Our total operating expenses for the six months ended July 31, 2019 of $99,609 consisted of $4,560 of selling, general and administrative expenses, $5,257 of professional fees, consulting expense of $84,000, bad debt expense of $4,500, and $1,292 of amortization and depreciation expenses. Our general and administrative expenses consist of bank charges, telephone expenses, meals and entertainments, computer and internet expenses, postage and delivery, office supplies and other expenses.
Our total operating expenses for the six months ended July 31, 2018 of $173,961 consisted of $8,895 of selling, general and administrative expenses, $21,908 of professional fees, consulting expense of $111,500, payroll of $21,783, marketing and advertising of $8,990, and $885 of amortization and depreciation expenses. Our general and administrative expenses consist of bank charges, telephone expenses, meals and entertainments, computer and internet expenses, postage and delivery, office supplies and other expenses.
Net Loss
Our net loss from operations of $341,929 for the six months ended July 31, 2019 decreased from $475,317 for the six-month period ending July 31, 2018. The accumulated deficit recognized during the year ended January 31, 2019 of $1,431,050 to a total accumulated deficit of $1,772,979. The decrease in net loss for the six months ended July 31, 2019 as compared to July 31, 2018 was attributed to the decrease of sales of $38,290, a decrease in cost of sales of $59,038, and a decrease in operating expenses of $74,353.
Liquidity and Capital Resources
Introduction
During the six months ended July 31, 2019 we utilized $0 in cash. Our cash on hand as July 31, 2019 was $0. Currently all operating costs are being accrued.
Cash Requirements
We had cash available of $0 as of July 31, 2019. Based on our revenues, cash on hand and current monthly burn rate, we must rely on financing to fund current operations on a daily basis. Currently all operating costs are being accrued as accounts payable.
Sources and Uses of Cash
Operations
We used $7,487 in cash by operating activities for the three months ended July 31, 2019, as compared to cash received in the amount of $92,688 for the six months ended July 31, 2018.
Net cash used by operations consisted primarily of the net loss of $341,929 offset by non-cash expenses of $243,610 in depreciation and amortization of assets. Additionally, changes in assets and liabilities consisted of decreases of $4,500 in accounts receivable, prepaid expenses of $99 and $86,233 in accounts payable.
Investments
We had a decrease in cash of $0 in investing activities for the six months ended July 31, 2019 compared to using $13,811 for the six months ended July, 2018. The increase in cash for investing was solely due to selling our assets held for Sale. This amount is offset by cash received from financing as the related party borrowing was decreased by $408,166 due to the assets held for sale.
Financing
We had a decrease in net cash provided for financing activities of $7,487 in the six months ended July 31, 2019 due to borrowings from related parties. For the six months ended July 31, 2018 the company borrowed $92,091 from related parties.
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 we consider material.
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