accrued liabilities and $4,902 to deferred revenue.
Operating Activities
During
the six months ended June 30, 2020, net cash used in operating activities was $20,746, compared to $15,925 for the six months ended
June 30, 2019.
The net cash used in operating activities for
the six months ended June 30, 2020 was attributed to a net loss of $269,541, decreased by an accrued related party compensation
of $250,000, accrued interest of $2,372, amortization of discount on convertible note of $695 and increased by a deferred revenue
of $1,278 and increased by a change in accounts payable and accrued liabilities of $2,994.
The net cash used in operating activities for
the six months ended June 30, 2019 was attributed to a net loss of $241,723, decreased by an accrued related party compensation
of $225,000, decreased by a change in accounts payable and accrued liabilities of $2,077 and increased by a deferred revenue of
$1,279.
Investing Activities
The Company did not use any funds for investing
activities during the six months ended June 30, 2020 and 2019.
Financing Activities
During
the six months ended June 30, 2020, net cash provided by financing activities was $20,890, compared to $15,925 for the six months
ended June 30, 2019, from loans.
Off-Balance Sheet Arrangements
As of June 30, 2020, the Company
had no material off-balance sheet arrangements.
Critical Accounting Policies and Estimates
The preparation of financial statements and
related disclosures in conformity with U.S. generally accepted accounting principles and the Company’s discussion and analysis
of its financial condition and operating results require the Company’s management to make judgments, assumptions and estimates
that affect the amounts reported. Management bases its estimates on historical experience and on various other assumptions it believes
to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of
assets and liabilities. Actual results may differ from these estimates, and such differences may be material.