ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FORWARD-LOOKING STATEMENTS
This Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains forward-looking statements that involve known and unknown risks, significant uncertainties and other factors that may cause our 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 those forward-looking statements. You can identify forward-looking statements by the use of the words may, will, should, could, expects, plans, anticipates, believes, estimates, predicts, intends, potential, proposed, or continue or the negative of those terms. These statements are only predictions. In evaluating these statements, you should consider various factors which may cause our actual results to differ materially from any forward-looking statements. Although we believe that the exceptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
RESULTS OF OPERATIONS
Working Capital
|
|
|
At January 31, 2017
|
|
|
At April 30,
2016
|
|
|
Current Assets
|
|
$
|
4,550
|
|
|
$
|
14,401
|
|
|
Current Liabilities
|
|
|
30,443
|
|
|
|
28,740
|
|
|
Working Capital
|
|
$
|
(25,893
|
)
|
|
$
|
(14,339
|
)
|
Cash Flows
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|
|
Nine Months Ended January 31, 2017
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|
|
Nine Months Ended January 31, 2016
|
|
|
Cash Flows used in Operating Activities
|
|
$
|
(10,701
|
)
|
|
$
|
(27,135
|
)
|
|
Cash Flows From Financing Activities
|
|
$
|
850
|
|
|
$
|
26,390
|
|
|
Net Decrease/ Increase in Cash During Period
|
|
$
|
(9,851
|
)
|
|
$
|
(745
|
)
|
The decrease in our working capital at January 31, 2017 from the period ended April 30, 2016 is reflective of the current state of our business development.
As of January 31, 2017, we had cash on hand of $4,550. Since our inception, we have used our common stock to raise money for our operations and for development of our current business plan. We have not attained profitable operations and are dependent upon obtaining financing to pursue our plan of operation.
Operating Revenues
We have not generated any revenues since inception.
Operating Expenses and Net Loss
O
perating expenses for the three month period ended January 31, 2017 was $3,203 as compared to
operating expenses for the three month period ended January 31, 2016 was $3,710. This was attributed to the decrease in operating expenses for the Company, due to the Company’s inability to raise the necessary funds to meet operating expenses.
Operating expenses for the nine month period ended January 31, 2017 was $11,554 as compared to
operating expenses for the nine month period ended January 31, 2016 was $27,135. This was attributed to the decrease in operating expenses for the Company, due to the Company’s inability to raise the necessary funds to meet operating expenses.
Liquidity and Capital Resources
As of January 31, 2017, the Company’s cash balance was $4,550 compared to $14,401 as at April 30, 2016 and its total assets were $4,550 compared with $14,401 as at April 30, 2016. The decrease in total assets is attributed to the decreased costs associated with ongoing reporting requirements and the Company’s inability to raise funds.
As of January 31, 2017, the Company had total liabilities of $30,443 compared with total liabilities of $28,740 as at April 30, 2016. The change in total liabilities was attributed to increases in accounts payable due to the Company’s inability to raise funds.
As of January 31, 2017, the Company had a working capital deficit of $(25,893) compared with $(14,339) as of April 30, 2016. The increase in working capital deficit was attributed increases in accounts payable and the costs associated with ongoing reporting requirements.
Cashflow from Operating Activities
During the nine month period ended January 31, 2017, the Company used $10,701 of cash for operating activities. This was attributed to the decrease in operating expenses for the Company, due to the Company’s inability to raise the necessary funds to meet their ongoing operating expenses.
During the nine month period ended January 31, 2016, the Company used $27,135 of cash for operating activities. This was attributed to the operating expenses for the Company, in conjunction with their ongoing operating expenses and reporting requirements.
Cashflow from Financing Activities
During the nine month period ended January 31, 2017, the Company received $850 of cash from financing activities.
During the nine month period ended January 31, 2016, the Company received $26,390 of cash from financing activities. This amount was received from advances from our directors and officers.
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.
Going Concern
We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive activities. For these reasons, our auditors stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing.
Future Financings
We will continue to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund planned acquisitions and current development activities.
Critical Accounting Policies
We have identified certain accounting policies, described below, that are most important to the portrayal of our current financial condition and results of operations. Our significant accounting policies are disclosed in the notes to the financial statements included in this Quarterly Report.
Use of Estimates
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 amounts reported in the financial statements and accompanying notes for the reporting period. Significant areas requiring the use of management estimates relate to the valuation of its mineral leases and claims and our ability to obtain final government permission to complete the project.
Recent Accounting Pronouncements
The Company does not expect that the adoption of any recent accounting standards to have a material impact on its financial statements.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by our company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our management carried out an evaluation under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 ("Exchange Act"). Based upon that evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures were not effective as of January 31, 2017, due to the material weaknesses resulting from the Board of Directors not currently having any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K, and controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements.
Changes in Internal Control over Financial Reporting
Our management has also evaluated our internal control over financial reporting, and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of our last evaluation.
The Company is not required by current SEC rules to include, and does not include, an auditor's attestation report. The Company's registered public accounting firm has not attested to Management's reports on the Company's internal control over financial reporting.