ACQUISITION OF THE SMSA CRANE: MANAGEMENT’S ANALYSIS OF THE FINANCIAL SITUATION AND OPERATING RESULTS. (form 10-Q)
Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected results of operations, and the assumptions on which such statements are based, are “statements”. prospective ”. These forward-looking statements are generally identified by the words “believes”, “plan”, “expects”, “plans”, “believes”, “intention”, “strategy”, “plan”, “may”. , “” “” Would “,” would “,” continue “,” will probably result “and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from forward-looking statements. Our ability to predict the actual results or effect of future plans or strategies is inherently uncertain. Factors that could have a material adverse effect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative / regulatory changes, availability of capital, rates interest, competition and generally accepted accounting principles. These risks and uncertainties should also be taken into account in evaluating forward-looking statements and one should not place undue reliance on such statements.
Our business plan is to pursue a business combination through acquisition or merger with an existing company seeking the perceived benefits of being a publicly traded company. We do not limit our potential target companies to any specific business, industry or geographic location. No guarantee can be given that we will be successful in locating or negotiating with a target company.
Our continued existence depends on our ability to generate new funding or sufficient cash flow to continue our reporting obligations to the
Expected changes in the number of employees, factories and equipment
We do not currently plan to purchase specific additional physical facilities and major equipment in the immediate future. We currently have no specific plans to change the number of our employees over the next twelve months.
Results of Operations
For the three and nine months ended
The Company recorded no sales for the three and nine months ended
The following table shows our total operating expenses for the three and nine months ended.
Three months ended Nine months ended September 30, September 30, 2020 2019 2020 2019 Professional fees
$ 569 $ 1,056 $ 21,117 $ 3,335
Other general and administrative expenses 2,039 1,160 7,560 2,815 Operating expenses
$ 2,608 $ 2,216 $ 28,677 $ 6,150
The operating expenses consist mainly of the costs of maintaining the corporate entity and the preparation and filing of reports with the
Liquidity and capital resources
made up of cash only. At
Since its inception, the Company has financed its cash requirements from the sale of common shares and advances from related parties. Uses of funds have included activities to establish our business, professional fees and other general and administrative expenses.
We believe that the Company will need additional resources to implement its strategic objectives in the coming quarters. However, due to our lack of operating history, our auditors indicated in their audit report on the
financial statements that there is substantial doubt as to our ability to continue to operate. From
The Company’s ability to continue operating depends, among other things, on obtaining additional financing to continue its deposits with the
The following table provides detailed information about our free cash flow for the periods presented in this report.
Cash Flow Nine months ended
September 30, 20202019
Net cash used in operating activities
Net cash flow generated by investing activities
- - Net cash provided by financing activities - - Net cash (outflow)
$ (16,118) $ (2,826)Operating Activities
Cash used in operating activities for the nine months ended
Net cash flow generated by our investing activities for the nine months ended
Net cash flow generated by our financing activities for the nine months ended
Pending the completion of a potential future business combination, we are not engaged in any commercial activity. Our only operating activities are to comply with
Off-balance sheet provisions
10 Critical Accounting Policies
stated that a “critical accounting policy” is a method that is both important for the representation of a company’s financial position and results, and requires the most difficult, subjective or complex judgments of management, often because of the need to make estimates on the effect of questions that are inherently uncertain. We do not believe that any accounting policy currently meets this definition.
Recently published accounting position papers
Our management has taken into consideration all the recent accounting pronouncements issued since the last audit of our financial statements. Our management believes that these recent statements will not have a material impact on our financial statements.
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